Philippines urges speedy PJEPA review

MANILA, Philippines — The Philippines is wants a faster conclusion of the ongoing general review of the Philippines-Japan Economic Partnership Agreement (PJEPA), even as it continues to push for improved market access for some of its products, according to an official of the Department of Trade and Industry (DTI).

In an interview with reporters Trade Undersecretary Allan Gepty  said that one of the priorities of the country in the general review is to seek enhanced market access for its bananas, particularly bringing down the tariffs.

“But now, we’re really advocating and we’re pushing Japan to accelerate the review and the pending issues and other interests that we would like to be covered, to be concluded already,” he said.

“Of course, there are also certain products that we’re working on that hopefully will be given additional or enhanced market access in Japan,” he added.

Asked about the timeline for completing the general review, Gepty said that it would depend on the ambitions of both countries.

“It’s a negotiation. So, right now if you’re going to ask me as to the timeline, of course there are many issues, many elements that we intend to cover, so basically it would really depend on the ambitions of Japan and the Philippines,” Gepty said.

“But for the Philippines, our offensive interest and policy direction on that is very clear. And we would like to conclude that ASAP,” he added.

Gepty said that one of the priorities of the country in the general review is to seek enhanced market access for its bananas, with a particular focus on bringing down the tariffs.

“So, our producers are lobbying to improve their market access for bananas, and that includes other tropical fruits that we are constantly advocating to improve,”Gepty said.

Based on Japan’s tariff schedule as of Jan. 1, bananas imported from the Philippines from Oct. 1, 2023 to March 31 are subjects to a tariff of 18 percent. This is higher than the eight percent tariff slapped on Philippine bananas during the summer season or from April 1 to Sept. 30.

In a recent statement, the Department of Agriculture (DA) said it is already coordina­ting with the DTI to secure a preferential tariff rate for Philippine bananas, which is under threat from rising shipments from Cambodia, Laos, Mexico and Vietnam. Japan gives a zero or preferential tariff for bananas coming from those countries.

“Philippine bananas are staples for Japanese consumers, accounting for 22 percent of their food basket. The Philippines’ proximity to Japan allows the country to deliver low-cost bananas and other tropical fruits compliant with Japanese food standards,” the DA said.

On the part of Japan, Gepty said they are pushing for lower tariffs on automotive parts and industrial goods.

The PJEPA is the country’s first bilateral free trade agreement that entered into force in 2008.

It covers trade in goods, trade in services, investments, movement of natural persons, intellectual property, government procurement, competition, and improvement of business environment, among others.