Philippines targets completion of Japan trade pact by November

MANILA, Philippines — The Philippines is aiming to conclude the review of its free trade agreement (FTA) with Japan in November this year, according to the Department of Trade and Industry (DTI).

Trade Secretary Cristina Roque told reporters that the review of the Philippines-Japan Economic Partnership Agreement (PJEPA), long pushed by DTI, is now underway.

“We’re already talking. We’re hoping to get it signed by November,” she said.

She said that the review started following President Marcos’ state visit to Japan last month.

The Philippines has been pushing for a review of the PJEPA, which entered into force in 2008, to modernize the agreement, as several developments have taken place since then.

Under the PJEPA, the trade pact will be subject to review in 2011 and every five years thereafter.

While a meeting for the PJEPA’s review took place in 2019, it did not lead to new concessions.

Under the current review, Roque said that the Philippines is pushing for greater market access through lower tariff for bananas being shipped to Japan.

The country’s banana exports to Japan are imposed with a tariff of eight or 18 percent, depending on the season.

Meanwhile, Japan is seeking improved market access for its automobiles.

Motor vehicles from Japan with an engine displacement of three liters and below are subject to a 20 percent tariff.

The PJEPA is the country’s first bilateral FTA. It covers trade in goods, rules of origin, customs procedures, trade in services, investment, movement of natural persons, intellectual property, government procurement, competition and business environment, among others.

Meanwhile, Roque said that the country is close to concluding negotiations for its FTA with Canada.

She will be joining Marcos’ trip to Canada from July 1 to 4.

“We’re hoping again to get investments,” she said, citing agriculture, technology and energy as priority sectors.