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MANILA (AFP) - Philippines President Gloria Arroyo will reassure Japanese investors that a landmark bilateral free trade deal will be ratified by a Senate now likely to be dominated by her political foes, an official said Monday.

Arroyo and her economic advisers are to fly to Japan Tuesday for a three-day visit, during which they will brief businessmen on the progress of the Japan-Philippine Economic Partnership Agrement, Trade Secretary Peter Favila said.

He said Japanese investors were waiting for its ratification, which has been held up by the Senate after environmentalists alleged that it would allow Tokyo to ship hazardous waste here. Japan has denied the allegation.

Favila said that some 200 Japanese investors were waiting for its final ratification before relocating here.

"We are keeping our fingers crossed that once the new Congress come into effect, the Senate would really find time to work on this act," Favila said.

"We're doing everything to get this act ratified," he said, while stressing that due to the nature of the Philippine's political system, "it's in the hands of the Senate."

Arroyo appears set to lose control of the Senate, with incomplete results of the May 14 congressional polls indicating that her candidates were losing to opposition politicians.

The trade deal was signed by Arroyo and the then Japanese prime minister Junichiro Koizumi on the sidelines of an Asia-Europe summit in Helsinki in September.

Tokyo says the deal was a first because it included provisions on the movement of labour while removing tariffs on more than 90 percent of goods traded between the two countries.

Meanwhile, the Philippine government is expecting major investment pledges during the trip as well as approval of a loan package from Tokyo.

ARROYO

ASIA-EUROPE

FAVILA

JAPAN TUESDAY

JAPAN-PHILIPPINE ECONOMIC PARTNERSHIP AGREMENT

JAPANESE

JUNICHIRO KOIZUMI

PHILIPPINES PRESIDENT GLORIA ARROYO

SENATE

TRADE SECRETARY PETER FAVILA

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