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Japan scoffs at review of economic deal

Manila Standard | 28 December 2007

Japan scoffs at review of economic deal

By Michael Caber

Tokyo is not amenable to a renegotiation of the Economic Partnership Agreement it has signed with Manila, according to an official of the Japanese Embassy in the Philippines.

The Japanese parliament has ratified the pact but the Philippine Senate has refused to act on it and that would be a loss for the Filipinos, according to Shimpei Ishido, second secretary of the Japanese Embassy’s economic section.

If the Philippines ratifies the pact, then Japan will agree to work out a side deal that will ensure that the agreement does not violate the constitution of either countries, Ishido said.

Without an EPA, the Philippines will be low priority in Japan in terms of trade and investments, according to Ishido.

Japan has several EPAs under negotiation apart from the Philippine agreement, which seeks to remove barriers to the flow of trade and investment between the two countries.

“We have ongoing negotiation for EPAs with the European Union and India; therefore, if the JPEPA is not ratified here its priority would be lower than the other EPAs,” Ishido said.

Japan has EPAs with Singapore, Malaysia, Taiwan, Indonesia and Brunei. An EPA with Vietnam is under negotiations.

“We do not expect any renegotiations if the JPEPA is not ratified. It is not likely that it will be submitted to Congress again,” Ishido said.

Ishido said that he is optimistic JPEPA will pass the Senate’s muster.

“The momentum is changing. In the first five hearings, the government explanation was not very good and [the senators] were very negative. In the last hearings, the focus was on trade in goods and the government was more prepared in their presentation. The momentum is stronger and we hope to have [the JPEPA] ratified.”

Ishido pointed out that Japan is very much willing to talk about a side agreement on the constitutionality of the JPEPA.

“JPEPA is beneficial to both countries, that’s why we want to see it ratified soon,” Ishido explained. “We want its ratification as early as possible. The Japan-Indonesia EPA is nearing implementation and we want to get JPEPA ratified too.”

The Japanese diplomat said the treaty’s chapter on the Movement of Natural Persons was especially beneficial to the Philippines as it would allow Filipino nurses and caregivers to practice in a country that has one of the strictest immigration rules.

The JPEPA does not impose a quota for Filipino nurses and caregivers who can work in Japan. Philippine labor negotiators were able to insist that the number should be market-driven, not specified in the treaty.

There have been fears the agreement will enable Japan to dump its toxic garbage in the Philippines, a claim rejected by administration officials.

Constitutionalists also argued that the treaty violated the Constitution, which gave Filipino investors full ownership if not a greater share in certain industries, including mining, fisheries, and mass media, among others. Under the JPEPA, Japanese investors would almost be at par with their Filipino counterparts in the management of these industries.

Earlier, Foreign Affairs Secretary Alberto Romulo clarified that the Japan already sent a letter to the Philippine government promising not to dump toxic waste and any other harmful chemical materials to the Philippines.

The Japan government has been urging the groups and politicians in the Philippines that have been criticizing and opposing the JPEPA to see the benefit that the treaty can give to both countries.

Kazuyuki Yamazaki, assistant press secretary and director of Japan International Press Division, said that it is very important to see the entire pact and see what the agreement can bring to both countries.

“I think the agreement is good for both countries, for Japan and Philippines,” Yamazaki said.


 source: Manila Standard