Japanese loan mere ‘grease money’ for JPEPA—militant group
Philippine Daily Inquirer | 03 January 2008
Japanese loan mere ‘grease money’ for JPEPA—militant group
By Jerome Aning
MANILA, Philippines — A militant fisherfolk group opposed to the ratification of the controversial Japan-Philippine Economic Partnership Agreement (JPEPA) Thursday described as mere “grease money” the US$173 million loan granted to the Philippines by the Japanese government through the Japan Bank for International Cooperation (JBIC).
“The loan was meant to speed up the Senate concurrence to the economic agreement. It’s not really an economic aid; it’s more of grease money,” the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas said in a statement.
Pamalakaya chair Fernando Hicap told reporters that Japan was becoming “desperate” and was using its financial institutions such as JBIC to court the Philippine government and the Senate, which said it would settle the treaty’s fate within the first quarter of 2008.
The fishers group is opposed to JPEPA, saying Filipino fishermen would not be able to compete with modern Japanese fishing fleets that would be allowed in Philippine waters.
According to Hicap, the Philippine tuna industry alone stands to lose P43.5 billion in potential annual earnings with the “invasion” of Japanese “factory ships” that would search for tuna in the country’s exclusive economic zone.
Hicap also cited the estimates of the Department of Finance (DOF) said that the country may lose P4.75 billion in revenue collections in 2008 once the Upper Chamber ratifies the pact.
Finance Undersecretary Gil Beltran said JPEPA will result in foregone revenues ranging from P3.2 billion to P4.75 billion on the first year of the implementation.
He said, however, that the benefits the country will gain from JPEPA would be felt after the first year. He added that the he anticipated loss in revenues will be compensated later by the outpouring of Japanese investments, employ generation and the taxes that will be raised from these economic activities.
Pamalakaya said the total loss in income for the two sectors — revenues from collections of tax duties and tuna would be P48.5 B if JPEPA is ratified by the Senate this year.
“We are giving away practically everything to Japanese multinationals courtesy of JPEPA. This treaty must be confronted with a patriotic war,” Hicap said.
“The ratification of JPEPA is a national suicide. Senators pushing this modern-day economic enslavement should set aside their allegiance to Japanese monopoly capital and instead, uphold the national interest and collective wisdom of the Filipino people,” he said.
He said the Japanese loan was “show money” and, at the same time, “a financial statement that all those who will go for JPEPA will reap juicy dividends and fat kickbacks from Japanese multinationals.”
The Department of Foreign Affairs (DFA), which broke out the news about the loan, said the money would go to the agrarian reform program and Pinatubo rehabilitation.
According to DFA, the agrarian reform program will receive $108.61million while the Pinatubo rehabilitation program will receive $65.5 million. These programs are covered by the 27th Yen Loan Package which supports the Agrarian Reform Infrastructure Support Project (ARISP) I and II.
Under these programs, integrated package of support of services that include the building of small-sized irrigation facilities, farm to market roads, and market information centers, as well as providing trainers for farmers are covered.
