Press Release
August 19, 2007

ROXAS TO EXEC: DO YOUR HOMEWORK ON JPEPA
SAYS NATIONAL INTEREST PARAMOUNT IN ANY INT'L TRADE DEAL

Senator Mar Roxas advised the executive branch to come armed with a package of safeguards when it attends Senate hearings on the Japan-Philippines Economic Partnership Agreement (JPEPA).

The Chairman of the Senate Trade committee said that JPEPA, like any other trade and economic agreement that the Philippines has encountered or will be encountering, comes with tradeoffs from all parties involved. This means there will be both gains and threats to local industries and the economy as a whole.

"My vote, as well as that of my colleagues, for or against JPEPA will not solely depend on the text of the 974-page treaty but more importantly on how the government intends to address perceived threats or losses," he said.

"Ang kaisa-isang lente na dapat gamitin dito ay kung ano ang pambansang interes natin, at sana maipaliwanag ito nang husto ng mga dadalo sa mga hearing," Roxas said.

For instance, in the case of the automotive sector, the Philippines allowed tariff concessions to Japan . "A Japanese car maker could say, 'why do I have to deal with high electricity costs and red tape? I'll just manufacture it in Japan and send it here.' That is a direct threat," he said.

"The government has to come to the Senate with a package that says, 'for these affected industries, these are safety nets, this is what we intend to do to safeguard the interests of companies and workers'," he said, adding that this is the 'homework' of the executive branch. "There is no excuse for showing up without these safeguards because JPEPA has been in everyone's radar screen for months now."

In the case of nurses and caregivers, he said the stringent requirements imposed in JPEPA, including knowledge of the Japanese language, should be matched by a plan to utilize Official Development Assistance (ODA) to assist local nurses and caregivers to pass these requirements.

"What we would like to see is how we can redirect some of our ODA into learning centers so that our nurses and caregivers can learn to speak and write Japanese. Therefore, we could convert that 'theoretical' benefit, of entry of the Filipino workers into Japan , into a real one, he said.

Meanwhile, on the perceived threat of toxic wastes entering the country, Roxas said that the government must give "a clear statement" that the Republic Act 6969�the law regulating toxic and hazardous wastes�will not be superseded.

Roxas' initial review of the JPEPA points to four salient issues: 1) on how the treaty will affect trade in goods; 2) on how Philippine nurses and caregivers will be allowed entry in Japan; 3) on whether toxic wastes will be allowed entry to the Philippines; and 4) other trade, legal and treaty issues.

On trade matters, Roxas said Japan is one of the Philippines ' top trade partners, with $7.2 billion in exports and $8 billion in imports. This accounts for 17.4% of total Philippine exports and 16.9% of total Philippine imports.

Of this, he noted that most of this�at least $5.6 billion of exports and $4.8 billion of imports�are already tariff-free, most of which are electronics, semiconductors and related components.

Of the remainder, at least $400 million in exports and $500 million in imports are seen as beneficial. Gains in exports include bananas, seafood, and other agricultural products. Gains in imports are raw materials and other inputs to production, such as iron, steel, and related products.

Meanwhile, at least $1.9 billion worth of imports are seen as threats, as these pertain to finished goods that could compete with locally produced goods. These include automobiles, electrical appliances, and garments.

On nurses and caregivers, Roxas said the conditions for entry to Japan were stringent, with our nurses and caregivers being required to learn Nihongo in order to pass written licensure examinations in the said language.

On the toxic waste issue, Roxas said the simple reduction to 0% of toxic waste items does not mean that these will be allowed entry into the Philippines . He said it is RA 6969, as well as the Basel Convention, that prevents the entry of toxic wastes.

He also identified other issues pertaining which need clarification. These are:

1) the adoption of the " Singapore Issues" which the Philippines has not yet committed to the World Trade Organization (WTO);

2) the allegedly complex Rules of Origin, which could effectively increase the cost of trade;

3) ensuring that Safeguard Measures are adequate; and

4) the process by which JPEPA and other treaties are negotiated and consulted with affected constituents.

Roxas, who was formerly Trade secretary, was the Philippines ' lead negotiator in several ministerial meetings of the WTO Doha Development Round. He was among the key figures leading Third World nations in ensuring that their interests are protected against aggressive moves of the First World .

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