Japan- Philippines Economic
Partnership Agreement
(Kasunduang Pangkabuhayan ng Hapon at Pilipinas)
Definition and facts of JPEPA
 An economic partnership agreement concerning bilateral investment and
free trade agreement between Japan and the Philippines
 It was signed in Helsinki, Finland on September 9,2006
 Signed by Philippines: President Gloria Macapagal Arroyo and Prime
Minister Junichiro Koizumi
 The first bilateral trade treaty which the Philippines has entered since the
Parity Right Agreement of 1946 with the United States
 This treaty consists of 16 chapters and 165 Articles with 8 Annexes.
 Ratified by the Senate of the Philippines on 2008
Three key pillars of JPEPA
Liberalization
Facilitation
Cooperation
Advantages of JPEPA
 JPEPA is market opening together with cooperation- representing a new age of
free trade area (FTA), includes smooth movement of people, capital, and
information and areas like investment and trade facilitation, as well as
cooperation in Science and Technology, Human resource development, small
and medium enterprises and the environment
 Potential gains and opportunities- Philippine exports, Japan’s foreign direct
investment and development assistance
 Market Openings in goods- Removal of tariffs of both parties will make it easier
for imports and exports to happen.
 Market access in Services- Not just in goods, Japan and Philippines will be more
accessible in Services.
 Improving the agreement and the Dispute Settlement Mechanism- Creation of
subcommittees.
 Provides special exceptions for environmental protection
Disadvantages and issues of JPEPA
 Environmentalists claim that it violates certain laws such as:
 People’s right to health (Article II, Section 15)
 Right to a balanced and healthful ecology (Article II, Section 16)
 Toxic Substance and Hazardous and Nuclear Waste Act of 1990 (RA 6969)
 An act to safeguard the health of the People and maintain the dignity of the
nation by declaring it a national policy to prohibit the commercial importation of
textile articles commonly known as Used clothing and rags (RA 4653)
 The Basel Convention on the control of Transboundary Movements of Hazardous
Wates and their Disposal
Disadvantages and issues of JPEPA
 Some Japanese groups mobilized to stop the deal for many reasons
including:
 Overlook the real and potential abuse of Filipino workers in Japan, limited jobs,
must learn Japanese, undergo exams and etc.
 Japan might gain access to and be able to overfish in Philippine waters, running
the livelihoods of small fisherfolk
 Increased banana and pineapple exports to Japan would go to corporations
like Dole and Del Monte and not to small businesses or landless farmers
 Unconstitutional, The Philippine constitution does not allow Japanese to own
land, operate schools and practice certain professions in the Philippines
 Huge imbalances- Japanese excluded almost 200 tariff lines from the
agreement, the Philippines only 6.
 Gives explicit legal ground for Japan to dump toxic wastes in the Philippines
Article 1 (Objectives)
 Promote transparency in government procurement
 Increase investment opportunities and strengthen and protection for
investments and its activities in Japan and the Philippines
 Facilitate the mutual recognition of the results of conformity assessment
procedures for products or processes
 To liberalize and facilitate trade in goods and services between Japan and
the Philippines
Article 1 (Objectives)
 Create effective procedures for the implementation and operation of this
Agreement and for thee resolution of disputes
 Promote transparency in the implementation of laws and regulations
respecting matters covered by this Agreement
 Establish a framework for further bilateral cooperation and improvement of
business environment
 Promote competition by addressing anti-competitive activities and
cooperate in the field of competition
 Enhance protection of intellectual property and strengthen cooperation in
the field thereof to promote trade and investment between Japan and the
Philippines