Briefer on the Japan Philippines Economic partnership Agreement (JPEPA) November 17, 2006

Similar documents
KAFTA and JAETA Prospects for Queensland

EEA AGREEMENT - PROTOCOL 9 p. 1 PROTOCOL 9 ON TRADE IN FISH AND OTHER MARINE PRODUCTS. Article 1. Article 2

2015 EXPORT HIGHLIGHTS BRITISH COLUMBIA AGRIFOOD & SEAFOOD

wine: key outcomes Key outcomes trans-pacific partnership NZ$16 m Estimated annual tariff savings when TPP is fully implemented.

TARIFFS AND TRADE 10 January 1991

2012 EXPORT HIGHLIGHTS BRITISH COLUMBIA AGRIFOODS

LITHUANIA MOROCCO BILATERAL TRADE

LIVE ANIMALS; ANIMAL PRODUCTS. CHAPTER 1 Live animals

Country Profile Sri Lanka

The Potential Role of Latin America Food Trade in Asia Pacific PECC Agricultural and Food Policy Forum Taipei

GENERAL AGREEMENT ON TARIFFS AND TRADE

Canada-EU Free Trade Agreement (CETA)

GENERAL AGREEMENT ON a2s^6 5

US-MEXICO AGRICULTURAL PARTNERSHIP. March 2017

Trade Negotiations Brazil-Japan: opportunities for enhancing bilateral economic relations

COMMISSION OF THE EUROPEAN COMMUNITIES. Proposal for a COUNCIL REGULATION

KOREA MARKET REPORT: SEAFOOD

JAPAN COUNTRY FACT SHEET: General information. Unemployment rate: 4,3% BBP: 4237,8 billion BBP per capita: Official language(s):

Inside the United States The Fish and Seafood Trade

Overview of the International Framework of Organizations and Agreements

Harmonized Tariff Schedule of the United States (2012) (Rev.2) Annotated for Statistical Reporting Purposes

Monitoring EU Agri-Food Trade: Development until December 2015

( ) Page: 1/21 NOTIFICATION

Competitive Trade Analysis Hong Kong

Monitoring EU Agri-Food Trade: Development until January 2016

AGRI-FOOD TRADE STATISTICAL FACTSHEET. European Union - ASEAN (Association Of South-East Asian Nations)

Market & Country brief on Australia

Official Journal of the European Union C 202/329 ANNEXES TO THE TREATY ON THE FUNCTIONING OF THE EUROPEAN UNION

Official Journal of the European Union C 83/329 ANNEXES

Monitoring EU Agri-Food Trade: Development until October 2016

to Yoghurt, flavoured or containing added fruit, nuts or cocoa

Chapter Ten. Alcoholic Beverages. 1. Article 402 (Right of Entry and Exit) does not apply to this Chapter.

SCHEDULE. 1.5% 0.5% frozen. 1.5% 0.5% fresh, chilled or frozen 0208

DRAFT G-20 Submission Guidelines for Modalities in Tariff Escalation

SECTION IV PREPARED FOODSTUFFS; BEVERAGES, SPIRITS AND VINEGAR; TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES CHAPTER 16

MARCOS S. JANK. JAPAN BRAZIL Bilateral Dynamics and Partnership in the Agri-Food Sector

WTO principles and beer Alberto Volpato Counsellor for Agriculture & Health EU Delegation to the Russian Federation

Monitoring EU Agri-Food Trade: Development until November 2016

Growing Trade & Expanding Markets. Presentation to the Canadian Horticultural Council Trade and Marketing Committee Fred Gorrell March 14, 2018

1 SAINT CHRISTOPHER AND NEVIS STATUTORY RULES AND ORDERS. No. 12 of Value Added Tax (Amendment) Regulations, 2015.

Competitive Trade Analysis Italy

Market Brief on India August 2017

INTERNATIONAL DAIRY PRODUCTS COUNCIL. Reply to Questionnaire 4. Australia (1988/89) I. Milk. A. Production and Utilization of Milk

FCC Ag Economics. Trade Ranking Report: Agriculture

ASEAN STANDARD FOR YOUNG COCONUT (ASEAN Stan 15:2009)

Agreement on Agriculture. Between Iceland and the Republic of Serbia

Wine and spirits market in Japan: Barriers and opportunities. Jean-Etienne Gourgues Pernod Ricard Japan President & CEO

ASEAN STANDARD FOR DRAGON FRUIT (ASEAN Stan 42:2015)

Deliveries to dairies 198/86 GENERAL AGREEMENT ON TARIFFS AND TRADE. Consurption of fresh milk (including exports) 1985/86. Industrial uses 1985/86

AGRI-FOOD TRADE STATISTICAL FACTSHEET. European Union - OECD (excl EU incl US Virgin Isl)

2017 BRITISH COLUMBIA AGRIFOOD AND SEAFOOD INTERNATIONAL EXPORT HIGHLIGHTS

ICC September 2018 Original: English. Emerging coffee markets: South and East Asia

Monitoring EU Agri-Food Trade: Development until March 2018

Senal Weerasooriya and Jeevika Weerahewa University of Peradeniya

Agriculture and Geographical Indications (GIs) in TTIP A guide to the EU's proposal. 21 March 2016

Monitoring EU Agri-Food Trade: Development until April 2017

ASEAN STANDARD FOR FRENCH BEAN

WTO Agreement on Import Licensing Procedures. An Overview

Substantial transformation: Change of Tariff Classification Rules (Paragraph 1.5 of the Decision)

THE LIQUOR PRODUCTS ACT, ACT 60 OF 1989 REGULATORY FRAMEWORK AND AGREEMENTS THAT RELATE TO TRADE IN WINE

COMMISSION OF THE EUROPEAN COMMUNITIES

Inside the Portuguese Seafood Trade

COMMISSION IMPLEMENTING REGULATION (EU) No /.. of XXX. on the traceability requirements for sprouts and seeds intended for the production of sprouts

Tariff Quotas/Ceilings

GENERAL AGREEMENT ON TARIFS AND TRADE

Monitoring EU Agri-Food Trade: Development until January 2018

Monitoring EU Agri-Food Trade: Development until August 2018

Legal Supplement Part B Vol. 56, No th December, ORDER THE COMMON EXTERNAL TARIFF (VARIATION OF DUTY) (NO.

ASEAN STANDARD FOR SWEET POTATO (ASEAN Stan 38: 2014)

Agri-Food Exports. Alberta to 2014 Economics and Competitiveness. Highlights on Alberta Agri-Food Exports in Tables:

Competitive Trade Analysis Mexico

Monitoring EU Agri-Food Trade: Development until August 2017

RENEGOTIATING NAFTA--what s at stake?

GENERAL AGREEMENT ON % 3 v 1973

Alberta Agri-Food Exports, 2008 to 2017 (1)

Chapter 2. Meat and edible meat offal

Republika e Kosovës Republika Kosovo-Republic of Kosovo Kuvendi - Skupština - Assembly

REGULATION NO. 2006/8 AMENDING UNMIK REGULATION NO. 2005/32 ON THE EXCISE TAX CODE OF KOSOVO. The Special Representative of the Secretary-General,

Bilateral Efforts to Liberalize Trade: A Canadian Perspective

GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED L/3878. Lifting of Import Restrictions. 27 July 1973 Limited Distribution

! IMPLEMENTATION OF THE 1963 MINISTERIAL CONCLUSIONS ON TRADE IN TROPICAL PRODUCTS. Note by the Secretariat

Taiwan Fishery Trade: Import Demand Market for Shrimps. Bith-Hong Ling

The latest data on agricultural and allied trade between India and Canada is annexed (Tab 1 &2).

COMMODITY DESCRIPTION AND CODING. Note by the Secretariat

AGRI-FOOD TRADE STATISTICAL FACTSHEET. European Union - BRICS

Monitoring EU Agri-Food Trade: Development until June 2017

DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 643/MPP/Kep/9/2002 DATED SEPTEMBER 23, 2002 ON THE IMPORT OF SUGAR

Tuna Trade. Fatima Ferdouse

Table grape. Horticulture trade intelligence. Quarter 1: January to March 2017

WW I CENTRE WILLIAM-RAPPARD, 154, RUE DE LAUSANNE, 1211 GENÈVE 21, TÉL WORLD DAIRY PRICES END SLUMP AS STOCKS FALL

Milk and Milk Products: Price and Trade Update

Agricultural Protocol between the Republic of Iceland and the Republic of Tunisia

MARKET REPORT PHILIPPINE

Distributors who sell fresh foods to general consumers

Monitoring EU Agri-Food Trade: Development until December 2016

ASEAN STANDARD ON BABY CORN

Foreign Trade Review. Overview of Trade

ANNEX I. Tariff Elimination and Reduction Schedule of Korea to Switzerland on Basic Agricultural Products

Monitoring EU Agri-Food Trade: Development until October 2018

SCHEDULE CLXXIII - EUROPEAN UNION This schedule is authentic only in the English language

Transcription:

Briefer on the Japan Philippines Economic partnership Agreement (JPEPA) November 17, 2006

Background The JPEPA is the first comprehensive bilateral free trade agreement entered into by the Philippines since the Laurel Langley Agreement of 1954 December 11, 2003 (Tokyo) Phil. Pres. Gloria Macapagal Arroyo and Japan Prime Minister Junichiro Koizumi agreed to formally start negotiations for a comprehensive bilateral agreement Japan s EPAs Completed: Singapore (2002), Mexico (2004), Malaysia (2005), Philippines (2006) Negotiations: Thailand, Korea (FTA), ASEAN Exploring: Indonesia, India, Chile February 28, 2005 (Manila) the House Committee on globalization started its investigations on the JPEPA but failed to secure a copy of the draft agreement September 9, 2006 (Finland) both heads of state sign the JPEPA ahead of the Asia Europe meeting September 11, 2006 DTI furnishes Congress a copy of the JPEPA on the first working day after it was signed

Features of the JPEPA 153 pages with eight 100 page annexes containing specific list of commitments and reservations and other operational details It is divided into 16 chapters: Preamble General Provisions Trade in Goods Rules of Origin Customs Procedures* Paperless Trading Mutual Recognition Trade in Services Investment* Movement of Natural Persons Intellectual Property Government Procurement* Competition* Improvement of the Business Environment Cooperation Dispute Avoidance and Settlement Final Provisions

Characteristics of the JPEPA I. The JPEPA is one sided and is biased towards Japanese goods and investments II. III. IV. The Agreement tends to exacerbate the chronic trade deficit Provisions on toxic wastes pose a threat to the environment, health and safety of Filipinos The Agreement is in the framework of relaxing Constitutional provisions on preferential treatment on domestic labor, products and Filipino companies V. The JPEPA is a bad precedent that will hasten economic liberalization vis a vis other WTO members.

Characteristics of the JPEPA Largest Philippine exports to Japan: Bananas (58% of Japan s total fruit imports, 79% of our exported bananas goes to Japan) Pineapple (7%, 98%) Mango (1%, 61%) Avocado (1%,) Papaya (1%, 48%) Aside from electronics and semiconductors (33%) which are basically re exports Largest Japanese exports to the Philippines Vehicles Machineries (farm and construction) Appliances (Domestic and Industrial) Automobile parts Automobile engines (including knocked down engines) Potential Philippine exports to Japan: Tuna, cods, herrings Sugar (the Philippines strongest commodity)

Philippine Trade Deficit PHILIPPINE exports to JAPAN: Only 8% of Philippine exports to Japan are of food, including bananas and pineapples How many exporters are Filipino? Agri business TNCs account for some 85% of total banana and pineapple exports Banana Dole, Del Monte, Chiquita, Sumitomo Pineapple Dole, Del Monte 73% of Philippine exports to Japan are industrial manufactures * with production also by corporate growers using contract growers How many are Filipino firms? TNCs account for over 75% of total sales of Top 1,000 manufacturing firms in the country Electronics ex. Toshiba, Fujitsu, Panasonic, Epson, Hitachi Transport eqpt/auto parts ex. Toyota, Honda, Mitsubishi, Isuzu

Characteristics of the JPEPA Largest Philippine exports Tariff removal to after Japan: 11 years. Base rate 1 2 Bananas Pineapple Mango Avocado Papaya Quantitative restriction! Negotiations will start after 5 years OTHER Potential markets Not committed!!! Tuna Herrings, sardines, mackerel No commitment, Sugar quantified tariffs of sugar in every commodity applicable! Largest Japanese exports to the Philippines Vehicles Machineries (farm and construction) Appliances (Domestic and Industrial) Automobile parts Automobile engines (including knocked down engines) Immediate tariff removal

Annex 1, Part I, Paragraph 1(r): The originating goods classified under the tariff items indicated with X shall be excluded from any commitment of reduction or elimination of customs duties and commitment of negotiation Rice Salt PHILIPPINE exclusions: 2 items excluded Malt, wheat starch, wheat glutten Extracts and juices of meat, fish or crustaceans, mollusks or other aquatic invertebrates Crabs, shrimps, prawns, cuttlefish, squid and jellyfish containing rice Certain preparations for infant use Bread, communion wafers Frozen or chilled pizza Food preparations of flour, meal or starch, Breakfast cereals Tomato puree and tomato paste Prepared or preserved leguminous vegetables Preparations with basis in coffees and teas Sparkling wine, sake Cigarettes, smoking tobacco Some leathers and leather products, ski boots, slippers or other house footwear, footwear made on base or platform of wood, footwear for gymnastics, athletics or similar activities Etc JAPANESE exclusions: Rice Salt Fresh or chilled trout, salmon, herring, cod, sardines, mackerel, livers and roes 239 items excluded Frozen salmon, trout, flat fish, herring, cod, sardines, mackerel, hake, livers and roes Fresh or chilled fillets of bluefin tuna Certain species of live fish Live fresh or chilled mollusks, octopus, shellfish, cuttlefish, squid Smoked salmon, dried cod, salted herring, salted cod Prepared or preserved whole or in pieces: skipjack, eel Flours, meals and pellets of fish, fit for human consumption Certain seaweeds Live swine Meat and boneless meat of bovine animals Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen Milk and cream, yogurt Butter and other fats and oils derived from milk; dairy spreads. Shiitake mushrooms, peas, kidney beans Fresh pineapples weighing more than 900 grams Wheat, meslin, barley and wheat, meslin, barley or rice flour

JPEPA waste products Tariff Heading No. Description MFN rate (Tariff & Customs Code) JPEPA tariff rate 2620.6000 Ash and residues (other than from the manufacture of iron or steel), containing arsenic, mercury, thallium or their mixtures, of a kind used for the extraction of arsenic or those metals or for the manufacture of their chemical compounds 3% 2621.1000 Ash and residues from the incineration of municipal waste 3% 3006.80 (3006.8010, 3006.8090) Waste pharmaceuticals 2 38.25 (and its subheadings) Residual products of the chemical or allied industries, not elsewhere specified or included; municipal waste; sewage sludge; other wastes specified in Note 6 to this Chapter 3 3825.1000 Municipal waste 3 3825.2000 Sewage sludge 3 3825.3010 Clinical waste adhesive dressings and other articles having adhesive layer; wadding gauze bandages, surgical gloves 3 3825.3090 Other clinical waste 3 3825.4100, 3825.4900 Waste organic solvents halogenated, and other 3 3825.6100, 2825.6900 Other wastes from other chemical or allied industries containing organic constituents, other 3 3825.5000 Wastes of metal pickling liquors, hydraulic fluids, brake fluids and anti freeze fluids 3 6309.00 Worn clothing and other worn articles Prohibited under RA 4653 63.10 Used or new rags, scrap twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials

Labor Export: Entry and temporary stay (1 3 years) of Filipino nurses and caregivers provided: 3) They are qualified nurses and caregivers under Philippine laws; 4) Graduate of an appropriate 4 year degree program 5) proficient in both written and spoken Japanese language; and, 6) Training under kangoshi (Japanese nurse) or Kaigofukushishi (Japanese caregiver) in Japanese facilities with a personal contract Characteristics of the JPEPA Largest Japanese exports to the Philippines Vehicles Machineries (farm and construction) Appliances (Domestic and Industrial) Automobile parts Automobile engines (including knocked down engines) But what is the Philippines quid pro quo in this imbalanced trade agreement?

Philippine Trade Deficit Time Series BOP and BOT (1980 2004) amount in US$ million 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 (500) (1,000) (1,500) (2,000) (2,500) (3,000) (3,500) (2,338) (3,686) 243 (353) (547) (1,671)(2,118) 198 0 198 2 198 4 2,301 513 1,242 198 6 264 593 198 8 451 (93) 199 0 2,103 1,492 199 2 (166) 1,802 199 4 631 4,107 (1,165)(2,286)(3,281) (5,431) 199 6 (3,363) 852 1,359 199 8 2,247 3,586 1,384 (513) (192) 200 0 660 200 2 (7,180)(7,663) 115 (280) 200 4 2,500 2,000 1,500 1,000 500 0 (500) (1,000) (1,500) (2,000) (2,500) (3,000) (3,500) (4,000) (4,500) (5,000) (5,500) (6,000) (6,500) (7,000) (7,500) (8,000) year Row 5 Row 9

Constitutional issues The JPEPA contains national treatment clauses under articles 17, 73 and 89 to wit: each Party shall accord to services and service suppliers of the other Party, in respect of all measures affecting Hence, the supply the of national Services [investments, trade in goods], treatment no less favorable than that it accords to its treatment own like services clause and service is [investments. Trade in goods] suppliers. rendered inoperative. Another reason for charter change! (these are exactly the same as the wordings in Article III of GATT 1994) The Philippine Constitution states: The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive. (Article 12, Section 12, 1987 Constitution)

Constitutional issues The Philippines also failed to register its reservations on the non applicability of the national treatment clause in the ownership, franchising and operation of public utilities (as provided in Annex 8 of JPEPA).

Implications to future economic agreements Under the principle of Most Favored Nation (MFN) of the GATT 1994: any advantage, favour, privilege or immunity granted Despite by WTO s any [Member] recognition to any product of bilateral originating and regional in or destined free trade for agreements, any other country shall other be countries accorded immediately may now demand and the unconditionally same liberalization to the like measures product originating given to in or Japan. destined for the territories of all other [Members] (Article I.1 GATT 1994) 1.) Does the measure at issue confer an advantage upon the products originating in or destined for the territories of all other Members? 2.) Are the products concerned alike? 3.) Was the advantage at issue granted immediately and unconditionally to all like products concerned?