Reporter

GOVERNMENT experts predict a minimum 0.09 percent to as much as 3.3 percent boost in the Philippines’ gross domestic product (GDP) with the Japan-Philippines Economic Partnership Agreement (Jpepa) in place.

Taking a second look at the trade pact, economists Josef T. Yap, Erlinda M. Medalla and Rafaelita M. Aldaba of the Philippine Institute for Development Studies (PIDS), however, noted these economic gains depend on the realization of foreign investment inflows and productivity gains arising from it.

“Unlike traditional trade agreements, the Jpepa will go beyond tariff reductions or eliminations and focuses on cooperation areas such as technology transfer, training, and SME development that will allow Filipino manufacturers to become more competitive,” the PIDS economists said.

Some detractors have pointed to the hasty manner both countries signed the pact as well as Japan’s supposed non-reciprocity on the Philippines’ long list of goods that it allowed to liberalize.

Critics likewise claimed the agreement would have negative consequences like jobs displacement and price distortions in agricultural and industrial goods with a freer movement of imported items under Jpepa.

The economists further claimed Jpepa goes beyond its primary aim of market access by providing mostly the Philippine economy add-ons such as cooperation initiatives like on human resources development, financial services, information and communications technology, particularly next generation Internet, broadband and ubiquitous networks, energy and environment, trade and investment promotion and tourism.

The Philippines could benefit significantly from Japan’s capital, technology and expertise to strengthen our capacity to meet the challenges posed by the “new age” given its current level of development, they added.

It would have been more problematic for the Philippines if it had not entered into this trade pact given the “changing international economic and political landscape,” the economists said.

The Philippines would have lost around 0.04 percent of gross domestic product if an agreement was not forged with Japan while Thailand does, they added.

The PIDS economists likewise emphasized that with the ongoing trend of regional integration in East Asia, even with economic powerhouses China and South Korea, a bilateral agreement with Japan was a very strategic move.

THE Department of Agriculture (DA) said more Chinese investments in agribusiness are expected to come in as the Philippines and China sign some 19 agreements valued at P240 billion during the state visit of Chinese Premier Wen Jiabao.

GOVERNMENT experts predict a minimum 0.09 percent to as much as 3.3 percent boost in the Philippines’ gross domestic product (GDP) with the Japan-Philippines Economic Partnership Agreement (Jpepa) in place.

THE local tuna sector is urging the government to speed up its negotiations for compensation from the European Union (EU) following the loss of its duty-free privilege for tuna exports after the economic bloc expanded to 27 members last year.

THE Department of Social Welfare and Development plans to adopt a new strategy in poverty alleviation and social assistance through a scheme that has helped reduce poverty in countries in Latin America and South East Asia.