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Monday, January 09, 2006
More aid to RP to come from Japan under pact
THE Philippines can expect more financial and technical aid from Japan as this is one of the principles behind Japan’s economic partnership agreements (EPA) with the Association of Southeast Asian Nations (Asean).
According to the 2005 Japan External Trade Organization’s (Jetro) white paper on international trade and foreign direct investment, Japan’s EPA or free trade agreement (FTA) with the Asean covers not only the liberalization of trade but also the facilitation of trade and investment.
Jetro said the two countries are working on an economic cooperation agreement to be known as the Japan-Philippines Economic Partnership Agreement, which aims to promote a freer trans-border flow of goods, persons and services and capital between Japan and the Philippines.
Skilled immigrants
Aside from the facilitation of trade and investment in the Asean, Japan will also increase the acceptance of skilled-worker immigrants from specific countries when the EPA negotiations with these countries are concluded.
The Asean is composed of Brunei, the Philippines, Malaysia, Thailand, Singapore, Myanmar, Cambodia, Laos, Indonesia and Vietnam.
According to Jetro, East Asia has high barriers against trade and investment, an inadequate overall framework for business and weak infrastructure and supplier or supporting industries.
“This is why Jetro has been engaged in projects to raise the efficiency of cross-border logistics throughout East Asia and to nurture supporting industries in the Asean region,” it said.
On the problem of supporting industries, Jetro saw that in the Philippines, programs to foster and strengthen domestic industries are weak.
Short-term
“For example, the parts industry only receives incentives for export processing zones for the short-term purpose of foreign currency acquisition,” it noted.
Jetro said there is also too much focus on attracting foreign investment for the electronics industry, so that the development of peripheral industries suffers.
Aside from that, offshore sourcing of parts for the industry is unavoidable because of the few, if any, local suppliers.
With regard to customs clearance system in the Philippines, Jetro said there still are delays in customs procedures due to computer system failures and insufficient port infrastructure.
Monthly conferences between Japanese firms and the customs bureau, though, have “proved beneficial” in solving the problems, it said.
Aside from Japan, China and South Korea are also negotiating for FTAs with the Asean region. (JBN)
For Bisaya stories from Cebu. Click here. (January 9, 2006 issue)
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