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..

- ;»-..~' . Ir

BY
H.E. DOMINGO L. SIAZON, JR
AMBASSADOR OF THE REPUBLIC OF THE
PHILIPPINES TO JAPAN

Importance of Japan as an FTA Partner

Jr r"j, ,~.d 2ndlargest trading partner


+fl '!""1 -..;J,fd.'" market of 128 millionpeople
'i.-~// - ~ sourceof ODA
,i!."largest

~~
lNv-Av<e.,tN'-t
Cl-\w-~
"""'- '
tW
r ~ajor source of foreign direct
11\9~«~~estments .

« /ll)~" hosts about 218,038 OFWs

.j;-fIA~O-l'ifJ hJ..Jh~ major source of workers'


, ~ )-11\0 I remittances
. .lJt~ -OJ

1
PHiliPPINES' SECOND LARGEST
EXPORT MARKET (JAN-DEC 2006) "
COUNTRY F.O.BVALUE PERCENT"
. (IN MILLIONUS SHARE
DOLLARS)
1. U.S.A. 8,6q3.00 18.29 .
2. JAPAN 7,761.15 16.50
3. CHINA 4,616.61 9.82
4.NETHERLANDS 4,753.29 10.11
5. HONGKONG 3,698.20 7.86

SOURCE: NSO, PHiliPPINES

PHiliPPINES-JAPAN BILATERAL TRADE


(FOB VALUE IN US MILLION DOLLARS)
SOURCE:COMMERCIALSECTION,PHIUPPINEEMBASSY,TOKYO

YEAR EXPORTS IMPORTS BALANCE


TO JAPAN FROM OF TRADE
JAPAN
,
2002 5,295 5,805 ( 510)

2003 5,768 8,071 ( 2,303)

2004 7,983 7,673 310

2005 7,206 " 8,071 ( 865)


;

2006 7,761 7,002 759


~
LJ ! J I = --
~~ V'Nv~ ~~ 6- ~~
~. ;:
2
.-

PHiliPPINE EXPORTSTO JAPAN,2006


( %SOURCE:
share of total exports)
NATIONAL STATISTICS OFFICE

CELECTRONICS
1%
B MACHINERY&TRANSPO
RT EQUIPMENT
I!IBUILDERS
WOODWORK
3% EIMINERAL PRODUCTS

5% I!IFRESH FOODS

BOTHER INDUSTRIAL
MANUFACTURES
DCHEMICALS

I!ICONSTRUCTION
MATERIALS
II MARINE PRODUCTS

COTHERS

. PHILIPPINE IMPORTS FROM JAPAN, 2006


(in 0,;'0share of total exports)
SOURCE: NSO

o electronics

II other indusbial
manufactures
Iii1machi1eryltransp
ort equipment
17% 38%. ,13 chemicals

mmetal
manufactures
. construction
materials
Ii1'Iothers
28%

3
FOREIGN DIRECT INVESTMENTS IN
PHILIPPINES, 2005
(VALUE IN MILLION PESOS)

COUNTRY 2004 2005


JAPAN 26,596.2 27,538.9
NETHERLANDS 1,473.1 19,1576
U.S.A. 9,000.8 14,912.7
CAYMAN IS. - 13,817.2
S. KOREA 3,260.3 10,828.4

SOURCE: ASEAN-JAPAN STATISTICAL POCKETBOOK, 2006

APPROVED JAPANESE INVESTMENTS IN


THE PHiliPPINES (in million pesos)
SOURCE: COMMERCIAL SECTION, PHILIPINE EMBASSY, TOKYO

Year Amount
,
2002 17,053.80
2003 8,840.80
2004 26,596.20
2005 27,53890

4
.'

LARGEST ODA CONTRIBUTOR IN THE


PHiliPPINES

. JAPANESE ODA CONSTITUTES 57% OF


TOTALODA IN THE PHILIPPINES IN .2006

% 2000 2001 2002 2003 . 2004 2005 2006


SHARE
OF
TOTAL 64 61 57 63 61 60 57
ODA

SOURCE: NEDA

LARGEST SOURCE OF BILATERAL ODA

. Breakdown of Japan's ODA in the Philippines (cumulative total by 2005, in


US$ million)

Type of ODA Amount 0/0share

Technical Cooperation 1,777.54 16.49


Grant 2,105.42 19.54
Yen Loans 6,893.79 63.97
Total 10,776.73 100.00
SOURCE: JICA
LARGEST SOURCE OF BILATERALODA

. As of December 2006, there were 44


ongoingJBIC-funded loan projects in the
Philippines with net commitmentsworth
¥474.088 billion or approximately
US$4.0 billion.

SOURCE: NEDA

MAJOR HOST COUNTRY FOR


OVERSEAS FiliPINO WORKERS
TOP TEN HOST COUNTRIES FOR OVERSEPiS FILIPINOS
(AS OF DECEMBER 2006)

1. U.S.A 2,728,209
2. SAUDIARABIA 1,019,577
3. CANADA 437,940
4. UAE 311,793
5. MALAYSIA 239,373
6. AUSTRALIA 236,525
7. . JAPAN 218,038*
8. UK 165,564
9. KUWAIT 144,955
10. SINGAPORE 139,318

.
SOURCE: COMMISSION ON FILIPINOS OVERSEAS (CFO)
TAKEN FROM MINISTRY OF JUSTICE, JAPAN, AS OF 2006

6
MAJOR SOURCE OF WORKERS
REMITTANCES (2006)
SOURCE: BANGKO SENTRAL NG PILIPINAS

HOST COUNTRY AMOUNT % SHARE OF TOTAL


(in thousand US (12,761,308)
dollars)
U.S.A 6,526,429 51.14
SAUDI ARABIA 1,117,915 8.76

CANADA 590,627 4.63


ITALY 574,662 4.50
UK 561,670 4.40
JAPAN 453,398 3.55
HONGKONG 413,723 3.24
SINGAPORE 285,126 2.23
DUBAI 264,175 207
ABU DHABI 163,071 1.28

GLOBAL SCENARIO

7
.-

REGIONAL. SCENARIO

, Expanding intra-regional trade in East Asia


vis a vis other regions
, IT Revolution

,.Integration driven by production networks


and supply chains by MNCs

, Rapid growth of China

I'" Evolving regional economic architecture (


ASEAN+3, East Asia Summit, APEC)

Expanding intra-regional trade in East Asia


vis' a vis other regions, 2005

""East Asia, Taiwan & HK - 55.8%


..,.ASEAN - 24. 9% *
..,.EU25 - 62. 1%
..,.HAFT A - 43. 0%

(Source:2007 METI Whffe Paper)


* FromASEANSecretariat

j-

8
TRADE LINKS IN EAST ASIA

MAP
2.'~".'~~7r;r-'0;;Jf'1'~1~n"1~?~:;;;;': ;'."

SbarrofparfsIIIIi tIIIIQItIIfJIts
b ltill .
ID'5c1pom 21ft lI'I\o/h,.:tt Iml

ILl
I7ll
2U - 12.1

boa 1
211 11

1IJ.". hf8I 111


.......-
2fJ iaM., 31'

CIJ 3U

4U1 pI... ,1.1


,.
Ie " " n It II 211 a At !;J S]

SoIur,:Olama!o (ZO!JJ).

SOURCE: WORLD BANK; REPRODUCED BY R. BERNARDO, IN


"BACK IN BUSINESS" PRESENTATION FOR BUSINESS LEADERS
FORUM, 23 JUNE 2007, SINGAPORE

9
TARIFF RATES IN EAST ASIA
( SIMPLE AVERAGE MFN APPLIED TARIFFS ,2006)

COUNTRY TOTAL(ALL) AGRI NON-AGRI


BRUNEI 3.3 5.2 3.0
CHINA 9.9 15.7 9.0
INDONESIA 6.9 8.2 6.8
KOREA 12.1 47.8 6.6
JAPAN 5.6 24.3 2.8
MALAYSIA 8.5 12.3 7.9
PHILIPPINES 6.3 9.6 5.8
SINGAPORE 0.0 0.2 0.0
THAILAND 10.0 22.1 8.2
VIETNAM 16.8 24.2 15.7

SOURCE: WTO

LIBERALIZATION TIMEFRAME IN EAST


ASIA
(Source: M. Kawai & G. Wignaraja, ADB, 2007)
Agreement For ASEAN6 (including For ASEAN4 (Cambodia,
Philippines) Laos, Myanmar,
Vietnam)
APEC By 2020 By 2020

AFTA By 2002 (0% tariff by By 2007 (0% tariff by


2010 2015)

ASEAN Economic By 2015


Community

ASEAN+China By 2010 By 2015

ASEAN+Japan By 2012 By 2017

ASEAN+lndia By 2011 . By 2016

10
GROWTH OF FREE TRADE ARRANGEMENTS (FT AS) IN
EAST ASIA 1976-2007 I

(source:M.Kawai& G. Wignaraja,ADS,2007,with updates)


Year No. of Concluded Under Proposed
FTAs(cumul Negotiation
ative)
1976 1 1 0 0
1986 1 1 0 0
1996 4 3 0 1
2000 7 3 1 3
2001 10 5 2 3
2002 14 6 4 4
2003 23 9 5 9
2004 42 14 16 12
2005 67 21 30 16
2006 95 31 42 22
2007 101 35 38 . 28

MEMBERSHIP IN FTAS ,2007


(Source:
Kawai& Wignaraja, ADS, 2007, with some updates)

Country Concluded Under Proposed


Negotiations
Japan 7 7 4 ,
Philippines 4 3 1
Korea 6 3 7
China 6 5 3
Singapore 11 7 4
Thailand 7 9 3
Malaysia 5 8 3
Indonesia 3 3 4

.,'.

11

.,'
NETWORK OF JAPAN EPAS/FTAS
WORLDWIDE

NETWORK OF PHILIPPINE
EPAS1FTAS WORLDWIDE

12
REASONS FOR FTAS IN ASIA

-Defensive strategy against other trading


blocs (EU, NAFTA)
-Slow progress in Doha process
-Improve international competitiveness by
opening up markets to foreign goods~ .

capital and labor


-Protect existing markets/trade preferences
in region and prevent discrimination of one
cou ntry' s exports

>'R
REASONS FOR FTAS

-
;'"

13
ECONOMIC BENEFITS OF FTAS

STIMULATE INDUCE ECONOMIES


EXPORTS OF SCALE THRU
EXPANDED
EXPAND PRODUCTION AND
MARKETS
MARKETS
COMPETITIVE
STRENGTHEN
GOODS
COMPARATIVE
ADVANTAGE MORE INVESTMENTS THRU .
INVESTMENT
More LIBERALIZATION AND
CAPITAL MOBIUTY
exports,
Investments,

.
Incomes
Jobs
Lower prices
~

ECONOMICBENEFITS'FROM FTA

. GDP GAINS FROM JPEPA WILL RANGE


FROM AN INCREASE OF 0.090/0 OF GDP*
TO BETWEEN 1.7 TO 3.3 % OF GDP ** IF
INVESTMENT LIBERALIZATION IS INC UDED
TO INDUCE FREE MOVEMENT OF CAPITAL
l '

AMONG FTA PARTNERS.

. Sources:.
Philippine Institute of Development Studies (PIDS), Policy Notes, 2006
- K. Kawasaki. RIETI Discussion Paper, 2003

14
MACROECONOMIC IMPACT OF JAPAN-PHILIPPINES
FTA (Source: K. Kawasaki, RIETI Discussion Paper, 2003)
Indicator Impact on Impact on Japan
Philippines
Real GDP (in %) 3.03 0.03

Export Volume ( in 5.16 0.19


%)

Import Volume ( in 4.87 0.33


%)

Trade Balance -504 41


(in millionUS
dollars)

ESTIMATED TAX REVENUES


LOSSES VS. GAINS
REVENUES FOREGONE:
. PIDS - PhP 5-8billion
. IBON - PhP 9 billion

REVENUES GAINED:
. PhP5.85 billion ( .09%.GDPincreaseat 2006 prices)*
. PhP 112.5billionor higher (1.7%GDP increase)-

-
. PIDS estimate based on PIDS estimated GDP increase of .09% at 2006 prices
PIDS estimate based on estimated GDP increase of 1.7% - 3.3% based on RIETi
study.

".

15
OVERVIEW OF JPEPA

OVERVIEW OF JPEPA

.,,'

16
-.:','

Source: MET!. DTI

REDUCE DUTIES ON SMALL BANANAS OVER 10 YEARS

PINEAPPLES (FRESH) GRANTED ZERO DUTIES FOR


1,000 TONS PREFERENTIAL TARIFF QUOTA

ZERO DUTIES ON SHRIMPS, PRAWNS, LOBSTERS


UPON ENTRY INTOFORCE

JAPAN IS BIGGEST MARKET FOR RP EXPORTS OF


SHRIMPS & PRAWNS

DUTIES LIFTED ON COCONUTS (FRESH, DRIED, COPRA

TARIFFS ON YELLOWFIN TUNAS & SKIPJACK TUNAS


REDUCED IN 5 YEARS

17
TRADE IN GOODS

.RENEGOTIATE RAWSUGARIN 4THYEAR AFTER


ENTRY INTO FORCE OF AGREEMENT
.CANE MOLLASES: TARIFF QUOTA OF 2000 METRIC
TONS IN 3RDYEAR TO 3,000 METRIC TONS IN 4THYEAR
AT 7.65 YEN PER KILOGRAM TARIFF
.MUSCOVADO SUGAR: TARIFF QUOTAS 300 MT IN 3RD
YEAR TO 400 MT IN 4THYEAR AT 17.66 YEN PER
KILOGRAM TARIFF (IN RETAIL CONTAINERS LESS
THAN 1 KG)

TRADE IN GOODS

LIFTS TARIFFS IMMEDIATELY ON SOME STEEL


IMPORTS FROM JAPAN AS PRODUCTION INPUTS
TO PHILIPPINE INDUSTRY
INTRODUCE TARIFF RATE QUOTA FOR IRON AND
STEEL ENSURING SUFFICIENT VOLUME FOR
LOCAL PRODUCERS; MORE ACCESS TO JAPAN'S
SPECIAL TV STEEL AS PRODUCTION INPUTS

REDUCE TARIFFS ON ELECTRICAL & ELECTRONIC


APPLIANCES & PARTS OVER 10 YEARS

ON MOTOR VEHICLES & PARTS, GRADUAL TARIFF


LIBERALIZATION UNTIL 2010 AND FURTHER
NEGOTIATIONS IN 2009

"

18
GRADUAL TARIFF LIBERALIZATION IN MOTOR
VEHICLES AND PARTS

. For vehicles wi cylinder capacity above 3000 cc, tariffs remain at


30% but will be free as from 1 January 2010 Qnprinciple); further
negotiations in 2009
. For vehicles wi cylinder capacity above 1500 CCbut not exceeding
3000 cc, tariffs to be reduced from 29% from entry Into force to 20%
on 1 Jan 2009; negotiations in 2009
. For CKD buses wi gross vehicle weight of 6-18 tonnes, tariffs
gradually reduced from 14% as from entry into force to free in 2010;
further negotiations in 2009
. For components, parts & accessories imported for assembly of
vehicles by participants in the commercial vehicle development
program, the MFN rate will apply as from entry into force to free in
2010 , subject to further negotiations in 2009.
. Philippines may impose import duties on used motor vehicles

PRODUCTS WHICH PHILIPINES HAS


DQMINANT MARKET SHARE IN JAPAN, 2005
(Source:ASEAN-JapanCenter)
PRODUCT % MARKET VALUE OTHER
SHARE (in million yen) COMPETITORS
OTHER 100.0% 4,422 -
INTERMEDIATE .
NICKEL
METALLURGY
PRODUCTS
FRESH 97.1% 9,516 -
PINEAPPLES
COCONUT 95.8% 215 -
COPRA
COCONUTOIL 94.2% 4,753 -

DRIED 93.2% 184 -


i
COCONUTS

,/
19
PRODUCTS WHICH PHILIPINES HAS
DOMINANT MARKET SHARE IN JAPAN, 2005
(Source: ASEAN-Japan Center)

PRODUCT % MARKET VALUE IN YEN OTHER


SHARE COMPETITORS
(in million yen)
FRESH 86.8% 56,176 ECUADOR,
BANANAS TAIWAN
DRIED MANGO 84.3% 105 MEXICO. CHINA
,GUAVAS
FRESH 80.5% 133 THAILAND
COCONl)TS
COCONUT 73.6% 986 INDONESIA,
SHELL . MALAYSIA
CHARCOAL
BATHS. SINKS 67.9% 3,025 CHINA, SOUTH
&WASHBASINS KOREA
OF PLASTIC
ABACA FIBERS 69.6% 584 ECUADOR

PRODUCTS WHICH PHILIPINES HAS


DOMINANT MARKET SHARE IN JAPAN, 2005

PRODUCT % MARKET VALUE IN YEN OTHER


SHARE (in million yen) COMPETITORS

WOOD 63.9% 16,023 NEW ZEALAND,


CARPENTRY CHINA .
PROCESSEDI 53.0% 779 THAILAND.INDIA
PRESERVED
BANANAS,
MANGOES,
GUAVAS
PARTS I ACC. 52.3% 1,949 ,GERMANY,
COMPOUND CHINA
OPTICAL
MICROSCOPE
FRESH 40.3% 1,798 MEXICO,
MANGOES THAILAND

20
STRUCTURE OF JAPANESE EXPORTS TO ASEAN
(Source: K. Kawasaki-RIETI,2003)

SECTOR PHILIPPINES INDONESIA MALAYSIA THAILAND


GRAIN 0.0 0.0 0.0 0.0
MEAT 0.0 0.0 0.0 0.0
OTHER 0.0 0.1 0.0 0.1
PRIMARY
INDUSTRY
MINING 0.0 0.1 0.0 0.1
PROCESSED 0.8 0.2 0.3 0.8
FOOD
TEXTILES & 1A 2A 0.9 1.3
APPAREL
CHEMICAL 9.1 13.5 9.8 12.3
METAL 5.3 11.8 12.2 13.8
TRANSPORT 12.2 19.2 11.4 13.2
EQUIPMENT
OTHER 7.1 47.6 81.2 54.1
MACHINERY&
EQUIPMENT

, STRUCTURE OF JAPANESE IMPORTS FROM


....
ASEAN (Source: K. Kawasaki-RIETI,2003)
-1
SECTOR PHILIPPINES INDONESIA MALAYSIA THAILAND
GRAIN 0.0 0.1 0.0 0.6
MEAT 0.0 0.1 0.1 3.5
OTHER 8.2 2.4 5.1 1.8
PRIMARY
INDUSTRY ,
MINING 6.8 39.2 14.9 0.0
PROCESSED 6.3 7.5 3.8 16.0
FOOD
TEXTILES & 3.2 4.9 2.5 5.1
APPAREL
CHEMICAL 3.9 . 5.5 7.5 11.5
METAL 3:3 4.3 2.9 3.8
TRANSPORT 1.6 0.5 0.5 0.9
EQUIPMENT
.
OTHER 57.5 7.1 40.5 54.1
MACHINERY&
EQUIPMENT

~'!

21
TRADE STRUCTURES AND TRADE
LIBERALIZATION
. THE TRADESTRUCTURESOF JAPANAND ASEAN
ECONOMIESARE COMPLEMENTARY

- . JAPANESE EXPORTS TO ASEAN:


TRANSPORT EQUIPMENT, OTHER MACHINERY AND
EOUIPMENT, ELECtRONIC APPLIANCES. .

~ ASEAN EXPORTS TO JAPAN:


NATURAL RESOURCES INCLUDING OIL AND
MINERALS, MACHINERIES AND EQUIPMENT

. TRADE STRUCTURES AND TRADE


LIBERALIZATION
. PHILIPPINEEXPORTSTO JAPAN:
- COMPONENTS/DEVICES FOR SEMI-CONDUCTORS
- AUTOMOBILE PARTS AND AUTOMOTIVE
ELECTRONICS PARTS.
- CONSUMER ELECTRONICS.
- FRESH FRUITS & PROCESSED FOODS
- MARINE PRODUCTS

. JAPANESE EXPORTS TO PHILIPPINES:


- MACHINERY TRANSPORT AND EQUIPMENT
- ELECTRONICS .

- COMPONENTSIDEVICES FOR,SEMI-CONDUCTORS
- METAL AUTOMOBILE PARTS. METAL
MACHINERY/EQUIPME;NT
- IRON AND STEEL. AND OTHER INDUSTRIAL MANUFACTURES

.
",-
22
TRADE STRUCTURES AND TRADE
LIBERALIZATION
. HIGH DEGREE OF INTRA-INDUSTRY
LINKAGES BETWEEN JAPAN AND THE
PHILIPPINES ESPECIALLY IN THE
ELECTRONICS AND AUTOMOTIVE
SECTORS.

. BASED ON COMPARATIVE ADVANTAGE, IT


IS EXPECTED THAT JAPAN WOULD GAIN IN .

CAPITAL AND TECHNOLOGY INTENSIVE


PRODUCTS WHILE PHILIPPINES WOULD
BENEFIT FROM LABOR INTENSIVE
SECTORS.

TRADE IN SERVICES

23
TRADE FACILITATION

REDUCE tECHNICAl BARRIERS


MUTUAL RECOGNITION c::::> TO TRADE THROUGH MUTUALLY
RECOONIZED RULES OF
CONFORMITY ASSESMENT
PROCEDURES
FACilITATE TRADE IN ELECTRICAL
& OTHER INDUSTRIAL PRODUCTS

CUSTOMS INFORMATION EXCHANGE AND


COOPERATION THROUGH
PROCEDURES SIMPLIFIED & HARMONIZED
CUSTOMS PROCEDURES

EXCHANGE OF TRADE-
RELATED ELECTRONIC
PAPERLESS TRADING INFORMATION & BEST
PRACTICES

. IMPROVEMENT OF BUSINESS
ENVIRONMENT

24
COOPERATION IN JPEPA

DISPUTE AVOIDANCE AND SETTLEMENT


f

...

25
MOVEMENT OF NATURAL PERSONS

.
Basic Framework for Filipinos to be QuaUfied as Japan~ Nunes/Certified Careworkers
Candidates for Certified Careworkers

Candidates for Nurses National Exnmlnalton Course


. (Filipino qualified"","" with thre J..... (<Dond:mc ftcm four.year unlvertity, Stbool Course
of worlt exp.nences as . nuae) ond <-.-rtitkdby TESDA II! carework ". or (OrodWlle
fromfolll'-Y=""Ucae)
@Or.;duoteftoIURIl' caJtege)

Entry Into Mil Sln,- In Jilpail Entry i,oto and Stay In JapwJ
..Dutatioaofstiy: J )'=' . .Dumtio"nof 8\IlY:n ry!"'riod
uutD4v~
-c::::Lb- I ~ ,
JDpnnese L.,nguDIt' and Nursing and Cllreglving Tl'llining in Japnn

After AcqulsilU.~ ofNatlomiJ Cirlmeate


.111= who ere qlll1lif~ II! JIWS£5 and mtificd =wod:ers undt, II1p311e5' law may chonge Ihoir SU!IUS.,rresldcnce3m! cantim",
10 Slay and wod: in 1~
.8D-.mion of SIJU': 3 Yem. x<nc..'l\bl.

26
Placement will be done exc!usively by POEA and JICWELS for Impartial
and neutral placement and apprcpriate acceptance of Filipino Walkers.

- ---~._- -- .

:=e;,:~~:~
. ..~-~
I j ~-~ ~
.f/it
to JICWELS

<DAppI!::aiJoo

-
lorAccep<ance
<3J Submission ar Preferencear
Filipino Cat1dixIatM

"-----_.-
.
FIlIpino C.n<I1dales & Japanese
Ao:epting Facilities
<2>Exchangoar Inlormalionar

- toPOEA
<DAppUcaIion
<3JSubmissionof
@>Implemental!cnar Mefx:h1nQby JICWElS Aa:epClng FaciIi~es

@ Conclusion of Employment Contrad


lor job I
Preferencear ,
.
,

PROJECTED DEMOGRAPHIC PROFILES -RATIO


. OF OVER-55 TO TOTAL POPULATION (in % )

(SOURCE: DEMOGRAPHIC CHANGE AND THE ASIAN ECONOMY, JCER, MARCH 2007)

YEAR! 2020 2030 2040 2050


COUNTRY
,
JAPAN. 29.2 31.8 36.6 40.0

CHINA 12.0 16.7 23.5 26.1

US 15.8 19.2 20.2 20.6

EU 20.7 24.7 28.3 30.1


PHILIPPINES
5.7 7.8 10.2 13.3

27
PROJECTED DEMOGRAPHIC PROFILES

BY2020, ALMOST30% OF JAPANESE


POPULATIONWILLBE ABOVE65

JAPAN'S AGED SOCIETYIS ALREADY


FACEDWITH SHRINKINGLABOR FORCE
AND SLOWER ECONOMICGROWTH

DEMANDFOR FOREIGNLABOR BYJAPAN


WILLCONTINUETO RISE

PHILIPPINES WILL START ITS AGING


PROCESS NOT UNTIL 2030, MUCH LATER
THAN THAILAND, INDONESIA AND
MALAYSIA

Labor Market Implications


of JPEP A for the Philippines
-Preservation of a favorable market for other Filipino
professionals, like seafarers, ICT and other engineers,
as well as for industrial trainees
-Labor market access for Filipino nurses and caregivers
as candidates in the Japanese qualified nurses and
certified careworkers' market, with opportunity to 'ba
fully qualifiedand to renewemploymentcontracts ..
-Maintenance of cooperation, should JPEPA be ratified,
could open other opportunitiesAEnglish lanQlJ§ge
teachers and other skilled and s~s.

28
....

~
i/O-

29
PERCENTAGE OF FOREIGN WORKeRS
BY COUNTRY
25

15

10

I EJ1998 112003 0 I
SOURCE: TRENDS IN INTERNATIONAL MIGRATION, 2004, OECD, M3 QUOTED IN
2005 WHITE PAPER ON INTERNATIONAL ECONOMY AND TRADE, MET!, JAPAN

Toxic Waste

. The JPEPA contains zero tariffs on 141 waste


products.

.Zero tariffs do not mean free trade on these iwaste


products since Philippines upholds Basel
Convention and Philippine laws and reguliations
governing waste products.

. Under the Basel .Convention, to which the


Philippines and Japan are States Parties, "prior
informed consent" is required before Iwa
products may be exported.

31
Toxic Waste
. Philippines and Japan exchange diplomatic notes on
26 May 2007 to reiterate that Japan will not export 'toxic
waste to the Philippines under the JPEPA.

. The diplomatic notes state that:


~ Japan would.. not be exporting toxic waste to .the
Philippines, as defined and prohibited under the laws Qfthe
Philippines and Japan, in accordance with the Basel
Convention"; and.

>" the understanding that provisions related to.this to~ic in


the JPEPA do not prevent the adoption or enforcement of
such measures under existin~ and future national laws, lrules
and regulations ofthe Philippines and Japan".

. The diplomatic notes. are a reiteration of existing


policy and of the commitment of both coun~-
protectingthe environment. ."

END OF PRESENTATION

THANKYOU

32