JAPAN-ECONOMIC PARTNERSHIP  TO  OPEN  JAPAN  TO  RP  NURSES,  AGRI  PRODUCTS

HELSINKI, FINLAND, SEPTEMBER 11, 2006 (STAR) By Paolo Romero — The deployment of Filipino nurses and medical workers to Japan would increase, and agricultural exports and the income of the services sector would be boosted following the signing Saturday of the Japan-Philippines Economic Partnership Agreement (JPEPA), President Arroyo said here yesterday.

Japanese Prime Minister Junichiro Koizumi and Mrs. Arroyo signed the economic partnership agreement here, ahead of the two-day Asia-Europe Meeting (ASEM) that began yesterday, Japanese government officials said.

Speaking before the Filipino community in Helsinki at the St. Henry’s Cathedral, Mrs. Arroyo defended the bilateral free trade agreement between the Philippines and Japan and its increasing involvement in global affairs.

"It’s important for our people here and back home to appreciate the fact that the fate of our nation is increasingly tied to our role in the world," she said.

"We need foreign markets for our goods and services; we need close cooperation with foreign governments on matters of security and fight terrorism.

"It’s getting clearer and clearer that the Philippines is beginning to reap the benefits of global engagement as a result of the course we set for our foreign policy," the President said.

Mrs. Arroyo said she aims to open more economic opportunities with Japan following the JPEPA’s historic signing.

"This means Japan will open its doors to our agricultural products; this means Japan will open its doors to our nurses and caregivers," she said.

Under the agreement, a limited number of Filipina nurses and caregivers will be allowed to work in Japan on condition they pass Japanese qualification examinations.

"The agreement will strengthen the economic collaboration between our two countries by increasing flows of goods, persons, investments and services," the two governments said in a joint statement issued at the signing ceremony.

Press Secretary Ignacio Bunye and Trade Secretary Peter Favila said the agreement will also make the Philippines more attractive as an investment destination, ensure stable supply to the manufacturing sector of needed materials like iron and steel, auto and auto parts, as well as eliminate discrimination to Filipino service providers.

"This (JPEPA) is a mutually beneficial agreement," Favila said. "We have market access now and this will be tremendous boost to our farmers and fisherfolk."

Favila said the agreement enhances the Philippine service providers access to Japanese market and guarantees "non-discriminatory treatment."

Service sectors that would benefit most are the business process outsourcing industry, air transport and health-related and social services, he added.

Favila said there is no quota on Filipino nurses and medical workers allowed to enter Japan.

"We negotiated here and we did not talk about quotas, and we asked that we just leave it open and happily they (Japan) agreed to that," he said.

Favila said negotiations for the JPEPA hit snags over the number of nurses to be allowed to work in Japan.

Japan will need 7.5 million health professionals by 2010, he added.

The government will also work for the lifting of the ban on Philippine smoked tuna in Japan, Favila said.

The deal with the Philippines will be the first of its kind for Japan because it includes landmark provisions on the movement of labor.

The trade pact will also remove tariff duties on more than 90 percent of trade in goods between the two countries.

However, some Philippine agriculture exports to Japan, including tropical fruits, and some Japanese exports of industrial goods to the Philippines will remain subject to tariffs.

Two previous deadlines for signing the pact were postponed as the two sides remained at odds on various issues, with Tokyo seeking a more open investment climate in the Philippines and Manila pushing to send more workers to Japan, mostly nurses.

Last year, Japan tightened visa regulations to crack down on the trafficking of sex workers after coming under pressure from the United States.

But the tougher visa rules led to protests in the Philippines, which feared that the restrictions would also affect legitimate workers. Eight million Filipinos — 10 percent of the population — work overseas and sent home $10.7 billion last year.

According to an information paper on the JPEPA, 95 percent of the Philippine exports to Japan in terms of value will face zero duties upon the signing of the agreement, and would have "immediate positive impact on farmers, fishermen and food processors."

With more than half of Philippine banana exports accounted for by Japan, duties on small bananas would be eliminated in 10 years, while there would be more tariff reductions on other kinds of bananas compared to competitors.

There would be increased market access for Philippine pineapples through a Tariff Rate Quota for fruits smaller than 900 grams.

Japan buys almost 80 percent of the total Philippine pineapple exports.

Under JPEPA, tariff on Philippine shrimp exports would be immediately eliminated, while there would gradual elimination of tariff on crabs. Japan accounts for 45 percent of Philippine exports of shrimps and crabs.

There would be also concessions on the country’s sugar, chicken and tuna exports to Japan under the free trade agreement. — With AFP


Chief News Editor: Sol Jose Vanzi

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