September 12, 2006

Trade pact with Japan to boost Philippine farm exports

Philippine's farm exports to Japan are expected to rise substantially starting next year, with the signing of a free trade agreement between the two countries, a senior official at the Department of Agriculture said Tuesday (Sep 12). 

The Japan-Philippine Economic Partnership, or JPEPA, would greatly benefit the local agriculture sector, as it would allow the introduction into Japan of various farm products including pork products, organic vegetables, ice cream and muscovado (sugar), Agriculture Undersecretary Segfredo Serrano told reporters.

The agreement also provides tariff elimination and reduction on traditional farm exports to Japan such as fresh bananas and pineapples, poultry and poultry products and marine products, Serrano said.

"Japan is a high-income, predictable and mature market. We need to take advantage of the opportunity that we have obtained to penetrate this market," he said.

The agreement also provides for the removal of import tariffs on certain poultry products, grapes, apples and pears coming from Japan, he added.

Economic Planning Secretary Romulo Neri said the agreement is expected to generate PHP250 billion-PHP300 billion (US$4.9 billion-US$5.9 billion) in revenue for the Philippines.

Philippine President Gloria Macapagal Arroyo and Japanese Prime Minister Junichiro Koizumi signed the agreement over the weekend, when the two leaders met during the Asia-Europe meeting in Helsinki. The programme would start next year.

Talks on establishing the JPEPA began in December 2003 in Japan. The JPEPA also seeks to expand industrial trade. Specifically, the agreement provides for the immediate removal of tariffs on at least 60 percent of the country's steel imports from Japan and on automobiles and automotive parts by 2010.