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The Philippine FTA Experience. STATUS OF JAPAN-PHILIPPINES ECONOMIC PARTNERSHIP AGREEMENT (JPEPA). Background. January 2002 – PM Koizumi proposed the “Initiative for Japan-ASEAN Comprehensive Economic Partnership” May 2002 – Pres. Arroyo proposed to set up a Working Group

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The Philippine FTA Experience

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The philippine fta experience

The Philippine FTA Experience

The philippine fta experience





  • January 2002 – PM Koizumi proposed the “Initiative for Japan-ASEAN Comprehensive Economic Partnership”

  • May 2002 – Pres. Arroyo proposed to set up a Working Group

  • August 2002 – Informal Consultations

  • 2002 to 2003 – Working Group and Joint Committee meetings

The philippine fta experience

  • May 2003 – Creation of Phil. Coordinating Committee, with DFA USec for International Economic Relations and DTI Usec for International Trade as Co-Chairs

  • November 2003 – Presentation of study by the Phil. Institute for Development Studies

  • February 2004 to July 2005 – Formal negotiating sessions

  • July to October 2005– Legal Review

The philippine fta experience


  • Trade in GoodsBoard of Investments

    Dept of Agriculture

  • Rules of Origin BOI

  • Customs ProceduresBureau of Customs

  • Paperless TradingBOC

  • Trade in ServicesNational Economic &

  • Development Authority

  • Movement of Natural PersonsDept of Labor &


The philippine fta experience

  • InvestmentBOI

  • Competition PolicyTariff Commission

  • Mutual RecognitionBureau of Product Std

  • Government ProcurementDept of Budget & Mgt

  • Intellectual PropertyIPOPhil

  • Bilateral Econ. CooperationNEDA

  • Improvement of Bus. Environ.Dept of Trade & Ind

  • General & Final ProvisionsDept of Justice; DFA

Basic principles

Basic Principles

  • Comprehensive & substantial liberalization of bilateral trade & investment

  • Enhancement of mutual interests

  • Consistency with WTO

  • Take into account the economic situations of both countries & ASEAN-Japan Comprehensive Economic Partnership



  • Respective laws, rules and regulations

  • Treaties acceded to (no TRIPS +)

  • No specific mention of treaties not yet acceded

Expected benefits


  • Increase RP real GDP by 1.73% to 3.03%

  • Expansion in exports

    • goods: agricultural, industrial

    • professional services

  • Increased investments and technology transfer

    • electronics, automotives; sugar

  • Improved business environment for jobs and income generation

  • Prospects and challenges for a philippines us fta

    Prospects and Challenges for a Philippines-US FTA

    Exploring Our Options



    • Trade and Investment Framework Agreement (TIFA) (MOU signed in1989)

    • Enterprise for ASEAN Initiative (EAI)

      • launched by US President George Bush on October 26, 2002

      • US and individual ASEAN countries will jointly determine if and when they are ready to launch FTA negotiations

    • US-Singapore FTA

      • Signed May 6, 2003

      • 1st US FTA with an Asian nation and 1st FTA signed by Bush

    • Ongoing US FTA Negotiations

      • Taiwan, Thailand, Indonesia, Japan and South Korea

    The rp us fta research project

    The RP-US FTA research project

    General Objectives

    To conduct an independent research on the feasibility and desirability of establishing RP-US FTA

    (2) To provide inputs for negotiation should a FTA initiative push through

    (3) To encourage and facilitate networking activities in support of these objectives

    Rp us fta research project organizational structure

    RP-US FTA Research Project Organizational Structure

    Steering Committee


    DTI, Chair



    Academe (DLSU-AKI)

    Bus. Rep (PhilExport)

    Sectoral (NCRFW)





    PASCN Secretariat


    Information and



    Basic guidelines

    Basic Guidelines

    • Should be driven/guided by our own reform objectives

      • Global competitiveness

      • Sustainable growth

      • Resource allocation efficiency

      • Poverty reduction

    • Keep within the principles of multilateralism

      • Ideal approach to bring about optimum welfare

    Three levels of study

    Three Levels of Study

    On the whole economy

    Sectoral concerns

    Special issues

    Studies undertaken

    Studies undertaken

    A. Impact analysis on the whole economy

    • Overview of the Philippine-US economic relationship: Situationer Dr. Erlinda Medalla, PIDS

    • The Philippines – US FTA: A CGE AnalysisDr. Caesar Cororaton, PIDS

    Studies undertaken1

    Studies undertaken

    B. Impact analysis on specific sectors/concerns

    • Agricultural Trade between the Philippines and the US: Status, Issues and Prospects Dr. Liborio Cabanilla, UPLB

    • Impact of a Philippines – US FTA: The Case of Agriculture Dr. Liborio Cabanilla & U-Primo Rodriguez, UPLB

    • Impact of and Prospects of Bilateral Services Liberalization Agreement Dr. Gloria Pasadilla, PIDS

    • Implications of an RP –US FTA on the Philippine Financial Services Industry Dr Leila Calderon- Kabigting, DLSU

    • Issues and Prospects on the Movement of Natural Persons and Human Capital Development in the Philippine-American Economic RelationsDr. Tereso Tullao, DLSU

    Studies undertaken2

    Studies undertaken

    B. Impact analysis on specific sectors/concerns

    • Assessment of Readiness and Logistics Infrastructure of the Philippine Garments IndustryDr. Emilio Antonio & Cherry Lyn Rodolfo, UA&P

    • Expanding and Sustaining RP – US Linkages in Business Process Outsourcing Ceferino Rodolfo, UA&P

    • Enhancing and Deepening of the Competitiveness of the Philippine Electronics Industry Dr. Myrna Austria, DLSU

    • Impact and Potential for Industrial Goods/ ManufacturesFita Aldaba, PIDS

    Studies undertaken3

    Studies undertaken

    C. Special Studies

    • An Analysis of Existing and Potential US FTAs and Defining Philippine Strategy for NegotiationAtty. Sedfrey Candelaria & Atty. Anthony Abad, AdMU

    • Specific Legal Issues on the Proposed Philippines – US Free Trade Agreement (FTA): Politico-Legislative PerspectiveAtty. Sedfrey Candelaria & Dr. Victor Venida, AdMU

    • WTO Related Concerns: Government Procurement, Competition Policy and Trade Remedies Atty Jeremy Gatdula

    • Talking Points on Intellectual Property Rights Protection for RP-US FTA Negotiation Atty. Delia Tantuico, UA&P

    • The Politico-Strategic Dimension of the US’ Proposal for an FTADr. Renato de Castro, DLSU & Maria Castanos, FSI

    Main considerations

    Main considerations

    • Impact on the economy

    • Political

      • Political-strategic ramifications

      • Gainers and losers

    • Key issues

      • Bilateral (both countries)

      • Internal (domestic)

      • Across sectors

    • Negotiating strategy

      • Very tricky and complicated

      • Question of resources

    Next steps

    Next Steps

    • Need to continue doing our homework

      • More consultations

      • Involve private sector

      • Develop coalition

      • Keep watch on other FTA developments

      • Lessons from JPEPA experience

    • If FTA is pursued, need strong negotiating panel

    • The process is as important.

    Thank you

    Thank You.

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