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proposed JPEPA, including the <strong>Philippine</strong> and Japanese offers and all pertinent<br />

attachments, to restrain the <strong>Philippine</strong> Government from signing such agreement until<br />

such time that full public disclosure has been made, full opportunity given <strong>for</strong> public<br />

consultation, and ample time af<strong>for</strong>ded the <strong>Philippine</strong> Senate to properly study and review<br />

the JPEPA.<br />

OVERVIEW AND NATURE OF THE JPEPA<br />

The JPEPA is a bilateral preferential trade agreement between Japan and the<br />

<strong>Philippine</strong>s that seeks to remove barriers to trade, and to promote a freer trans-border<br />

flow of the trade of goods, persons, services, and capital between the two countries,<br />

resulting in a free trade area between the two countries. The JPEPA is being negotiated in<br />

the context of an ASEAN-Japan Comprehensive Economic Partnership (“CEP”), which<br />

was proposed by Prime Minister Koizumi to ASEAN in January 2002. The JPEPA will<br />

constitute the <strong>Philippine</strong> component of such Japan-ASEAN CEP.<br />

The JPEPA will inevitably affect much of the <strong>Philippine</strong> economy given its wide<br />

coverage. 9 The JPEPA will cover (1) trade in goods, 10 (2) rules of origin, 11 (3) customs<br />

procedures, 12 (4) paperless trading, 13 (5) emergency measures, 14 (6) trade in services, 15 (7)<br />

9<br />

This is based on the reports made by the Department of Trade and Industry (“DTI”) during inquiries<br />

conducted by the Special Committee on Globalization of the House of Representatives (the<br />

“Committee”).<br />

10<br />

Trade in goods covers substantially all of the 11,000++ tariff lines of the Tariff and Customs Code,<br />

encompassing agricultural and food products (Chapters 1-24), mining products (Chapters 25-26), and<br />

manufactured and industrial products (Chapters 27-97). This section of the JPEPA consists primarily of<br />

the reduction of tariff rates, with full tariff liberalization (i.e., reduction of tariffs to 0%) to take effect<br />

in 2010. It must be noted that the JPEPA stands to affect the country’s MFN tariff rates, which, as<br />

previously mentioned, are governed by the country’s unilateral trade commitments under the TRP,<br />

and its multilateral trade commitments under the WTO.<br />

11<br />

Rules of Origin are the criteria used to define w<strong>here</strong> a product was made. They are an essential part<br />

of trade rules because a number of policies discriminate between exporting countries; Rules of Origin<br />

ensure that preferences benefit only those products originating in the beneficiary countries. It must be<br />

noted that the <strong>Philippine</strong>s is a party to the WTO Rules of Origin Agreement.<br />

12<br />

Customs Procedures will reportedly provide in<strong>for</strong>mation exchange and cooperation to facilitate trade<br />

through simplified and harmonized customs procedures.<br />

13<br />

Paperless Trading will reportedly provide in<strong>for</strong>mation exchange on best practices.<br />

14<br />

Emergency Measures will provide the rules <strong>for</strong> addressing serious injury or threat t<strong>here</strong>of caused by<br />

increased imports. Under present <strong>Philippine</strong> law, emergency measures are governed by Republic Act<br />

No. 8800, otherwise known as the Safeguard Measures Act. However, relief is currently not available to<br />

4

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