Relative to the commitments under the Japan- Philippines Economic Partnership Agreement (JPEPA), the Second Sub-Committee on the Improvement of the Business Environment was convened on 24 May 2010 in Manila. Trade and Industry Secretary Jesli A. Lapus and Ambassador Makoto Katsura co-chaired the meeting.
In attendance were representatives from various Philippine government agencies, Embassy of Japan in the Philippines, Japan International Cooperation Agency (JICA), and Japan External Trade Organization (JETRO). The private sector was represented by Mr. Yasuhiko Arimitsu, President, Japanese Chamber of Commerce and Industry of the Philippines Inc., and Mr. Ryan Evangelista representing Amb assador Donald Dee, Chairman Emeritus of the Philippine Chamber of Commerce and Industry, and Mr. Baltazar Endriga of the Management Association of the Philippines.
It was noted that JPEPA which entered into force in 2008 has made significant strides in its implementation despite the global economic crisis in 2009. In this connection, the recent figures related to trade and investment were very encouraging despite the effects of the global recession. To illustrate:
• Despite the recent economic crisis, the trade relations between Japan and the Philippines were relatively stable and, thus, the Japanese share of the Philippine trade expanded in 2009 compared with the previous year.
• Philippine export to Japan increased, in 2009, on some items, e.g. shrimps, bananas, coconuts and apparels, while the tariff rates on such items had been lowered following the JPEPA schedules.
• Foreign direct investment from Japan to the Philippines increased in 2009, and thus the Japanese share of FDI to the Philippines in that year reached 58%.
• Remittances from Japan to the Philippines also increased from 575.2 million USD (2008) to 773.6 million USD (2009). This was a 34.5 percent increase and the Japan's ranking as a source of OFW remittances to the Philippines increased from the 7 th to the 5 th .
Both sides noted that the two countries, fostering a strategic partnership, are moving into a higher level of mutual dependence and cooperation.
During the meeting, matters concerning imp rovement of the tax refund system, stable supply of electricity at a competitive price, and the improvement of Philippine logistics, including access to ports and airports, were discussed as well as a review of the issues that had been raised in the previous discussions.
Efforts to be made in the framework of the sub-committee meeting on the improvement of the business environment are expected to make concrete results which would further heighten the level of business interactions and enhance future investments between the two countries. Both sides expressed intent and readiness to sustain the pursuit of bilateral endeavors made in the two Sub-Committees and several Consultative Group meetings to be held this year.
