The fourth meeting of the Sub-Committee on the Improvement of Business Environment under the Philippines-Japan Economic Partnership Agreement (PJEPA) was held on 28 March 201 2 in Manila. Ambassador of Japan, H.E. Toshinao Urabe, and Undersecretary of the Department of Trade and Industry , Hon. Adrian S. Cristobal, co-chaired the meeting.
Representatives from various Philippine government agencies, Embassy of Japan in the Philippines, Japan International Cooperation Agency (JICA), and Japan External Trade Organization (JETRO) attended the meeting. The private sector was represented by Mr. Nobuya Ichiki , President, Japanese Chamber of Commerce and Industry of the Philippines Inc., and Mr. Guillermo Luz, Chairman of the National Competitiveness Council of the Philippines.
PJE PA, which entered into force in December 2008, has been a framework for enhancing economic relationship between the two countries . Both sides shared the view that it is still premature to make an overall evaluation on the full impact of PJEPA at this stage. However, both countries noted that recent figures related to trade and investment had been very encouraging despite difficult economic situations the two countries had to face particularly last year. To illustrate:
a. Trade volume between the two countries increased in 2011 as compared to 2010: Japan is the largest importer of Philippines’ export marking US$ 8.90 billion in 2011 from US$ 7.80 billion in 2010. Philippines’ import from Japan accounted for the largest share among other trading partners despite slight decrease to US$ 6.50 billion in 2011 from US$ 6.75 billion in 2010.
b. Japan remains the biggest investor to the Philippines in terms of investments approved by the Investment Promotion Agencies (IPAs) with the value of PHP 77.4 billion in 2011.
During the meeting, both countries noted the increasing interest shown by Japanese investors in the Philippines as evidenced by recent commitments as well as expanded investments by Japanese companies. This was clearly the case with the visit to the Philippines by Keidanren (Japan Business Federation) and other economic missions from Japan recently. Both sides agreed that this is an opportune time to invite further investments in the Philippines and that it is essential to continue dialogues with business communities. These dialogues aim for steady and concrete progress on the resolution of specific issues regarding the business environment and to ensure transparency, predictability, and consistency. Both sides further agreed on the importance of developing the Philippines as a training hub for ASEAN.
Also discussed in the meeting were tax-related issues including VAT refunds, other issues related to the improvement of business environment, such as affordable price and predictable supply of electricity, improvement of logistics including roads, ports and airports, and leveling up of human resource development.
The next meeting of the Sub-Committee is scheduled on September 2012.
Japanese Version
