The fifth meeting of the Sub-Committee on the Improvement of Business Environment under the Philippines-Japan Economic Partnership Agreement (PJEPA) was held on 26 September 2012 in Manila. Ambassador of Japan, H.E. Toshinao Urabe, and Undersecretary of the Department of Trade and Industry , Hon. Adrian S. Cristobal Jr., 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. Takashi Ishigami , President, Japanese Chamber of Commerce and Industry of the Philippines Inc. for the Japanese side and Mr. Miguel B. Varela of Philippine Chamber of Commerce and Industry (PCCI) and Mr. Sergio R. Ortiz-Luis Jr. of Philippine Exporters Confederation, Inc. (PHILEXPORT) for the Philippine side.
PJE PA, which entered into force in December 2008, is an important framework for enhancing economic relationship between the two countries . The Philippines and Japan noted that recent figures related to trade and investment had been very encouraging despite the difficult economic situations around the world. 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$ 7.84 billion in 2010. Philippines' import from Japan accounted for the largest share among other trading partners despite slight decrease to US$ 6.52 billion in 2011 from US$ 6.74 billion in 2010. In the first half of 2012, Philippines' export to Japan and import from Japan has seen an year-on-year increase of 11.0% and 13.6% respectively.
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 first half of 2012, approved FDIs from Japan recorded PHP 22.3 billion, making Japan the country's top investor during the period.
During the meeting, both countries recognized the continued strong interests shown by Japanese investors in the Philippines through new Japanese investments. It was also discussed that the Philippines is a potential regional hub for human resource development in the ASEAN region.
Also discussed in the meeting were tax-related issues including VAT refunds, affordable price and predictable supply of electricity, improvement of logistics including roads, ports and airports, as well as other issues related to the improvement of business environment.
The dialogues between the Philippines and Japan is ensuring transparent, predictable and consistent business environment through the concrete progress made in resolving specific issues. Both countries agreed that continuous dialogues with business communities are important to attract more investments into the Philippines.
The next meeting of the Sub-Committee is scheduled in March 2013.
Japanese Version
