The seventh meeting of the Sub-Committee on the Improvement of Business Environment under the Japan-Philippines Economic Partnership Agreement (JPEPA) was held on 27 September 2013 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. Sergio R. Ortiz-Luis, Jr. President, Philippines Exporters Confederation, Inc. for the Philippine side.
JPEPA, which entered into force in December 2008, is an important framework for enhancing economic relationship between the two countries. Both sides noted that recent figures related to trade and investment had been very encouraging despite difficult economic situations around the world. To illustrate:
a. Japan was the largest importer of Philippines' export marking US $5.19 billion in the first semester of 2013. Philippines' import from Japan amounted to US $2.61 billion, making Japan the country's third top source of imports.
b. Japan was the second largest investor to the Philippines in terms of investments approved by the Investment Promotion Agencies (IPAs) with the value of PHP 4.2 billion in the second quarter of 2013.
During the meeting, both countries noted increasing interests and commitments shown by Japanese investors as evidenced by a series of opening of new factories in the Philippines. Both sides welcomed strengthening strategic ties between both countries highlighted by the recent visit of Prime Minister Abe and other high-level delegations from Japan.
Issues discussed in the meeting included tax-related issues, affordable, predictable and sustainable supply of electricity, utilization of Batangas and Subic Ports, additional surcharges introduced by SBMA, technical cooperation on global value supply chain analysis for priority sectors, development of the Philippines as a Human Resource Development (HRD) hub, and other issues and initiatives 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 sides agreed to make further efforts to reduce outstanding issues before the next meeting of the Sub-Committee and agreed that continuous dialogues with business communities are important to attract more investments into the Philippines. The Sub–Committee is an essential instrument to achieve this goal.
The next meeting of the Sub-Committee is scheduled in March 2014.
Japanese Version
