Ph ilip p in e s – Ja p a n Tra d e A g re e m e n ts D o in g B u sin e

Ms. Maria Salome C. Rebosura
Chief
Bureau of International Trade Relations
INTERNATIONAL TRADE GROUP
Department of Trade & Industry
PJEPA and AJCEPA
Philippines – Japan Trade Agreements
Grand Tower Hotel, Iloilo City
12 November 2010
Doing Business in Free Trade Areas
PJEPA
AJCEPA
Complementary agreements offering the traders options
PJEPA and AJCEPA
US$ 551 billion total merchandise
imports from the world. 4th largest
importer of goods in the world.
US$ 35,271 per capita GDP
US$ 4.89 trillion GDP
128 million consumer base
In 2008:
How big is the Japan market?
Source: ITC TradeMap
PJEPA levels the playing field with other countries,
including ASEAN markets that have bilateral EPAs with
Japan already in place
PJEPA seeks to improve two-way market access by
eliminating barriers to trade.
The Philippine – Japan EPA (PJEPA)
PJEPA in full steam since December 2008
Sensitive Track – 0-5% after 10 years from entry-into-force,
with a number of lines without any level of tariff reduction
(standstill)
Sensitive Track
Longer tariff elimination schedules for some products as compared to the PJEPA.
Normal Track – tariff elimination within 10 years upon entryinto-force with flexibility of up till 13 years for Cambodia,
Laos and Myanmar.
Normal Track
Essentially the same Philippine tariff commitments as in PJEPA.
The ASEAN – Japan EPA (AJCEPA)
The Philippines commenced implementation of an EPA with Japan
under the ambit of ASEAN in 01 July 2010…
o Agriculture : Immediate tariff elimination, gradual tariff elimination
or Tariff Rate Quota (TRQs)
o On agriculture products of interest to the Philippines (shrimps,
prawns, crabs, bananas, pineapples, tropical vegetables,
tobacco, sausages, chicken, pork, etc.)
o Industrial Goods: Tariffs on almost all textile and apparel goods will
be eliminated immediately.
o 60% of the tariff lines of iron and steel will be eliminated within 10
years. For auto-parts, tariffs for 66% of tariff lines will be eliminated
within 10 years while 8% are for immediate elimination
Almost 81% of Philippine exports may now enter Japan dutyfree.
PJEPA Benefits for Philippine Business
Opening up the Japan market to Philippine exports…
Tariff Category
Number of HS Lines
A
Immediate Elimination
7, 476
B3 Three Years
4
B5 Five Years
185
B7 Seven Years
174
B10 Ten Years
459
B15 Fifteen Years
60
P
Phase Reduction
33
Q Tariff Rate Quota (TRQ)
14
R Renegotiation
269
X Excluded
651
% of Tariff Lines
80.2
0.0
2.0
1.9
4.6
0.6
0.4
0.2
2.9
7.0
PJEPA Benefits for Philippine Business
Opening up the Japan market to Philippine exports…
7.43
10.37
693
967
Special
Category
(P, Q, R, X)
Number of
% Share
HS Lines
7, 665
82.20
Tariff
Elimination
in 7-15 years
(B7, B10, B15)
Tariff
Category
Tariff
Elimination
in 0-5 years
(A, B3, B5)
Fruit juices, Tomato Catsup, Tomato Sauces, Frozen Cuts of Meat
Offal, Sausages, Ice Cream, Pineapples, Misua, Cookies, Canton,
Plywo od, Instant Noodles, Mackerel, Sea Urchin, Table Salt
Footwear (Rubber parts and plastic parts), Mollusks (fresh, chilled,
frozen, dried), Soya milk drink, Sauces, condiments, mixed
seasonings, Banana Chips or crackers, Flavored UHT milk drink,
Calamansi juice other than concentrate, Fruits, nuts in airtight
containers, Baseball and softball gloves (leather), Tennis shoes,
gym shoes, basketball shoes, Toasted Bread, Fresh Calamansi,
Gingerbread
Mineral Waters (not flavored); Luncheon Meat, Chromium Ores &
Concentrates, Methyl Alcohol, Garments, Perfumes and Toilet
Waters, Yellow fin tuna (frozen), Palm vinegar, Sugar cane vinegar,
Milkfish (frozen), Lubricating oil for Aircraft engines, Prepared
preserved abalone
Sample RP Export Products
PJEPA Benefits for Philippine Business
Opening up the Japan market to Philippine exports…
Manufacturing inputs from other ASEAN countries and
Japan are considered “originating” and may be used to
increase the likelihood of passing the ROO and
qualifying for AJCEP preference
Widened cumulation area…
AJCEPA Benefits for Philippine Business
Opening up the Japan market to Philippine exports…
Enhanced market access in Japan
for Philippine exports…
Copper foil, backed with refined copper
Copper foil, backed with copper alloys
Scrap, powders of other base metals
Other non-wired glass
Lauryl alcohol
Glycerol
Other plastic packaging materials
Epoxide resins
4.2
3
3
2.5 / 3
4.7
5
3.9
3.1
MFN
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
AJCEPA PJEPA
PJEPA & AJCEPA Benefits for Philippine Business
Sector
Chemicals
& Plastics
Metals
Glass
Sector
Resource and agro-based products
17.3
23.6
0
20
25
4.5% or 5
yen/kg
whichever
is greater;
GSP= 0
Other plywood and veneered
panels
Builders' woodwork
6.6
7.2
Dried pineapples
Bananas (Fresh)
- Imported during the period:
01 April to 30 Sept.
- Imported during the period:
01 Oct. to 31 March
Refined coconut oil
Crude coconut (copra) oil
0
0
3
3.9
0
0
17
3
3
17
Okra
Fresh Mangoes
Fresh pineapples
0
3.5
0
7.3
7.3
3
3.5
1
10
10
AJCEPA
Frozen poultry meat cuts
Yellowfin tunas
Shrimps and prawns
Other smoked fish
- Tara
MFN
0
0
0
5.2
Certified as being Inabaniko, Lakatan, Latundan,
Morado, Pitogo, Saba or Seňorita bananas
1.5
0
In-quota = 0
(1,200 MT in 2010)
0
1.8
0
6.3
2.5
PJEPA
PJEPA & AJCEPA Benefits for Philippine Business
Well educated and discriminating consumers
Cultural shift among consumers towards a more
international style – in food, clothing, housing (including
furniture and furnishings)
Proliferation of bargain stores (100 yen stores, bargain
floors, seasonal bargains)
Prospects in the Japan Market
Text and schedules of PJEPA: http://www.dti.gov.ph (Go to
International Trade Section)
Schedule of Commitments:
http://www.aseansec.org/22572.htm
(refer to the section on Annex 1 - Schedules for the Elimination or
Reduction of Customs Duties)
Text of the AJCEPA Agreement:
http://www.aseansec.org/agreements/AJCEP/Agreement.pdf
Important PJEPA and AJCEPA Resources
Thank you…