JPEPA

The stalled bilateral trade agreement between the Philippines and Japan, or the JPEPA is up for ratification in the Senate. There's strong opposition from so-called environmental senators, led by Pia Cayetano and Migz Zubiri. The bone of contention stems from a provision that effectively lowers tariffs on 'environmental waste' coming from Japan, one of those onerous terms that makes the country a dumping ground for Japan's toxic waste.

Environmental groups and leftists NGOs have started making their opposition felt to the agreement. Unfortunately, they feel that the environmental issue and "giving license to multi-nationals to exploit the country's natural resources" are what the JPEPA is all about.

This short-sightedness is unfortunate. Japan is a major trade partner, much of our exports goes to Japan and much of our capital equipment is sourced from Japanese companies as well. Lower tariffs means the cost of production would be reduced. I completed a report on the automotive industry early this year and low tariffs under the ASEAN Free Trade Area was instrumental in reviving the ailing industry. Lower cost of production that would make Philippine-made goods competitive and access to a big market with high disposable incomes resulting from implementation of the agreement should take precedence over environmental issues. To begin with, current environmental laws safeguarding the country from toxic waste are already in place. As such, I believe this issue is being blown out of proportion and grossly exaggerated by leftists NGOs.