RP stands to gain from proposed RP-Japan trade pact (1/30/2004)

The proposed bilateral free trade agreement (FTA) between the Philippines and Japan will have positive impact on the Philippine economy. In a series of studies conducted by the Philippine APEC Study Center Network (PASCN), whose lead convenor is the Philippine Institute for Development Studies (PIDS), it was found out that the Philippines would enjoy slight improvements in the GDP growth, trade and domestic prices should the bilateral trade agreement with Japan succeed. The studies also indicated that there would be a positive poverty alleviation effect, particularly in the urban areas such as the National Capital Region, where most industries are located. According to Dr. Erlinda Medalla, project director of the PASCN and senior research fellow at PIDS, a bilateral agreement with Japan would provide net positive impact on the economy if the Philippines’ agenda and objectives of reforms, namely, global competitiveness, sustainable growth, efficiency in allocation and poverty alleviation, are taken into consideration. She also rationalized that a bilateral economic partnership with Japan is crucial considering that Japan is the second largest trading partner of the Philippines after the U.S. and a main source of official assistance of the Philippines. In addition, she pointed out that an FTA with Japan would benefit the almost 78,000 overseas Filipinos who are currently employed in Japan, mostly as production and related workers, transport equipment operators and laborers.