MANILA, April 21 (Kyodo) - A Philippine Senate committee that
conducted public hearings on the Japan-Philippines Economic
Partnership Agreement recommended Monday "conditional
concurrence" with the free trade pact, saying many of its
provisions are in favor of Japan and even "unconstitutional."
"The basic issue with the JPEPA was that the advantages were in
favor of Japan, but not necessarily for the Philippines," said
Miriam Defensor Santiago, chair of the Senate committee.
Santiago added, "Another issue was that the JPEPA failed to
include reservations that Japan has already conceded to Thailand,
Malaysia and Indonesia. We just want equal treatment."
She filed a committee report recommending "conditional
concurrence" in the ratification of the JPEPA, which she described
as "an improved treaty because the condition (for ratification)
requires compliance with at least 15 specified constitutional
provisions."
"The condition ensures that the JPEPA will observe the
constitutional provisions on public health, protection of Filipino
enterprises, ownership of public lands and use of natural
resources, ownership of alienable public lands, ownership of
private lands, reservation of certain areas of investment to
Filipinos, and giving preference in the national economy and
patrimony to Filipinos," Santiago said.
Moreover, she said the condition will regulate foreign
investments, operation of public utilities, preferential use of
Filipino labor and materials, practice of professions, ownership of
education institutions, state regulation of transfer of technology,
ownership of mass media, and ownership of advertising firms.
"The condition imposed by the committee also makes reservation
for future exceptions to at least three JPEPA articles dealing with
national treatment, most-favored-nation treatment and prohibition
of performance requirements," she said.
Santiago explained the condition prohibits three clauses -- a
national treatment clause accords Japanese the same rights as those
accorded to Filipinos, a most-favored-nation clause between the two
states provides that each state will treat the other as well as any
other state that is given preferential treatment, and a performance
requirement imposes certain conditions for investment activities in
the Philippines.
The condition includes achieving a given level of domestic
content, giving preference to goods or services produced in the
Philippines, or hiring a given level of Filipinos.
Santiago said the condition is necessary to protect private
ownership of land, sectors listed in the Foreign Negative
Investment List, and the policy under the Labor Code of hiring
Filipinos first.
Santiago said the agreement might take the form of an exchange
of notes, and shall emphasize the "common understanding" of the
two countries that no investors of either country shall be entitled
to any right or preference under the JPEPA, "unless such
investment shall have been made in accordance with the requirements
of the laws of the other country."
She said if Japan refuses to agree to a supplemental agreement,
"there will be no 2008 JPEPA," but the two countries will likely
negotiate a 2009 JPEPA or later.
Again, she stressed the need for Japan to heed the condition,
saying, "The condition is an absolute necessity."
Otherwise, she said the Philippine Supreme Court would declare
the JPEPA unconstitutional.
The committee report has been circulated for signature among the
senators who are members of the Senate Foreign Relations Committee
and members of the committee of trade and industry headed by Sen.
Mar Roxas.
Under Senate rules, a committee report must be approved by a
majority of its regular members.
The Senate, which is controlled by President Gloria
Macapagal-Arroyo's rivals, needs to speed up the ratification
process of the JPEPA.
It must concur or reject the accord, which was concluded Sept.
9, 2006, for it to come into effect.
Environmentalists and Arroyo's political foes have used the
JPEPA to criticize her policies, accusing her of allowing the
country to be a dumpsite for Japan's waste.
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