Thursday, November 15, 2007

RP electronics sector a winner in JPEPA deal

Greater opportunities await the Philippine electronics industry with the implementation of the Japan-Philippines Economic Partnership Agreement or JPEPA.

JPEPA, which was signed in September 2006 in Helsinki, Finland by President Gloria Macapagal-Arroyo and then Japan Prime Minister Junichiro Koizumi, is expected to bring positive developments and growth of the electronics industry, which has been, for over a decade, the primary driver of Philippine exports.

In 2006, the electronics industry accounted for almost 63 percent of total Philippine exports, equivalent to about US$29.5 billion. Of this value, Japan accounted for 14 percent or US$4 billion in export receipts. This makes Japan the second biggest export destination of Philippine-made electronic goods. The Netherlands is the top export market of electronic products from the Philippines.

With JPEPA in place, the Philippines will enjoy freer flow of trade with Japan, thus opening more opportunities for our local industry in the Japanese market. A study facilitated by the Universal Access to Competitiveness and Trade (U-act) anticipates an additional export value of up to US$1.26 billion in the semiconductor sector once this agreement comes into effect. Moreover, this deal will boost export growth and will serve as a vehicle for job creation for Filipinos thru the additional streams of investment flows it will create. The same study says that 135,549 new jobs in the semiconductor industry will be generated by JPEPA.

JPEPA goes beyond liberalization of trade in goods and services. It covers measures that promote cooperation in fields such as human resource development and technology transfer.

As global technology development and innovation progresses at a fast rate, this kind of technical cooperation is a welcome opportunity for the industry to further upgrade the skills of Philippine workforce to achieve global competitiveness. Japan, known for its expertise on high-technology activities, can aid, through this cooperation, the government and the private sectors’ joint efforts to move the industry up the production value chain by engaging in Integrated Circuit design/testing and increasing research and development activities.

This endeavor is in line with some of the programs that are proposed to be undertaken in the JPEPA. These programs include basic research programs that leads to new products development, engineering and technical academic support programs, and programs that promote greater, closer and constant interaction among academe, industry, and the government. (end)

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