RP Stands to Lose
P9 B a Year in Tariff Revenues under JPEPA
The country
stands to lose more than P9 billion annually in tariff revenues under the
Japan-Philippines Economic Partnership Agreement (JPEPA). Meanwhile, the
gains to Philippine exports that government economic managers claim will
happen under JPEPA are similarly overstated. Some 80% of Philippine
exports to
Japan already
enter tariff-free and will not be affected by the free trade pact.
BY IBON FOUNDATION
Posted by
Bulatlat
The country stands to lose more than P9
billion annually in tariff revenues under the Japan-Philippines Economic
Partnership Agreement (JPEPA).
According to Sonny Africa, IBON
research head, the annual value of the country's imports from Japan
averaged some $6.74 billion from 2000-2004. Most of these are electronics
parts and components that are imported duty-free under government
incentive schemes. Other products are levied tariffs ranging from 1
percent to 30 percent. Given the distribution of these products in the
various tariff brackets, Africa estimated foregone tariff revenues of some
P9.44 billion. (See Table)
Meanwhile, the gains to Philippine
exports that government economic managers claim will happen under JPEPA
are similarly overstated. Some 80 percent of Philippine exports to Japan
already enter tariff-free and will not be affected by the free trade pact.
(See Table)
Table
|
Tariff Rates |
RP Exports to Japan |
RP Imports from
Japan |
|
(%) |
(% share) |
(% share) |
Import Value (US$M) |
Tariff Revenues (US$ M)
|
Tariff Revenues (PhP M)
|
|
0 |
79 |
51 |
3,437.4 |
0 |
0.0 |
|
1 – 3 |
3.4 |
32.5 |
2,190.5 |
65.715 |
3,285.8 |
|
4 – 5 |
4.1 |
2.9 |
195.5 |
9.773 |
488.7 |
|
6 – 10 |
1.4 |
10.2 |
687.5 |
68.748 |
3,437.4 |
|
11 – 15 |
1.4 |
2 |
134.8 |
20.22 |
1,011.0 |
|
16 – 20 |
6.1 |
0.6 |
40.4 |
8.088 |
404.4 |
|
21 – 25 |
0.1 |
0 |
0.0 |
0 |
0.0 |
|
28 – 30 |
0.1 |
0.8
|
53.9 |
16.176 |
808.8 |
|
Total |
95.6 |
100 |
6,740.0 |
188.72 |
9,436.0 |
But
Africa
points out that these exports are mainly electronic parts and components
which are merely assembled here from inputs imported from abroad. Thus,
the major gainers from the JPEPA are actually Japanese corporations, such
as those engaged in the manufacture of cars and automotive parts, which
benefit from lower production cost because of reduced duties on imported
raw materials and parts.
Philippine exports which would enjoy
reduced tariffs under the Agreement are fresh bananas (6.5 percent of
Philippine exports to Japan), frozen shrimps and prawns (1.3 percent),
builder's joinery and carpentry of wood (1 percent), fresh pineapple (0.9
percent), other light oils and preparations (0.6 percent), men's or boys'
suits of wool or fine animal hair, sacks and bags for the conveyance or
packing (of polymers of ethylene), coconut (copra) oil and its fractions
(not chemically modified), and men's or boys' trousers, etc. of cotton.
However, the benefits of tariff
reduction for these products would accrue mainly to big foreign and
transnational agri-business enterprises. Local peasants would be unable to
take advantage of supposed export opportunities due to the lack of
government support in terms of infrastructure, credit, extension and
post-harvest facilities, Africa said. Posted by Bulatlat
IBON Foundation, Inc. is an
independent development institution established in 1978 that provides
research, education, publications, information work and advocacy support
on socioeconomic issues.
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