The domestic industry is pushing for a renegotiation of steel tariffs under the Japan-Philippines Economic Partnership Agreement (JPEPA) as they batted for the reduction of the agreed quota that will be allowed zero tariffs, an issue that is expected to further delay the implementation of the bilateral free trade pact.
Both parties had already agreed to the quota or volume of steel imports to be allowed at zero tariffs and once the volume is exceeded then regular tariffs will apply.
The Philippines had agreed to immediately eliminate tariffs on 60 percent of its iron and steel products.
But now, the industry wants the quota or the volume be reduced.
An industry official said that although there was sufficient consultation with the domestic steel industry players to which they also agreed, the JPEPA is not yet signed so the industry can still change its mind.
Earlier, Trade and Industry Secretary Peter B. Favila said he expects a signing of the JPEPA during the ASEAN Leaders Summit in December in Kuala Lumpur.
Originally, all negotiations were supposed to be completed last month, September, and implementation of the pact by January next year.
Favila said this as he hinted of some improvement in the offers for the automotive sector, one of the most contentious issues in the proposed JPEPA.
"Hopefully at the forthcoming ASEAN Leaders’ Meeting in December this year in Kuala Lumpur we have something to sign," Favila said noting that the "Japanese are just as interested to conclude the negotiations."
This developed as the Philippine negotiators submitted the government’s final position to their Japanese counterpart on the remaining thorny issues on the movement of natural persons, automotive and dispute settlement.
"Yesterday, we give our position," Favila said.
Favila said the Japanese negotiators have to present the Philippine position to the Japanese Parliament, which will decide on the contents of the Philippine submission.
In the same vein, the Japanese have also transmitted its position but the contents of which have yet to be divulged.
The other issues include the movement of natural persons and the legal concerns of the agreement.
On the movement of natural persons, the Philippines is pushing for no limit on the volume of qualified workers to be taken in by Japan or one that is market demand driven.
On the issue of dispute settlement, Favila said he has to meet with Justice Alfredo Benipayo to iron out legal kinks in the agreement.
"We need legal scrubbing of the majority of agreements," he said.
Earlier, Foreign Affairs Undersecretary Edsel T. Custodio said the government must ensure that the proposed FTA with Japan will be spared from future legal questions.
This developed as concerns have been raised on some government contracts that end up being questioned in court or are being investigated.
