JPEPA Ratification Puts Philippines in More Danger vs Global Crisis

Published on October 12, 2008

Contrary to President Arroyo’s statement that the ratification of Japan-Philippines Economic Partnership Agreement (JPEPA) will protect the country from the global financial crisis, it will make the country more vulnerable to economic shocks.

BY IBON FOUNDATION
Posted by Bulatlat

Contrary to President Arroyo’s statement that the ratification of the Japan-Philippines Economic Partnership Agreement (JPEPA) will protect the country from the global financial crisis, it will make the country more vulnerable to economic shocks.

JPEPA and similar free trade deals further opens the local economy to more foreign plunder and drags the country to the global crisis worsened by trade and investment liberalization, said IBON research head Sonny Africa. Bilateral deals like JPEPA enable beleaguered countries like Japan to pass their crisis to other economies in the region through more liberalization.

Even as Japan claims that it is on the way to recovery, its economy has been grappling with stagnant growth and high unemployment for nearly two decades and is aiming to further open up other economies to cope with its internal problems. The emerging scenario of a US economic slowdown, financial disorder, soaring energy and food prices only make its situation more urgent.

The experience of the country with similar free trade deals such as the GATT-WTO, which the Senate ratified in 1994, has proven that no amount of safety nets could protect the economy and the people’s livelihood from the harmful effects of liberalization.

According to IBON research head Sonny Africa, it is ironic that the Senate ratified the JPEPA even as the WTO talks broke down precisely because of questions on the supposed development gains to be achieved from trade and investment liberalization. “When will this government learn from the harmful effects of liberalization on the economy?” he asked.

The approval of JPEPA surrenders Philippine sovereignty and will reinforce the country’s backwardness. The country will be further prevented from implementing economic policies essential for its development and will be obliged to give similar disadvantageous terms in pending deals with the US, European countries and others.

“There is no real gain for the Philippines and especially the poorest and most marginalized sectors with JPEPA. In agriculture it is the big corporate plantations that will gain and not the country’s millions of small farmers,” Africa added.

To protect and build the domestic economy, the country needs trade protection against imports such as tariff and non-tariff barriers and investment controls, and not free trade deals like JPEPA that only further expose the country and deepen its links to the failing global economy. (Posted by Bulatlat)