Trade Agreement as a Model of Development: The Case of the Japan-Philippine Economic Partnership Agreement (JPEPA)

2020 ◽  
Author(s):  
Al Faithrich Navarrete ◽  
Virgilio Tatlonghari

Abstract The Japan-Philippines Economic Partnership Agreement (JPEPA) includes comprehensive provisions that aims to foster economic growth. The provision on Tariff Elimination is expected to increase trade between the two countries. A modified Gravity Model was used in order to estimate the impact of Tariff Elimination to Exports of the Philippines to Japan using the weighted average of tariffs imposed by Japan to Philippine Exports. While a Two-Stage Least Squares (TSLS) was utilized to estimate its impact to Economic Development. Using quarterly data from 2001 to 2013, results shows that although the agreement is able to statistically increase exports of the Philippines to Japan, it may not be enough to induce significant Economic Growth to the Philippines.

2018 ◽  
Vol 12 (2) ◽  
pp. 181-204
Author(s):  
Endah Ayu Ningsih ◽  
Telisa Aulia Falianty ◽  
Fitri Tri Budiarti

AbstrakPenelitian ini mengevaluasi tingkat pemanfaatan Indonesia-Japan Economic Partnership Agreement (IJEPA) dan Indonesia-Pakistan Preferential Trade Agreement (IPPTA) dalam ekspor dan impor Indonesia ke Jepang dan Pakistan. Tingkat pemanfaatan FTA untuk ekspor menggunakan rasio nilai perdagangan yang termuat dalam Surat Keterangan Asal (SKA) terhadap nilai ekspor ke negara mitra. Sedangkan tingkat pemanfaatan impor menggunakan rasio nilai impor produk yang memenuhi syarat terhadap total impor Indonesia dari negara mitra. Studi ini menemukan bahwa pemanfaatan IJEPA (2012-2016) cenderung menurun. Pada tahun 2016 tingkat pemanfaatan ekspor sebesar 47,2%. Sementara pemanfaatan IPPTA untuk ekspor ke Pakistan mengalami peningkatan yang signifikan sejak diimplementasi tahun 2013 dengan tingkat pemanfaatan ekspor sebesar 72,0% pada tahun 2016. Di sisi impor pemanfaatan IJEPA mencapai 67,7% sementara IPPTA hanya 18,8% (2016). Pemanfaatan impor IJEPA dan IPPTA relatif stagnan, jumlah perusahaan yang menggunakan SKA IJEPA sudah pada level jenuh, sementara pengguna SKA IPPTA masih tumbuh 18,2% per tahun. Bentuk PTA lebih memberikan dampak positif bagi peningkatan ekspor Indonesia ke negara mitra dibandingkan FTA yang komprehensif. Kebijakan melakukan FTA dalam bentuk Economic Partnership perlu disertai dengan kerja sama yang menjamin peningkatan perdagangan yang seimbang antar negara anggota. AbstractThis study aims to address the utilization level of The Indonesia-Japan Economic Partnership Agreement (IJEPA) and Indonesia-Pakistan Preferential Trade Agreement (IPPTA). The level of FTA utilization for exports was measured by the ratio of trade value recorded in the Certificate of Origin (CoO) to Indonesia’s export value to the related country. While the level of utilization of imports was defined by the ratio of the import value of eligible products to Indonesia's total imports from the related country. The study found IJEPA’s utilization during 2012-2016 tended to decrease. In 2016, the level of utilization was about 47.2%. While IPPTA utilization for exports to Pakistan experienced a significant increase since it was implemented in 2013 with a rate of export utilization was 72.0% in 2016. On the import side, the level of utilization under IJEPA reached 67.7% while IPPTA was only 18.8% at the same period. In terms of the imports utilization level of both IJEPA and IPPTA, it was relatively stagnant, while the number of companies utilize IJEPA’s CoO was saturated. In contrast, IPPTA’s CoO users still grew at 18.2% per year. This study concluded PTA provides more positive impact on increasing Indonesia's exports to related countries than comprehensive FTAs. Thus, establishing an FTA in the form of an Economic Partnership needs to be followed with the cooperation that guarantees trade balance within the parties.


2007 ◽  
Vol 16 (3) ◽  
pp. 357-381 ◽  
Author(s):  
Nobue Suzuki

This paper details the context of the reception of Filipino careworkers under the Japan-Philippines Economic Partnership Agreement (JPEPA). Following the reduction in the deployment of Filipina/o entertainers in Japan since March 2005, the potential deployment of careworkers to Japan has generated much interest in the Philippines. However, many aspects of careworker migration are not well understood. The primary objective of this paper is thus to clarify the social conditions surrounding the JPEPA to better understand the various issues involved in carework in Japan. Towards this end, the paper discusses the following: the attempt of the state to reduce the costs of carework; state policies on foreign workers and the prospect of bringing in Filipino careworkers under the JPEPA; the responses of government institutions, medical and labor organizations to careworker migration; the process of careworker migration as provided in the JPEPA; and possibilities of cooperation between Filipinos already in Japan and incoming careworkers.


2017 ◽  
Vol 47 (1) ◽  
pp. 158-177 ◽  
Author(s):  
Andrew Muhammad ◽  
Amanda M. Countryman ◽  
Kari E. R. Heerman

Withdrawal from the Trans-Pacific Partnership (TPP) could be costly for U.S. beef exports to Japan given existing trade agreements such as the Japan-Australia Economic Partnership Agreement (JAEPA). We estimate the demand for imported beef in Japan by source and product and assess the impact of tariff reductions on exporting countries. Our results suggest JAEPA will result in considerable increases in Australian beef exports to Japan, largely at the expense of the U.S. beef. However, similar tariff reductions for U.S. beef could eliminate these negative effects and even result in a net increase in beef imports from both countries.


2020 ◽  
Vol 3 (2) ◽  
pp. 156
Author(s):  
Nurshinta Anggia Anggraeni

<p><em>The development of Japan's industrial sector triggered the generation of toxic and hazardous waste as its consequences which endangered the environment and human’s health. The high cost of waste management and limited land disposal encourages transboundary movement to developing countries. Although it has been monitored by the Basel Convention which ban toxic waste movement, Japan still find the loophole by using Indonesia-Japan Economic Partnership Agreement (IJEPA) as an instrument to transfer domestic waste abroad. This study will use the theory of economic diplomacy and issue linkage concept to observe Japan's diplomacy in reaching an agreement on reducing toxic and hazardous waste tariff with Indonesia in IJEPA. The result shows that Japan bartered the issue by offering capacity building compensation.  Those are consisting of investment on toxic and hazardous waste management facilities and the development of hazardous waste recycling market in Indonesia. Through the compensation, reduction tariff of hazardous waste could be achieved by Japan to continue its transboundary movement and reduce the impact of domestic environmental pollution, while still accommodating the interests of Indonesia in terms of capacity building towards hazardous waste management.</em></p>


2006 ◽  
Vol 27 (1) ◽  
pp. 31-60
Author(s):  
Dennis D. Trinidad

The paper is a theoretical discourse on policy shift, defined as the turning point or threshold by which policymaking agents abandon old policy preferences in favor of new ones. It contends that policy shift is contingent upon two factors: (1) the nature of elite interests, and (2) exogenous pressures like world prices and economic crises. The dismantling of cohesive elite interests is essential before policy shift could take place. Exogenous pressures can help achieve this by altering the settings which define these interests. Specifically, the paper examines the liberalization of trade and investment in the Philippines as an episode of policy shift. In the 1980s, the sudden reversal of international prices of agricultural products forced many agrarian elites to abandon agriculture and shift to other more lucrative business ventures like services and manufacturing. In the process, they explored new areas of interest and formulated corresponding sets of policy preferences. Against this backdrop and under a new constitution, former President Fidel V. Ramos and his successors pursued liberalization. The trend toward further economic liberalization became irreversible due to the country’s commitment to international agreements such as the World Trade Organization, ASEAN Free Trade Area, ASEAN-China Free Trade Agreement and the proposed Philippines-Japan Economic Partnership Agreement.


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