Overview of PJEPA Agenda
PJEPA was implemented in 2008, a bilateral free trade agreement between the Philippines and Japan. It aims to eliminate or reduce tariffs, foster trade in goods and services, and promote investment between the two countries. PJEPA is one of the most comprehensive bilateral trade agreements the Philippines has signed, encompassing not only trade but also cooperation in investment, human resources, and technology.
Key Objectives of PJEPA
Elimination of tariffs on over 90% of trade in goods between the Philippines and Japan.
Streamlining procedures to facilitate faster and more efficient movement of goods and services.
Encouraging Japanese investments in the Philippines, particularly in manufacturing, infrastructure, and technology sectors.
Creating an environment conducive to foreign direct investment (FDI) through improved regulatory frameworks.
Providing opportunities for Filipino professionals, particularly nurses and caregivers, to work in Japan under specific provisions.
Promoting collaboration in science, technology, and innovation to strengthen industries such as agriculture, fisheries, and manufacturing.
Current Economic Context (Post-COVID and Global Trends)
Both Japan and the Philippines have prioritized economic recovery efforts that align with global trends like digital transformation and sustainable growth.
The need for resilient and sustainable supply chains has become more critical, and PJEPA provides an opportunity to strengthen the partnership between the two countries.
Japan has committed to achieving carbon neutrality by 2050, and the PJEPA update aligns with efforts to promote sustainable and green technology exchanges between the two countries.
Strategic Priorities for PJEPA (2024 and Beyond)
Institutional Framework and Support
PJEPA Joint Committee
Regular meetings to oversee the implementation of PJEPA, resolve trade-related issues, and propose updates to meet evolving economic conditions.
Introduction of new working groups for
Strategic Implementation Plan
Launch of digital trade facilitation tools and services by mid-2024 to enhance cross-border e-commerce and digital transactions.
Establishment of innovation hubs linking Filipino and Japanese start-ups to encourage collaboration in new technologies like AI, blockchain, and fin-tech.
Joint investment projects in renewable energy and clean technologies by late 2024, focusing on the sustainable development goals.
Implementation of green technology transfer programs to promote sustainable trade practices in agriculture and manufacturing.
Roll out of customs modernization projects by early 2025, with the goal of streamlining logistics and ensuring smooth trade flows.
Collaboration in building regional value chains, focusing on industries like automotive (with an emphasis on EVs) and electronics.
By mid-2024, the Philippines and Japan will expand their labor mobility framework to include more professional categories.
Joint educational programs will be launched, aimed at up-skilling Filipino workers in key sectors such as health care, technology, and green jobs.