Overview of PJEPA Case Model
Targeted Benefits
- Bilateral Focus
- PJEPA is a bilateral agreement specifically between the Philippines and Japan, allowing for more tailored provisions that cater directly to the economic interests and needs of both countries.
Tariff Reductions
- Trade in Goods
- There are significance reductions and eliminations of tariffs on Philippine exports to Japan under PJEPA, giving Filipino products better market access compared to the multilateral agreements where concessions might be more generalized.
PJEPA vs AJCEP vs RCEP
PJEPA
- FTA liberalization rate
- Over 95%
- Member countries
- Philippines, Japan
- Key features
- Enhancing economic cooperation between the two countries
- FTA agreement with the most favorable terms for the Philippines
- Key FTA liberalized items
- Electronic components, automotive parts, etc.
- Agricultural and seafood products
AJCEP
- FTA liberalization rate
- Over 90%
- Member countries
- ASEAN 10 countries, Japan
- Key features
- Expansion of trade between ASEAN and Japan
- Includes services, investment, and intellectual property rights
- Key FTA liberalized items
- World's largest FTA
- Promotes multilateral trade
- Enhances supply chains
RCEP
- FTA liberalization rate
- Over 65% (progressive tariff elimination)
- Member countries
- ASEAN 10 countries, Japan, Korea, China, Australia, New Zealand
- Key features
- World's largest FTA
- Promotes multilateral trade
- Enhances supply chains
- Key FTA liberalized items
- Agricultural products
- Commodities
Case studies of PJEPA utilization
Item
Trading Situation
Tax Aspect
PJEPA| FTA | Basic rate | FTA rate | Duty profit |
|---|---|---|---|
| PJEPA | 20% | 8% | 12% |
| AJCEP | 10% | 10% | |
| RCEP | 20% | 0% |
PSR Aspect
PJEPA| FTA | PSR |
|---|---|
| PJEPA | CC |
| AJCEP | CC |
| RCEP | CC |
