News Release

MIRIAM: JPEPA NEEDS SUPPLEMENTAL AGREEMENT

“If the treaty in its present form is questioned in the Supreme Court, the case will be a no-brainer. But prudence dictates that we should wait until the last public hearing,” she said.

Santiago, a constitutional law expert, warned “shallow legal kibitzers” to refrain from misleading President Arroyo, because the senator said ultimately the treaty will be taken to the Supreme Court, and it is the duty of the Senate administration allies to protect the integrity of both the President and the Senate in the treaty-making process.

“My preliminary preference is to propose a Supplemental Agreement to the executive branch, and subsequently to sponsor on the floor both the JPEPA and the Supplementary Agreement,” she said.

The senator said she will advise President Arroyo to follow US common practice, and to appoint senators to negotiating delegations, so that the senators will contribute their sense of what the Senate will accept, thus deterring and disarming Senate opposition.

“The reservation in JPEPA is very narrow, and contrasts with comprehensive reservations made by Malaysia, Thailand, and Indonesia in their EPAs with Japan, and even by Japan in its reservation in JPEPA,” Santiago said.

Santiago pointed to specific constitutional provisions that require the State to intervene, when necessary to protect the Philippine economy, with future performance requirements, such as transfer of technology and nationality in hiring policies.

“In its present text, the negotiating team failed to provide for flexibility in imposing or adjusting for preferential measures, and also failed to provide for nationality in hiring policies,” she said.
Santiago, a former UP constitutional law professor, said that during the public hearing, government resource persons “failed to grasp the crucial difference between Annex 6 on trade and services, and Annex 7 on investments.”

“JPEPA negotiators and their defenders made the fatal mistake of differentiating the rules on trade and services, from the rules on investment negotiation. In fact, under Article 88, the definition of ‘investments’ is so exhaustive that in effect Article 88 defeats Annex 6 on services,” she said.

Santiago said that while she was in New York with foreign affairs secretary Alberto Romulo and Ambassador Hilario Davide, to pursue her national candidature for the International Court of Justice, she kept track of the additional JPEPA hearing conducted in her absence, and found no substantial reason to change her preliminary opinion of the treaty.

“The Senate opposition will not ratify JPEPA, because it will become the first treaty under which the Philippines promises never to impose nationality hiring requirements, or technology transfer requirements, on any foreign investment,” she said.

Santiago said that she will be leaving for a campaign in three ASEAN capitals on November 25 to December 5, but she expects to circulate a committee report before the Senate goes on Christmas break.

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