Let me clarify however that it will not only be in Mindanao but throughout the Philippine archipelago’s Exclusive Economic Zone, the 200 miles stretch of water from the shore, where these tuna are found abundantly that Japanese fishing fleets are allowed to fish for tuna under JPEPA.

Unfortunately, this is one of Japan’s hidden gain under JPEPA. The provisions of JPEPA involving “factory ships” were specifically and cleverly tailored for Japanese fishing fleets and industry as the Philippines does not have a single factory ship. These factory ships have an advantage over Philippine entities engage in tuna fishing simply because they can ship the processed tuna directly to Japan “as if of Japan origin”, being owned by Japanese nationals, free of any customs duty/certifications unlike Philippine entities where they have to pay higher customs duty (~29%) and comply with Japan’s health requirements.

The Philippines’ government entities (Department of Trade and Industry and Department of Agriculture) are fully aware of this lopsided provisions but they just keep their mouth shut and close their eyes to this impending disaster to Philippine tuna industry.

The way I see it if JPEPA will be concurred by 2/3 of the Senate, in a span of 3 years Japanese factory ships will be able fully exploit and deplete tuna resources in Philippine EEZs, probably with annual catch of 100,000 to 200,000 metric tons per year (about US$60M-120M per year). After 3 years, the effect to Philippine local tuna industry will be akin to Philippine garment industry – massive loss of jobs, closure of processing and canning plants in Gen. Santos City and other support businesses, bank foreclosures/losses, loss of govt taxes, etc. I am wishing that the Philippine gov’t and JPEPA has mechanism to reimburse any losses suffered by local entities as a result of market access brought by JPEPA – unfortunately there is none!

Reming Tong