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Philippine trade minister Juan Santos said on Thursday he hopes to finalise a free trade agreement with Japan by the end of the year. The two countries clinched a broad free trade agreement (FTA) last November, but Santos said final details will be worked out and signed later this year.
"Anywhere between September and the end of the year," Santos told Reuters in an interview in Tokyo when asked when the agreement could be finalised.
The overall macroeconomic impact would mean a 1.7 to 3.0 percent improvement in terms of gross domestic product, he added.
Santos said Philippine exports were slightly tracking behind the government's target of 10 percent growth on year, but he was confident this would be met.
An FTA with Tokyo would cover industry, agriculture and the service sector, which would allow limited numbers of nurses and nursing care providers from the Philippines to work in Japan.
But Japanese authorities, traditionally conservative in regard to immigration policy, may be wary about opening the door wider due to concerns about the possible impact of immigration on wages or crime.
Agriculture is also highly protected in Japan and has been a roadblock in forging free trade pacts.
Japan has so far signed only two FTAs - with Singapore and Mexico - but has stepped up its pursuit of clinching more agreements as it is keen not to lag behind China.
Santos said he saw Beijing as more of an opportunity for the Philippines than a direct competitor.
He said Manila would also focus on expanding the number of tourists and investment from Beijing in infrastructure and commodities projects.

Copyright Reuters, 2005

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