MANILA, Oct 21 (AFP) - The Philippines and Japan could seal a free trade agreement next year, a development which would boost economic growth in this country, Trade and Industry Secretary Cesar Purisima said Thursday.
Purisima said he was hopeful the agreement would be sealed in the first half of 2005, adding that this would eventually increase Philippine gross domestic product (GDP) growth by at least three percentage points.
The two countries are due to begin the next round of free trade talks in this country next week, Purisima told the Foreign Correspondents Association of the Philippines.
"We've narrowed the differences... so it's just a matter of sitting down with the two negotiating panels so it can be presented in a manner where the leaders can make decisions on the issues," he said.
"We're seeking a breakthrough in resolving some of the issues," he said, hinting that the controversial move to open Japan's labor market to Filipino nurses and other caregivers was one of these issues.
"The Philippines and Japan are demographically complementary," he said, remarking that Japan's ageing population would create a demand from the growing number of youthful nurses and caregivers being produced by Philippine schools.
He said opening Japan's rice and sugar markets was not an issue as the Philippines did not export such items and was more interested in exporting tropical fruit to Japan.
If the agreement is signed, the Philippines could be Japan's gateway to the Association of Southeast Asian Nations (ASEAN) while serving as the gateway for other countries seeking to export to Japan, Purisima added.
Earlier this year the Japanese Foreign Ministry said the talks were being hampered by the Philippines' efforts to get Japan to accept more of its caregivers and construction workers.
Purisima said that even if the labor market is eased, Filipino nurses would still have to learn Japanese and pass qualifying exams to work in Japan.
Despite concerns about the country's budget deficit problems, Purisima said Japanese firms were still interested in investing here.
He said the Japanese hospital Tokushu-kai was planning to build a million-dollar hospital in this country starting next year to cater chiefly to Japanese seeking cheaper medical costs.

10/21/2004 12:32 GMT - AFP