REPUBLIC OF THE PHLIPPINES 28 August 2008 Dear Senator Defensor Santiago, I respectfully provide the Honorable Senator with copies of the Exchange of Notes between myscif and H.E. Masahiko Koumoura, Minister of Fe , Japan, dated 22 August 2008 ‘and 28 August respectively, on the shared understanding of “the Philippines and’ Japan on the interpretation of the Japan-Philippines Economic Partnership Agreement (JPEPA} ‘The Exchange of Notes was undertaken in connection the process for concurrence by the Senate of the ratification of the JPEPA. The Department likewise transmits copies of the Exchange of Letters of 22 and 23 May 2007 which confirmed the interpretation of the JPEPA in the area of environment matters, With assurances of my highest esteem and consideration. iy” MIRIAM DEFENSOR-saNTIAGO eign 4 etTHE SECRETARY OF FOREION AFFAIRS REPUBLIC OF THE PutiDPIeS 22 August 2008 Excellency, 4 ave ihe honor to state the shared! understanding of the Republic of the Philippines and Japan en the interpretation of the \apan-Philippines Economic Partnerahip Agreement (JEEPS) as fellows, 1, The JFEPA, as stated in its Preamble, affirms and recagnizes the femportance of the smplementation of measures by the Goveniments of the Parties im accordance with their respective lows and regulations. Including their constitutions, 2, All che provisions stipulated tn the JPEPA shall be tniplemented us accordance with the Constitution af the Republic of the Philippines and the Consticution of Japan. 9 Wothing in the JPEPA requires amendment of any of dhe esting provisions of the Constiuution of the Repubise of the Phitispnies inchiding Article I, Section 15; Article XM, Sections 1.23.7, & 10. 11, 12 and 14; Article XIV, Sections 4 dnd 12: and Article XV Section 11; which caver, inter alla, {0} the protection and promotion of the right t@ health of the people, 12) Whe protection of Fiipino enterpnses against unfair foreign conpelition and trade practices, (3) the ownerstip of lt lands of public dounain and the explaration, development, and utilitation of all waters, mineraie. coal ppetvoleun and other minera? oils. all forces of potential ene-ay. Sstieries, forests or timber, wildlife, Nora aud fauna, and otaee natural resources, (4) lease anct ownership of alienate public lands. |S) ownership and transter of private lands, (6 timutation to Philippine citizens and corporations or associations necting a prescribed minimum local equity requirement in certain areas of investments (7) veeierential mighits, privileges, and concessions granted to ‘qualiied Filipinos covering the national econottiv and patina. (8) regulation of foreign investments,19 the operation of pudtic utitites (20! Promotion of the preferential use of Filipino Ieuor, domest 30 help them being competitive, i11] the practice of sll proiesanne 02] the ownershtp. control, and adnuinistration of educations) institutions, (tay gas Zegulalton of the cransfer and promotion of teshnlogy. (24) the ownership and management of mass media, [15] the ownership of eorperations and associations engaged in the advertising indoor: 4 The present exchange serves only to conficm the interpretation of and does not mocHy the rights and obligations ef te Posicy ‘under, the provistons of the JPEPA. 1 reference to this letter, I should like to recall the letters of 22 anxd 28 May 2007, which were exchanged in relation to the JPBPA. thet Confirmed the interpretation of the JPEPA in the area of environmental matters, { have further the honour to confirm that the JPEPA also provides that: Article 162 “The Parties shalt undertake a general review of the Agreement nd ite implementation and operation in 2011 and eveny five year's thereatter vuniless otherwise agreed by both Pasties.” First cemence of paragraph 1 of Artiste 168 “This Agreement may be amended by agreement between the Patties J would appreciate Your Excellency’s letter ia replv on behalf af tle Government of Japan to confinn that the above is ine anaes gnderstanding of our two Goverments on the interpretation ara OPERA. Accept, Excellency the assurances af my highest consideration. Ob £0 Zatob ALBERTO G. ROMULO ‘Minister of Foreign affairs Japa Papezc'2 -