The Philippines and South Korea target to implement their free trade agreement (FTA) within the year following the ratification of the latter of the deal.
Allan Gepty, undersecretary of the Department of Trade and Industry (DTI) said an executive order has to be issued by President Marcos Jr. to implement the FTA.
Gepty said the aim is to have the FTA enter into force in 2025, where tariff cuts will take effect immediately. This will benefit Philippine exporters.
Gepty said the Philippines and South Korea have agreed on a date for the implementation but did not elaborate.
He said South Korea in a letter dated Nov. 18, 2024 formally informed the Philippines of the ratification.
On September 23, Senate adopted Senate Resolution No. 192 ratifying the FTA.
Seen increasing the preferential market access of Philippine exports to Korea to around 97 percent in terms of trade value, compared to 90 under the Regional Comprehensive Economic Partnership, the FTA with South Korea is projected to boost Philippine market access for tropical fruits, especially bananas and processed pineapples. Exports of fresh bananas for example will enjoy zero tariffs in five years.
Other agricultural products from the Philippines to gain preferential market access to Korea are yellowfin tuna, processed pineapple, pineapple juice, prepared or preserved oysters, fresh blue crabs, fresh guavas, fresh papaws or papaya, canned sardines, and fresh tilapia.
The deal will also bolster critical minerals processing and electric vehicles and parts manufacturing.
Menswear and other apparel goods such as trousers, shirts, jackets, and blazers will also gain preferential market access to Korea. The Philippines-South Korea FTA will be the country’s third bilateral FTA after the Philippines-Japan Economic Partnership Agreement and the Philippines-European Free Trade Association FTA.
