The Philippines and South Korea have agreed to sign next month their free trade agreement (FTA).
This would the Philippines’ second bilateral FTA, after Japan.
At the sidelines of the 55th Asean Economic Ministers on August 20 in Semarang, Indonesia, Trade Secretary Alfredo Pascual met with Minister Dukgeun Ahn of the Ministry of Trade, Industry and Energy of the Republic of Korea (ROK) where they set the signing of the FTA at the sidelines of the 24th Asean-ROK Summit in September in Jakarta, Indonesia.
The two ministers also agreed to work on a possible supply chain resilience cooperation to ensure stability and predictability of business operations, particularly in the manufacturing sector.
In time for the celebration of the 75th Anniversary of Philippines-Korea diplomatic relations, both ministers are also considering organizing a Business Forum to further boost trade and investment relations.
Negotiations for the FTA concluded in October 2021, two years after their launch.
Manila’s bilateral FTA with Seoul will complement trade deals with the East Asian country under the Asean-Korea FTA and the Regional Comprehensive Economic Partnership.
A significant concession was greater market access for Philippine bananas and processed pineapples to South Korea. Banana exports to South Korea will be duty-free in five years and zero duty in seven years for canned pineapples. – Irma Isip
