FTA signing targeted in March with South Korea
Philstar Global - 7 February 2022
FTA signing targeted in March with South Korea
By Louella Desiderio
The Philippines is aiming to sign next month the free trade agreement (FTA) with South Korea, which is expected to contribute to economic recovery efforts from the pandemic.
Trade Secretary Ramon Lopez said in a Viber message yesterday the FTA with South Korea is undergoing legal scrubbing and is being finalized.
“Target signing in March,” he said.
Negotiations for the Philippines-South Korea FTA started in June 2019. When both countries concluded the negotiations for the FTA last October, Lopez said the agreement was expected to be signed before February this year.
Covered by the negotiations for the FTA are trade in goods, trade remedies, rules of origin, customs procedures and trade facilitation, economic and technical cooperation, competition, and legal and institutional issues.
The final negotiations focused on market access for Philippine bananas and Korean automotive units and parts.
In the negotiations, the Philippines was able to secure elimination of tariffs for its banana exports, which was previously excluded under the Association of Southeast Asian Nations-Korea FTA.
In addition, there would be improved access for Philippine processed pineapples to South Korea.
Lopez earlier said the 30 percent tariff for Philippine bananas entering South Korea would be brought down to zero in five years, while the tariff for processed pineapples would be removed in seven years.
For some auto parts from South Korea, the tariffs would be reduced in five years.
The two countries have also agreed to further negotiate provisions for the chapters on trade in services and investment no later than one year after the FTA enters into force.
Once in place, the FTA is expected to enhance trade flows, generate more investments and create jobs.
Data from the Philippine Statistics Authority showed Philippine exports to South Korea reached $2.57 billion last year, while imports from South Korea to the country were valued at $9.35 billion.
