THE Philippines’ free trade agreement (FTA) with South Korea is set to take effect on December 31, 2024, the Embassy of Korea said yesterday, December 26.
The Korean Embassy said the FTA will pave the way for economic growth as it leads to deeper trade and investment ties across key sectors such as industry, agriculture, infrastructure, and energy.
“With a comprehensive scope covering 97 percent of imports, the FTA will significantly enhance market access for Philippine products like bananas and pineapples in the Korean market. Moreover, Korean companies will contribute to the Philippines’ economic development by creating quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy,” the Embassy said.
Malacañang earlier said the FTA, which was negotiated long before the COVID-19 pandemic, is expected to cut tariffs for a lot of products to zero to boost commerce between the two parties.
Many Philippine exports to South Korea will have preferential market access, which complements the existing FTA between the Association of Southeast Asian Nations and South Korea, as well as the Regional Comprehensive Partnership Agreement, the Philippine Department of Trade Industry also said earlier.
The Korean embassy meanwhile said the partnership extends beyond economic gains as it also fosters collaboration in healthcare, carbon reduction, innovative technologies, and electric vehicles.
“The entry into force of the Korea-Philippines FTA marks the dawn of a new era in our strategic partnership,” stated Ambassador Lee Sang-hwa, the Korean Ambassador to the Philippines.
He said the Korean government “will actively collaborate with the Philippine government to ensure that the FTA realizes its maximum potential in strengthening economic ties and fostering deeper cooperation between our two nations.” (ABS-CBN News)
