PRESIDENT Ferdinand Marcos Jr. has signed an executive order to implement the schedule of tariff commitments under the Philippines’ Free Trade Agreement (FTA) with South Korea.
An attachment to Executive Order No. 80 listed thousands of agricultural, infrastructure and energy commodities that would be exempt from importation tariffs in the next 15 years.
Tariffs are taxes imposed on imported goods and are protectionist measures meant to keep local goods competitive.
“All originating goods from the Republic of Korea listed in the aforementioned Philippine Schedule of Tariff Commitments… shall be levied the rates of duty as prescribed,” read the document, signed on December 23.
“The Tariff Commission may be requested to issue advance rulings on the tariff classification of goods to confirm the applicable rates of duty of particular goods,” it added.
The Philippines-South Korea FTA — which was signed on the sidelines of the 43rd Association of Southeast Asian Nations (ASEAN) Summit in Indonesia in 2023 — is expected to take effect on December 31, 2024.
The Embassy of South Korea in Manila earlier said the FTA is expected to deepen trade and investment ties between the two countries as it covers “97 percent of imports.”
“The FTA will significantly enhance market access for Philippine products like bananas and pineapples in the Korean market,” the Embassy earlier said.
“Korean companies will contribute to the Philippines’ economic development by creating quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy,” it said.
In 2023, bilateral trade between the Philippines and South Korea was pegged at $12 billion, making the East Asian country the Philippines’ 5th largest trading partner. (ABS-CBN News)
