PH-South Korea bilateral FTA launched
The Philippines and the South Korea agreed to pursue a bilateral Free Trade Agreement (FTA) with a view to further enhance the economic ties and expand trade between the two countries.
In a joint statement following a meeting in Manila on Wednesday, April 17, 2019, Philippine Trade Secretary Ramon M. Lopez and Republic of Korea Trade Minister Yoo Myung-hee declared their readiness to commence negotiations upon the completion of their respective domestic procedures.
The two countries have agreed to put their best effort to conclude the negotiations in time for the 2019 South
Korea-ASEAN Commemorative Summit scheduled in November 2019.
According to Lopez, both parties will work to forge a “future-oriented FTA” to differentiate this trade deal from other FTAs.
Once concluded, the bilateral FTA will pave the way for an enhanced market access for products of interest of the two countries. It is also viewed that the agreement will provide a more stable and predictable economic environment necessary to generate more trade and investments.
Lopez said the Philippines aims to have greater market access for bananas and other agriculture exports.
He also noted of the need for more collaboration on trade and investments on technology and innovative products developing industries of the future, like on electric vehicles, electronics and IT.
Merchandise trade between the Philippines and South Korea reached $13.7 billion in 2018, making Seoul Manila’s 5th largest trading partner.
Top Philippine exports to South Korea include bananas, pineapples, copper. Philippine imports mainly industrial products from South Korea.
In 2018, South Korean investments in the Philippines totaled $35.79 million, primarily on real estate activities and manufacturing.
Both countries share longstanding ties characterized by mutual trust and support since the Korean war.
The two countries will celebrate the 70th anniversary of diplomatic relations in November 2019 and announce the conclusion of the FTA negotiations.