Phl-Korea FTA not ready for signing yet

The Philippines and South Korea are facing challenges in meeting the target to sign a free trade deal by November, with no agreement reached yet on the terms of requests being made by the respective parties.

“We are both gung-ho to finish although realistically, there are still challenges,” Trade Secretary Ramon Lopez told reporters when asked if the two countries are ready to sign the free trade agreement (FTA) by next month.

He said based on negotiations conducted for the FTA so far, there are requests made by the Philippines which South Korea has yet to agree to, and vice versa.

“The parties have not agreed, basically, [on] items we want and the kind of liberalization needed,” he said.

Lopez said the Philippines wants greater access for agricultural products like bananas, pineapples and mangoes, and industrial products in South Korea through the FTA.

This would mean lowering tariffs for those products coming from the Philippines.

On the other hand, South Korea’s interest is to make it easier for its industrial products to enter the Philippines.

“It’s still unsettled or mismatched, the offers and request. So, [it’s a] question mark if we will finish by November,” Lopez said.

Negotiations for the FTA were launched by the two countries last June to promote greater two-way trade and investment flows.

Both countries have set a target to have the FTA signed by next month, in time for President Duterte’s visit to South Korea.

Lopez said discussions are still ongoing, and the next round of negotiations are set to take place this week.

“When we announced [FTA negotiations], we thought this would be easy because there are only a few products. But apparently, it’s not easy,” he said.

Should the parties conclude negotiations and sign the FTA by next month, it would be the fastest bilateral trade agreement to be completed by the country.

In the event the parties fail to reach a deal by November, Lopez said the intention is to continue negotiations.

“It is a continuing objective. We will not let go of it,” he said.

Last year, South Korea was among the biggest trading partners of the Philippines with trade reaching over $13 billion.