PHL, South Korea keen on concluding free-trade pact

THE Philippines and South Korea have reiterated the urgency of concluding their free-trade agreement (FTA) negotiations soon to strengthen economic cooperation.

The Department of Trade and Industry (DTI), in a statement over the weekend, said that Trade Secretary Ramon Lopez and South Korean Ambassador to the Philippines Kim In-chul recently met to discuss their country’s policy direction to enhance bilateral trade relations.

“Both officials emphasized the need to immediately conclude the ongoing PHL-ROK [Republic of Korea] free-trade agreement negotiation to enhance market access of key products of interests of the two countries,” the Trade department said.

The trade officials of both countries also tackled cooperation on innovation and the automotive industry.

Earlier this year, Trade Undersecretary Ceferino Rodolfo told the reporters they are aiming to settle FTA negotiations with South Korea by June. The FTA talks were launched in 2019.

The Philippines is eyeing to reduce, if not lift, the tariff on agricultural products shipped to Korea, particularly bananas, under the FTA deal.

Currently, the country's banana shipments to Seoul are given 30-percent duty. This puts the Philippines at a disadvantage given that Central American countries and Vietnam are given or will receive preferential treatment on their banana exports to South Korea.

South Korea, meanwhile, is asking the Philippines to eliminate the 5-percent tariff for vehicles 3,000 cc and below.

Following the first shipment of okra (lady fingers) to South Korea this month, the DTI said the country looks forward to delivering more agricultural exports.

The exports of fresh, green okra pods will be sourced from Tarlac province initially. There are currently four local okra exporters, including Jelfarm Fresh Produce Enterprise; Greenstar Produce, Philippines Inc.; A AMC Foods Corp.; and Hi-las Marketing Corp.

According to the Philippine Statistics Authority, the country's exports to South Korea dropped by 22.1 percent to $2.53 billion last year from $3.24 billion year-on-year. Imports from South Korea, meanwhile, amounted to $6.68 billion last year, which is 21.2 percent lower than $8.48 billion in 2019.