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The National Economic and Development Authority Board recently approved the issuance of an executive order to implement the commitments under the free trade agreement between Korea and the Philippines
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The PH-Korea FTA seeks to strengthen economic ties between the two nations by facilitating trade and investment flows, removing barriers to market access, and creating new investment and business opportunities
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Once implemented, Korea will grant preferential duty-free entry to 11,164 Philippine products, totalling $3.18 billion, or 87.4% of total Korean imports from the Philippines
The National Economic and Development Authority (NEDA) Board approved on December 17 the issuance of an executive order (EO) to implement commitments under the free trade agreement (FTA) between Korea and the Philippines.
The NEDA Board, chaired by President Ferdinand Marcos, Jr., also approved two projects worth P63.2 billion to enhance agricultural productivity, regional connectivity, and economic activity nationwide.
Green lit during the board’s 23rd and last meeting for the year, the EO will cover the country’s tariff commitments under the Philippines-Korea Free Trade Agreement (PH-KR FTA).
Originally signed during the 43rd ASEAN Summit in Jakarta, Indonesia on Sept. 7, 2023, the PH-KR FTA seeks to strengthen economic ties between the two nations by facilitating trade and investment flows, removing barriers to market access, and creating new investment and business opportunities.
The pact supports government efforts to manage competitive exclusions vis-a-vis ASEAN neighbors, encourage more foreign direct investments, and secure more preferential concessions than what is now available under the ASEAN-Korea FTA and the Regional Comprehensive Economic Partnership Agreement.
The FTA, ratified on Nov. 14, 2024, will open new opportunities for Philippine tropical fruits such as bananas and pineapples in the Korean market.
Once implemented, Korea will grant preferential duty-free entry to 11,164 Philippine products, totalling $3.18 billion, or 87.4% of total Korean imports from the Philippines.
The NEDA Board also approved the P37.5 billion Ilocos Norte-Ilocos Sur-Abra Irrigation Project of the National Irrigation Administration, which is expected to improve agricultural output and water management across the three provinces, irrigating up to 14,672 hectares of agricultural lands during the wet season, and 13,256 hectares during the dry season.
The project includes the construction of an earth and rockfull dam across the Palsiguan River in Abra, an afterbay dam in Nueva Era, Ilocos Norte, and various linked irrigation canals serving as major irrigation systems.
NEDA Secretary Arsenio Balisacan said with a six-year implementation period, the project “will benefit approximately 32,604 families, significantly improving their livelihoods and fostering sustainable economic development in the Ilocos and Cordillera regions.”
The board also approved the Department of Public Works and Highways’ (DPWH) P25.7 billion Accelerated Bridge Construction Project for Greater Economic Mobility and Calamity Response, which aims to improve connectivity and disaster resilience by building 29 bridges nationwide.
Financed through an Official Development Assistance loan from France, the project has two components. Component 1 comprises seven long bridges scheduled from Jan. 2025 to Dec. 2029, while Component 2 consists of 22 calamity response bridges and run from Jan.2025 to Dec. 2027.
The NEDA board also approved adjustments to various parameters of five ongoing projects, including changes in scope, cost, partial loan cancellation, and extensions of implementation period and loan validity.
These projects are:
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The Department of Agrarian Reform’s Value Chain Innovation for Sustainable Transformation in Agrarian Reform Communities;
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The Department of Health’s Health System Enhancement to Address and Limit COVID-19 Project;
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The DPWH’s Panglao-Tagbilaran City Offshore Bridge Connector Project;
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The DPWH’s Metro Manila Interchange Construction Project, Phase VI; and
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The Department of Transportation’s North-South Commuter Railway System Project – Malolos-Clark Railway Project, Tranche 1.
