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The Philippines-Korea free trade agreement will take effect on December 31, 2024, according to the South Korean embassy in Manila
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The embassy said the FTA is anticipated “to open doors to significant trade and investment opportunities in diverse sectors like agriculture, industry, infrastructure and energy”
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Under the FTA, South Korea will remove tariff on 94.8% of all items and the Philippines will lift tariff on 96.5% of all products traded
The Philippines-Korea free trade agreement (FTA) will take effect on December 31, 2024, according to the South Korean embassy in Manila.
“The FTA will unlock significant opportunities for both countries. By fostering deeper trade and investment ties across key sectors such as industry, agriculture, infrastructure and energy, the agreement will pave the way for economic growth,” the embassy said on December 23.
It added that the agreement “marks a major leap forward in bilateral relations, signaling a fresh chapter of cooperation between the two nations.”
Under the FTA, South Korea will remove tariff on 94.8% of all items and the Philippines will lift tariff on 96.5% of all products traded, according to South Korea’s Ministry of Trade, Industry and Energy.
The Bureau of Customs noted implementation of the FTA under Customs Memorandum Circular 202-2024 dated December 3.
Signed on September 7, 2023, the FTA is seen to further enhance the economic ties between the two Asian countries. The FTA aims to strengthen economic relations between the two countries by facilitating trade and investment flows, removing barriers to market access, and creating new business and investment opportunities.
READ: PH, South Korea sign free trade agreement
The Philippine Senate ratified the agreement last September, while South Korea’s National Assembly ratified it in November. The National Economic and Development Authority Board on December 17 also approved the issuance of an executive order to implement the commitments under the FTA.
“With a detailed framework that covers 97 percent of imports, this agreement is anticipated to open doors to significant trade and investment opportunities in diverse sectors like agriculture, industry, infrastructure and energy,” the embassy said.
The FTA is also seen to foster collaboration in areas such as health care, carbon reduction, innovative technologies and electric vehicles.
“Moreover, 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 added.
Ambassador of the Republic of Korea to the Philippines Lee Sang-hwa said the entry into force of the FTA “marks the dawn of a new era in our strategic partnership.”
President Ferdinand Marcos, Jr. earlier said the FTA will open new opportunities for Philippine tropical fruits such as bananas and pineapples in the Korean market.
Korea Trade Minister Cheong In-kyo, in a business briefing on December 26, said the FTA will also support South Korea in expanding automobile exports, as the 5% tariff on cargo trucks and passenger vehicles will be eliminated immediately, while tariffs on eco-friendly vehicles will be phased out within five years.
