MANILA, Philippines — The Philippines is aiming to get the free trade agreement (FTA) with South Korea signed before the term of the current administration ends, the Department of Trade and Industry (DTI) said.
“Still targeting before June 30,” Trade Secretary Ramon Lopez said in a Viber message, when asked when the country expects to sign the FTA with South Korea.
Given the recent change in administration in South Korea, he said both countries are still working on a new schedule.
South Korea’s new president Yoon Suk-yeol took office just last Tuesday.
Earlier, Lopez said the agreement was expected to be signed by February this year, but was pushed back to March.
Negotiations for the FTA between the Philippines and South Korea were launched in June 2019 and concluded in October last year.
The negotiations for the FTA covered trade in goods, trade remedies, rules of origin, customs procedures and trade facilitation, economic and technical cooperation, competition, and legal and institutional issues.
Meanwhile, the final negotiations focused on market access for Philippine bananas and Korean automotive units and parts.
During the negotiations, the Philippines was able to secure the elimination of tariffs for its banana exports to South Korea, which was previously excluded under the Association of Southeast Asian Nations - Korea FTA.
Lopez said earlier that under the FTA, the 30 percent tariff imposed on Philippine bananas entering South Korea would be brought down to zero in five years.
He also said the tariff on Philippines’ processed pineapples to South Korea would be removed in seven years under the FTA.
The Philippines and South Korea earlier agreed to conduct negotiations on provisions for the chapters on trade in services and investment no later than one year after the FTA enters into force.
The DTI expects the FTA with South Korea to enhance trade flows, help encourage more investments and create jobs.
Data from the Philippine Statistics Authority showed Philippine exports to South Korea reached $2.57 billion last year, down by 10 percent from $2.85 billion in 2020.
The same data showed Philippine imports from South Korea were valued at $9.35 billion last year, 36 percent higher than the $6.89 billion in 2020.