The Philippine and South Korea flags | FILE PHOTO
Trade undersecretary Allan Gepty on Monday said that plans to have the free trade agreement (FTA) with South Korea in 2024 will still push through, with both sides now scrambling to complete the requirement three weeks before the year ends.
“For the (Philippines-South Korea) FTA, our respective domestic ratification processes are already complete. We intend to give effect to the FTA within the year,” Gepty, who led the negotiations from the Philippines side, said in a message sent to the Inquirer.
Article continues after this advertisementThe Philippine Senate ratified the FTA earlier on September 23, while the South Korea parliament approved it just last month.
FEATURED STORIES BUSINESS BIZ BUZZ: Meralco powers Naia BUSINESS PH emerges as hot spot for RE investments BUSINESS SMC, ADB top list of most sought-after employers in PHBoth sides signed the FTA in September 2023 on the sidelines of the 43rd summit of the Association of Southeast Asian Nations (ASEAN) held in Jakarta, Indonesia.
READ: Marcos thanks South Korea parliament for free trade deal OK
Article continues after this advertisementMore than P170 million worth of locally produced agricultural goods produced in the Philippines each year -including bananas and processed pineapple- are expected to be covered under (FTA).
Article continues after this advertisementPreviously, the Philippines’ Department of Trade and Industry (DTI) said the 30 percent import tariffs currently levied to Philippine banana exports to South Korea will be reduced annually in equal increments until it becomes zero-rated on the fifth year of effectivity of the FTA.
Article continues after this advertisementAside from bananas, Philippine exports of processed pineapple– goods which are currently subjected to a 36 percent import tariff- will get the same, gradual reduction in a span of 7 years.
Aside from banana and processed pineapple, the other agricultural goods included in the FTA include fresh seafood, fruits, nuts, sugar, fresh and processed food beverages, pastry and tobacco products, among others.
Article continues after this advertisementLikewise, import tariffs for 9,909 item types of industrial goods from the Philippines -including petrochemicals, personal care goods, garments and automotive parts- will also be removed when the FTA enters into force.
The FTA is also projected to help bring foreign direct investments worth ₱150 billion to ₱200 billion to the Philippines during the first three years of its effectivity.
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