Philippines, South Korea sign free trade agreement

Jakarta, Indonesia — The Philippines and South Korea signed a free trade agreement in a move to strengthen economic and industrial connections between the two nations, President Ferdinand Marcos Jr. said on Thursday.

Marcos made the announcement in his latest vlog after Korea's Minister for Trade Ahn Duk-geun and Philippines' Trade Secretary Alfredo Pascual signed the FTA at the sidelines of the 43rd Association of Southeast Asian Nation (ASEAN) Summit in Jakarta.

"The FTA will strengthen our bilateral trade and investment relations with the Republic of Korea," said Marcos Jr. in his latest vlog.

"It is a testament to the realization of the many opportunities for complementation and collaboration between the Philippines and South Korea and an even greater milestone for our economic friendship," he added.

Marcos said that the latest move between the country would create more jobs that would improve the Philippines' investment potential.

In a separate statement, Korea's Ministry of Trade, Industry and Energy said South Korea will eliminate tariffs on 94.8 percent of all traded goods as part of the agreement.

The Philippines, for its part, will lift tariffs on 96.5 percent of all products traded under the agreement.

The pact is expected to come into force in the first half of next year, it added.

"The agreement is expected to serve as a foundation for future-oriented cooperation with the key Southeast Asian country on such various fields as autos, natural resources, health care, culture and e-commerce," the ministry said.

This marks South Korea's fifth bilateral free trade agreement with a member nation of the ASEAN, following similar agreements with Singapore, Vietnam, Malaysia, and Cambodia.