Following President Ferdinand “Bongbong” Marcos Jr.'s directive to expand international economic partnerships, delivered during his 3rd State of the Nation Address, the Department of Trade and Industry (DTI) has laid out its plans and commenced negotiations with various trading partners to boost the local economy.

In a media briefing last week, DTI International Trade Group Undersecretary Allan Gepty announced that the free trade agreement (FTA) between the Philippines and South Korea has already been ratified.

“It is now in the Senate, per our latest communication with our colleagues from the Senate. So they will also start a public hearing on that so that the hearing on the concurrence process can also begin,” Gepty said, also citing that the agricultural sector has been "very supportive" of the agreement.

According to Gepty, the FTA with South Korea will complement the country’s existing Rice Competitiveness Enhancement Fund and the ASEAN Korean FTA, which will cover almost all trade value and the volume of imports and exports with South Korea.

“Number two, Secretary [Alfredo Pascual] really worked hard to engage with the EU so that we can resume the negotiation of our bilateral FTA. And I think you heard that announced last March. A lot of meetings and high-level visits were made, and a lot of discussions and stocktaking exercises were made for that to be announced,” Gepty said, adding that the next round of negotiations will commence in October.

More FTAs

On the FTA with the United Arab Emirates (UAE), Gepty said the second round of negotiations concluded two weeks ago, marking "another milestone" for the Philippines, as this will be the first time the country will have an FTA with a country in the Middle East.

"It will be a good takeoff point also for us to access the [Gulf Cooperation Council] countries,” Gepty said, noting that the FTA with the UAE is crucial as it will open up possible employment and business opportunities for Filipinos.

The DTI targets completing the FTA with the UAE by October this year.

“So far, our progress is on track, as scheduled in the timeline that we have prepared. In the second round, we achieved significant progress on several chapters. So we'll focus now on market access negotiations in the third round and hopefully address the remaining issues in the fourth round this October,” Gepty said.

The DTI also expressed its interest in pursuing an FTA with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member countries.

“We're pursuing that, and we're eyeing to hopefully at least formally apply this year. It's a good FTA for the Philippines in the sense that once we become a part of the CPTPP, the value we add here will be Chile, Mexico, Peru, and also Canada,” Gepty said. “Now that the UK is there, there is more reason that we need to join so that our coverage is more comprehensive.”

The government is working on bilateral FTAs with Chile and Canada as part of its goals of forging economic partnerships with Latin American and African countries.

"Then, of course, right now, the international trade group is also, based on Secretary Fred's directive, looking for possible candidates in African countries. But this is the medium-term direction, so we'll have to conduct feasibility studies on that."

Along with these international trade agreements and economic relationships with various trading partners, the DTI stressed the importance of engaging with the private sector to strengthen the utilization of FTAs.

Gepty said the DTI has commenced intensified trade, education, and advocacy campaigns, which have already begun in Mindanao.

“We also have many partnerships with the private sector, business organizations like the Philippine Chamber of Commerce and Industry, PHILEXPORT, and even the Business Council, and our engagement is continuous so that we can at least entice our stakeholders to utilize the FTAs,” he said.