The landmark but delayed Korea-Philippine Free Trade Agreement (FTA) will be ratified soon, hopefully before the Senate adjourns its session, Republic of Korea (ROK) Ambassador Lee Sang-hwa said.
The FTA, signed last September 2023 and considered a treaty, shall be ratified by President Ferdinand R. Marcos Jr. and shall be concurred by the legislative branch.
“Both sides are still doing their homework. The FTA is currently sitting in the Senate, and Senate President (Francis) Escudero promised me to finish the concurrence or ratification before they go to a recess,” Ambassador Sang-hwa told the DAILY TRIBUNE during a briefing at the Ambassador’s Residence in Forbes’ Park, Makati City on Friday.
The Senate, which has been preoccupied in the past weeks with various hearings about the fugitive and dismissed Bamban, Tarlac Mayor Alice Gou, as well as surrendered Kingdom of Jesus Christ leader Pastor Apollo Quiboloy, will hold a recess on 28 September and 26 September is the last day of the session. Congress reopens on 4 November.
He maintained that the Korean-Philippines FTA is a win-win for both countries and expressed hope the agreement will take effect soon.
“The FTA covers diverse areas, including agriculture and the manufacturing sector, among others. I hope that it will be a game-changer for the two countries’ trade and investment partnership, which is already as strong as it came from a much-needed impetus for trade and investment,” he further emphasized.
Trade Undersecretary Alan Gepty, who is also the country’s lead negotiator for FTAs earlier disclosed that the Philippines, under the FTA with South Korea, primarily aims for zero tariff on tropical fruits such as banana and pineapple, which are the country’s major exports to its East Asian neighbors.
He added that although it would be faster for the FTA to enter into force through an executive agreement, signing a treaty will help in the awareness of an FTA with South Korea and promote the use of the deal.
The two sides started negotiating the FTA in June 2019 before concluding negotiations in October 2021. Its signing, however, was stalled several times.
Virtual free trade
Under the Philippines-South Korea FTA, South Korea will lift tariffs on 94.8 percent of Philippine products, while the Philippines will drop tariffs on 96.5 percent of South Korean products.
Other areas covered by the FTA include trade in goods, trade remedies, rules of origin, customs procedures and trade facilitation, economic and technical cooperation, competition, and legal and institutional issues.
In terms of trade and investment, the ROK serves as one of the top Philippine beneficial investment partners.
According to the Export-Import Bank of Korea, the ROK invested more than $120 million (156 cases) in the Philippines in 2023.
In line with this, high-tech electronics and semiconductor companies, such as Samsung Electro-Mechanics Philippines and SFA Semicon Philippines Corporation, are thriving.
Furthermore, the upcoming establishment of the Hyundai Shipyard in Subic Bay is expected to be the largest foreign direct investment in the country’s history.
