Marcos sees PH-South Korea Free Trade Area ratification this year
President Ferdinand Marcos Jr. on Thursday said he is expecting the Philippines and South Korea would ratify the free trade agreement (FTA) this year that the two countries had signed.
The President pointed out the FTA could give Philippine products reduced tariff rates in the Korean market. He said South Korea’s National Assembly has yet to ratify the FTA signed between the two countries.
“I think so. I think we will get it done. I think we will get it ratified ...it’s important to us,” Marcos said in an interview with Maeil Business Newspaper Chairman and Publisher Chang Dae- Whan in Malacanang.
“I think one of the lessons we learned during the pandemic, and now after the pandemic is how important trade is, not just to be wealthy, but to be, to have the things that you need, that your people need. So, that’s always the key for us and no country succeeded by cutting itself off,” he said.
The FTA is a pact between two or more nations meant to reduce barriers to imports and exports among them.
Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
Citing the Philippines’ importance and the business opportunities, President Marcos said other countries partnering with the Philippines “treat us a very, very important part of all that they do.”
The Philippines wants a separate future agreement with South Korea to encourage the East Asian country to allow some of our products to have duty-free access to the South Korea market, the President explained.
“We are negotiating a separate future agreement with the Republic of Korea is to encourage them to, perhaps take some, to allow some of our products to be included in the reduced tariff products, and also we hope that we can negotiate with Korea, with South Korea better terms and we get on [the] ASEAN-Republic of Korea FTA,” Marcos told the business newspaper.
“But this is natural, this is not, I think all the other ASEAN countries have the same thinking. So, there are many areas, the semiconductor, the automotive parts, that’s one area. Fruits, we’re already exporting great many fruits to Korea," he said.
Marcos cited tropical fruits like avocados that South Korea included on its list of products that could have reduced tariff rates, as he anticipates more Philippine products would be included on the list.
This year marks the 75th anniversary of diplomatic relations between South Korea and the Philippines. Presidential News Desk
