FTA Signing Between PH, Korea Eyed in October

Korea and the Philippines are in the final stage of a bilateral free trade agreement (FTA) which started in 2019, with the aim of signing the finished deal in October of this year.

This was confirmed by Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo during the 2021 European-Philippine Business Summit held virtually. The undersecretary also added that DTI is hoping for the signing to be done in time for the Asean-Korea Summit which is due for October.

An FTA has several positive implications for countries involved such as the reduction of tariffs, and the minimizing of bureaucratic processes that will have otherwise impede the movement of goods between countries.

This development in the South Korea-Philippine commercial trade relationship comes as South Korea aims to draft FTAs with other emerging Southeast Asian countries such as Cambodia and Indonesia with hopes of reducing their dependence on major world economies, according to South Korea-based Yonhap News Agency.

Though Manila and Seoul have indirect trade deals by way of regional pacts and agreements such as the Asean-Korea FTA, and the newly concluded Regional Comprehensive Economic Partnership, the Korea-Philippine FTA will serve as a direct trade agreement between the two countries. (GFB)