By Joyce Ann L. Rocamora | Philippine News Agency
The Korea-Philippine Free Trade Agreement (FTA) will officially take effect on Dec. 31, the Korean Embassy in Manila announced on Monday.
In a statement, the embassy said the FTA enters into force “a year ahead of schedule” and ushers in a new era of partnership between the two states for the next 100 years.
“The FTA will unlock significant opportunities for both countries. By fostering deeper trade and investment ties across key sectors such as industry, agriculture, infrastructure, and energy, the agreement will pave the way for economic growth,” it said.
With a comprehensive scope covering 97% of imports, the deal will significantly enhance market access for Philippine products like bananas and pineapples in the Korean market.
Korean companies are also expected to contribute to the creation of quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy, said the embassy.
On top of economic gains, the embassy said this FTA will serve as a “catalyst for shaping the future of both countries,” fostering collaboration in areas such as healthcare, carbon reduction, innovative technologies, and electric vehicles.
“The entry into force of the Korea-Philippines FTA marks the dawn of a new era in our strategic partnership,” Korean Ambassador to the Philippines Lee Sang-hwa said.
“The Korean government will actively collaborate with the Philippine government to ensure that the FTA realizes its maximum potential in strengthening economic ties and fostering deeper cooperation between our two nations,” he added.
The announcement coincides with the 75th anniversary of the Philippine-Korea ties and the strategic partnership declared by the two countries this October.
For over 75 years, the two nations have forged close cooperation in various areas, including politics, economy, culture, and people-to-people exchanges.
“This momentous occasion marks a bold stride towards a new era of unparalleled cooperation between the two nations,” said the embassy.
The Philippine-Korea FTA was signed on Sept. 7, 2023, on the sidelines of the 43rd ASEAN Summit in Jakarta, Indonesia.
Under the agreement, Korea will grant preferential duty-free entry on 11,164 Philippine products accounting for USD3.18 billion or 87.4% of total Korean imports from the Philippines.