President Marcos Jr. Signs Executive Order to Implement Tariff Schedule in PH-South Korea FTA

President Ferdinand R. Marcos Jr. has taken a significant step in enhancing trade relations with South Korea by signing Executive Order 80. This order, signed on December 23, aims to adjust the import duty rates on specific products to align with the tariff commitments outlined in the Philippines-South Korea Free Trade Agreement (FTA). The EO stipulates that all goods from South Korea, as listed in the Philippine Schedule of Tariff Commitments, will be subject to the specified duty rates upon importation into the Philippines. These goods must be accompanied by a Proof of Origin to comply with the FTA’s requirements. The FTA, signed during the 43rd ASEAN Summit in Jakarta on September 7, 2023, will grant duty-free access to 11,164 Philippine products, valued at USD3.18 billion, which constitutes 87.4% of South Korea’s imports from the Philippines. The agreement is set to come into effect on December 31. Both the Philippine Senate and the Korean National Assembly ratified the FTA on September 23 and November 14, respectively. The FTA is designed to bolster economic ties and bilateral trade by reducing tariff barriers, promoting foreign direct investments, and securing better trade concessions. Notably, the Philippines is pushing for zero tariffs on its major exports to South Korea, such as bananas and pineapples.