The Korea-Philippines Free Trade Agreement (FTA) is set to commence on December 31, a year earlier than planned, according to an announcement from the Korean Embassy in Manila. This agreement is poised to herald a century-long era of enhanced collaboration between the two nations. The FTA is expected to open up substantial opportunities by deepening trade and investment links in crucial sectors such as industry, agriculture, infrastructure, and energy, thereby promoting economic growth. The agreement encompasses 97 percent of imports, promising improved market access for Philippine products like bananas and pineapples in Korea. Additionally, Korean firms are anticipated to boost job creation through increased investments in advanced manufacturing sectors, including automobiles, electronics, and energy. Beyond economic benefits, the FTA is seen as a catalyst for future-oriented cooperation in fields like healthcare, carbon reduction, innovative technologies, and electric vehicles. Korean Ambassador to the Philippines, Lee Sang-hwa, emphasized that the FTA’s implementation signifies the beginning of a new chapter in the strategic partnership between the two countries. The Korean government is committed to working closely with the Philippine government to maximize the FTA’s potential in enhancing economic relations and fostering deeper cooperation. This announcement aligns with the 75th anniversary of Philippine-Korea relations and the declaration of their strategic partnership in October. Over the past 75 years, the two countries have developed strong ties in politics, economy, culture, and people-to-people exchanges. The FTA, signed on September 7, 2023, during the 43rd ASEAN Summit in Jakarta, Indonesia, will allow Korea to offer duty-free entry to 11,164 Philippine products, representing USD3.18 billion or 87.4 percent of Korea’s total imports from the Philippines.
Korea-Philippines Free Trade Agreement to Boost Economic Ties Starting December 31
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