Conclusion of the Philippines-South Korea free trade agreement (PH-ROK FTA FTA) is facing further delays with new timetable seen in 2024 as both parties have to contend with procedural hurdles.
Trade and Industry Undersecretary Ceferino S. Rodolfo reported that the text of the PH-ROK FTA document has finally undergone legal scrubbing. However, both parties have to agree on the English and South Korea language versions of the text.
Under the international law, Rodolfo said it is important that there is “equal validity” of the English and Korean version.
With that, he said, the bilateral FTA is likely to take into force in 2024 yet.
At the sidelines of the Asia Pacific Economic Cooperation (APEC) Summit in Bangkok, Thailand in November last year, DTI Secretary Alfredo Pascual and South Korea’s Trade, Industry, and Energy (MOTIE) Minister Ahn Duk-Geun had a bilateral meeting, in which the two trade executives reaffirmed their commitments to conclude the Philippines-South Korea FTA.
The PH-ROK FTA Negotiations was launched in June 2019 in Seoul by then Trade and Industry Secretary Ramon Lopez and MOTIE Minister for Trade Yoo Myung-hee.
This was following with the signing by both parties of the Early Achievement Package of the PH-KOR FTA Negotiations in November 2019, which locked in a number of products that have already been offered by both sides at the time.
The proposed bilateral FTA recognizes the potential of both countries to advance economic relations by enhancing trade and investment flow between them through, removal of impediments to closer trade and creation of business and investment opportunities. Both sides had the common goal to achieve a comprehensive and future-oriented FTA.
In negotiating the FTA, the Philippines hopes to secure improved market access for agricultural products such as bananas and other tropical fruits, as well as industrial products and other services.
The FTA, once enforced, will be an important vehicle for improving the balance of trade with South Korea through enhanced trade flows, facilitating the movement of natural persons, and generating more investment opportunities and by extension, job generation possibilities.
But kinks in the issue on agriculture access for Philippine fruits and motor vehicle tariffs stalled the negotiations.