A PLANNED free trade agreement (FTA) between the Philippines and South Korea could still be signed this year after the initial timetable was called into doubt, according to the Department of Trade and Industry (DTI).
“From what I see, feasible this year (in terms of the signing), so far, based on signals that I got when I was in Detroit, talking to my counterpart from South Korea,” Trade Secretary Alfredo E. Pascual told reporters in chance remarks last week.
According to Mr. Pascual, the legal review of the treaty’s text has been completed.
In March, the DTI said that the signing of the FTA could happen by June or July.
In November, the DTI had set a signing target of the first quarter of 2023.
Negotiations between the two countries began in June 2019 and ended in October 2021.
Mr. Pascual said he has asked President Ferdinand R. Marcos, Jr. to authorize him to sign the FTA.
“I don’t have the final say. It is up to the President (to give) me the authority to sign the FTA,” Mr. Pascual said.
Under the proposed FTA, Philippine products expected to benefit from the arrangement include banana, pineapple, and other tropical fruits, while South Korean vehicles and auto parts are projected to obtain expanded access to the Philippine market.
In October 2021, the DTI said that Philippine banana exports to South Korea will enjoy zero tariffs within five years while processed pineapple exports will be duty-free within seven years.
Currently, Philippine banana exports to South Korea are charged a 30% tariff. The proposed FTA will also remove the tariff on some South Korean auto parts within five years. — Revin Mikhael D. Ochave