Marcos Issues Executive Order to Implement PH-South Korea Free Trade Deal

President Ferdinand “Bongbong” Marcos Jr. has signed Executive Order (EO) No. 80, which establishes the Philippines’ tariff commitments under the Free Trade Agreement (FTA) with South Korea.

Key Provisions of EO No. 80

• Tariff Modifications: The order mandates the adjustment of import duties on certain goods to align with the Philippine Schedule of Tariff Commitments under the FTA.
• Applicability: All originating goods from South Korea listed in the schedule, imported for consumption or entry into customs territories, will be subject to the prescribed rates of duty.
• Compliance Requirements: Importers must submit a Proof of Origin and meet other applicable conditions under the PH-KR FTA.

FTA Timeline and Background

• Effective Date: The PH-KR FTA will take effect on December 31, 2024.
• Signing: The agreement was signed during the 43rd ASEAN Summit in Indonesia in September 2023.
• Ratification: President Marcos ratified the FTA on May 13, 2024, with the Senate concurring through Senate Resolution No. 1188 on September 23, 2024.

Purpose of the PH-KR FTA

The free trade deal aims to:

• Strengthen economic and bilateral trade ties between the Philippines and South Korea.
• Reduce and eliminate tariff restrictions to enhance competitiveness.
• Attract more foreign direct investments.
• Secure preferential concessions beyond those in existing agreements.

With the PH-KR FTA set to commence, the government anticipates expanded trade opportunities and increased economic collaboration between the two nations.