Philippines and South Korea Nearing Ratification of Landmark Free Trade Agreement

President Ferdinand Marcos Jr. of the Philippines expressed optimism about the ratification of a significant free trade agreement (FTA) with South Korea within the current year. This announcement was made during an interview with Maeil Business Newspaper’s chairman and publisher Chang Dae-Whan at Malacañang, as reported by the Presidential Communications Office.

The proposed FTA aims to diminish barriers to imports and exports between the two nations, facilitating the purchase and sale of goods and services across international borders with minimal governmental restrictions such as tariffs, quotas, subsidies, or prohibitions. This agreement is seen as a strategic move to enhance economic interactions and accessibility to necessary goods and services, reflecting a mutual recognition of the crucial role of trade, especially highlighted by the global challenges posed by the pandemic.

President Marcos highlighted the importance of international trade not just for economic prosperity but also for securing essential resources for the population. “I think one of the lessons we learned during the pandemic, and now after the pandemic, is how important trade is, not just to be wealthy…. but to have the things that you need, that your people need. So, that’s always the key for us and no country succeeded by cutting itself off,” he remarked.

The ratification process is pending in both the Philippine Senate and South Korea’s National Assembly. In addition to the main FTA, discussions are ongoing about a separate agreement specifically aimed at reducing tariffs on selected Filipino products entering South Korea. President Marcos emphasized the potential sectors that could benefit from such agreements, including semiconductors, automotive parts, and the fruit export industry, noting that the Philippines is already exporting significant quantities of high-quality fruits to Korea.

The discussions and anticipated ratification come as the Philippines and South Korea commemorate the 75th anniversary of their diplomatic relations, underscoring the depth and significance of their bilateral ties. This FTA, once ratified, is expected to bolster economic growth, enhance competitive edges, and fortify the long-standing partnership between the two countries.

As these negotiations continue, both nations look forward to achieving more favorable terms and further strengthening their economic and diplomatic relations, which could set a precedent for future international trade agreements in the Asia-Pacific region.