The Philippines and South Korea on Tuesday pledged to maximize their Free Trade Agreement (FTA), highlighting efforts to expand trade and investment ties.
The commitment came after President Ferdinand R. Marcos Jr. held a bilateral meeting with South Korean President Lee Jae-myung at Malacañan Palace.
“We acknowledged the efforts of both sides to enhance bilateral trade and investment and we look forward to realizing the full potential of the PH-ROK (Republic of Korea) Free Trade Agreement for the benefit of both our peoples,” Marcos said at a joint press conference with Lee after their meeting.
Lee noted that since the FTA took effect in 2024, Korean investments in the Philippines have increased more than fivefold, reflecting a trend of growing bilateral trade and investment.
He expressed confidence that the two nations’ signing of memoranda of understanding on intellectual property rights and the agricultural sector would facilitate the full implementation of the FTA.
“On the basis of the Korea-Philippine Free Trade Agreement, we have discussed to further expand trade and investment between our two countries and to drastically reduce difficulties faced by Korean firms,” Lee said.
Marcos pledged to support Korean firms entering the Philippine market and help ease any challenges they face.
The Philippines and South Korea signed the free trade pact on Sept. 7, 2023 to enhance economic cooperation and trade relations.
The FTA, which took effect on Dec. 31, 2024, includes provisions for preferential duty-free entry for 11,164 Philippine products, which account for USD3.18 billion or 87.4 percent of total Korean imports from the Philippines.
Korean firms are expected to contribute to the creation of quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy.
The FTA also includes a chapter on economic and technical cooperation, focusing on trade and investment promotion in sectors such as critical minerals processing, electric vehicle manufacturing, innovation, creative industries and e-commerce. (PNA)