Philippines, South Korea start free trade talks

MANILA, Philippines — The Philippines and South Korea launched negotiations yesterday for a bilateral free trade agreement (FTA) which is expected to lead to increased trade and investment flows between the two countries.

In a joint statement, Philippine Trade Secretary Ramon Lopez and Republic of Korea’s Trade Minister Yoo Myung-hee said they met in Seoul yesterday to begin the negotiations for a bilateral FTA, which would remove impediments to trade and investments.

Lopez said the Philippines expects to benefit from the FTA through greater access for the country’s agricultural exports to South Korea.

“For the Philippines, the FTA means we can achieve improved market access for our agriculture products such as banana, pineapple and mangoes, as well as industrial products and other services. We are working on better reciprocity of tariff rates and market access of our agricultural and industrial products to improve the balance of trade with South Korea,” he said.

“These include movement of natural persons and more investment opportunities that could lead to job generation. These also include greater collaboration in innovation, as well as R&D (research and development) that will support the implementation of our inclusive innovation and industrial strategy,” he added.

Yoo said the FTA is necessary for both countries to have stronger economic ties.

He also said the Philippines is an important trade and investment partner of South Korea.

During the launch of negotiations, the two officials committed to conclude the talks by November this year.

Apart from the launch of FTA talks, the two countries also conducted the first Philippines – South Korea Joint Commission on Trade and Economic Cooperation (JCTEC) meeting.

Ceferino Rodolfo, Trade Undersecretary and managing head of the Board of Investments, represented the Philippines in the meeting.

“The JCTEC is equally important as it will tackle a broader perspective of economic cooperation between the two countries,” Lopez said.

Following the launch of the FTA talks, Lopez will meet with high-level South Korean business executives to promote business opportunities in the Philippines.

The roundtable meeting is expected to be attended by executives from companies engaged in the following industries: construction and infrastructure; tool and die; and energy.