DTI pushes FTA with South Korea

MANILA, Philippines — The Department of Trade and Industry (DTI) is still aiming to conclude the negotiations for a Free Trade Agreement (FTA) with South Korea before the end of the year despite the challenges  brought about by the pandemic.

Trade Secretary Ramon Lopez said talks for the FTA with South Korea are still being pursued.

“Best effort  is to conclude this year,” Lopez said when asked for the target completion of the FTA.

He said the ongoing COVID-19 crisis has delayed and affected the timing of FTA negotiation meetings.

He said said there are “ongoing consultations on the exchange of offers.”

Both countries vowed to conclude the talks for the FTA  by November of last year when negotiations  were launched in June of the same year.

Negotiations were not completed as initially targeted, but the two countries signed an early achievement package for the bilateral trade deal in November last year.

At that time, the parties concluded the chapter on competition, but still have to work on the remaining six chapters: trade in goods, trade in services, investment, rules of origin, economic and technical cooperation, and legal and institutional issues.

During the signing of the early achievement package, the parties committed to finish talks within the first half of  2020.

Through the FTA, the Philippines  wants  to improve market access for agricultural products, including bananas, as well as industrial goods and services to South Korea.

Bananas are of particular interest to the Philippines as these are slapped with a 30 percent tariff when they enter South Korea, higher than what is imposed on those coming from Central America and Vietnam.

Banana shipments from Peru entering South Korea enjoy zero tariff, while other Central American countries and Vietnam are set to get the same benefit by 2021 and 2024, respectively.

South Korea, on the hand,  is pushing for pharmaceuticals, petrochemicals and auto parts under the FTA.

Last year, trade between the Philippines and South Korea reached $11.44 billion.