Manila: 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 Malaca±an Palace in Manila.
According to Philippines News Agency, the leaders acknowledged the efforts of both sides to enhance bilateral trade and investment, expressing optimism about the full potential of the PH-ROK (Republic of Korea) Free Trade Agreement benefiting both nations. At a joint press conference, President Marcos emphasized the importance of realizing these benefits for the people of the Philippines and Korea.
President Lee noted the significant increase in Korean investments in the Philippines since the FTA took effect in 2024, pointing to a trend of growing bilateral trade and investment. He expressed confidence that the recent signing of memoranda of understanding on intellectual property rights and the agricultural sector would aid in the FTA's full implementation.
The two leaders discussed expanding trade and investment further and addressing challenges faced by Korean firms in the Philippines. President Marcos pledged support for Korean businesses entering the Philippine market and committed to easing any obstacles they encounter.
The Philippines and South Korea signed the free trade pact on September 7, 2023, to enhance economic cooperation and trade relations. The FTA, effective December 31, 2024, offers preferential duty-free entry for 11,164 Philippine products, accounting for USD3.18 billion or 87.4 percent of total Korean imports from the Philippines.
Korean companies are expected to contribute to quality job creation through increased investments in advanced manufacturing sectors, 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.
