FREE TRADE DEAL WITH SOUTH KOREA COMING IN OCTOBER

The Philippines has gained headway toward the creation of a free trade agreement (FTA) with South Korea, the United Arab Emirates (UAE) and India, with the first one expected to be signed around October, while formal discussions for the other two are anticipated to finally begin this year.

Trade Undersecretary Ceferino Rodolfo told reporters last week they expected to get signing authority from President Marcos this month for the FTA with South Korea, adding that the signing for the bilater al trade deal could start in the succeeding two months.

“It’s finished...The legal document itself has a Korean and English version. Those are both equally valid,” Rodolfo said, when asked if both the text versions of the FTA had been completed.

Late last year, the trade official had said that Manila’s priority interest in an FTA with South Korea centered on the export of banana and processed pineapples, which are currently levied a 30 percent tariff.

Rodolfo added that an FTA with the East Asian country could bring in between P150 billion to P200 billion worth of investments for the Philippines in the first three years after its signing, particularly in the processing of agricultural goods and the electric vehicle sector.

As for the FTA with the UAE, Rodolfo said that the terms of reference had already been finished and that they expected to convene within the year to move the discussions forward.

The trade official said that the Philippines saw the UAE as a good market for the country’s halal-related products, tropical fruits, garments as well as highend finished consumer goods like luxury watches, belts and other leather products.

As for the FTA with India, Asia’s third largest economy, Ro said that they were also expecting the terms of reference to be finished within the year.

He added that they were also looking at negotiating for more access for Philippine agriculture goods—specifically tropical products like banana and pineapple—in India. Also discussed is ensuring access to Indian goods that are deemed “critical.”

Rodolfo noted that India had implemented export restrictions on active pharmaceutical ingredients at the height of the COVID-19 pandemic around three years ago, materials which are crucial in manufacturing medicines.