(UPDATE) President Ferdinand Marcos Jr. has issued an executive order to implement the tariff schedule under the Free Trade Agreement with South Korea (PH-KR FTA). This development was announced by Malacañang on Saturday.
President Ferdinand Marcos Jr. PHOTO BY MIKE ALQUINTO
Executive Order 80: The Details
Executive Order 80, signed by Executive Secretary Lucas Bersamin on December 23, 2023, sets specific guidelines for the implementation of the PH-KR FTA’s tariff commitments. The order mandates that all goods originating from South Korea, listed in the Philippines’ Schedule of Tariff Commitments, entering the country for consumption or further introduction must be taxed according to the rates outlined in the agreement, provided they have a valid Proof of Origin, complying with all FTA requirements.
The PH-KR FTA: A Closer Look
The PH-KR FTA was signed in September 2023 during the 43rd Association of Southeast Asian Nations Summit in Indonesia. The agreement aims to enhance economic partnership and bilateral trade by reducing and eliminating tariff barriers between the Philippines and South Korea.
Ratification and Senate Approval
President Marcos ratified the PH-KR FTA on May 13, 2024. The Senate subsequently concurred with this decision through Senate Resolution 1188, adopted on September 23, 2024.
Benefits of the PH-KR FTA
This initiative seeks to manage competitive exclusion and encourage more foreign direct investment while providing the Philippines with more favorable concessions compared to existing agreements. According to Marcos, the FTA will fortify the Philippines’ bilateral trade and investment relations with South Korea, creating jobs and positioning the country as an ideal regional hub for smart, sustainable investments.
Economic Impact
The FTA represents a significant milestone for the economic friendship between the two nations. Trade between the Philippines and South Korea stood at $15.44 billion in 2022, making South Korea the fourth-largest trading partner for the Philippines. Key exports from the Philippines to South Korea include integrated circuits, semiconductors, and bananas.
Future Prospects
The implementation of Executive Order 80 marks a critical step in translating the commitments made under the PH-KR FTA into actionable policies. This move underscores the Philippines’ commitment to fostering stronger economic ties and enhancing its international profile.
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“The signing of the FTA is a testament to the realization of the many opportunities for complementation and collaboration between the Philippines and South Korea,” Marcos emphasized in a video statement.
This development is expected to bring further economic benefits to both countries, fostering a stronger partnership based on cooperation and mutual growth.
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