SOUTH Korea’s free trade agreement with the Philippines will take effect on Dec. 31, its embassy in Manila said on Monday.
This comes after the Philippine Trade department said it would take effect on Jan. 1 next year after both countries ratified the pact, which is expected to boost exports of Philippine bananas and processed pineapples to is East Asian neighbor, earlier this year.
“The Free Trade Agreement (FTA) will officially come into effect on December 31, 2024,” the embassy said in a statement.
“Moreover, Korean companies will contribute to the Philippines’ economic development by creating quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy.”
It added that the agreement is expected to also boost economic ties in sectors such as industry, agriculture, infrastructure, and energy.
The Philippine Senate ratified the trade pact in September, while South Korea’s National Assembly did so in November.
Under the deal, the Philippines secured the elimination of 1,531 tariff lines on agricultural goods, of which 1,417 would be removed after the FTA enters into force.
It will also remove 9,909 tariff lines of industrial goods, 9,747 of which would be removed after the deal enters into force.
South Korean automakers are expected to benefit from the FTA, which will remove the 5% import duties on Korean-made automobiles. Tariffs on Korean electric and hybrid vehicles would also be eliminated within five years.
“With a comprehensive scope covering 97% of imports, the FTA will significantly enhance market access for Philippine products like bananas and pineapples in the Korean market,” the embassy said. — John Victor D. Ordoñez
