S Korea, Philippines sign free trade agreement

26 Oct '21

2 min read

South Korea recently signed a free trade agreement (FTA) with the Philippines to bolster ties with the Southeast Asian nation and help diversify South Korea's trade portfolio, according to the former’s ministry of trade, industry and energy. The two sides began negotiations in June 2019 and had held five rounds of official talks before concluding the agreement.

It is South Korea's fifth bilateral FTA with Association of Southeast Asian Nations (ASEAN) member countries, after Singapore, Vietnam, Malaysia and Cambodia.

South Korean trade minister Yeo Han-koo and his Filipino counterpart Ramon Lopez signed it during a virtual meeting, the ministry said.

"The agreement is expected to help boost our access to the young, dynamic market," the ministry said in a release. "It will also serve as a foundation for broader bilateral cooperation in such various fields as healthcare, electric vehicles and climate change."

Under the deal, the Philippines will lift tariffs on 96.5 per cent of all products traded, and South Korea will remove tariffs on 94.8 per cent of all items, a news agency reported.

Manila, in particular, agreed to lift barriers for South Korean cars and auto parts, which is expected to help South Korea secure competitiveness in the market, the ministry said.

South Korea has inked an FTA with the ASEAN, but has sought to also clinch separate free trade deals with ASEAN nations, particularly after launching the so-called New Southern Policy in 2017 aimed at deepening diplomatic and economic cooperation with the regional bloc.

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