MANILA, Philippines – The National Economic and Development Authority (NEDA) Board approved an executive order (EO) implementing commitments under the free trade agreement (FTA) between the Philippines and South Korea.
President Ferdinand Marcos Jr., who chairs the NEDA Board, approved the EO during the board’s 23rd meeting on Tuesday, December 17.
According to NEDA, the EO will cover the country’s tariff commitments under the Philippines-Korea Free Trade Agreement (FTA).
The deal aims to strengthen economic ties between Manila and Seoul by removing barriers to market access, facilitating trade and investment flows and creating new investment opportunities.
“The agreement will support government efforts to manage competitive exclusion vis-à-vis ASEAN neighbors, encourage more foreign direct investments, and secure more preferential concessions than those currently available under the ASEAN–Korea FTA and the Regional Comprehensive Economic Partnership Agreement,” NEDA said in a statement.
NEDA said South Korea will grant preferential duty-free entry to Philippine products worth $3.18 billion upon implementation of the FTA. This accounts for 87.4% of South Korea’s imports from the Philippines.
In return, Manila will remove tariffs on around 96.5% of goods from Seoul.
Marcos oversaw the signing of the Philippines-Korea FTA on September 7, 2023 during the 43rd ASEAN Summit in Jakarta, Indonesia.
Negotiations for the deal began in 2019 and concluded in 2021.
READ: Philippines, South Korea conclude free trade talks
The Philippine Senate ratified the FTA in September, while the South Korean parliament gave its nod in November.
South Korea was the Philippines’ fifth largest trading partner in 2023, with bilateral trade valued at just over $12 billion.
Aside from the EO, the NEDA Board also approved infrastructure projects worth P63.2 billion to boost the country’s agricultural productivity and economic activity.
These projects are the National Irrigation Administration’s Ilocos Norte-Ilocos Sur-Abra Irrigation Project (INISAIP), and the Public Works department’s P25.7 billion Accelerated Bridge Construction Project for Greater Economic Mobility and Calamity Response (ABC Project).
The INISAIP involves the construction of an earth and rockfill dam across the Palsiguan River in Abra and an afterbay dam in Nueva Era, Ilocos Norte. It aims to irrigate up to 17,672 hectares of agricultural land during the wet season and 13,256 hectares in the dry season.
Meanwhile, the ABC Project aims to construct 29 bridges nationwide to improve connectivity and disaster resilience. – Rappler.com
