New free trade pact to bring more Korean vehicles in PH    

If you’ve been looking longingly at South Korean car models that are being sold everywhere else except in our market, you won’t have to be envious for much longer. South Korea and the Philippines have finalized a new free trade agreement (FTA) that could pave the way for more vehicles coming to our shores. 

The two countries have concluded talks on a proposed free trade agreement

The Philippine Embassy in Seoul made the announcement, with Trade Secretary Ramon Lopez and South Korean Trade Minister Yeo Han Koo signing a joint statement on the finalized pact during a hybrid ceremony held in the city. This was the culmination of talks that have been ongoing for more than two years between the two countries.

“We are glad that our trade negotiations with South Korea have come to a fruition,” Lopez said in a statement. “We also thank Minister Yeo and the Ministry of Trade, Industry and Energy (MOTIE) for their continued collaboration in facilitating a wider economic cooperation with our Philippines trade department.”

The FTA aims to ramp up investments and jumpstart economic growth, with part of the negotiations focusing on enhancing market access to Korean automotive products and components in the Philippines.      

Filipino buyers could soon benefit from a wider range of South Korean cars in the market

“The agreement is expected to help boost our access to the young, dynamic market. It will also serve as a foundation for broader bilateral cooperation in such various fields as healthcare, electric vehicles, and climate change,” South Korea’s Trade Ministry said.

Under the terms of the pact, South Korea will remove tariffs on 94.8 percent of all items while the Philippines has committed to remove tariffs on 96.5 percent of traded goods. Trade negotiations between the two countries officially began in June 2019, with the COVID-19 pandemic posing a challenge during the five rounds of talks held. 

Both sides are set to negotiate agreements for trade in services and investments within a year of the FTA’s implementation. If it pushes through, this will be the second bilateral FTA that the Philippines will have signed, the first being with Japan.   

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