PH commits to conclude a trade agreement with South Korea

(UPDATES) PRESIDENT Ferdinand Marcos Jr. on Monday expressed its support for the implementation of the Free Trade Agreement (FTA) with South Korea.

“We recognized the efforts of both sides to improve bilateral trade, and we looked forward to the implementation of our free trade agreement that has been ratified and approved by the Philippine Senate,” Marcos said during his joint press conference with South Korean President Yoon. Suk Yeol in Malacañang.

Yoon, who was in Manila for a two-day state visit, said the agreement will further boost trade and investment between the two countries.

STRENGTHENING TIES President Ferdinand Marcos Jr. and visiting President of the Republic of Korea Yoon Suk Yeol hold a joint press conference in Malacañang on October 7, 2024, after witnessing the signing of several agreements. PHOTO BY REVOLI CORTEZ/PPA POOL

“President Marcos and I have agreed to work together to deliver tangible benefits to the citizens of both countries by deepening our economic cooperation. In view of this, we committed to bringing into force the Korea-Philippines Free Trade Agreement signed last September during the meeting. earliest possible date,” he said.

The pact is expected to give Philippine investors greater access to South Korean markets.

It also aims to boost investment from South Korea in priority sectors, industries and emerging economic areas in the Philippines.

Speaking at the Philippine-Korea Business Forum hosted by the Philippine Chamber of Commerce and Industry and the Federation of Korean Industries in Manila later in the day, the President said the FTA “prioritizes cooperation in sectors of mutual interest, such as electric vehicles, critical mineral processing, pharmaceuticals and creative industries.”

In 2023, South Korea was the Philippines’ fifth largest trading partner, fifth export destination (out of 205) and fourth largest source of imports (out of 220).

It was also the Philippines’ fifth largest source of foreign direct investment (FDI) in 2021.

South Korea’s foreign direct investment totaled $20.82 million from January to November 2023, up from $20.51 million in 2022.

Last year, South Korea was the Philippines’ sixth largest source of official development assistance (ODA), totaling $971.86 million.

The Philippines and South Korea have also committed to deepening cooperation between their coast guards in light of China’s assertion of its claims over the South China Sea.

Yoon said they will strengthen “tackling transnational crime, sharing information and conducting search and rescue missions.”

“We shared a common understanding on the importance of peace, stability and security in the South China Sea,” Yoon told reporters after the bilateral meeting.

South Korea has repeatedly responded to tensions in the disputed waters.

In March, Seoul expressed “serious concerns” over China’s “repeated use of water cannons against Philippine ships” in the area.

Cooperation agreements signed during the bilateral meeting cover areas such as crucial raw material supply chains, as well as a feasibility study on reviving the mothballed Bataan nuclear power plant.

“As the geopolitical environment only becomes more complex, we must work together to achieve prosperity for our peoples and promote a rules-based order,” Marcos said ahead of the meeting.

Yoon’s visit coincided with the 75th anniversary of the start of diplomatic relations between Manila and Seoul. He is the first South Korean leader to visit Manila since former President Lee Myung-bak in 2011.

Marcos emphasized that Philippine-Korean ties were “forged in blood” as the Philippines sent troops to help defend South Korea during the 1950 Korean War.

Other MoUs covered major infrastructure projects such as the Samar Coastal Road, the Laguna Lakeshore Road Network Phase I (Phase I) and the Panay-Guimaras-Negros Island Bridges.

The Department of Tourism (DoT) and the South Korean Ministry of Culture, Sports and Tourism also signed an MoU for a five-year tourism cooperation program.

“Today I am pleased to announce that the Philippines and the Republic of Korea have formally elevated our relations to a Strategic Partnership, providing further impetus to strengthen and deepen our cooperation in an increasingly complex geopolitical and economic environment,” said the president. .

Yoon pledged his country’s continued support to the Philippines, especially in boosting defense capabilities.

“We shared a common understanding on the importance of peace, stability and security in the South China Sea, which is a crucial corridor in the region. In this regard, our two countries will continue to work together to promote a rules-based maritime order and freedom of navigation and overflight in accordance with the principles of international law in the South China Sea,” he added.

Manila was the Korean leader’s first stop in his six-day Southeast Asian swing, which will conclude later this week with his participation in the Association of Southeast Asian Nations (ASEAN) summit in Laos.

Tourism Minister Christina Garcia Frasco and Korean Minister of Culture, Sports and Tourism Yu In-chon signed the tourism cooperation agreement.

“We expect this will increase demand for more Philippine destinations and tourism products from our main source market, South Korea, and provide more opportunities for the economic advancement of our people, with the expected growth of our tourism numbers,” Frasco said .

The two countries agreed to exchange tourism professionals and managers to strengthen mutual development and competence in hotels, resorts, cruises, ports, tourism products and other related industries.

South Korea ranks first in visitor arrivals to the country, with 1,230,858 arrivals from the country so far this year.

“This partnership will not only strengthen tourism exchanges, but also contribute to the economic development of both countries, ensuring that the Philippines and South Korea remain premier destinations for travelers seeking rich cultural experiences and world-class tourism offerings ” said Frasco.