Senate ratifies Philippines-South Korea free trade agreement

Published 2024년 9월 25일

Tridge summary

The Senate of the Philippines has ratified the free trade agreement (FTA) with South Korea, following a similar action by South Korea's National Assembly. The FTA is expected to boost exports of Philippine bananas and processed pineapples to South Korea. The agreement removes tariffs on most goods from both countries, with the Philippines eliminating tariffs on 96.5% of South Korean goods, and South Korea on 94.8% of Philippine goods. The ratification is anticipated to stimulate trade, with the Philippines expecting to attract P200 billion in foreign direct investments in electric vehicles and agricultural processing within three years. The removal of tariffs on bananas and processed pineapples will benefit these industries, with banana tariffs to be removed within five years and pineapple tariffs in seven years.

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Original content

Business World Online - 24 September 2024 Senate ratifies PHL-South Korea FTA By John Victor D. Ordoñez The Senate on Monday ratified the free trade agreement (FTA) between the Philippines and South Korea, a move that will pave the way for increased exports of Philippine bananas and processed pineapples to Seoul. Twenty-one senators voted in favor of the ratification of the free trade pact, which will remove Philippine tariffs on 96.5% of goods from South Korea, while Seoul will lift tariffs on around 94.8% of Philippine products. The Constitution requires concurrence by two-thirds of the Senate’s members for ratification of international agreements and treaties. The Philippines and South Korea signed the free trade pact in September last year, which will boost trade between the two countries. However, the deal is still undergoing the ratification process at the Korean National Assembly. Under the deal, the Philippines secured the elimination of 1,531 tariff lines on agricultural ...

Source: Bilaterals