Seoul (VNA) – The Republic of Korea (RoK)'s Minister of of Trade, Industry and Energy Cheong In-kyo on December 26 said that the RoK-Philippines free trade agreement (FTA), set to take effect next week, will help the country further bolster its trade portfolio and contribute to maintaining a stable supply chain.
Cheong made the remark during a conference with Korean business representatives, aimed at briefing them on ways to utilise the bilateral FTA, which is set to take effect on December 31.
According to the minister, the two countries are expected to achieve a high level of market liberalisation under the FTA, which will also foster investment and business exchanges, ultimately contributing to the stabilisation of the supply chain.
Under the agreement, the RoK and the Philippines will eliminate tariffs on 94.8% and 96.5% of products, respectively, effective immediately.
The FTA will also support the RoK in expanding automobile exports, as the 5% tariff on cargo trucks and passenger vehicles will be eliminated immediately, while tariffs on eco-friendly vehicles will be phased out within five years.
This is the fifth bilateral free trade deal that the RoK has signed with an ASEAN member, following those with Singapore, Vietnam, Malaysia and Cambodia.
The RoK already has an FTA with ASEAN as a whole but has been pursuing separate deals with individual member nations to deepen diplomatic and economic cooperation with these emerging economies./.
