The Philippines and South Korea commenced on Monday negotiations for a bilateral free trade agreement, highlights of which would be ready by November.
The trade chiefs of both countries signed a joint press statement in Seoul, where they said they recognized the “complementarity” between the nations. This meant acknowledging the significant potential of further advancing trade and investment “through, among others, removal of impediments to closer trade and creation of business and investment opportunities.”
Based on data, Seoul always got the better end of the deal.
“The ministers have announced the commencement of the free trade agreement negotiations with the view to conclude the same in November 2019,” the statement read, referring to Korea Trade Minister Yoo Myung-hee and the Philippines’ Trade and Industry Secretary Ramon Lopez.
The Philippines has had relatively improved market access to South Korea through the Association of Southeast Asian Nations (Asean)-Korean free trade area, which took effect about a decade ago.
Data from the Philippine Statistics Authority show, however, that the Philippines’ exports to South Korea dropped heavily last year, while the latter’s imports to the Philippines increased.
The Philippines exported $2.54 billion worth of goods to South Korea last year, a 41.3-percent decline from the $4.33 billion in 2017. South Korea was the Philippines’ ninth top export market in 2018, mainly for its bananas, pineapples and copper.
On the other hand, the Philippines imported $11.16 billion worth of products last year, a 31.9-percent increase from the $8.47 billion recorded in 2017. South Korea was the Philippines’ 3rd top import market. The Department of Trade and Industry (DTI) said the country imported mainly industrial products from South Korea.
The conclusion of the fresh talks would come in time for the commemorative summit of the Republic of Korea and the Asean.
November would also mark the 70th anniversary of the diplomatic relations of South Korea and the Philippines, the DTI said previously.