(UPDATES) PRESIDENT Ferdinand Marcos Jr. on Monday committed to implement the Free Trade Agreement (FTA) with South Korea.
“We acknowledged the efforts of both sides to enhance bilateral trade, and we looked forward to implementing our free trade agreement that has been ratified and concurred [in] 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.
DEEPENING TIES President Ferdinand Marcos Jr. and visiting Republic of Korea President Yoon Suk Yeol hold a joint press briefing in Malacañang on Oct. 7, 2024, after witnessing the signing of several agreements. PHOTO BY REVOLI CORTEZ/PPA POOL
“President Marcos and I agreed to work together in order to deliver tangible benefits to the citizens of both countries by stepping up our economic cooperation. To this end, we have committed to bringing Korea-Philippines FTA signed in September last year into force at the earliest date possible,” he said.
The pact is expected to give Philippine investors more access to South Korean markets.
It also aims to spur investments from South Korea into priority sectors, industries and emerging economic areas in the Philippines.
During the Philippine-Korea Business Forum organized 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, processing of critical minerals, pharmaceuticals, and creative industries.”
In 2023, South Korea was the Philippines’ fifth biggest trading partner, fifth export destination (out of 205), and the fourth largest import source (out of 220).
It was also the Philippines’ fifth-biggest source of foreign direct investments (FDI) in 2021.
The FDI from South Korea amounted to $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 also committed to deepening cooperation between their coast guards in the face of China’s assertion of its claims over the South China Sea.
Yoon said they will strengthen “tackling transnational crime, information sharing, and conducting search and rescue missions.”
“We shared a common understanding about the importance of peace, stability and safety in the South China Sea,” Yoon told reporters after the bilateral meeting.
South Korea has repeatedly commented on tensions in the disputed waters.
In March, Seoul expressed its “grave concern” over China’s “repeated use of water cannons against the Philippine vessels” in the area.
Cooperation agreements signed in the bilateral meeting cover areas such as critical raw material supply chains, as well as a feasibility study on reviving the Philippines’ mothballed Bataan Nuclear Power Plant.
“As the geopolitical environment is only becoming more complex, we must work together to achieve prosperity for our peoples and to 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 stressed that Filipino-Korean ties were “forged in blood,” the Philippines having sent troops to help defend South Korea during the Korean War in 1950.
Other MoUs involved major infrastructure projects like the Samar Coastal Road, the Laguna Lakeshore Road Network Phase I (Stage I), and the Panay-Guimaras-Negros Island Bridges.
The Department of Tourism (DoT) and South Korea’s Ministry of Culture, Sports and Tourism also signed an MoU on 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, adding further impetus to the strengthening and deepening of our cooperation in an increasingly complex geopolitical and economic environment,” the President said.
Yoon vowed his country’s continuing support to the Philippines, particularly in ramping up its defense capabilities.
“We shared a common understanding about the importance of peace, stability, and safety in the South China Sea, which is a critical sea lane of communications in the region. In this regard, our two countries will continue to work together in order to establish a rules-based maritime order and for the freedom of navigation and overflight pursuant to the principles of the 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 with his participation in the Association of Southeast Asian Nations (Asean) Summit in Laos later in the week.
Tourism Secretary Christina Garcia Frasco and Korean Minister of Culture, Sports and Tourism Yu In-chon signed the tourism cooperation deal.
“We anticipate this will increase demand for more Philippine destinations and tourism products from our number one source market, South Korea, and provide more opportunities for the economic advancement of our people, with the expected growth in our tourism numbers,” Frasco said.
The two countries agreed to exchange tourism professionals and administrators to strengthen mutual development and competency in the fields of 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 that country so far this year.
“This partnership will not only bolster tourism exchanges but also contribute to the economic development of both nations, ensuring that the Philippines and South Korea remain premier destinations for travelers seeking rich cultural experiences and world-class tourism offerings,” Frasco said.
Be the first to comment