December 31, 2024 | 12:00am
MANILA, Philippines — The impeachment of South Korea’s president will not impact its free trade agreement (FTA) with the Philippines that is set to take effect today, according to the Department of Trade and Industry (DTI).
“FTA is officially ratified by both the Philippines and Korea in accordance with our respective processes. Both sides have also notified each other and accepted the entry into force on Dec. 31,” Trade Undersecretary Ceferino Rodolfo told reporters over the weekend.
Concerns over the trade deal emerged after South Korea voted to impeach acting president Han Duck-soo, just two weeks after parliament impeached President Yoon Suk Yeol following his short-lived imposition of martial law.
“We highlight that the Philippines-Korea FTA has broad-based support in South Korea. Despite President Yoon not having control of parliament, the Korean legislators voted overwhelmingly in favor of the FTA,” Rodolfo said.
“Approval (was) received from 286 members, while only three opposed and three abstained. This mirrors the unanimous Philippine Senate votes in ratifying the FTA,” he added.
The trade deal signed in September 2023 is set to enter into force a year ahead of schedule, coinciding with the 75th anniversary of diplomatic ties between the Philippines and South Korea.
Under the FTA, the Philippines wants to secure the improved market access for agricultural products like bananas and other tropical fruits, as well as industrial products and other services.
Once enforced, this will play a crucial role in enhancing the balance of trade with South Korea by boosting trade flows and generating more investment opportunities, which in turn could also produce jobs.
Korean businesses are expected to pour significant investments into the Philippine market, particularly in areas like automobiles, electronics and renewable energy.
“We have full confidence in the maturity and strength of South Korea’s democratic system and in the dynamism and strength of its economy. We have no doubt that the Philippines and South Korea will be able to maximize mutual benefits arising from implementing the FTA,” Rodolfo said.
Korean Ambassador Lee Sang-hwa, for his part, has underscored the importance of the trade deal in strengthening the partnership between the two countries.
“The Korean government will actively collaborate with the Philippine government to ensure that the FTA realizes its maximum potential in strengthening economic ties and fostering deeper cooperation between our two nations,” Lee said.
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