On Thursday, Presidents Yoon Suk Yeol of South Korea and Bongbong Marcos of the Philippines were present to witness the signing of a free trade agreement (FTA). This pact is expected to increase South Korea’s car exports to the Southeast Asian country. The agreement was authorized by the two countries’ trade ministers at the Association of Southeast Asian Nations (ASEAN) gatherings. A photograph of the event is shown below.
South Korean Trade Minister Ahn Duk-geun (2nd from R) and his Philippine counterpart, Alfredo Espinosa Pascual (2nd from L), shook hands after inking the South Korea-Philippines free trade agreement at a hotel in Jakarta on Sept. 7, 2023, with South Korean President Yoon Suk Yeol (R) and Philippine President Bongbong Marcos in attendance. (Yonhap)
As reported by the presidential office, this is the fifth bilateral FTA South Korea has made with an ASEAN member, after those with Singapore, Vietnam, Cambodia and Indonesia, which make up 91 percent of the ASEAN market. The contract states that the 5 percent tariff on South Korean cars will be lifted when the FTA takes effect, while the tariff of up to 30 percent placed on car parts will be eliminated within five years. Tariffs on electric and hybrid vehicles will also be removed within five years.
“We anticipate the export competitiveness of our cars to be significantly improved in the Philippine auto market, which has until now been dominated by Japan,” Choi Sang-mok, senior presidential secretary for economic affairs, told reporters. “Our government will continue to expand FTAs with promising markets and actively support the development of new markets for our businesses.”
The bilateral FTA, combined with the existing South Korea-ASEAN FTA and the Regional Comprehensive Economic Partnership, will lead to the abolishment of tariffs on 94.8 percent of all items South Korea imports from the Philippines, while the Southeast Asian nation will remove tariffs on 96.5 percent of all imports from South Korea.
hague@yna.co.kr
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