PBBM expects ratification of PH-South Korea FTA deal this year

FILE: President Ferdinand R. Marcos Jr. invited on Monday Australian business leaders to consider investing in the Philippines as he welcomed opportunities for greater cooperation between the Philippines and Australia in terms of climate change and energy transition. (PCO Photo)

MANILA — President Ferdinand R. Marcos Jr. is expecting the ratification of the free trade agreement (FTA) between the Philippines and South Korea this year.

In an interview with Maeil Business Newspaper chairman and publisher Chang Dae-Whan at Malacañang Palace on Thursday, Marcos expressed optimism that South Korea’s National Assembly would ratify the FTA, which could result in lower tariff rates for Philippine products in the Korean market.

“I think so. I think we will get it done. I think we will get it ratified… It’s important to us,” Marcos said.

“I think one of the lessons we learned during the pandemic, and now after the pandemic, is how important trade is, not just to be wealthy, but to be, to have the things that you need, that your people need. So, that’s always the key for us and no country succeeded by cutting itself off,” he added.

The FTA is a pact between two or more nations meant to reduce barriers to imports and exports among them.

President Marcos noted that the Philippines seeks a separate future agreement with South Korea to encourage the East Asian country to allow some of the Philippine products to have duty-free access to the South Korea market.

“We are negotiating a separate future agreement with the Republic of Korea is to encourage them to, perhaps take some, to allow some of our products to be included in the reduced tariff products, and also we hope that we can negotiate with Korea, with South Korea better terms and we get on [the] ASEAN-Republic of Korea FTA,” Marcos said.

President Marcos cited tropical fruits like avocados on South Korea’s list of products eligible for reduced tariff rates, as he anticipates more Philippine products to be added on the list.

This year marks the 75th anniversary of diplomatic relations between South Korea and the Philippines.

Marcos highlighted the robust diplomatic relationship between the Philippines and South Korea, as 2024 marks the 75th anniversary of their diplomatic relations.

“The relationship between our two countries has been ongoing for 75 years now, and this has been a very important partnership for the Philippines, and I think, also for the Republic of South Korea,” Marcos said.

He said the Philippines and South Korea share the same efforts to maintain the relationship.

“What we are now trying to do is to promote the partnerships that we have begun in the past so that the exchange between our two countries will increase and will be mutually beneficial to both the Republic of Korea and the Republic of the Philippines,” he added.

PBBM aspires for future-ready PH

During the same interview, President Marcos said he wants to transform the Philippines into a future-ready nation through his administration’s Bagong Pilipinas (New Philippines) campaign.

“We cannot go back to what we used to do. We cannot do the same things, and expect to have a good result,” he said.

He stressed the need to transform the bureaucracy and the way the Philippines does business in order to prepare the country for the next 50 years.

“I want to transform the different economic policies for greater investment, greater trade, so I guess my hope is that we would be able to transform the Philippines, so that the Philippines is now ready for the next 50 years. Put us on the right track,” Marcos said.

He also pointed out that if the country can get started on the right track and keep going with great determination and focus, “I think we will be able to do it.”

He said the campaign aims to create a new Philippines “that is part of the economy, and a promoter of peace and stability.”

Asked what kind of paradigm shift he is going to introduce to Filipinos, the President told Chang he always views the Filipino workforce as the country’s greatest asset but is not being maximized.

The government, he said, has to structure the economy to make full use of the Filipino workers who are good English speakers, well-accustomed to working with foreign entities, and have a very large diaspora overseas.

“So, it is up to us, in the government now, to change how we think, and so I think it’s just one fundamental… when you ask if what’s the paradigm shift, there are many paradigm shifts that seem to change our thinking. We have to change the way to do things,” he said.

He cited the digital space which the government can capitalize on to train people so they can be ready to participate in the modern labor market.