Senator Imee Marcos, in her sponsorship of Senate Resolution No. 1188, recently urged colleagues to ratify Free Trade Agreement (FTA) between the Philippines and the Republic of Korea.
Marcos said once RP-Korea FTA is ratified, it is expected to boost exportation of bananas into the country with reduced tariff until it becomes zero within five years.
Aside from bananas, the Philippines will also secure zero tariff for agricultural products such as fresh octopus, avocado and tobacco/tobacco products as soon as the FTA enters into force, she explained.
“The FTA is also expected to stimulate more Korean investments into the country. According to the Department of Trade and Industry, the Philippines could generate at least PHP150 to 200 billion worth of foreign direct investments, specifically from the electric vehicle value chain and agricultural processing, within three years from the FTA’s entry into force,” she added.
Last week, Marcos presided over the Committee on Foreign Relations hearing on the FTA between the two countries. She noted the FTA aims to manage competitive exclusion in relation to the ASEAN competitors, encourage more foreign direct investment, and secure more preferential concession that is actually available under ASEAN or the Regional Comprehensive Economic Partnership (RCEP).
“According to the instrument of ratification, it is through the FTA that the Philippines will expand its network and encourage the entries of sustainable and high quality investment, and to encourage forward looking commitment on economic cooperation in priority areas such as industrial development; innovation; research and development; micro, small and medium enterprises (MSMEs); creative; and cultural industry,” she added.
