What Philippine goods will enjoy zero tariff under FTA with South Korea?

The Philippines' top agricultural export products to South Korea such as bananas and processed pineapples will in a few years enjoy zero tariff under the free trade agreement signed on Thursday by the two countries, a top official of the Department of Trade and Industry (DTI) said on Friday.

The Philippines and South Korea on Thursday signed an FTA on the sidelines of the 43rd ASEAN and Related Summits in Jakarta.

Trade Undersecretary Ceferino Rodolfo said the Philippines-Korea FTA would cover export products that were not covered under the ASEAN-Korea FTA.

“There are some important export products of interest of the Philippines which were not covered by the ASEAN-Korea FTA. I’m referring to bananas and tropical fruits so most importantly the bananas... our dominant product of export to Korea,” Rodolfo said.

The Trade official said Korea “committed to remove tariffs on Philippine bananas in five years from entry into force of the agreement.”

Rodolfo said the tariff for Philippine banana exports to Korea will go down “in five equal installments” until it becomes zero.

“Assuming, halimbawa, that this enters into force in 2024, then 2029 zero na ‘yung taripa ng bananas going to Korea,” he said.

Likewise, he said that for processed pineapples, “there is a commitment from Korea to eliminate tariffs but in seven years.”

Overall, the DTI official said the Philippines was able to secure tariff elimination for a total of 1,531 lines.

Of the side lines, 1,417 lines “are for tariff elimination upon entry into force of the agreement.”

Rodolfo said also included for tariff elimination are Philippines’ exports of fresh seafood, such glass eels and octopus, crustaceans; fruits and nuts; fresh and processed food and beverages; sugar and pasty products; and tobacco and tobacco products.

“For industrial goods, the Philippines was able to secure tariff elimination for a total of 9,900 lines of which 9,747 lines are for tariff elimination upon entry into force of the agreement,” the Trade official said.

Meanwhile, Korean products entering the Philippines such as electronic parts and components, auto and auto parts, shampoo and medicated soap will enjoy zero tariff.

In a separate news release, the DTI said that with the FTA with Korea, the Philippines also anticipates major economic gains with enhanced market access to South Korea, which includes exports for key products such as tropical fruits, as well as a comprehensive and robust mechanism for cooperation.

South Korea is a valued trade and investment partner of the Philippines, according to the DTI.

In 2022, it ranked fourth in terms of total bilateral trade valued at $15.45 billion and fourth in total approved investments valued at $90.62 million. —NB, GMA Integrated News