[ad_1]
The Philippines still aims to finalize its free trade agreement (FTA) with South Korea this year despite the uncertainty caused by the pandemic, said a senior official with the Department of Commerce and Industry.
Undersecretary of Commerce and Industry Ceferino Rodolfo said in a recent online interview that there have been practical difficulties, such as the fact that South Korea changed its main negotiator and was unable to fly and negotiate face-to-face.
“Although we have held zoom meetings, [the FTA talks] they’re still a bit behind schedule, ”he said when asked for an update on the NAFTA talks.
“The objective remains to finish the FTA with [South] Korea this year, ”he said, noting that they would speak again in September.
In April 2019, both sides announced that they would pursue an FTA that they promised to sign in November at an international summit in South Korea. However, the FTA talks took longer than anticipated by both parties.
In October last year, Commerce Secretary Ramón López told reporters that he was still confident when the start of negotiations was announced. If they were successful, they would have finished a FTA in a matter of months.
But many things changed at the negotiating table, such as South Korea’s refusal to cut tariffs on Philippine bananas within five years.
Filipino bananas currently have to pay a 30 percent duty to enter South Korea. While the Philippines is South Korea’s largest supplier of bananas, its 85 percent market share is threatened as Central American countries, which enjoy zero tariffs, begin to increase their share.
Last year, when a pandemic-ravaged 2020 was still unimaginable, the DTI said the deal would be finalized in the first half of 2020.
FTAs, which involve sensitive issues like further opening a local industry to foreign competition, generally take years to complete. INQ
Read next
EDITOR’S SELECTION
MOST READ
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer and more than 70 other titles, share up to 5 gadgets, listen to the news, download from 4am and share articles on social media. Call 896 6000.
For comments, complaints or inquiries, please contact us.
[ad_2]
