The Philippines will push for lower tariffs on agriculture products in forthcoming trade negotiations with South Korea, Trade Secretary Ramon Lopez said Tuesday.
South Korea Trade Minister Joo Hyung-hwan in a brief visit to the Philippines Monday discussed trade matters of common interest to both countries, especially on the Asean-Korea free trade agreement and the conclusion of the Regional Comprehensive Economic Partnership.
Lopez said the Korean official expressed interest to advance the discussions on Asean-Korea FTA as well as a bilateral agreement with the Philippines.
“We’re pushing for lower tariff, mostly for agriculture products like bananas and pineapple, and other key agricultural products,” Lopez said.
Banana exports to Korea are levied 30 percent while Philippine pineapples are taxed the same level.
The Philippines is also keen on lowering most favored nation rates to “zero tariff.”
“We are requesting for that (zero tariff) so we can finalize the Asean-Korea FTA as well as our own bilateral or FTA with them,” Lopez said.
He added the Philippines received assurance from Joo that the murder of a Korean businessman would not affect existing as well as incoming investments from Korean companies.
“We both recognize it was an isolated incident. They just want justice served, and they want a speedy resolution. That is why the President wants the case resolved ASAP. And I believe that the improving overall peace and order situation in the country have convinced them to retain their investments here,” said Lopez.
Reports showed that the Philippine peace and order situation has improved by as much as 30 percent.
One of Korea’s biggest companies in the Philippines, Samsung Electronics Philippines Corp., is investing another $200 million to expand manufacturing operations.
The company designs, manufactures and sell electronics equipment and semiconductors, including optical disk drives from the Philippines.
Government data showed that Korean investments reached $200 million in 2015, ranking South Korea as the Philippines’ sixth source of foreign investments.
South Korea ranked as the Philippines’ fifth major trading partner, sixth biggest export market and fifth import supplier.
Philippine exports to South Korea increased 18 percent from $2.88 billion in 2012 to $3.4 billion in 2013, while Philippine imports increased rose 6.5 percent from $4.53 billion in 2012 to $4.82 billion in 2013, according to the Philippine Statistics Authority.
