Philippines-Korea (PH-ROK) Free Trade Agreement (FTA)

 

Background

The Free Trade Agreement between the Republic of the Philippines and the Republic of Korea (PH-KR FTA) which entered into force on 31 December 2024, is the Philippines’ third bilateral free trade agreement, alongside the Philippines-Japan Economic Partnership Agreement (PJEPA) and the Philippines-European Free Trade Association Free Trade Agreement (PH-EFTA FTA) which entered into force in 11 December 2008 and 01 June 2018, respectively.

In general, the PH-KR FTA:

  • Provides more preferential tariff concessions from South Korea on priority products, than what are currently available to our exporters under the ASEAN-Korea Free Trade Agreement (AKFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP);
  • Expands the country’s network of strategic and forward-looking free trade agreements to provide more market opportunities for our exporters and businesses, and support the Philippines’ value proposition in encouraging sustainable and high-quality investments; and
  • Provides a formal mechanism for economic cooperation and collaboration opportunities in key areas of interest such as critical minerals, supply chains, health industries, creative economy, digital trade and e-commerce, and R&D.

Key Areas

The PH-KR FTA consists of 12 Chapters, 5 Annexes, and 2 Appendices, The PH-KR FTA also includes an Implementing Arrangement for Economic and Technical Cooperation pursuant to its Economic and Technical Cooperation Chapter.

  • Chapter 01 – General Provisions. This chapter includes the establishment of a free trade area between the Republic of the Philippines and the Republic of Korea. This chapter also includes the objectives of the Agreement, extent of obligations, and general definitions.
  • Chapter 02 – Trade in Goods. This chapter covers the provisions on market access liberalization under the Agreement. This chapter includes Articles on, among others, reduction or elimination of customs duties, acceleration of tariff commitments, classification of goods, agricultural export subsidies, goods in transit, temporary admission of goods, customs valuation, quantitative restrictions and non-tariff measures, import licensing, fees and formalities, national treatment on internal taxation and regulation, agricultural safeguard measures, sanitary and phytosanitary measures, technical barriers to trade, modification of concessions, contact points, and Committee on Trade in Goods. This chapter also includes Annexes 2-A and 2-B on the schedule and modalities for the reduction or elimination of customs duties and agricultural safeguard measures, respectively.
  • Chapter 03 – Trade Remedies. This chapter covers the provisions on safeguard measures, anti-dumping and countervailing duties, and the Committee on Trade Remedies.
  • Chapter 04 – Rules of Origin. This chapter includes definitions of key terms including Product Specific Rules (PSR), as well as provisions, among others, on origin criteria, criteria for de minimis and minimal operations, accumulation of origin, treatment for certain goods, direct consignment, proof of origin, PSR transposition, and the Committee on Rules of Origin and Customs Procedures.
  • Chapter 05 – Customs Procedures and Trade Facilitation. This chapter covers provisions on, among others, consistency in implementation and application of applicable customs laws and regulations, transparency, customs procedures and related processes including audit, advance rulings, trade facilitation measures, consultations, customs cooperation, and the Committee on Rules of Origin and Customs Procedures.
  • Chapter 06 – Competition. This chapter covers the definitions for relevant terms, and provisions on basic principles, appropriate measures against anti-competitive activities, cooperation, confidentiality of information, technical cooperation and capacity building, non-application of dispute settlement, consultations, consumer protection, and state enterprises.
  • Chapter 07 – Economic and Technical Cooperation. This chapter covers the basic principles of undertaking economic and technical cooperation within the FTA, as well as the covered areas for cooperative activities, forms of cooperation, resources, the Committee on Economic and Technical Cooperation, and the non-application of dispute settlement. This chapter also includes relevant annexes on cooperation relating to public health emergencies of international concern and pandemic as well as cooperation on vaccines.
  • Chapter 08 – Transparency. This chapter covers the provision of information, administrative proceedings, and review and appeal procedures.
  • Chapter 09 – Dispute Settlement. This chapter covers the definition of terms relating to the settlement of applicable disputes under the Agreement, as well as the scope of the dispute settlement mechanism, choice of forum, consultations, mediation and other procedures that may be undertaken in relation to said disputes, the arbitration panel (including its establishment, terms of reference, composition, and proceedings), interim and final reports including their implementation, compensation and suspension of benefits, rules of procedure, and expenses. This chapter also includes the relevant annexes on rules of procedure and code of conduct for arbitrators.
  • Chapter 10 – Exceptions. This chapter covers provisions on general exceptions, security exceptions, taxation measures and their limitations, disclosure of information, and confidentiality.
  • Chapter 11 – Institutional Arrangements. This chapter covers the establishment of the Joint Committee and its functions and obligations, including procedures for its meetings. This chapter also includes the establishment of committees and working groups under the auspices of the Joint Committee and relevant contact points.
  • Chapter 12 – Final Provisions. This chapter contains the provisions on annexes, appendices and footnotes to the text of the Agreement, as well as provisions on the authenticity, amendments, review, entry into force and termination of the Agreement.
  • Implementing Arrangements for Economic and Technical Cooperation. This Agreement describes the economic and technical cooperation relating to Chapter 7 (Economic and Technical Cooperation) without creating any additional legal rights and obligations to the Parties other than those specified in the FTA. This also includes information and project concepts regarding priority sectors and projects as agreed upon by both Parties.

Resources

For further information, please reach out to the Bilateral Relations Division of the Bureau of International Trade Relations at brd@dti.gov.ph and bitr@dti.gov.ph.

External Links