The Philippines has entered into a free trade deal with South Korea

When talking about free trade agreements, The Philippines is known to be engaged with its ASEAN neighbors, Japan, and also Europe. Recently, the country has entered into a free trade deal with another Asian country, South Korea. 

The Asian nation is the latest in line of free trade partners. The agreement was signed on August 31, 2023, between the President of the Philippines and South Korea in Jakarta for the Association of Southeast Asian Nations summit. The signing concludes a four-year negotiation between the Philippines and South Korea, and it will cover trade and investment ties between the two. 

According to the Philippine President’s video, the signing was “a testament to the realization of the many opportunities for complementation and collaboration between the Philippines and South Korea and an even greater milestone for our economic friendship.” 

Specific details of the agreement remain under wraps for now, but the Department of Trade and Industry has previously stated that agricultural products from the country will get improved market access in South Korea. 

The free trade agreement will also go beyond government-to-government partnerships, and that being said it will mean that private firms and private-sector partners will also be able to benefit. 

Now, how will this affect automotive prices and sales for other South Korean brands like Kia and Hyundai? Currently, the other details of the agreement aren’t out yet, however, in the coming weeks we will be hoping for the deal to go both ways for South Korean products. 

Hyundai and Kia are both South Korean brands that’ve resorted to manufacturing in other parts of Asia to supply the demand for cars in the Philippines. Indonesia is one such plant under Hyundai Motor that supplies models like the Stargazer. It is, however, the South Korean-made cars that could get eased access into the country, resulting in prices that are lower as import taxes and duties imposed may ease. 

Though, at this time, there is no confirmation of that just yet. However, the main focus of the trade agreement is to better allow South Koreans to access Philippine products. For now, the prospect of more affordable Korean-made automobiles is still up in the air without confirmation, though it’s not unlikely to happen in the future.