MANILA — Twenty-one of 23 Senators voted to approve the Free Trade Agreement between the Philippines and South Korea.

The Free Trade Agreement was signed to manage competitive exclusion vis-à-vis Association of Southeast  Asian Nations (ASEAN) competitors, encourage more foreign direct investments, and secure more preferential concessions than those currently available to the  Philippines under the ASEAN-Korea Free Trade  Agreement (FTA) and the Regional Comprehensive  Economic Partnership Agreement.

The deal says that the Philippines will expand its FTA network to encourage the entry of sustainable and high-quality investments and pursue forward-looking commitments on economic cooperation in priority areas such as industrial development, innovation,  research and development, micro, small, and medium enterprises, and creative and cultural industries.

Thirteen government agencies endorsed its approval.

The constitution requires 2/3 of the Senate to agree to any treaty or international agreement signed by the Philippines.

Samahang Industriya ng Agrikultura OR SINAG Executive Director Jayson Cainglet for his part wondered if the FTA could reverse the trade imbalance between the 2 countries.

"Between June 2023 to June 2024;  our trade to Korea stands at: export - $240 million import - $ 742 million or a whopping trade deficit of $520M. Our imports to Korea increased by $ 110 million (+17.3 percent) this year - from $633M to $742M. Iyung exports were further reduced (-28.6 percent); from $337 million to $240 million,” Cainglet said. 

"Unfortunately, this is another case of rosy promises versus hard reality," he added.

"Panalong panalo ang Korean companies na papasok sa ating bansa, thanks to our negotiators. Kahit sa presentation ng DTI sa Senate hearings, hindi FTA ang factor para pumasok ang korean investors sa isang bansa, but from investor confidence and cheaper cost of doing business,” Cainglet said.