By Chloe Marie A Hufana, reporter
Kuala Lumpur – Philippines President Ferdinand R. Marcos, Jr. pushed for expansion on Monday free trade agreement betweenSoutheast Asian Nations Quote (ASEAN) and South Korea, sayThis will keep the markets open and counter rising protectionism Trends in the global economy.
Mr Marcos said the review of the ASEAN-Korea Free Trade Agreement (AKFTA) symbolized a “shared determination” to ensure the partnership remains relevant amid global economic uncertainty.
“The Philippines welcomes the initiation of negotiations to upgrade the ASEAN-Korea Free Trade Area, which is a timely step to strengthen ASEAN-Korea economic ties and ensure that our partnership remains relevant in today's rapidly changing global economy,” he said during the 26.th ASEAN-Republic of Korea Summit in Kuala Lumpur.
The President said that increasing the trade agreement will be beneficialFExpress the commitment of both sides towards transparency, fairness and cooperation in trade.
According to the South Korean Foreign Ministry, trade between ASEAN and South Korea is expected to reach $187.1 billion in 2023.
Seoul is the regional bloc's second-largest trading partner, while ASEAN is South Korea's second-largest investment destination, with foreign direct investment inflows expected to reach $10.8 billion in 2022 and $7.31 billion in 2023.
ASEAN Studies lecturer at De La Salle-College of St. Benilde Josue Rafael J. Cortez said the AKFTA review underlines the need for trade partnerships. Current geo-economic challenges.
He said that as ASEAN's second-largest trading partner, South Korea plays an important role in ensuring mutual economic resilience amid global changes.
“This strengthening of the partnership is undoubtedly a win-win situation, especially since trade diversification is not an option today, but an imperative that every nation-state must embrace,” he said via Facebook Messenger.
If realized, he said, the enhanced FTA would boost trade in agriculture and machinery, enhance tourism-driven growth and attract more South Korean investment to the region.
For the Philippines, the deal could strengthen its electronics exports and provide alternative sources of oil, petroleum and agricultural commodities, supporting both energy stability and food security, Mr. Cortez said.
rcep
during 5th regional collectioncomprehensive economic partnership At the (RCEP) leaders' summit on Monday, Mr Marcos urged member countries to accelerate the accession process to expand the bloc's membership and ensure that businesses, especially micro, small and medium enterprises (MSMEs), are fully from the world's biggest profit Free trade agreements.
He said the initial expansion will deepen regional integration, strengthen supply-chain resilience and strengthen the ReefFASEAN's central role in shaping Asia's economic future.
“It is in our collective interest to move forward with the accession process without any delay,” Mr. Marcos said.
RCEP brings together ASEAN member states with China, Japan, South Korea, Australia and New Zealand, which together cover about a third of global gross domestic product (GDP) and trade.
The Philippine President said, “RCEP exemplifies ASEAN's commitment to the rules-based trading system – our strongest foundation amid today's global uncertainties.”
“It provides a stable and predictable framework for trade and investment, allowing our economies to grow and develop together in an environment of trust, fairness and transparency.”
Mr. Marcos called on all RCEP parties to enhance cooperation on awareness building and capacity development, so that MSMEs can better utilize the benefits of the agreement.
He said Manila stands ready to cooperate with other members on regional campaigns to promote the agreement and facilitate dialogue, trade matching and cross-border cooperation.
“To further demonstrate our commitment, the Philippines will be delighted to host this international business forum in November next year,” he said.
The President also underlined the need for RCEP to evolve with global trends, highlighting the importance of cooperation in digital trade, creative economy, green transition and innovation.
According to Mr. Cortez, the President's comments highlighted the Philippines' openness to collaborating with other countries and underlined the importance of a multilateral approach to today's economic challenges.
He said the regional trade agreement provides a framework for both developed and developing members to protect their economic interests amid global market volatility and geopolitical uncertainty.
“One has to keep in mind that trade is affected not only by skyrocketing tariffs, but also by political and armed conflicts. As every part of the world today seems to be challenged by political uncertainty, trade disruptions are inevitable,” Mr. Cortez said.
“Therefore, it is in the best interest of RCEP to not only create a collective framework but also expand its membership as these new signatories, in some form or the other, will always be an option if needed.”
He urged the bloc to expand its focus beyond traditional industries to emerging sectors such as the creative economy and innovation – while ensuring that such progress does not disadvantage low-skilled workers. With the founding principles of RCEP.
Tariff negotiations continue
Palace press officer Clarissa A. Castro quoted Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs, as saying that tariff negotiations between Manila and Washington were continuing.
Malaysia and Cambodia signed trade deals with the US over the weekend, while framework trade agreements were also signed with Vietnam and Thailand.
“There are also some issues that we can describe broadly, especially related to trade rules and regulations as well as non-tariff measures such as services and investment,” Ms Castro said in Filipino during a briefing at the Kuala Lumpur Convention Center on Monday.
“These include issues related to protecting our country's interests, especially in sectors such as agricultural products – such as coconuts, pineapples, sugar, cocoa – and electronic products,” Ms Castro said, adding that these are among the areas that Manila cannot easily address at this time.
Starting August 7, the US has imposed 19% tariffs on many goods from the Philippines, Cambodia, Malaysia, Thailand and Indonesia.
“ASEAN values its partnership with the United States and seeks to build practical, strategic, and visionary cooperation that delivers tangible results for our businesses and citizens alike,” Mr. Marcos said during the 13th summit.th ASEAN-US summit on Sunday.
