President Ferdinand Marcos Jr. said the timely upgrade of the ASEAN-Korea Free Trade Area (AKFTA) will help the regional bloc and South Korea repel the effects of the ‘growing protectionist tendencies in the global economy.’
He also recognized the role of South Korea in enhancing the competitiveness of micro, small, and medium enterprises (MSME) and start-ups.
‘On the economic front, the Philippines welcomes the launch of the negotiations to upgrade the ASEAN-Korea Free Trade Area (AKFTA), a timely step in strengthening ASEAN-Korea economic ties and ensuring that our partnership remains relevant in today’s rapidly changing global economy,’ the chief executive said in his intervention at the second day of the 47th ASEAN Summit in Malaysia on Monday morning.
A strengthened AKFTA, he said, will help keep the economies and involved parties ‘to remain open’ as more countries focus on their domestic trade.
After taking effect in 2019, the AKFTA helped boost trade between ASEAN and South Korea, reaching US$156.5 billion in 2019 and helping generate 700 million people.
It provided ASEAN exports greater market access to Korea starting from 2006, and helped them get free market access in 2010 as Korea eliminates tariffs for goods coming the regional bloc.
The Philippines also signed its own FTA with South Korea Free Trade Agreement (FTA) in 2024, which is also expected to spur trade between the two countries.
Marcos also cited South Korea’s support for MSMEs and start-up development.
‘In particular, we commend the initiatives of the ASEAN-Korea Centre, such as the annual ASEAN-Korea Startup Week, which serves as a valuable platform for promising ASEAN startups to engage in networking and capacity-building activities with their Korean counterparts,’ he said.
The President also cited South Korea’s roles for promoting cybersecurity; disaster mitigation through upskilling; cultural exchanges; environmental sustainability; and maritime priorities of ASEAN, which are ‘anchored on a rules-based international order.’
He said he is looking forward to co-chairing with South Korea and the United States the ASEAN Regional Forum (ARF) Workshop on Best Practices for Port State Measures to Combat Illegal, Unreported, and Unregulated (IUU) Fishing.
‘I am confident that ASEAN and the ROK [Republic of Korea] will continue to work together to advance peace, prosperity, and security in our region because we are guided by a common goal of uplifting the lives of our peoples,’ Marcos said.