Phl cites South Korea’s customs program, seeks deeper ties in agri, tourism, services

MANILA, Sept 25 -- The Philippines cited South Korea’s wide-ranging trade facilitation efforts in the official statement delivered by Ambassador Esteban B. Conejos, Jr., Philippine Permanent Representative to the World Trade Organization (WTO), during the country’s Trade Policy Review held on September 19 and 21, statement from the Department of Foreign Affairs (DFA) said.

“The Philippines, being one of the active agricultural fresh product exporters to Korea welcomes this significant development which imparts a great degree of predictability and transparency in doing business,” Conejos added.

In 2011, South Korea was the sixth biggest trading partner of the Philippines while the Philippines was South Korea’s third most attractive investment destination in South East Asia.

Trade relations with South Korea are also conducted within the framework of the Association of Southeast Asian Nations (Asean)-Korea Free Trade Agreement, which entered into force in 2010. Asean became South Korea’s second largest trading partner in 2010.

“For over 60 years, the Philippines and the Republic of Korea have nurtured our friendship and lives on to this day in the form of deeper and more comprehensive cooperation in diverse areas including political dialogue, economic cooperation and people to people exchanges. This relationship is further highlighted by the recent visit of Foreign Affairs Secretary Albert F. del Rosario with Korean Prime Minister Kim Hwang-sik and Foreign Minister Kim Sung-hwan in Seoul last month, to discuss ways to improve an already vibrant relationship between the Philippines and Korea,” Ambassador Conejos added.

South Korean visitors, many of whom are students attending short-term English language courses, form the bulk of tourist arrivals in the Philippines. By December 2012, the Philippines expects to welcome its one-millionth South Korean visitor for the year, contributing to almost a quarter of total tourist arrival to the country.

The WTO report also took note of the rapidly aging population of South Korea that is expected to result in labor shortage. To address the issue, the country has introduced the Employment Permit System (EPS) that allows employment of foreign workers in certain sectors, including manufacturing, agriculture and livestock, and fisheries. The Philippines, through the Department of Labor and Employment (DOLE) and the Philippine Embassy in Seoul, collaborates closely with Korea in this endeavor.

“If Korea believes in the power of numbers, seven is its lucky number. Since its last TPR, it has become the world’s seventh largest exporter, up from 12th, and as far as foreign exchange reserve holdings are concerned, it is the seventh largest in the world with over US$300 billion in 2011, equivalent to nearly seven months of imports,” stated Ambassador Conejos.

From the last Trade Policy Review of Korea in 2008, Korea’s export driven economy still managed to rebound despite the global financial crisis, registering a substantial overall current account surplus averaging roughly 2.3% of its gross domestic product (GDP) during the review period.

All WTO Members undergo the trade policy review process where their trade and related policies are discussed and evaluated at regular intervals. The Philippines sought South Korea’s clarification in the areas of services, green procurement, self-sufficiency policies and availability of legislative and sub-legal documents in English, among others.

The objective of the review mechanism is to improve transparency and understanding of the trade policies and practices of the Members. The Philippines completed its fourth review in March of this year. (DFA)

Sourced: pia.gov