Improvement seen in ASEAN-Korea trade in goods

September 9, 2017

Trade and Industry Undersecretary Ceferino Rodolfo said Saturday there is improvement in the ASEAN-Korea trade in goods agreement.

“The 14th ASEAN Economic Ministers’ -Republic of Korea (ROK) meeting noted the progress made towards the implementation of the Third Protocol to Amend the ASEAN-Korea Trade in Goods Agreement (AKTIGA)”, Rodolfo said in a press briefing.

“Ministers noted the progress in the negotiations in improving market access for goods under the Sensitive Track currently reserved from zero tariffs and looked forward to substantive outcomes from the negotiations”, he added.

The economic ministers from 10 ASEAN member states, Republic of Korea and Trade and Industry Secretary Ramon Lopez had a meeting last Friday in Pasay City for the Fourteenth AEM-ROK Consultations.

Rodolfo said the ministers from different countries had  “constructive exchanges” to give importance in promoting “stronger collaboration between ASEAN and Korean micro, small and medium enterprises”.

He said possible collaboration regarding Information Technology (IT) was considered since Korea is known in this particular area.

“From the Philippine perspective, the bilateral between the department of trade and industry secretary Ramon Lopez and his counterpart minister Kim (Hyun-chong, Minister for Trade, Republic of Korea) provided an opportunity for the Philippines to pursue its trade and market interest with Korea in line with current efforts to further liberalisation being pursued under the ASEAN Korean FTA”, Rodolfo said.

The ASEAN-Korea bilateral trade has increased since it was formed in 2007 from $61.81 billion in 2006 to $118.84 billion in 2016, the ASEAN joint media statement said.

Foreign direct investment (FDI) flows from Korea to ASEAN had an annual  average of $6 billion from 2007 to 2016. It increased by 5.4 percent compared to the previous years before AKFTA was formed, it said.

Asean is the second largest trading partner and second largest investment destination of Korea. Korea is the fifth largest trading partner and fifth largest external source of FDI of ASEAN. Alanna Ambi/DMS