Free trade and investment agreements will be signed soon between the 10-member Association of Southeast Asian Nations and the Hong Kong Special Administrative Region after negotiations concluded at the sidelines of the ongoing Asean Economic Ministers meeting here in Manila.
Senior Trade Undersecretary Ceferino Rodolfo said that the 10-nation regional bloc and Hong Kong are scheduled to sign the FTA and investment agreements in November during the 31st Asean Summit in Pampanga.
The agreements were the “first in many years” for the Asean to conclude negotiations for a free trade agreement, Rodolfo said.
“The signing of these agreements this November bodes well for the Philippines, particularly for micro, small, and medium enterprises (MSMEs),” Rodolfo said in a news briefing, following the 2nd AEM-HKC Consultations.
“These agreements would level up our already vibrant trade and investments relations as this would mean increased market access for Filipino exporters,” he added.
Hong Kong is the third largest export market for Philippine products in 2016, with merchandise export that amounted to $6.62 billion, and is the country’s sixth largest trading partner in 2016 with total merchandise trade of $93.3 billion or 4.2 percent of the bloc’s total trade.
Total foreign direct investment flows from Hong Kong to Asean reached $9.6 billion or 9.9 percent of the bloc’s total FDI in 2016.
“We are anticipating increased inflow of investments from Hong Kong, which will definitely translate to more employment opportunities for the Filipinos,” the Trade official said, adding that the move will mean new expansion opportunities for Filipino exporters.
Rodolfo likewise announced the endorsement of the Economic and Technological Work Programme under the Asean-HKC FTA, expected to provide opportunities for micro-small-medium enterprises through capacity building exercises, information sharing, and internship programs, among others.
In the same news briefing, Rodolfo said that Trade Secretary Ramon Lopez requested his South Korean counterpart, Kim Hyun-chong, for better market access for the country’s tropical fruits and other exports in South Korea.
“The Philippines, in particular, is requesting for improved market access for our exports of tropical fruits and other products of interest to Korea,” he said following a bilateral meeting between the two countries. “These tropical fruits are bananas, pineapples, and mangoes which are very important for the Philippines.”
“The bilateral meeting…provided an opportunity for the Philippines to pursue its trade and market interests with Korea.
The Philippines wants to take advantage of trade liberalization efforts being pursued under the Asean-Korea Free Trade Area, Rodolfo said.
“Korea was receptive and will look into the Philippines’ request,” he added.
Asean-Korea bilateral trade has increased by 92.3 percent to $118.84 billion in 2016.
Korea is Asean’s fifth largest trading partner and its fifth largest external source of FDI.