South Korea Tropical insights

As the Korea-Philippines Free Trade Agreement (FTA) goes into effect on the 31st, tariffs on Philippine bananas will be completely eliminated within 5 years. When the bilateral FTA goes into effect, Korea will eliminate tariffs on 94.8% of all items imported from the Philippines. The Philippines will also eliminate tariffs on 96.5% of imported items from Korea starting on this day. Korea will eliminate the 30% tariff on bananas, a product of interest to the Philippines, over 5 years. It is expected to be reduced by 6% each year starting from the first year of the FTA. However, the Ministry of Trade, Industry and Energy announced that it has secured agricultural product safeguard (ASG) measures to prevent a sharp increase in banana imports from the Philippines. Accordingly, the Korean government can re-impose tariffs of up to 30% if the annual banana import volume exceeds the standard amount for 10 years starting from the first year of the FTA. In addition, tariffs on processed foods (5-10%), ginseng, peppers, and mackerel (5% each), and pears (7%) will also be eliminated within 15 years. Among Korean export items to the Philippines, automobiles are considered a representative beneficiary. The Philippines currently imposes a 5% tariff on Korean automobiles, but once the FTA goes into effect, tariffs on internal combustion engine passenger cars and trucks will be eliminated immediately. Tariffs on eco-friendly vehicles such as electric and hybrid cars will be phased out over a period of five years. Reporter Ji Yuri yuriji@nongmin.com

The tariff rates for the country’s banana exports to South Korea will get a sizable reduction next week under the newly implemented free trade agreement (FTA), beginning with a 6 percent decrease on Dec 31 and another 6 percent cut on January 1.

In just a few years, the avocado has become very popular and has spread across the globe, both in terms of production and consumption. The fruit world can no longer imagine itself without this fruit.