The Philippines is preparing for a remarkable boost in its apparel export industry, with a new Free Trade Agreement (FTA) with South Korea projected to push export values to $1 billion by 2025. Expected to be effective in the first quarter of next year, the agreement offers the Philippines access to South Korea’s vibrant, zero-tariff apparel market—a development welcomed by the Foreign Buyers Association of the Philippines.
Robert Young, President of the Foreign Buyers Association, noted that the agreement could attract South Korean companies to set up manufacturing units within the Philippines’ economic zones, taking advantage of the benefits available through the Corporate Recovery and Tax Incentives for Enterprises Act. This act offers incentives such as duty-free imports of capital equipment and raw materials, providing competitive advantages to foreign investors and local manufacturers alike.
Last year, Philippine apparel exports to South Korea reached $15.6 million, a figure with ample room for growth as this agreement comes into effect. Although apparel exports experienced a slight decline earlier in 2024, the new trade deal is expected to reverse that trend, enhancing both market access and industry investment.
With enhanced trade relations and expanded export opportunities, the Philippines is positioning itself as a competitive player in the Asian apparel market, contributing to economic growth and solidifying its role as a valuable trade partner.
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