Title L3_GEED003.docx ✅

o This agreement covers trade in goods, services, investment, intellectual property rights, and government procurement, among other areas. o The EFTA-Philippines FTA aims to expand market access for both parties and increase investment opportunities. ● Philippines-South Korea Free Trade Agreement o The Philippines-South Korea FTA was signed in 2021. o It aims to facilitate trade in goods and services, promote investment, and enhance cooperation between the two countries. o The agreement covers areas like tariff reductions, trade in agricultural products, and industrial cooperation. ● Generalized System of Preferences (GSP) o Although not technically an FTA, the Generalized System of Preferences (GSP) programs with various countries, like the European Union (EU) and the United States, provide preferential access to these markets for certain products from developing countries, including the Philippines. o The EU GSP+, for example, allows the Philippines to export over 6,000 products to the EU at zero or reduced tariffs. ● Importance of FTAs to the Philippines: o Market Access: FTAs allow Philippine products to access foreign markets at lower or zero tariffs, making them more competitive. o Foreign Investment: Reduced trade barriers and improved market access attract foreign investors to the Philippines. o Economic Growth: Increased trade, investment, and market integration help drive economic growth and job creation in the Philippines o Diversification: FTAs help the Philippines diversify its export markets and reduce reliance on traditional trading partners. « Customs Unions o Countries remove tariffs and adopt a common external tariff for non-members (e.g., MERCOSUR). o Example: MERCOSUR (Southern Common Market),
where member countries like Argentina and Brazil trade without tariffs and apply a unified tariff to non-member countries like the U.S. « Common Markets o Countries have a customs union and also allow free movement of labor and capital across borders. o Example: The European Union (EU) before adopting the euro, where EU countries allowed the free movement of workers and investment, in addition to free trade, but still used their own currencies. « Economic Unions o Countries harmonize policies, including adopting a common currency, for deeper economic integration. o Example: The Eurozone, where EU countries like Germany o In the Philippines, there isn't a fully established common market comparable to entities like the European Union (EU) or Mercosur where both goods and services, as well as labor and capital, flow freely between countries. However, the Philippines participates in regional economic integration initiatives that aim to gradually move toward deeper forms of market integration. Trade Barriers o Trade barriers, such as tariffs, quotas, and other restrictions, are tools used by countries to regulate or control international trade. o While they serve specific domestic purposes—such as protecting local industries or generating government revenue—they can hinder or delay the free flow of goods and services across borders. « Tariffs o Tariffs are taxes imposed on imported goods. o They raise the price of imports, making them less competitive in comparison to locally produced goods. o Governments often impose tariffs to protect domestic industries from foreign competition, raise revenue, or retaliate against unfair trade practices. ● Impact on Global Trade: o Costs for Consumers: Tariffs increase the cost of imported