Cebu exporters seen  to benefit from FTAs

CEBU, Philippines —  The Cebu export industry expects to benefit from the different Free Trade Agreements (FTAs) signed by the Philippine government between countries, particularly the recent deal with South Korea.

According to Philexport Cebu executive director Fred Escalona, FTAs pave a way for more opportunities for exporters to expand their markets.

However, Escalona admitted that exporters still need to be more competitive to fully enjoy the benefits that FTAs bring.

The Department of Trade and Industry-Export Marketing Bureau showed that Central Visayas data showed that the region exported US$327,475,409 worth of goods to South Korea in 2022 with a share of 6.06 percent to the total export value for the year which stood at $5,403,123,083.

In 2021, Central Visayas exported $298,058,220 worth of goods with a share of  5.03 percent to the total export value of $5,928,543,184.

Central Visayas, which is composed of the provinces of Cebu, Bohol, Siquijor and Negros Oriental, exports wooden furniture, copper, parts and accessories, machinery parts; fresh or dried guavas, mangosteen, mangoes; dried peaches, pears, papaya, tamarinds, and other edible fruits; seaweeds, coconut oil, basketwork or wickerwork; prepared or preserved octopus; ice cream and other edible ice, whether or not containing cocoa; frozen shrimps and prawns in shells, and bamboo or rattan seats, among others, to South Korea.

Escalona said Cebu has been servicing exports to Korea, however the volume has been very minimal for a long time now.

The Philippines-Korea FTA was signed at the 43rd Association of Southeast Asian Nations Summit and Related Summits in Jakarta, Indonesia, witnessed by President Ferdinand Marcos Jr.

In 2022, the Philippines exported US$3.12 billion worth of goods to South Korea, making it the country's seventh-largest export market.

Countries like the Philippines enter into FTAs to participate in the global value chains.

South Korea is said to be the 10th largest economy in the world and the second most technologically advanced nation next to Germany.