After the Korea-Philippines FTA Takes Effect, 'Emergency Tariffs' to Be Imposed on Sudden Surge in Imports of Specific Items

Revision of Enforcement Decree of the "Unfair Trade Investigation Act"
Establishment of Relief Measures for Domestic Industry Damage

The government has prepared domestic industry damage relief measures in anticipation of a surge in imports of certain items following market opening ahead of the Korea-Philippines Free Trade Agreement (FTA) coming into effect at the end of this year. If imports of certain items from the Philippines surge, an 'FTA safeguard' will be triggered to impose emergency tariffs or halt tariff reductions.

The Ministry of Trade, Industry and Energy announced that the revision of the Enforcement Decree of the "Act on Investigation of Unfair Trade Practices and Relief of Industrial Damage," which includes these measures, passed the Cabinet meeting held on the 24th. This revision was promoted to reflect the trade remedy-related provisions of the Korea-Philippines FTA, which will take effect on the 31st, into domestic law.

An official from the Ministry of Trade, Industry and Energy explained, "Through this revision of the Enforcement Decree, if imports of certain items from the Philippines surge as a result of market opening under the FTA, the FTA safeguard can be triggered to impose emergency tariffs or halt tariff reductions, thereby providing relief for domestic industry damage. The FTA safeguard measures can be triggered between the contracting parties (bilateral), while global safeguard measures can be triggered between WTO member countries (multilateral) based on the WTO agreement."

However, in line with the purpose of expanding free trade through the FTA, if the duration of the measure exceeds one year, it will be gradually eased at regular intervals. The Ministry of Trade, Industry and Energy expects that this mechanism will also apply equally when Korean companies are subject to FTA safeguard measures from the Philippines, contributing to the promotion of Korean exports in the future.

The revised trade remedy-related provisions will also take effect from the effective date, the 31st.