SEOUL – South Korea began the process to join a mega Asia-Pacific free trade agreement (FTA) involving 11 nations, its finance minister said today, as the country seeks to diversify its export portfolio.
South Korea has been “actively” reviewing joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as part of its efforts to expand mega FTAs in the Asia-Pacific region, according to Yonhap news agency.
“The government is trying to collect public opinions and social discussions on the CPTPP accession,” Finance Minister Hong Nam-ki told a government meeting.
He said the government seeks CPTPP accession to expand trade and investment, and enhance the country’s status as a major player in global trade.
The CPTPP is the renegotiated version of the Trans-Pacific Partnership (TPP) advanced by then US President Barack Obama and his administration.
In 2017, his successor Donald Trump withdrew from the pact, widely seen as a key counterweight to China’s growing economic clout.
The CPTPP, launched in December 2018, has been signed by 11 countries, including Japan, Australia, Canada, New Zealand and Mexico.
Seoul’s push came three months after China submitted an application to join the CPTPP in a surprise move, with Taiwan following suit.
Trade volume of the 11 nations participating in the CPTPP had reached US$5.7 trillion (RM24 trillion) as of 2019, accounting for 15.2% of total global trade, according to a report by the Korea Institute for Industrial Economies and Trade.
South Korea’s potential accession to the CPTPP could be a major boost for its move to expand its trade portfolio in addition to its planned implementation of the Regional Comprehensive Economic Partnership (RCEP).
The RCEP, which was inked in November 2020, will go into effect in February next year as South Korea’s National Assembly ratified the trade deal early this month.
The RCEP covers the 10-member Association of Southeast Asian Nations (Asean), South Korea, China, Japan, Australia and New Zealand. The trade pact is known as the world’s biggest FTA as its 15 member countries combine to account for around 30% of global gross domestic product.
Hong also said South Korea will prepare to resume talks for free trade deals with Mexico and the Gulf Cooperation Council. – Bernama, December 13, 2021
