S Korea officially decides to join CPTPP to strengthen supply chain
Apr 19, 2022
Seoul [South Korea], April 19 (ANI/Global Economic): The South Korean government has decided to officially promote joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The global supply chain is expected to be strengthened by joining the CPTPP, however, strong opposition from the agricultural and fishery industries has also continued. Measures and communications to alleviate worries of agricultural and fishery industries have become important tasks for the new government.
According to the Ministry of Trade, Industry and Energy on 18th, the government approved the plan to join the CPTPP at an economy-related ministers' meeting on the 15th. The government will submit an official application after completing domestic procedures, including a report to the National Assembly, in accordance of the Commercial Treaties Act.
The approval for the plan has been made in about eight years since the government considered joining the Trans-Pacific Partnership (TPP), the CPTPP's predecessor, in 2013.
The CPTPP is the renegotiated version of the TPP established by 11 countries, including Japan, Mexico, Singapore, Canada, and Australia, after the U.S. withdrew from the TPP. Member states account for 13% of the total global gross domestic product (GDP) and 15 per cent of the global trade volume. Last year, U.K., China, and Taiwan also submitted the application to join the CPTPP.
In particular, the current Moon's administration has accelerated preparations for joining CPTPP. In January, Deputy Prime Minister Hong Nam-ki set the deadline for submitting the application in April. The government has also continued to have talks with companies form various industries, and operated a task force (TF) to improve related policies.
As the CPTPP's market is large and new norms, which are not included in the existing FTAs, such as digital industry are included, the government expects to expand Korea's economic network after joining the CPTPP. President-elect Yoon suk-yeol also pledged to support domestic companies to grow in supply chains and digital trade business fields through the regional trade agreements such as the CPTPP.
However, the agricultural and fishery industries are concerned that domestic consumption of agricultural and fisheries products can decrease due to imports from agricultural powerhouses such as Australia and New Zealand. In addition, it is pointed out that Japan, the member country of the CPTPP, may require importing Fukushima seafood as a condition for membership approval. (ANI/Global Economic)
