Korea Opens Public Debate on Joining CPTPP Trade Pact

The South Korean government has begun a public consultation process on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), seeking a breakthrough in a third market outside the United States and China as global trade conditions shift rapidly amid growing economic nationalism. The government stressed that it would hold the discussions "without predetermining the conclusion," given the expected damage to farming and fisheries from market opening.

Koo Yun-cheol, deputy prime minister and minister of economy and finance, chaired the 273rd Ministerial Meeting on International Economic Affairs at the Government Complex Seoul on the 27th. "To strengthen solidarity among middle powers that share Korea's positions and to stabilize core supply chains and diversify exports, we will begin a public discussion and gather opinions on joining the CPTPP," he said.

The CPTPP is a multilateral free trade agreement involving 12 countries: Japan, Canada, Australia, New Zealand, Mexico, Chile, Malaysia, Vietnam, Singapore, Brunei, Peru and the United Kingdom. Their combined gross domestic product accounts for 15% of global GDP, and Korea's accession is expected to bring considerable economic and industrial benefits.

Kim Jung-kwan, minister of trade, industry and energy, said the CPTPP is drawing renewed attention for its high-level trade rules and stable trading network. "There are growing calls to actively consider joining the CPTPP in order to respond proactively to a rapidly changing trade environment, expand markets for our companies and secure supply chains," he said. Kim added that 11 countries including Indonesia, the United Arab Emirates and China have already applied to join, and that some argue the discussion is already overdue.

The government plans to proceed cautiously, however, as the pact's high level of market opening is expected to hurt farmers and fishers. "Because the CPTPP entails a high degree of market opening, we will analyze the economic effects and the impact on each industry objectively and precisely, and explain them," Koo said. "In particular, we will look closely at the concerns and impact on the farming and fishing sectors, and preemptively prepare effective domestic support measures if accession is pursued." The Ministry of Agriculture, Food and Rural Affairs plans to hold meetings in September with umbrella farmers' organizations and producer groups for individual commodities.

Farming and fishing groups responded immediately. The Korea Advanced Farmers Federation issued a statement the same day saying the government had "begun full-scale discussions on the CPTPP without prior consultation with the agricultural sector," and called for the talks to be halted. The group said the average tariff elimination rate for agricultural products among CPTPP members approaches 97%, compared with about 72% for Korea, and that joining the pact could have a significant impact on domestic agriculture through further opening of the farm produce market.