Seoul:President Lee Jae Myung has directed the South Korean government to refrain from applying for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) this year. This decision is intended to allow time for thorough discussions with representatives from the farming and fishing sectors, as announced by his spokesperson.
According to Yonhap News Agency, the government has been evaluating the possibility of joining the CPTPP, a significant Indo-Pacific trade agreement comprising 12 countries, including Japan, Mexico, Australia, Canada, and Vietnam. Collectively, these countries accounted for about 15.2 percent of global trade in 2019. However, the proposal has met resistance from agricultural and fishing industries concerned about the impact of increased imports of cheaper products on their income and production bases.
During a written press briefing, spokesperson Kang Yu-jung conveyed President Lee's instructions to avoid applying for CPTPP membership this year. Lee emphasized the importance of ministries engaging sincerely with farmers and fishermen and maintaining ongoing discussions without imposing a deadline.
This directive followed a Cabinet meeting where the topic of CPTPP membership was deliberated. Officials noted that for South Korea's membership to be considered at a CPTPP ministerial conference in November, a public hearing plan needed to be published in the official gazette by mid-October.
Kang highlighted that while the evolving international trade landscape makes the CPTPP a priority consideration for South Korea in its quest to become a global trading nation, trade policies must align with the people's well-being. Specifically, policies should be developed in a manner that fosters trust and mutual understanding with the agricultural and fisheries communities facing challenges.
A government projection released last month indicated that South Korea's gross domestic product could grow by an additional 0.38 percentage point over ten years if it joins the CPTPP. Additionally, manufacturing sector production could increase by 6.7 trillion won (approximately US$4.99 billion) per year over 15 years. Conversely, the agricultural and fisheries sectors could see an annual production decline of roughly 850 billion won.