At the 57th Trade Day ceremony held at the COEX convention centre on Tuesday in southern Seoul, South Korean President Moon Jae-in hinted at the possibility of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to aid the country’s economic recovery.
In the meeting, the President emphasized the idea of diversifying one’s economy especially as the coronavirus pandemic has left several global economies battered. “The wave of protectionism is likely to grow as countries compete more fiercely to gain an upper hand in the post-pandemic rebound,” Moon said. He further added: “It is critical that we diversify our markets”.
This was the first time that South Korea has shown interest in joining the newly transformed Trans-Pacific Partnership (TPP), which came into effect in December 2018; its 11 participating nations include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Moon also went on to say that Korea will strengthen its free trade ties with Southeast Asia, Latin America, and Eurasia, and is also contemplating on finalizing Free Trade Agreement (FTA) talks with Indonesia and Israel by the end of the year. The administration aims to expedite its discussions with India, the Philippines, Cambodia, and Uzbekistan as well. Further, the Korean President pledged to improve the competitiveness of its domestic manufacturing industry, transform its trade, and foster three new export engines: future cars, system semiconductors, and bio-health. He also cited his administration’s intention to pursue an environment-friendly strategy by making South Korea carbon neutral by 2050.
This foreshadowing comes a month after South Korea signed the Regional Comprehensive Economic Partnership (RCEP), which is the world’s biggest free-trade bloc. Led by China, the RCEP consists of 15 Asia-Pacific economies, including ASEAN members. Similarly, the TPP was previously led by the Obama administration but was abandoned by President Donald Trump. However, Joe Biden has hinted that he might undo this move under his presidency and join its Indo-Pacific allies in the bloc.
South Korea’s decision therefore might be a possible attempt to balance its ties with both superpowers. This decision also comes on the anniversary of Korea’s Trade Day, which the administration first celebrated on December 5, 2011, to commemorate the achievement of becoming the world’s ninth nation to exceed US$1 trillion in yearly trade.
South Korean President Joins China in Expressing Interest in Joining CPTPP
South Korean President Moon Jae-in floated the possibility of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to aid the country's economic recovery.
December 9, 2020
SOURCE: YAO QILIN/ZUMA PRESS