Korea closer to joining CPTPP

Trade Minister Yeo Han-koo attends a meeting with global experts on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) at the Korea Chamber of Commerce and Industry in Seoul, Oct. 22. Korea Times file

By Lee Kyung-min

Deputy Prime Minister and Finance Minister Hong Nam-ki said Monday the country has officially initiated steps to become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

But the minister stressed Korea's joining the CPTPP will be decided on after reaching social consensus and thorough discussions, as there could be opposition from the agriculture industry.

The plan was announced during a ministerial-level meeting. Right after reporting to the National Assembly, the government will submit its application for the CPTPP.

“The CPTPP will strengthen Korea's presence on the global stage and become a source of future growth for the export-reliant economy,” Hong said during a meeting at the Seoul Government Complex.

But the government is expected to see continued pushback from agricultural businesses, the profitability of which will be significantly dented due to the domestic availability of cheaper products from Vietnam, Japan and Singapore ― key signatories of the mega trade agreement.

Most workers in the traditional industry claim their livelihoods will be put at a further disadvantage, a bleaker prospect brought on by the passage of a bill that ratifies the similar but less invasive Regional Comprehensive Economic Partnership (RCEP). The combined trade volume of CPTPP member countries accounts for 15 percent of the world's total trade volume.

The announcement was met with fierce pushback by members of a council representing the agriculture industry. They issued a statement urging the government to withdraw what they consider a senseless forfeiting of the country's food sovereignty at the expense of its 2.5 million farmers.

“The increase in cheaper, imported agricultural produce will lead to the collapse of the local industry in the long term,” the members said. “The government and lawmakers must understand they will have to pay a greater price in the months to come. The country's 2.5 million farmers will organize a collective rally to protest the unilateral move.”

Monday's announcement follows recommendations early this year by the Korea Development Institute, a state-run think tank, on the need to join the multilateral trade agreement swiftly.

“Some lesser-productive industries will be forced out from the global market, an inevitable step needed for the greater good and overall strengthening of the country,” the think tank said in a report released in January. “Government policies should be introduced to help strong companies with a competitive edge explore new export markets, attract foreign investment and bolster corporate productivity.”

In order to join the trade deal, Korea will need the approval of all 11 existing members including Japan, Australia and New Zealand. Seoul will make its official bid after developing the relevant necessary internal procedures.