ed Trade deal conundrum

Trade experts clashed Monday over Korea’s participation in the 12-nation Trans-Pacific Partnership (TPP) during a public hearing organized by a special parliamentary panel.

Proponents and opponents were sharply divided over the issue as they were during a similar hearing in November.

The TPP was one of the topics discussed between President Park Geun-hye and U.S. President Barack Obama in Seoul Friday. During the summit, the two leaders reaffirmed the previously established position that Washington will closely consult with Seoul over the matter. But during a roundtable with business leaders the next day, Obama made it clear that Korea’s full implementation of the Korea-U.S. free trade agreement will be a prerequisite to the former’s accession to the TPP.

The American president picked automobiles, intellectual property, information communication and organic food as the fields where fair competition should be guaranteed for American companies. He also indicated that Washington would want Seoul’s delay of the provision of subsidies for low-carbon vehicles scheduled for next year.

While the allies engage in a war of nerves over Seoul’s late participation in the TPP talks, the short-term prospects for a conclusion of the multinational trade deal have become murkier, especially since the U.S. and Japan, the most important participants in the TPP talks, failed to narrow their differences over the latter’s wider opening of agricultural markets last week.

But the delayed talks on the Pacific trade agreement come as a relief to Korea because it will provide our trade negotiators with an opportunity to review their strategies. Since expressing interest in joining the TPP in November, Korea has been holding bilateral preliminary talks with the 12 participating countries. After this, Korea is to officially declare its participation in the TPP negotiations.

But Seoul has every reason not to be in a hurry. More than anything else, Korea cannot help but shoulder further market-opening obligations in such areas as automobiles, pharmaceuticals and finance, let alone agricultural products. Japan, in particular, will certainly be a formidable rival, considering our wide gap with the neighboring country in a number of key industries.

Also, there is a strong need to balance the ongoing free trade talks with China, Korea’s biggest trading partner. Needless to say, the government should precisely evaluate what effects Seoul’s participation in the TPP would have on the nation’s industries and come up with viable countermeasures.

It’s also necessary to pay heed to what TPP opponents argue ― Korea will benefit little from its belated decision to join the TPP.

Against this backdrop, the government needs to closely watch how the multilateral talks will proceed and then look for ways to maximize our national interests.