Government Pushes for Pacific Alliance Associate Membership... "FTA Signing Effect"

Ministry of Trade Holds Local Trade Office and Expert Meeting
"Considering Domestic Industry Sensitivity... Gathering Stakeholder Opinions"

Kyung-sik Lee, Free Trade Agreement (FTA) Negotiator at the Ministry of Trade, Industry and Energy. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The government is pushing to join the Pacific Alliance (PA) as an associate member, which carries the effects of a Free Trade Agreement (FTA).

On the 5th, the Ministry of Trade, Industry and Energy held a meeting via video conference with local trade offices and experts.

The PA refers to a regional economic alliance consisting of four countries: Mexico, Chile, Peru, and Colombia.

The ministry expects that becoming an associate member of the PA will lower tariff and non-tariff barriers in the Mexican market, where no FTA has been concluded, thereby enhancing the export competitiveness of Korean companies.

It also evaluated that it would be an opportunity to reflect improvement demands for each agreement with Chile, Peru, and Colombia, with whom Korea has already concluded FTAs with a high level of liberalization.

At the meeting, KOTRA Mexico Trade Office Deputy Director Kwon Junsup presented an analysis that the PA has an economically complementary structure with Korea.

He said, "Mexico's national issue is overcoming dependence on the United States, and it is necessary to expand trade with various countries," adding, "Korea's associate membership in the PA will benefit both sides."

He also suggested, "To advance close economic cooperation between Korea and Mexico, it is necessary to promptly resume bilateral FTA negotiations in parallel with the PA associate membership negotiations."

Lee Kyungsik, FTA Negotiation Officer at the Ministry of Trade, Industry and Energy, said, "We will promote negotiations for PA associate membership by comprehensively considering the opinions of related experts, including this meeting."

He added, "To consider domestic industry sensitivities, we will gather stakeholders' opinions as much as possible," and "We plan to ensure that the benefits of PA associate membership are evenly spread throughout the economy."