Discussion on Trade Agreement (TA), Pacific Alliance (PA), and FTA Improvement Negotiations with Chile
[Asia Economy Reporter Moon Chaeseok] The government will hold a meeting to review trade issues in the $6 trillion Latin American market and check the progress of cooperative projects among various ministries.
The Ministry of Trade, Industry and Energy announced that it will hold a Korea-Latin America trade issues review meeting on the 19th at 3 p.m. with the Ministry of Economy and Finance, Ministry of Foreign Affairs, Ministry of Agriculture, Food and Rural Affairs, Ministry of Oceans and Fisheries, Ministry of Science and ICT, and Ministry of Environment.
The economic scale of the Latin American region is $5.8 trillion. It accounts for 6.7% of the world GDP and is a traditional trade surplus region from Korea's perspective.
Jung Daejin, Director General of Trade Policy at the Ministry of Trade, Industry and Energy, said in his opening remarks, "Trade uncertainties are increasing due to COVID-19, the inauguration of the new U.S. administration, and protectionism," adding, "The Latin American region has a mutually complementary economic structure with Korea and high growth potential, so related ministries should communicate closely to establish trade strategies."
Director Jung mentioned, "At this meeting, we hope to share wisdom to ensure smooth progress of ongoing negotiations such as the Korea-Mercosur Trade Agreement (TA), Korea's accession as an associate member of the Pacific Alliance (PA), and the Korea-Chile Free Trade Agreement (FTA) improvement negotiations."
The TA is a customs union formed in 1995 by four countries: Brazil, Argentina, Uruguay, and Paraguay. Korea has conducted five rounds of negotiations since September 2018.
The PA is a regional alliance formed in 2012 by four countries: Mexico, Chile, Peru, and Colombia. Currently, agreement on negotiation rules and concretization of negotiation commencement are being pursued. If Korea joins as an associate member, it can enjoy the effects of a new FTA with Mexico and improvements to FTAs with Chile, Peru, and Colombia.
The Korea-Chile FTA, which came into effect in 2004, has undergone four rounds of improvement negotiations over three years from 2018 to last year.
The ministries agreed on the importance of discussing, discovering, and promoting cooperative projects under their jurisdiction through various cooperation channels to revitalize Korea-Latin America trade, which has stagnated since 2012.
An official from the Ministry of Trade, Industry and Energy said, "The ministry plans to continue smooth communication with related ministries to prepare for new trade environments such as ongoing U.S.-China competition, changes in the global trade system, deglobalization after COVID-19, and digital trade."
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