Ministry of Industry Launches 'FTA Strategy Forum' to Prepare for Changes in Global Trade Order

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy held the first FTA Strategy Forum on the 24th in collaboration with the International Trade Association to review this year's FTA promotion direction in preparation for changes in the global trade order, such as mega Free Trade Agreements (FTAs).

At this first forum, expert presentations and discussions were held focusing on "Prospects and Implications of the New US Administration's Trade Policy."

Experts forecast that although the new US administration is currently focused on domestic issues, it will seek solidarity with allied countries in trade policy to restore global leadership. In particular, digital trade, labor, climate change and environment, supply chains, and technological competition are expected to be major areas of interest. Additionally, the US government is expected to pursue trade policies based on the multilateral system under World Trade Organization (WTO) norms, aiming to improve domestic jobs and competitiveness, while actively utilizing trade remedy measures to protect its domestic industries.

Kang Gu-sang, Senior Research Fellow at the Korea Institute for International Economic Policy (KIEP), suggested, "The US will take active trade remedy measures against unfair trade practices and emphasize fair trade within the WTO system. We need to carefully monitor the implementation of strengthened labor and environmental provisions under the United States-Mexico-Canada Agreement (USMCA)."

Kim Su-dong, Director at the Korea Institute for Industrial Economics and Trade (KIET), advised, "Since the inauguration of the new US administration, policies such as Buy American and active responses to climate change are promoting investment expansion linked to job creation. It is necessary to explore the possibility of our participation in building a reliable supply chain."

Ji Man-su, Senior Research Fellow at the Korea Institute of Finance, emphasized, "Focusing on issues such as the Summit for Democracy and WTO reform, discussions on climate change and e-commerce under the multilateral system are likely to progress. Our side must actively participate in discussions on new trade norms and prepare FTA response strategies."

An official from the Ministry of Trade, Industry and Energy stated, "We will hold the FTA Strategy Forum five to six times this year to monitor changes in the trade order and trends in discussions on new trade norms. We will also continuously review FTA response strategies."