Government Strengthens CPTPP Cooperation with UK... Ministry of Industry Faces 'Trade Test'

Yeohan-gu, Chief Trade Negotiator, Meets with British Ambassador to Korea
Discusses Cooperation Plans for CPTPP Membership Application Scheduled This Month
Expected to Be a Test for the Ministry of Trade Amid 'Trade Function Competition'
"Will Prepare Supplementary Measures for Agriculture and Fisheries During Negotiation Period"

The Ministry of Trade, Industry and Energy announced that Yeohangoo, Director-General for Trade Negotiations (right), held a meeting with Colin Crooks, the newly appointed British Ambassador to Korea, on the 14th to discuss bilateral trade issues including the global supply chain.
[Photo by Ministry of Trade, Industry and Energy]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government is strengthening trade cooperation with the United Kingdom to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This is to accelerate joining the CPTPP by cooperating with the UK, which applied for CPTPP membership before Korea. It is analyzed that the CPTPP accession negotiations, which will be in full swing after the next cabinet is launched, could become a testing ground for the Ministry of Trade, Industry and Energy, which is competing with the Ministry of Foreign Affairs over trade functions.

The Ministry of Trade, Industry and Energy announced that on the 14th, Ye Han-gu, the chief negotiator for trade, met with Colin Crooks, the newly appointed British Ambassador to Korea, at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, to discuss trade issues between the two countries. This meeting was arranged at the request of Ambassador Crooks, who was appointed as the British Ambassador to Korea in February this year.

The main agenda of the meeting was cooperation on supply chains between the two countries. In particular, it was reported that Chief Negotiator Ye and Ambassador Crooks focused on discussing the CPTPP, which the Korean government is about to apply for membership. Ye said in a phone interview with Asia Economy, “The UK has been negotiating CPTPP membership since June last year,” adding, “There is room for cooperation between the two countries regarding the accession negotiations, and the UK is also open to the possibility of cooperation.”

The CPTPP is a mega free trade agreement (FTA) formed by 11 Asia-Pacific countries including Japan, Australia, Mexico, and Singapore. As of 2019, the trade volume among member countries was $5.7 trillion (approximately 7,000 trillion KRW), accounting for 15% of global trade. The UK applied for CPTPP membership in February last year. If the UK’s CPTPP membership is approved, it will be the first country to join the CPTPP since its launch in 2018.

Accession Negotiations to Intensify under Yoon Administration

The Ministry of Trade, Industry and Energy plans to apply for CPTPP membership within the current administration. To this end, the agenda for applying for CPTPP membership will be approved at the Foreign Economic Ministers’ Meeting scheduled for the 15th. Afterward, when the ministry reports the accession plan to the National Assembly, the administrative procedures for joining the CPTPP will be completed. Chief Negotiator Ye stated, “The CPTPP membership application is in the final process,” and added, “If things proceed as planned, applying for membership within the current administration is fully possible.”

The CPTPP accession negotiations, which will proceed after the new government takes office, are expected to become a ‘trade test’ for the Ministry of Trade, Industry and Energy. Considering that the UK started negotiations about four months after applying for CPTPP membership in February last year, it is highly likely that Korea’s CPTPP accession negotiations will also begin within this year. With the Presidential Transition Committee reviewing plans to transfer trade functions from the Ministry of Trade, Industry and Energy to the Ministry of Foreign Affairs, smooth CPTPP accession could strengthen the case for retaining trade functions within the Ministry of Trade, Industry and Energy.

Farmers’ Opposition and Other Challenges

The challenge is not only the negotiations. Agricultural and fishery groups oppose joining the CPTPP. This is due to concerns that the average tariff elimination rate of 96.3% among CPTPP member countries could cause significant damage to domestic agriculture and fisheries. The fact that many CPTPP member countries have developed agricultural sectors also fuels opposition from these groups. The Korea Rural Economic Institute (KREI) projected through an economic feasibility review of the agricultural sector under CPTPP that “a production decrease averaging 85.3 billion to 440 billion KRW annually over 15 years is inevitable.”

Jeonnong: 'Withdraw CPTPP Membership Immediately!'
(Seoul=Yonhap News) Reporter Lim Hwayoung = On the afternoon of the 13th, officials from the National Peasants' Federation (Jeonnong) held a nationwide farmers and fishermen rally to block the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) membership at the Culture Square in Yeouido Park, Seoul. 2022.4.13
hwayoung7@yna.co.kr
(End)


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The Ministry of Trade, Industry and Energy intends to minimize damage to farmers and fishermen by preparing supplementary measures. The ministry believes that during the approximately one to two years of accession negotiations, it can gather industry opinions and establish agricultural and fishery support measures. A ministry official said, “Farmers and others have expressed concerns, and we are fully aware of this,” adding, “There is time to prepare supplementary measures together with the industry.”

The meeting also included discussions on the Indo-Pacific Economic Framework (IPEF) promoted by the United States. Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki recently stated that he would positively consider joining the IPEF. It is also reported that the US requested the Yoon Seok-youl transition team’s Korea-US policy consultation delegation to participate in the IPEF.

Chief Negotiator Ye said, “We have held six rounds of consultations with the US Trade Representative (USTR) since the end of last year regarding IPEF membership,” adding, “It is a good opportunity, and we need to approach it in a way that fully utilizes this opportunity.”