Government Strengthens Supply Chain Diversification... Pursues Trade and Investment Framework Agreements with 20 Countries

[Asia Economy Sejong=Reporter Dongwoo Lee] The government plans to conclude Trade and Investment Promotion Frameworks (TIPF) with 20 countries this year to pioneer new overseas markets and diversify supply chains.

On the 11th, Andeokgeun, Director-General of Trade Negotiations at the Ministry of Trade, Industry and Energy, held the "16th Private Advisory Committee on Trade Negotiations" at Lotte Hotel in Jung-gu, Seoul, and disclosed the direction of trade policy reflecting this content.

The Ministry of Trade, Industry and Energy intends to respond by concluding TIPFs, a comprehensive cooperation system covering trade, investment, supply chains, and energy, with countries where Free Trade Agreement (FTA) conclusion is difficult or strategic cooperation is needed. The strategy is to expand cooperation with emerging countries possessing resources and populations by concluding FTAs with more than 10 new countries this year. Existing FTAs focused on market opening will be transformed into Economic Partnership Agreements (EPA) that include cooperation in new trade areas such as supply chains.

A proactive response system for trade issues with major countries will be established, and cooperation on core minerals and raw material supply chains with resource-rich countries and technologically advanced countries will be strengthened.

First, negotiations will be promoted aiming to achieve results in the Indo-Pacific Economic Framework (IPEF) this year, enabling active participation of Korea in the markets of 13 Indo-Pacific countries. Additionally, conditions for joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will be created, and the utilization of the Regional Comprehensive Economic Partnership (RCEP) will be enhanced through the establishment of an implementation system and secretariat.

Efforts will also be made to secure leadership in new trade issues. Negotiations to join the Digital Economy Partnership Agreement (DEPA) will be completed in the first quarter of this year, and during IPEF digital negotiations, elements beneficial to Korean companies, such as facilitating the entry of small and medium-sized enterprises and startups, will be actively reflected to expand the digital trade network.

Andeokgeun, Director-General of Trade Negotiations, said, "Due to the global spread of protectionism and nationalism, the trade environment, which has aimed for an export-oriented open economy, will continue to be challenging for Korea." He added, "Even in a difficult trade environment, it is necessary to pursue trade policies that pioneer new export markets for companies and proactively create a trade environment favorable to our industries."

Anduk Geun, Head of the Trade Negotiations Division at the Ministry of Trade, Industry and Energy, held the "2nd Pan-Government Export Support Council" on the 11th at the main conference room of the Government Seoul Office Building. Photo by Ministry of Trade, Industry and Energy