South Korea's bid to join the trade pact stalled under the Moon administration when the Democratic Party refused to receive a required National Assembly briefing

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol speaks at a meeting of ministers on external economic affairs at Government Complex Seoul in Jongno-gu, Seoul, on Thursday. [Yonhap]
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol speaks at a meeting of ministers on external economic affairs at Government Complex Seoul in Jongno-gu, Seoul, on Thursday. [Yonhap]

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said Thursday that the government would begin formal public consultations on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Speaking at a meeting of ministers on external economic affairs at Government Complex Seoul, Koo said the government would "carefully examine whether joining the CPTPP would provide genuine benefits to the national interest and people's livelihoods before deciding whether to pursue membership," adding that it would "communicate sincerely throughout the process."

The CPTPP is a trade agreement among 12 Pacific Rim economies — including Japan, Australia, Canada and Singapore — aimed at mutual market opening. Discussions began in 2006 and the pact took effect in 2018. Joining requires unanimous consent from existing members.

South Korea completed its internal government procedures for submitting a membership application under the Moon Jae-in administration, but the bid was derailed at the final step — a mandatory briefing to the National Assembly — when the legislature blocked it.

The Democratic Party of Korea at the time refused to receive the government's briefing on the CPTPP application, citing what it said was an insufficient analysis of the pact's sector-by-sector impact under various scenarios.

Farming and fishing industry groups have strongly opposed membership discussions, pointing to the pact's near-total market liberalization — existing members have opened 99.1 percent of their goods markets, with agricultural products averaging 96.1 percent — and the fact that many member countries have well-developed agricultural sectors. Whether to allow imports of seafood from Japan's Fukushima region is also expected to be a major sticking point.

The most direct benefit of joining the CPTPP for South Korea would be improved market access to Mexico and Japan, two members with which it has no existing free trade agreement. South Korea already has trade deals in place with the remaining CPTPP members, giving it substantial market access to those countries.

Koo said there was a need to "strengthen solidarity with like-minded middle powers and review steps to stabilize key supply chains and diversify export markets." He added that the government would "carefully examine whether membership would provide genuine benefits to the national interest and people's livelihoods before deciding whether to pursue it, and communicate sincerely throughout the process."

Should South Korea join, Koo said the government would "objectively and precisely analyze the economic effects and industry-by-industry impact — given the high level of market opening required — and explain the findings to the public." He said the government would "pay close attention to the concerns and impact on the farming and fishing sectors, gather sufficient input from the field, and proactively prepare effective domestic support measures in advance if membership is pursued."


oskymoon@heraldcorp.com