"'Economic Nationalism' Era... Korea Leads Middle Power Trade Cooperation"

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"US-China New Cold War: Close Consultations with Governments and Industry to Maximize National Interests"
Extension of Essential Workforce Mobility Agreements with Singapore, Canada, Australia, and New Zealand
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Yoo Myung-hee, Chief Negotiator of the Ministry of Trade, Industry and Energy. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] The government has announced that it anticipates the rise of economic nationalism and will lead middle power trade cooperation. Korea has declared its intention to lead middle power trade and win the competition in the restructuring of the global value chain (GVC). It will promote FTAs with New Southern and New Northern countries and closely consult with the United States, the European Union (EU), and others to expand supply chains focusing on promising sectors such as medical and bio industries and future cars.

The Ministry of Trade, Industry and Energy announced that on the 20th at 4 p.m., it will hold a "Post-COVID New Trade Strategy Industry Meeting" chaired by Yoo Myung-hee, the Chief Negotiator for Trade.

Attendees include Chief Negotiator Yoo, Deputy Minister for Trade Park Ki-young, Director General of Trade Policy Jeong Dae-jin, FTA Policy Officer Noh Geon-gi, New Trade Order Policy Officer Jang Seong-gil, Trade Policy General Manager Choi Jin-hyuk, and other officials from the Ministry, as well as business representatives from Samsung Electronics, Hyundai Motor, LG Display, SK Innovation, POSCO, and related organizations such as the Korea Chamber of Commerce and Industry, Korea International Trade Association, and KOTRA. They will discuss the direction of Korean trade after the COVID-19 pandemic from the perspective of businesses.

In his opening remarks, Chief Negotiator Yoo stated, "COVID-19 will bring various changes not only to the economic and social structures of each country but also to the global trade order."

He predicted that economic nationalism would rise during the economic recovery process after COVID-19. As the multilateral system that led globalization faces a crisis, countries are expected to continue responding in a 'every country for itself' manner.

He anticipated that trade and investment restrictions under the pretext of national security would spread to various fields and emerge as new tools for protecting domestic industries, blurring the boundaries between security and trade.

As the vulnerabilities of GVCs based on globalization become apparent, GVCs are expected to be reorganized to prioritize stability and resilience over efficiency.

He assessed that the digital-based untact economy is rapidly growing, intensifying competition among major countries in fostering the digital economy and establishing related international norms.

Chief Negotiator Yoo stated that Korea will maintain an open economy stance after COVID-19 and establish the global trade order through "middle power cooperation" with countries similar to Korea.

This aligns with one of the eight post-COVID tasks presented by Minister of Trade, Industry and Energy Sung Yun-mo on the 6th, "Exercising global trade leadership," which mentioned building a "production base without shutdowns."

First, Korea will operate bilateral and multilateral networks to restore trade routes and human exchanges. To prepare for the normalization of crises, Korea will lead the establishment of global trade and investment guidelines.

In response to the restructuring of GVC supply chains, Korea will promote customized trade cooperation by key countries and regions. Specifically, it will pursue FTAs with New Southern and New Northern countries to support the diversification of supply chains for Korean companies.

With the United States, the EU, and advanced countries in the Fourth Industrial Revolution technologies, Korea will expand supply chains focusing on promising sectors such as medical and bio industries and future cars, and cooperate to advance industrial structures.

Korea will actively promote bilateral and multilateral digital trade agreements and aim to achieve the first results within the year. It will also simultaneously discover and promote digital cooperation projects by major countries and improve domestic systems.

Regarding the technological competition between the U.S. and China, Chief Negotiator Yoo mentioned that Korea will closely consult not only with the U.S. and Chinese governments but also with industries to seek strategic responses that maximize national interests.

Participants will focus on discussing directions for responding to the post-COVID trade and trade order. Je Hyeon-jeong, Director of the Trade Support Center at the Korea International Trade Association, is expected to suggest in her keynote speech that proactive measures be taken against the possibility of various import restrictions and that discussions on international digital trade norms, such as cross-border data transfers, be expanded.

An official from the Ministry of Trade, Industry and Energy said, "Based on the discussions with trade experts and industries, including this meeting, we plan to concretize the 'Post-COVID New Trade Strategy.'"

This content was produced with the assistance of AI translation services.