Economic Groups: "RCEP Promotes Free Trade, Supports Overcoming the COVID Economic Crisis" (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyewon] Economic organizations including the Korea Chamber of Commerce and Industry (KCCI), Korea Employers Federation (KEF), Korea International Trade Association (KITA), and Federation of Korean Industries (FKI) collectively welcomed South Korea's final signing of the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement (FTA), on the 15th.

In a statement, KCCI said, "RCEP is expected to be an expansion of a new free trade bloc and a foundation for revitalizing the Asia-Pacific regional economic market," adding, "In a situation where the World Trade Organization (WTO) multilateral trading system is not functioning properly, RCEP, the world's largest mega FTA led by ASEAN, is expected to contribute to the promotion of free trade."

KCCI also noted, "Although India did not participate this time, RCEP will upgrade existing FTAs with major countries such as ASEAN, expand market openness, and enhance the convenience of utilizing FTAs."

They further stated, "In particular, by introducing a single origin rule among the 15 member countries and adding an e-commerce chapter that was not included in the Korea-ASEAN FTA, it is expected to create a stable trading environment and promote the advancement of international norms."

The trade industry expressed their welcome, saying, "As the first mega FTA concluded by South Korea, it is highly significant and will bring positive effects to our economy in various aspects," urging the government and the National Assembly to expedite the ratification process.

KITA emphasized, "This agreement will upgrade trade conditions with existing FTA partner countries such as ASEAN and China," adding, "It is meaningful as the first FTA concluded with Japan, the only RCEP member country that had not signed an FTA with Korea, and we hope this agreement will serve as a new opportunity to restore the rigid Korea-Japan relationship."

KITA also analyzed, "Since RCEP member countries are organically connected in supply chains of raw materials, intermediate goods, and consumer goods, forming a mutually complementary trade structure, this agreement is expected to expand trade and investment."

South Korea's trade share with RCEP member countries has steadily increased over the past decade, reaching 49.2% as of the first to third quarters of this year. Additionally, among RCEP member countries, South Korea ranks third in both gross domestic product (GDP) and trade volume after China and Japan, indicating the need for a proactive approach to actively utilize this agreement, according to KITA's assessment.

KITA added, "We hope the government and the National Assembly will work to ensure the swift ratification of RCEP," and "Our association will also take the lead in creating jobs and revitalizing the economy through increased exports."

KEF also welcomed the final signing of RCEP, stating, "In the midst of intensified protectionism worldwide due to the COVID-19 pandemic, this will play an important role in minimizing the economic impact on our country, which is highly dependent on foreign trade, and in boosting economic vitality."

They continued, "Since the agreement involves 15 participating countries in the Asia-Pacific region accounting for 30% of the world's GDP, it will significantly reduce trade barriers and greatly strengthen the global competitiveness of domestic companies," expressing high expectations. KEF added, "We hope this agreement will serve as an opportunity for countries worldwide to jointly overcome the COVID-19 crisis and expand cooperation not only in the economy but also in social and cultural fields."

FKI also expressed its welcome for the RCEP signing, saying, "Our companies will strive even harder toward the goal of becoming one of the top five export powers, using this agreement as a stepping stone." Referring to the spread of protectionism due to the COVID-19 crisis, they expressed hope that "this signing will lead to the expansion of free trade in the Asia region and greatly aid the economic recovery of member countries."

FKI regretted that India did not participate but evaluated that "the introduction of origin rules and simplified procedures will help resolve difficulties faced by exporting companies." They also noted, "The introduction of trade rules related to intellectual property rights and e-commerce will greatly benefit the economy," and requested the government to "consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the future to expand trade territories, using this signing as an opportunity."

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