청 "CPTTP also if needed"... Focusing on 'US-China conflict' distancing amid RCEP agreement

President Moon Jae-in attended the signing ceremony of the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement (FTA), held at the Blue House on the 15th. After signing, he stood with Yoo Myung-hee, the Chief Negotiator for Trade, waving to the participating country leaders. 2020.11.15 [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] On the 15th, the Blue House stated that following the conclusion of the Regional Comprehensive Economic Partnership (RCEP), there is a possibility of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the future, saying, "If we feel it is necessary, we can join, but now is not the time to decide." The CPTPP is a free trade agreement (FTA) that originated from the Trans-Pacific Partnership (TPP) led by the Obama administration in the U.S., from which the Trump administration withdrew. There are expectations that President-elect Joe Biden will seek to rejoin it in the future.

On the same day, a senior Blue House official told reporters, "So far, President-elect Biden has not expressed a position on whether to 'participate or not' in the CPTPP," but added, "The CPTPP and RCEP have a complementary relationship," leaving the possibility open.

The recently concluded RCEP is the world's largest mega FTA, accounting for about 30% of the global gross domestic product (GDP) and population. A total of 15 countries participated, including South Korea, China, Japan, and the 10 member countries of the Association of Southeast Asian Nations (ASEAN). Among them, China, which accounts for half of the GDP, is widely perceived to be effectively leading the RCEP.

U.S. media also defined RCEP as a "China-led trade agreement," paying attention to the impact the RCEP agreement will have on the global trade market in the future. The New York Times (NYT) reported on the day, "The conclusion of RCEP shows that other countries will not wait for the U.S.," and expressed concerns that "as other countries sign new trade agreements, U.S. exporters will gradually lose their footing."

If the U.S. responds to the China-led RCEP by restoring the TPP in the future, South Korea, which has a high export dependency amid U.S.-China trade conflicts, will inevitably face deeper concerns. If the U.S. declares the restoration of the TPP, rejoining the CPTPP, and demands participation from its allies, it will be practically difficult to refuse.

However, the Blue House denied this by stating, "RCEP is not a China-led negotiation." Yet, there were conflicting remarks during the explanation process. On the 11th, Park Bok-young, the Blue House economic advisor, said in a pre-briefing on RCEP, "RCEP is an important negotiation that our government has actively participated in and led." However, Kang Min-seok, the Blue House spokesperson, emphasized in a briefing immediately after the signing ceremony on the 15th, "From the start of negotiations to this conclusion, ASEAN led the negotiations," adding, "Indonesia served as the chair country for eight years, and ASEAN centrality was the principle in all aspects."

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