Industry Minister: "Supplementary Measures for Japan FTA by Industry to Be Prepared in the First Half of Next Year"

Holding of the 31st Domestic Measures Committee for Trade Treaty on the 26th

Sung Yoon-mo, Minister of Trade, Industry and Energy. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] "There are concerns about anxiety over the conclusion of a Free Trade Agreement (FTA) with Japan and the increase in imports of agricultural products within the region. We plan to conduct an industry-specific impact assessment, including agriculture and fisheries, in the first half of next year and prepare necessary supplementary measures."

On the 26th, Sung Yoon-mo, Minister of Trade, Industry and Energy, said this at the '31st Domestic Measures Committee for Trade Treaties.'

This means that since Korea signed the Regional Comprehensive Economic Partnership (RCEP) on the 15th, which effectively results in an FTA with Japan, they intend to create supplementary measures for industries that might suffer losses.

In his opening remarks, Minister Sung emphasized, "Amid uncertain external conditions following the U.S. presidential election, changes in the trade environment such as the reorganization of the Global Value Chain (GVC) and the spread of digital transformation are expected to accelerate further. The government plans to actively respond through openness and cooperation."

He added, "We expect that the RCEP signed on the 15th will greatly help overcome the COVID-19 crisis by revitalizing intra-regional exports, accelerating the New Southern Policy, and promoting trade."

Regarding the FTA with Japan, he said, "We have reflected our position on sensitive items as much as possible. We plan to conduct an industry-specific impact assessment in the first half of next year and prepare supplementary measures based on that."

He also stated, "The government will strengthen solidarity and cooperation with major trading partners and take a leading role in spreading 'open free trade' in the international community."

At the meeting, the government announced specific policy measures including ▲ institutional improvements to overcome trade crises ▲ strengthening export competitiveness using FTAs. The focus is on enhancing crisis response capabilities of small and medium-sized enterprises and improving the FTA support system to be field-oriented.

First, the 'Trade Adjustment Assistance Program' will include companies and workers affected by trade crises as support targets. The government plans to support management stability and employment maintenance through inter-ministerial cooperation centered on the Domestic Measures Committee for Trade Treaties.

They will promote amendments to the 'Act on Trade Adjustment Assistance in Relation to Free Trade Agreement Conclusion (FTA Adjustment Act)' through inter-ministerial consultations.

By next month, a UK FTA Support Center will be established to prepare for Brexit (the UK's withdrawal from the EU). The role of regional FTA support centers will be strengthened.

The company burden ratio for the core FTA consulting project (OKFTA project) will be lowered from companies with annual sales of 2 billion KRW or less to those with 5 billion KRW or less. A new 1:1 consulting project for micro-enterprises will be introduced.

Jo Seok, co-chairman (private sector) of the Measures Committee, said, "With the signing of RCEP and discussions on FTAs with new countries and economic zones, the role of the Measures Committee in reviewing domestic supplementary measures has become important again."

Chairman Jo added, "The Measures Committee will closely examine the impacts of FTAs to be implemented in the future, prepare necessary countermeasures to minimize domestic industrial impacts, and expand its role as a hub to maximize FTA utilization by export companies."

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