Wendy Cutler: "Korea Should Join CPTPP First, Then Wait for US Return"

KCCI and Law Firm Bae, Kim & Lee to Hold 'CPTPP Trade Forum' on 31st
Discussing South Korea's CPTPP Accession Conditions and Response Strategies
Wendy Cutler, Former USTR Deputy Representative, "Time Ripe for South Korea's CPTPP Participation"

[Asia Economy Reporter Hwang Yoon-joo] The Korea Chamber of Commerce and Industry (KCCI) held the '1st Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Trade Forum' jointly with the law firm Bae, Kim & Lee International Trade Research Institute on the 31st.

This forum was organized to convey the impact on the Korean economy and the opinions of companies amid the Korean government's announcement this year that it will actively consider joining the CPTPP.

At the meeting, Woo Tae-hee, Executive Vice Chairman of KCCI, Kim Jeong-hoe, Director-General of the Trade Negotiations Division at the Ministry of Trade, Industry and Energy, Park Tae-ho, Director of the International Trade Research Institute at Bae, Kim & Lee, and representatives from government, academia, industry, and research institutions attended in person, while Wendy Cutler, former Deputy U.S. Trade Representative (USTR), participated via video conference from Washington D.C.

Experts attending the forum expressed expectations that if South Korea pursues CPTPP membership, it will enhance the adaptability of the Korean economic structure to the newly reorganized global trade norms, which will benefit national interests.

Wendy Cutler, former Deputy U.S. Trade Representative (USTR), served as the chief U.S. negotiator during the Korea-U.S. FTA negotiations. Since then, she has played a leading role in trade discussions with Korea and is regarded as a prominent Korea expert.

She said, "Korea was one of the major partners during the TPP negotiations, but delayed expressing interest and missed the timing for joining," adding, "Considering the conclusion of RCEP, the UK's application to join CPTPP, and China's review of CPTPP membership, it is time for Korea to reconsider joining the CPTPP."

She continued, "Currently, the Biden administration is focusing on domestic issues such as overcoming COVID-19 and economic recovery, making the rejoining of CPTPP uncertain," advising, "Regardless of whether the U.S. rejoins, it is desirable for Korea to consider participating in the CPTPP."

Professor An Deok-geun of Seoul National University: "A Time of Growing Demand for Economic Solidarity... CPTPP Participation Will Be an Asset to Enhance Trade Negotiation Power"

Professor An Deok-geun of the Graduate School of International Studies at Seoul National University, the second presenter, said, "Regardless of the U.S.'s rejoining of the CPTPP, reviewing CPTPP membership is very appropriate in terms of preparing for the new trade order and redefining Korea's trade policy direction."

Professor An stated, "With the launch of the Biden administration, demands to strengthen economic solidarity in the international community will increase," and added, "Even considering the possibility of designing new economic cooperation frameworks based on trade agreements such as the USMCA led by the U.S., Korea's process of pursuing CPTPP membership will be an asset to enhance future trade negotiation capabilities."

Attorney Jeong Ki-chang of Bae, Kim & Lee: "With the Launch of the Biden Administration, Pressure on Labor Rights and Environmental Protection Through Trade Agreements Will Increase"

Meanwhile, Jeong Ki-chang, an attorney at Bae, Kim & Lee who presented on the domestic impact of CPTPP labor and environmental standards, said, "Recently, there has been a trend to strengthen labor and environmental provisions in trade agreements such as FTAs," and predicted, "Especially with the launch of the Biden administration, pressure on labor rights and environmental protection will increase further."

Attorney Jeong emphasized, "If Korea joins the CPTPP, domestic companies will be more directly affected by strengthened labor laws and carbon emission rights, so preparation for this is necessary."

Forum participants agreed that actively considering CPTPP membership is desirable from the perspective of pursuing a balanced trade policy for Korea. However, they anticipated that it would be difficult to start CPTPP accession negotiations in the near future.

Participants suggested that in preparation for Korea's CPTPP accession, it is necessary to closely examine domestic acceptance of new or somewhat strengthened obligations compared to the Korea-U.S. FTA in areas such as ▲state-owned enterprises ▲environment (fisheries subsidies) ▲sanitary and phytosanitary measures (SPS) ▲intellectual property rights and other new trade norms.

Woo Tae-hee, Executive Vice Chairman of KCCI who chaired the meeting, said, "Amid the reorganization of the trade order centered on advanced countries such as the U.S. and the EU, the government's policy direction to actively adopt global standards through CPTPP participation is desirable," adding, "However, due to the structural necessity of joining an already effective CPTPP, Korea must bear the burden of asymmetric market opening compared to existing member countries."

He continued, "Nevertheless, now that nine years have passed since the Korea-U.S. FTA came into effect, the process of pursuing CPTPP membership is expected to be an opportunity to upgrade the Korean economic structure to the next level."

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