"South Korean Export Industry Must Leverage Post-COVID-19 Trade Order Reshaped by Digital and Environmental Factors"

Experts are seated on the podium at the '2021 Global New Trade Forum' hosted by KOTRA on the 25th. (Photo by KOTRA)

[Asia Economy Reporter Jeong Hyunjin] KOTRA emphasized that the global trade order is being reorganized around new trade issues such as environment and digital sectors after COVID-19, stating that "the domestic export industry must utilize the new trade order to upgrade itself."

KOTRA announced this on the 25th at the '2021 Global New Trade Forum' held online. This forum was organized to examine the global trade environment amid intensifying US-China hegemonic competition, including major countries' carbon neutrality declarations and discussions on the introduction of digital taxes, and to discuss response strategies for domestic companies.

Regarding the US-China trade dispute, Professor Ahn Deok-geun of Seoul National University said, "The trade policy of the Joe Biden administration, which began with the semiconductor supply chain restructuring, poses significant challenges to our industrial sector. Trade policies led by labor will be materialized as measures encompassing the establishment of a digital trade order and environmental issues," adding, "At this point where US-China trade conflicts are escalating, more flexible responses from our industry and strengthening of industry-government cooperation systems are urgently needed."

Park Han-jin, Director of KOTRA Academy, said, "In response to the US's trade pressure on China, China is countering with a 'dual circulation' strategy considering regional value chains and a comprehensive response strategy including domestic industrial innovation," and added, "In China's attempt to overcome geopolitical conflicts through geopolitical connectivity, our strategic value is becoming more important. It is necessary to promptly conclude the follow-up negotiations on the Korea-China Free Trade Agreement (FTA) services and investment and to reinforce regulations related to digital trade."

Regarding environmental issues, Professor Park Ho-jung of Korea University stated, "The European Union (EU)'s 'Carbon Border Adjustment Mechanism' scheduled to be announced next month will take the form of tariffs or consumption taxes or be linked to the emissions trading system," emphasizing, "Along with systematic improvement of domestic systems, policies supporting voluntary greenhouse gas reduction, such as the green premium system encouraging the use of renewable energy, must be backed."

On the establishment of digital trade norms, which began to be actively discussed as digital transformation accelerated after COVID-19, Professor Lee Jae-min of Seoul National University pointed out, "Attempts to address digital trade issues are ongoing in various trade agreements such as the World Trade Organization (WTO) and Free Trade Agreements (FTAs), but the introduction of norms is still distant." He added, "The new norms will contain key content that will determine the direction and fluctuations among countries in the digital era, so efforts must be made to ensure that our interests are reflected in the norm discussion process."

Yoo Jung-yeol, President of KOTRA, said, "New trade issues are closely related to the domestic industrial structure," and added, "We will help our companies strategically prepare for trade issues."

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