CPTPP Membership Announcement Delayed Again... "Application to Be Submitted Before January Next Year"

Delay of the Ministerial Meeting on Foreign Economic Relations…No Change in the Accession Policy
Pursuing Accession Ahead of China
Strong Opposition from the Agriculture, Livestock, and Fisheries Industry & Japan’s Demand for Additional Fisheries Development
Coordination Difficulties Expected Among Ministries

[Asia Economy Reporters Kwon Haeyoung, Joo Sangdon, Moon Chaeseok] South Korea is expected to submit its application for accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by no later than January next year. Although the government has postponed the ministerial meeting on foreign economic relations, which will decide on CPTPP accession, its stance on joining remains unchanged. It is reported that related ministries are in the final stages of coordinating differing opinions regarding support measures for industries such as agriculture, livestock, and fisheries, which are concerned about potential damages.

A senior government official said on the 1st, "The government’s policy to join the CPTPP has not changed," adding, "It was recently discussed at the Economic Relations Ministerial Meeting that the application will be submitted by January next year." Since CPTPP member countries plan to review China’s accession application in January next year, South Korea intends to submit its application by then to be included in the joint review.

Another senior government official explained, "If we join the CPTPP later than China, the accession conditions will become more stringent," emphasizing, "The government’s basic policy is to join before China, and there is no change in this stance."

Previously, Deputy Prime Minister and Minister of Economy and Finance Hong Namki announced on the 25th of last month that the ministerial meeting on foreign economic relations would be held to decide on CPTPP accession. Currently, Minister Hong is abroad accompanying the G20 summit. A government official explained, "Since key ministers including Minister Hong are attending the G20 summit, it is not possible to hold the ministerial meeting or publicly announce a message at this time," adding, "There are still practical matters to be reviewed among ministries."

Strong opposition from the agriculture, livestock, and fisheries industries makes coordination among ministries difficult. Many CPTPP member countries are agricultural nations in the Asia-Pacific region, which is expected to impact the domestic agricultural sector. Additionally, Japan, an existing member, is likely to demand further opening of fisheries products imports, which have been suspended since the Fukushima nuclear accident. The Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries are reportedly conveying these concerns. A Ministry of Agriculture official said regarding the scheduling of the ministerial meeting on foreign economic relations, "It is still undecided."

However, the government’s determination regarding the necessity of CPTPP accession remains firm. Previously, the Ministry of Economy and Finance and the Ministry of Foreign Affairs have publicly stated the need to join the CPTPP. Especially as the global trade order shifts towards supply chain security and regionalization, there is a growing voice that South Korea must proactively participate in establishing a new trade order through CPTPP accession. Amid the US-China trade conflict and the shift of the global trade order’s focus from free trade to supply chain security and from multilateralism to regionalism following the COVID-19 pandemic, it is pointed out that South Korea should reduce its excessive dependence on China and become a member of the increasingly important Asia-Pacific supply chain cooperation system.

The US-China conflict and the post-COVID-19 shift of global manufacturing bases from China to Asia, known as the ‘ASEAN Shift,’ are becoming prominent trends. According to the Federation of Korean Industries, direct investment from the world to ASEAN was $731 billion from 2016 to 2020, a 30.4% increase compared to $560.4 billion from 2011 to 2015. During the same period, direct investment to China increased by only 10.4%, from $633 billion to $698.9 billion. This is analyzed to be influenced by US export restrictions on China and the closure of Chinese production bases due to COVID-19.

As the global supply chain’s ‘de-China’ phenomenon intensifies, South Korea also needs to reduce its high trade dependence on China and strengthen cooperation with the Asia-Pacific region from the perspective of supply chain security.

Kang Moonseong, President of the International Trade Association and Professor at Korea University’s School of International Studies, stated, "After the Fourth Industrial Revolution, the US-China trade dispute, and the COVID-19 pandemic, trade patterns are shifting from a global to a regional focus," adding, "Economic cooperation frameworks between specific regions like the CPTPP and mega free trade agreements (FTAs) based on specific regions are becoming increasingly important."

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