'Expanding' CPTPP Accession at Risk Again... Government Also Excluded from National Assembly Trade Briefing

Plans to Apply for Membership from China, Taiwan, and Thailand
Ruling Party Fails to Schedule Even a Public Hearing Amid Calls for Slowing Down Ahead of Presidential Election... Concerns Over Repeating the 8-Year-Old TPP Membership Delay

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government's move to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which it had declared was imminent, has stalled ahead of the presidential election in March next year. Although the CPTPP landscape is expanding with Thailand expressing its intention to join following China and Taiwan, concerns are rising that the Korean government's attempt to re-pursue CPTPP membership?eight years after starting to review it in 2013?is once again at risk of failure due to political considerations at the end of the administration.

According to the National Assembly and government on the 23rd, the Ministry of Trade, Industry and Energy (MOTIE) will not include the key issue of CPTPP in the major trade agenda to be reported at the full meeting of the National Assembly's Industry, Trade, Small and Medium Venture Business Committee held that day.

The trade agenda to be reported by MOTIE includes ▲ signing and future plans of the Korea-Cambodia Free Trade Agreement (FTA) ▲ conclusion and future plans of the Korea-Philippines FTA ▲ plans to promote the Korea-Gulf Cooperation Council (GCC) FTA ▲ plans to promote the Korea-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) ▲ status and future plans for ratification of the Regional Comprehensive Economic Partnership (RCEP).

A National Assembly official said, "The ruling party previously conveyed to the government through party-government consultations that comprehensive consideration is needed for sectors such as agriculture and fisheries that may be adversely affected," adding, "Since the government’s policy on CPTPP membership has not yet been decided, it was excluded from the agenda for this report."

An official from MOTIE explained, "Regarding CPTPP membership, after holding a public hearing, the process of reporting to the National Assembly will follow, but since the opinion-gathering procedure has not yet been completed, it was not included in the agenda for this report."

Previously, the government internally had assumed CPTPP membership as a foregone conclusion and planned to submit the application in January next year when the chairmanship changes from Japan to Singapore. Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki also expressed his intention to decide on CPTPP membership around October 25. However, the government's decision to join has been repeatedly delayed, and with just over a month left this year, even the schedule for a public hearing has not been set.

Inside and outside the government, there is a growing sentiment that CPTPP membership is unlikely ahead of the March presidential election next year. Many CPTPP member countries are agricultural powerhouses, so damage to agricultural and fishery products is expected, and Japan, an existing member, is highly likely to demand the lifting of import restrictions on Fukushima seafood as a precondition for our membership. For these reasons, the ruling party, concerned about losing the votes of farmers and fishermen, has called for a slowdown, and the government also finds it difficult to push for CPTPP membership against opposition sentiment at the end of the administration.

Experts are voicing that the government must make a decisive move to join CPTPP now, as the importance of economic cooperation in the Asia-Pacific region is increasing due to the restructuring of global supply chains. There are considerable concerns that Taiwan’s CPTPP membership application in September could negatively impact our industries.

Kang Moon-sung, President of the Korean International Trade Association, said, "If Taiwan, which competes with us in key industries such as semiconductors, joins CPTPP and strengthens cooperation with Japan, the damage to our industries could be unexpectedly large," emphasizing, "When considering CPTPP membership, we must weigh not only the losses in agriculture and fisheries but also the industrial losses if we do not join."

Meanwhile, another government official said, "Discussions for CPTPP membership are ongoing," adding, "The flame has not completely gone out yet."

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