"IPEF Trade Order, Korea's Leading Role Needed"…Hankyung Business Association Holds Discussion on IPEF Impact

As progress is being made in the negotiations of the Indo-Pacific Economic Framework (IPEF, a comprehensive economic cooperation body involving 14 countries in the Indo-Pacific region), opinions have emerged that South Korea should take a more leading and proactive role in the future IPEF negotiation process.

[Image source=Yonhap News]

The Korea Economic Association held a roundtable discussion on the 7th at the Lotte Hotel in Sogong-dong, inviting trade experts from the United States and South Korea to discuss "The Impact of IPEF Negotiations on the Economy and Business." Wendy Cutler, Vice President of the Asia Society Policy Institute and a panelist, stated, "It is certainly regrettable that the trade sector negotiations were not completed, but IPEF is a broad economic agreement encompassing trade elements, and the relatively swift conclusion of negotiations among member countries in the other three sectors excluding trade is highly significant."

Cutler is a veteran in the trade field who served as the U.S. chief negotiator for the Korea-U.S. FTA in 2006. She particularly emphasized that for South Korea, which suffered greatly from a shortage of urea solution in 2021, the economic security benefits that can be gained through IPEF are substantial.

Professor Lee Jae-min of Seoul National University Law School also advised at the roundtable, "The major issues in the IPEF negotiations will become standards that will greatly influence other trade agreements in the future," adding, "During the period next year when IPEF negotiations may take a breather due to domestic political factors in the U.S., we need to prepare by refining and adjusting South Korea's position."

Professor Heo Yoon of Sogang University Graduate School of International Studies said that the uncertainties surrounding IPEF could instead be an opportunity for South Korea to lead the setting of new norms. He stated, "If the public and private sectors cooperate to proactively propose specific cooperation agendas in areas where South Korea has competitive advantages, such as digital infrastructure and human resource development, the structure of IPEF negotiations can be shifted in a constructive direction, linking to new business opportunities for our companies."

Lee Hye-min, a visiting professor at Hankuk University of Foreign Studies who moderated the discussion, also evaluated IPEF as meaningful for South Korea in terms of establishing a stable regional supply chain. He said, "Since South Korea has already secured market access through the FTA with the U.S., it should actively work with the U.S. to conclude trade sector negotiations and contribute to strengthening the rules-based international trade order."

However, the participants pointed out concerns that as the U.S. enters the presidential election season next year, uncertainties surrounding IPEF negotiations may increase, negatively affecting the progress of the talks.

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