"New Era of Trade... 5 Opportunities for Korean Companies" Wendy Cutler, Former USTR Deputy Representative

2024 Global New Trade Forum

Wendy Cutler, Deputy Director of the Asia Society, is delivering the keynote speech at the 2024 Global New Trade Forum held on the 12th. Photo by Hee-jong Kang

Wendy Cutler, Deputy Director of the Asia Society Policy Institute (former Deputy USTR Representative), emphasized that a new trade order is emerging and that Korean companies have five opportunities. Deputy Director Cutler is a figure with a deep understanding of Korea, having previously served as the chief negotiator for the Korea-US Free Trade Agreement (FTA).

At the '2024 Global New Trade Forum' held on the 12th at the Lotte Hotel in Seoul, hosted by the Ministry of Trade, Industry and Energy and KOTRA, Deputy Director Cutler stated in her keynote speech, "We are entering a new era of trade," adding, "While we cannot leave the World Trade Organization (WTO), we must seek new alternatives."

In this regard, Cutler explained that China's accession to the WTO has not been successful. The United States supported China's WTO membership with the expectation that China would accelerate opening and reform through economic development and that global trade barriers would be lowered, but none of these expectations were fulfilled. China's WTO accession brought about three problems for the U.S.: job losses, unfair trade, and low-price competition, and these issues have not been resolved.

Cutler noted, "Recently, the consultation function among WTO member countries has been paralyzed," adding that countries are exploring various alternatives such as mini-FTAs, bilateral and multilateral agreements. The recent increase in tariff barriers or emphasis on industrial policies by countries to protect their domestic markets is also in this context.

Despite these circumstances, Cutler emphasized five opportunities: ▲the continuous growth of global trade volume ▲the expansion of the middle class leading to an increase in new customer bases ▲the shift in supply chains with investments expanding to regions outside China ▲market diversification ▲and the expansion of investment incentives for companies according to industrial policies. She cited the U.S. Inflation Reduction Act (IRA) as a representative example of Korean companies receiving investment incentives.

Cutler added, "In the new era of trade, focus should be placed on inclusiveness, resilience, sustainability, and security," and "Cooperation between governments and private companies will become even more important."

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