Ministry of Trade, Industry and Energy Prepares to Submit CPTPP Application... Plans to Report to National Assembly Next Week

by Lee Dongwoo

Published 23 Apr.2022 19:22(KST)

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] The government is preparing to report to the National Assembly's standing committee next week in order to submit its application for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

According to the Ministry of Trade, Industry and Energy on the 23rd, the government is coordinating the schedule to report on CPTPP-related matters at the National Assembly's Industry, Trade, and Small and Medium Enterprises Committee meeting to be held on the 25th.

The CPTPP is a coalition launched on December 30, 2018, by the remaining 11 countries including Japan, Australia, and Mexico after the United States withdrew from the Trans-Pacific Partnership (TPP), which was led by the U.S. in 2017. It is a massive economic bloc accounting for about 15% of global trade and 13% of global GDP. It represents about 23% of South Korea's exports, and the member countries basically maintain a principle of tariff-free trade among themselves.

The CPTPP is expected to promote diversification of export markets through enhanced trade liberalization. Key provisions of the agreement include the elimination of tariffs on agricultural, fishery, and industrial products within the region, activation of data transactions, and relaxation of regulations on finance and foreign investment.

In order for the government to join the CPTPP, it must hold public hearings to gather opinions from relevant experts in accordance with the "Act on Procedures for Conclusion and Implementation of Trade Treaties (Trade Procedures Act)." Previously, a public hearing for gathering public opinions was held last month, and on the 15th of this month, the Ministerial Meeting on External Economic Affairs approved the agenda for the CPTPP membership application.

The standing committee meeting on the 25th is intended for the adoption of the hearing report on Lee Chang-yang, the nominee for Minister of Trade, Industry and Energy, and the ministry plans to use this opportunity to report its plan to apply for CPTPP membership. If the report to the National Assembly is completed as planned next week, the government intends to submit the application directly to New Zealand, the depositary country.

New membership in the CPTPP is decided by unanimous consent among member countries. To this end, it is essential to engage in individual consultations with CPTPP member countries in parallel with domestic procedures. Subsequently, consultations regarding South Korea's accession will be conducted among existing member countries. If the report is passed unanimously, South Korea's membership will be confirmed.