SEOUL, Jan 11 (Yonhap) – South Korea announced on Monday that it was “actively” considering joining an Asia-Pacific mega-free trade agreement (FTA) initiated again by the United States with the aim of diversify the country’s export portfolio in a context of growing trade protectionism around the world.
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Seoul will also choose strategically important countries for economic cooperation and develop tailored measures to support local businesses abroad, the finance ministry said in a joint government statement on foreign economic policies for this year.
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“To support a rapid economic recovery and the entry of local companies into foreign markets, it is necessary to support the willingness of Korean companies to open sales channels and prepare for new business environments,” said before the ministry.
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The country plans to “actively” consider joining the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP) as part of its efforts to expand mega-FTAs in the Asia-Pacific region.
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The CPTPP is the renegotiated version of the Trans-Pacific Partnership (TPP) led by the administration of former US President Barack Obama but abandoned by current US President Donald Trump.
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Biden’s incoming administration could join the CPTPP, which currently involves 11 nations, and Washington could also ask Seoul to become a member of the trade deal with the aim of creating its own trade and supply chain network.
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The deal appears important because it will support South Korea’s efforts to lower trade barriers amid emerging protectionism sparked by the US-China trade dispute, coupled with Seoul-Tokyo trade frictions.
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The country will also seek to complete this year the national procedure for the implementation of another mega-FTA, called the Comprehensive Regional Economic Partnership (RCEP), the ministry said.
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In November 2020, Seoul signed the RCEP initiated by China, which could create an economic bloc representing a third of the world’s gross domestic product. The pact requires parliamentary ratification for its implementation.
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In an effort to expand its trading partners, the country will also seek to expand free trade agreements with emerging countries, focusing on Southeast Asian countries, Russia, Central Asian countries and the countries of Central and South America.
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South Korea, whose exports depend 40% on the United States and China, has already made efforts to diversify its trade portfolio and penetrate deeper into the countries of Southeast Asia.
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Seoul will also select strategically important nations in pursuing economic cooperation in four key areas of infrastructure, urban development, environmentally friendly energy and healthcare.
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This initiative aims to support the breakthrough of local firms in foreign markets. Details will be released in the first half of the year, the ministry said.
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The government will also seek strategic cooperation with the new US administration in five areas: climate change, responses to Covid-19, digital and green New Deal initiatives, cutting-edge technologies and multilateralism.
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It also plans to strengthen communication on major bilateral trade issues, such as countervailing duties and digital tax.
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