Preparations to Be Made This Year
The South Korean government has officially declared that it would join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This year, it will adjust domestic systems related to sanitary measures, fisheries subsidies, digital trade and state-run corporations in accordance with the membership requirements of the CPTPP.
For years until recently, the government considered joining the agreement. During the course, the WTO-led multilateralism weakened and mega-FTAs such as the CPTPP became more important. The government made the decision with the Asia-Pacific economic bloc forecast to be led by the CPTPP. According to experts, tariff concession negotiations with the 11 existing members can be more advantageous for South Korea if it joins the agreement before the United States returns to it.
The level of market opening of the CPTPP is much higher than that of the Regional Comprehensive Economic Partnership (RCEP). Specifically, the goods tariff concession rate is 95 percent to 100 percent and each additional member is supposed to be provided with the highest level of market opening as compared with the 11 members.
When it comes to the RCEP, the South Korean government is planning to complete domestic implementation procedures within this year. The intra-government procedures and ratification by the National Assembly are scheduled to be done in the first half and the second half, respectively.