"Korea's Trade with CPTPP Members Surpasses China and US... Accession to Ease Supply Chain Risks"

Federation of Korean Industries and Korea Institute for International Economic Policy Discuss "New Trade Order and Korea’s Strategy"

Emphasis on Multi-Country Cooperation Among Like-Minded Nations Amid Weakening Multilateral Trade System

Ryu Jin: "A Predictable Trade Framework Is Essential"

As the multilateral trade system weakens and global supply chains are reorganized, experts have suggested that Korea should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to resolve trade uncertainties.

Jeffrey Schott, senior fellow at the Peterson Institute for International Economics (PIIE), made this recommendation in his keynote speech at the seminar "The Future of the New Trade Order: Opportunities and Challenges for Korea," hosted by the Federation of Korean Industries and the Korea Institute for International Economic Policy at the FKI Tower Conference Center in Yeouido on the 31st. He noted, "Although Korea has separate agreements with 10 out of the 12 CPTPP member countries, the scope of regulations varies significantly, and there are no agreements with Japan and Mexico."

Ryu Jin, Chairman of the Federation of Korean Industries (FKI), along with other guests, are taking a commemorative photo at the international seminar titled "The Future of the New Trade Order: Opportunities and Challenges for Korea," held at the FKI Tower on the 31st. (From the front row, fourth from the left) Ahn Sungbae, Acting Director of the Foreign Economic Policy Office, Park Jungseong, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, Ryu Jin, Chairman of FKI, and Jeong Cheol, Chief Research Officer of FKI and Director of the Korea Economic Research Institute. Federation of Korean Industries (FKI)

According to Schott, as of last year, trade volume between Korea and CPTPP member countries reached approximately $341 billion (about KRW 469 trillion), accounting for 25% of Korea’s total goods trade—far surpassing trade volumes with China (about $273 billion, 20%) and the United States (about $196 billion, 15%). He emphasized that, although Korea has separate agreements with most member countries, the rules are inconsistent and there are no agreements with Japan and Mexico. Therefore, he argued that building a comprehensive institutional framework would help mitigate risks in the critical mineral supply chain and allow Korea to lead the establishment of new trade norms.

The seminar placed particular focus on the importance of open, multi-country cooperation among "like-minded countries" such as those within the CPTPP. Ahn Sungbae, Acting President of the Institute for Foreign Economic Policy, highlighted the need for uncertainty management and early participation in the formation of trade norms, referring to the failure of the World Trade Organization (WTO) Ministerial Conference this past March.

Ryu Jin, Chairman of the Federation of Korean Industries, emphasized, "Businesses urgently need stable markets, reliable supply chains, and a predictable framework of rules," adding that "the business community is paying close attention to new forms of trade cooperation, based on openness and rules, such as the CPTPP." He also noted, "Balanced discussion that considers both opportunities and challenges, along with thorough preparation, is essential."

Park Jeongseong, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy, stated in his congratulatory remarks that diversifying trade networks and utilizing multi-country cooperation are key government strategies. He explained that the government has begun a process of public engagement to widely gather the opinions of stakeholders regarding CPTPP accession. In a subsequent keynote speech, Deborah Elms, Executive Director for Trade Policy at the Hinrich Foundation, described the recent trade environment as fragmented and entering a period of regionalization. She proposed that Korea, as a middle power in trade, should actively leverage "selective partnership" structures such as the CPTPP as a practical alternative.

Jeong Cheol, Chief Research Officer of the Federation of Korean Industries and President of the Korea Economic Research Institute, stated, "Since it will take time for the new trade order to become fully established, our priority should be a careful examination of Korea’s strategic options rather than rushing to a decision." He added, "We will continue to work with domestic and international partners to help create a predictable trade environment that meets the needs of businesses."

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