President Lee Jae Myung has ordered the government not to apply to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership this year, saying trust with farmers and fishers must come before any push to enter the major regional trade pact.
Senior presidential spokesperson Kang Yu-jung said Thursday that Lee issued the instruction following discussions at Tuesday’s Cabinet meeting over South Korea’s potential CPTPP membership.
But Lee decided against pursuing an application within the year, instead instructing relevant ministries to continue consultations with the agricultural and fisheries sectors without working toward a predetermined deadline.
“The CPTPP is an important option that South Korea, as a global trading nation, needs to carefully consider amid rapidly changing international trade conditions,” Kang said in a statement.
“Trade policy, however, is directly connected to people’s livelihoods. In particular, it must be pursued on the basis of trust and consensus with farmers and fishers who are already facing difficulties.”
The latest instruction goes further than Lee’s directive at Tuesday’s Cabinet meeting, when he told officials not to rush toward a predetermined conclusion and to restart discussions on CPTPP membership “from square one.”
The government will instead focus first on rebuilding trust with the agricultural and fisheries sectors, Kang said.
As part of that effort, the government plans to use state finances to make up about 700 billion won ($522 million) of the 1 trillion won Rural-Urban Cooperation Fund pledged when the Korea-China free trade agreement was ratified by the National Assembly in 2015.
The fund was designed to raise 1 trillion won over 10 years to support rural communities and agricultural and fisheries sectors affected by trade liberalization, but contributions have fallen well short of the target. As of July, accumulated contributions stood at about 325.5 billion won, according to government data cited by a lawmaker.
Kang said the administration would continue reviewing CPTPP membership under the principle that no group, including farmers and fishers, should be left behind.
The decision comes after the Lee administration revived consideration of CPTPP membership earlier this year as part of efforts to diversify export markets amid changes in the global trade environment.
At Tuesday’s Cabinet meeting, Lee acknowledged arguments that CPTPP membership carries strategic value, but also pointed to strong opposition from the agricultural and fisheries sectors, saying any policy decision should be based on trust and consensus with those industries.
South Korea previously moved toward CPTPP membership under the Moon Jae-in administration, beginning domestic procedures in 2021 and formally signaling its intention to seek membership, but it never submitted an application.
The CPTPP currently has 12 members, including Japan, Australia, Canada, Mexico and Vietnam. Admission requires the consent of all existing members.
cheesuk@heraldcorp.com