"It is rather strange that a trading nation like South Korea does not join the CPTPP." Kim Jeong-gwan, Minister of Trade, Industry and Energy, asserted this regarding the promotion of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) at the Kwanhun Club debate last August. However, Minister Kim added a caveat: "Since there are difficulties concerning our agricultural and fishery products, sufficient discussion and candid collection of opinions are necessary." Minister Kim's remarks encapsulate the government's expectations and concerns surrounding CPTPP accession.

President Lee Jae-myung directed the postponement of the CPTPP application for membership within the year last week. This is interpreted as a decision reflecting farmers' fierce opposition to the opening of the agricultural market. This is not the first time South Korea's push to join the CPTPP has stalled.

The Park Geun-hye administration expressed interest in participating in the Trans-Pacific Partnership (TPP), the predecessor of the CPTPP, in 2013, but prioritized other trade negotiations such as the South Korea-China Free Trade Agreement (FTA). The Moon Jae-in administration also formalized its push for membership in 2021, but failed to submit a formal application due to strained South Korea-Japan relations and the issue of importing seafood from Fukushima. While the government hesitated, the CPTPP has established itself as a new global trade norm beyond the Asia-Pacific. 

The roots of the CPTPP lie in the so-called 'P4' signed in June 2005 by four countries: New Zealand, Singapore, Chile, and Brunei. At the time, the goal was for a small number of countries to create a high-quality trade agreement. Later, in 2008, the U.S. announced its participation, and the Barack Obama administration spearheaded negotiations as part of its Asia-centric policy, expanding and developing it into the TPP. 

At the time, the TPP drew attention as the world's largest economic alliance, with 12 countries participating in negotiations led by the U.S. and Japan. However, immediately after the inauguration of the Donald Trump administration in January 2017, it faced a crisis of disintegration as it officially announced its withdrawal from the TPP in accordance with its protectionist stance. In response, under Japan's leadership, 11 countries excluding the U.S. reorganized the agreement and formally signed it in March 2018, changing the name to the current CPTPP and officially taking effect in December of the same year.

It is reported that the issue of South Korea's accession to the CPTPP was also discussed during the summit between President Lee Jae-myung and Japanese Prime Minister Sanae Takaichi. The CPTPP is a multilateral free trade agreement (FTA) formed by Asia-Pacific countries and launched in 2018. Including the UK, which joined last December, the current members total 12 countries, including Japan, Canada, Australia, New Zealand, Mexico, Chile, Malaysia, Vietnam, and Singapore.

The founding member countries were 11 countries: Japan, Canada, Australia, Mexico, Singapore, Vietnam, New Zealand, Chile, Peru, Malaysia, and Brunei. Later, the UK became the first non-Asia-Pacific country to pursue membership, joining as the 12th regular member in 2024. Currently, the 12 member countries account for about 14% of global gross domestic product (GDP). The total trade volume also exceeds the single economic size of the U.S. or China, and its economic significance is large enough to account for about 25% of total merchandise trade in trade volume with South Korea.

The expansion of the CPTPP continues today. Costa Rica announced the substantial conclusion of accession negotiations in May of this year. Uruguay is also conducting accession negotiations, while Indonesia, the Philippines, and the United Arab Emirates (UAE) are also pursuing membership. The CPTPP is a comprehensive agreement aimed at standardizing trade orders overall, going beyond mere tariff reductions on goods. In terms of the level of market opening, it is characterized by requiring the elimination of tariffs approaching 95 to 100% on a product basis, including manufactured goods as well as sensitive items such as agricultural, livestock, and marine products.

Institutionally, it has a common cumulation of origin system that binds all member states into a single economic zone as its core axis. Even intermediate or raw materials procured from any country within the region can be recognized as regional products if they go through processing procedures in the final producing country, greatly expanding the scope of utilizing multilateral supply chains.

Regarding the government's decision to postpone CPTPP accession due to concerns over damage to agriculture, forestry, and fisheries, the export industry understands the background but cannot hide its regret as the uncertainty of the external trade environment is greater than ever.

This is because surging protectionist waves such as U.S. tariffs due to the Trump administration's second term and supply chain risks such as the Middle East war have made joining the multilateral trade bloc a national imperative.

In addition, the Mexican government's decision to raise tariffs by up to 50% on 1,463 items, including auto parts, for countries without an FTA starting in January of this year is cited as another reason why South Korea should hurry to join the CPTPP. However, looking at the agricultural sectors where direct hits are feared, the situation is not easy. The CPTPP has a much higher tariff elimination rate than existing FTAs, raising the possibility of full opening even for sensitive items densely populated by small-scale farmers, such as chili peppers, garlic, and onions. This could lead to a rapid narrowing of the standing of domestic agricultural products in large supermarkets and food ingredient markets. The food security crisis is also a problem. If the national food self-sufficiency rate drops in the long run, a problem arises where it becomes vulnerable to external shocks in the event of a future global food crisis.

[ⓒ Global Economic Times. 무단전재-재배포 금지]