South Korea's trade minister hinted at Seoul's imminent participation in a U.S.-led regional free trade agreement Wednesday, saying the country cannot afford to be left out of what would be a great global value chain.
While meeting with reporters, Yoon Sang-jick, the minister of trade, industry and energy, said the government has not yet made a final decision on joining the Trans-Pacific Partnership (TPP).
"We are closely monitoring the progress in TPP negotiations," Yoon said. "However, we must carefully consider the kind of situation the country will face should South Korea be left out of the great global value chain.
"In that sense, I believe we must actively consider our participation in the TPP," he added.
The Korea International Trade Association has predicted that Washington will try to conclude TPP negotiations in the near future before it heads into an election year in 2016.
Once signed, the TPP is expected to create one of the world's largest economic blocs as the negotiations currently involve 11 other countries: Australia, Canada, Japan, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
South Korea and Taiwan both expressed their interests in joining the multilateral agreement in late 2013.
Many contentious issues, such as agriculture and intellectual property, have prevented the conclusion of TPP negotiations that began in 2005.
However, a ministry official earlier said the participating countries, especially the United States and Japan, may have recently narrowed their differences.
The official, while speaking on condition of anonymity, also said South Korea has already lost its chance to take part in the negotiations for the TPP. Seoul can only accept the outcome of the ongoing negotiations should it decide to join the regional trade deal.
Many argue that this will not be overly disadvantageous to South Korea since it has already implemented a bilateral FTA with the United States, commonly known as the KORUS FTA.
"TPP, in many respects, is KORUS plus agreement ... Korea's commitment to a high standard for agreements in the KORUS makes it a natural candidate for negotiations for the TPP," Wendy Cutler, acting deputy of the U.S. Trade Representative, said Monday while speaking at a Seoul meeting with the American Chamber of Commerce in Korea.
"From the U.S. perspective, Korea's membership meaningfully contributes to the value of the TPP and increases its benefits for other parties," she said.
The Korea-U.S. FTA, enacted three years ago, eliminates import tariffs on nearly all products traded between the two countries within 10 years of implementation, making it one of the highest-level trade pacts for both parties. (Yonhap)
