APD | South Korea to expand global FTA network next year

By APD writer Alice

South Korea plans to set up free trade agreements with emerging countries next year in an effort to expand its global FTA network and ease its reliance on the world’s two top economies.

Last month, the country reached a FTA with Indonesia which will enter into force after all procedures are completed, including the ratification of the two countries’ parliaments. Meanwhile, its free trade agreement with Israel is expected to become effective in the first half of next year.

In addition, some FTAs between South Korea and other countries are under negotiation, including those with the Philippines and Malaysia. In November, South Korea and Cambodia agreed to launch a joint feasibility study on their bilateral pact.

South Korea’s FTA expansion is significant as global protectionism, including the trade war between Washington and Beijing, is hurting Asia's No. 4 economy.

The country's exports in November dropped 14.3 percent year on year for a 12th consecutive month. It marked the longest drop since the 19-month consecutive decrease seen from January 2015 to July 2016.

For the whole of 2019, the outbound shipments are projected to fall over 10 percent compared to the previous year.

(ASIA PACIFIC DAILY)