APD | South Korea to benefit from freshly concluded RCEP

By APD writer Alice

The freshly concluded Regional Comprehensive Economic Partnership (RCEP) is expected to help South Korea boost trade with emerging countries and other major economies under the trade deal as the country is making efforts to expand its trade network around the globe.

Negotiations for the RCEP were officially concluded by ten ASEAN member states, South Korea and four other countries namely China, Japan, Australia and New Zealand at a summit held in Bangkok, capital of Thailand, earlier this week.

The RCEP came amid growing protectionism around the globe which forced South Korea to diversify its trade portfolio.

It is the biggest trade deal ever clinched by South Korea as it accounts for a third of the world's gross domestic product.

The South Korean Ministry of Trade, Industry, and Energy said the RCEP will help the country further utilize existing FTAs.

The deal will open up opportunities for Korean exporters to integrate deeper into emerging economies, with shipments of electronic goods and autos expected to increase.

It reflects the latest changes in such industries as e-commerce and intellectual rights, which will lend hands to South Korean entertainment firms to enter deeper into the Southeast Asian market.

However, the ministry noted the country may suffer damage from the agreement since New Zealand, China and other countries have advantages in the agriculture and fishery sectors.

In addition, Asia's fourth largest economy has been facing hurdles in its outbound shipments due to the ongoing trade tensions with Japan, the prolonged trade dispute between Beijing and Washington, along with other global uncertainties.

South Korea's exports fell 14.7 percent in October from a year earlier, extending their slump to an 11th consecutive month.

South Korea has already signed free trade deals with 13 RCEP countries, except Japan.

The RCEP talks began in 2013, and the participating nations held 28 official negotiations.The countries reached common ground on 20 chapters of the deal, and they vowed to finalize the deal within 2020.

(ASIA PACIFIC DAILY)