• ‘Multi-lateral’ Trade will Fall and ‘Multi-layered’ Trade will Rise
    2019-11-18 hit 1222

     ‘Multi-lateral’ Trade will Fall and ‘Multi-layered’ Trade will Rise

    - KITA analyzed next year’s trade issues anticipated regional and sectoral agreements will be overlapped -

    It is anticipated that the 'multi-lateral' trade system supported by the World Trade Organization (WTO) will phase out and the 'multi-layered' trade system with regional and sectoral trade agreements will be in full swing.

    The Korea International Trade Association (Chairman: Kim Young-ju) presented this analysis in the report titled ‘Top 7 Trade Issues Selected by KITA’ issued on November 18th. The association selected The Crisis of the WTO, Expansion of the Mega Free Trade Agreements (FTA), FTA between Korea and Emerging Countries, US-China Trade Conflict, Proliferation of Trade Protectionism Measures, Indiscriminate Use of National Security and Brexit as 7 trade issues.


    The report stated, “Since the launch of the WTO, multilateral trading system in which 164 countries follow a unified trade order has continued to be weakened, and analyzed, If the United States refuses to appoint a new member of the WTO's Appeals Body in December, the global trade paradigm will change as the international dispute resolution function will weaken. In addition, the report forecast, The demand for new trade rules will increase as the result of the changes in trade manner with technological development and the growth of emerging and developing countries and it will open a multi-layered trade system where regional trade agreements and sectoral agreements between multiple countries.


    In fact, mega FTAs, which include huge economies such as the United States, China, the European Union (EU) and Japan, have recently been concluded or entered into force. In December last year, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), involving 11 countries, including Japan, came into effect and Regional Comprehensive Economic Partnership (RCEP), including Korea, China and Japan, was concluded in the beginning of this month. 


    Accordingly, the report anticipated, “In the future, apart from efforts to open markets and to establish new trade rules through regional trade agreements the US-China conflict will continue and each country’s trade protection measures will be intensified.” In particular, the report stated, As the multilateral dispute resolution process through the WTO has been weakened, trade remedies are likely to be abused and domestic economic first tendencies based on national security, such as the United States, are likely to continue.


    Je Hyun-jung, a deputy general manager at the Center for Trade Studies and Cooperation of the Korea International Trade Association, said, Korea is heavily dependent on trade and should focus on developing optimal strategies to read and respond to the changes in the global trade paradigm, and stressed, Especially, the Korean government needs to strengthen Korea's trade status by building solidarity with mid-sized nations and leading the establishment of new trade rules and promote high-quality FTAs with key emerging economies.

    KITA to Host 'Prospects and Challenges for 2020 Global Trade Environment’ on 2nd Next Month
    KITA Held ‘Korea-Japan Future Cooperation Partnership Dialogue’
Family Site