A Remark on the signing of the Regional Comprehensive
Economic Partnership Agreement (RCEP)
The Korea International Trade Association (Chairman:
Kim Young-ju) welcomes the signing of the Regional Comprehensive Economic
Partnership Agreement (RCEP) and looks forward to expanding East Asian economic
cooperation and securing a stable foundation for trade investment through RCEP.
RCEP is the world's largest free trade agreement (FTA)
signed by 15 major countries in the Asia-Pacific region, which account for 30
percent of the world's population and 30 percent of the world's gross domestic
product (GDP). In addition, it is meaningful as the first mega FTA concluded by
Korea and it will bring positive effects to the Korean economy in many ways.
First, it is expected that this agreement will upgrade
the terms of trade of the existing free trade agreements with the countries
such as ASEAN and China.
Second, it is meaningful as it is the first FTA with
Japan, which was the only RCEP member country that did not signed a FTA with
Korea. We hope that the conclusion of this agreement will serve as a new
opportunity to restore strained Korea-Japan relations.
Third, as RCEP member countries are organically
connected in the supply chain of raw materials, intermediate goods, and
consumer goods to form a complementary trade structure, it is expected that
this agreement will increase trade investment.
Korea's share of trade with RCEP member countries has
steadily increased over the past 10 years, reaching 49.2 percent in the first
to third quarters of this year. In addition, the Korean economy needs to
actively utilize this agreement with a forward-looking attitude as the third
largest RCEP member country following China and Japan in both GDP and trade.
Now, we hope that the government and the National
Assembly will work hard to bring the RCEP into effect in the near future. The
Korea International Trade Association will also take the lead in creating jobs
and revitalizing the economy by increasing exports.