(EDITORIAL from Korea Times on March 20)

Multilateral trade pact
Korea needs to join revamped 11-member TPP

What should South Korea do to avoid the raging wave of trade protectionism in the United States? This question is hard to answer because the Asian economy has yet to find effective measures against U.S. President Donald Trump's protectionist moves.

But it does not necessarily mean that Korea has no other option but to succumb to protectionism. The country can join other countries in fighting against Trump's imposition of tariffs on steel and aluminum imports. It can also bring the issue to the World Trade Organization to stand up to the unilateral U.S. measure.

Looking at the issue more broadly, Korea needs to consider joining multilateral trade pacts not only to promote free trade, but also to protect its own economic interests. One such pact is the fledgling Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The pact represents a market of 500 million people and 13.5 percent of the global economy.

The agreement is a revamped version of the proposed Trans-Pacific Partnership (TPP) trade deal which was pushed for by the U.S. and other Pacific-rim countries. But President Trump withdrew from the deal right after his inauguration in an attempt to protect American jobs.

On March 8, 11 countries led by Japan and Canada signed the CPTPP deal to cut tariffs on goods to stimulate trade in the Asia-Pacific region. This multilateral pact will come into force after it is ratified by at least six of the 11 members, which include Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Korea had tried to participate in the negotiations for the TPP, which was initiated by the Barack Obama administration in an apparent bid to check China's rise. However, it put on hold its plan to join the pact after Trump pulled out of the deal.

Now there is no reason for Korea to stay away from the CPTPP because the Trump administration is threatening to take more measures to restrict trade with other countries. The trade pact can provide the country a new opportunity to ride out the wave of U.S. protectionism and boost its exports.

In this regard, we welcome Strategy and Finance Minister Kim Dong-yeon's remarks that the government will decide on whether to join the CPTPP within the first half of the year. Kim should speed up the process of having discussions among government agencies and consulting with member states over how to join the pact.

Korea's possible membership of the pact will certainly give the country more maneuvering room to negotiate the revision of its bilateral trade deal with the U.S. It will also enable Seoul to better cope with potential economic retaliation by China which is taking the lead in the Regional Comprehensive Economic Partnership.

In addition, Korea is likely to take advantage of the CPTPP to strike a bilateral free trade deal with Japan. The pact could also help Korea boost its trade with the Association of Southeast Asian Nations as four of its members have joined the deal.
(END)