The "attraction" of the CPTPP Agreement is growing as more economies express their desire to join the Agreement, the most recent being South Korea's decision to join the CPTPP.
Korean Trade Minister Yeo Han-koo.
South Korea decided to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as the country seeks to diversify its export portfolio amid growing economic uncertainty. The plan to join the CPTPP was approved during an inter-ministerial meeting on economic issues.
The Korean government will officially apply for accession after completing domestic procedures, including reporting to the National Assembly.
CPTPP was signed on March 8, 2018 in Santiago, Chile and officially took effect at the end of 2018 with the first group of 6 countries completing the procedure for ratifying the agreement, including Mexico, Japan, Singapore, New Zealand, and Canada. and Australia. CPTPP officially took effect for Vietnam from the beginning of 2019 and now the implementation time of this Agreement for Vietnam has entered the 4th year.
The Agreement includes 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Singapore, New Zealand, Peru and Vietnam.
At the time of signing, the CPTPP was the third largest economic association in the world, after the EU-Japan Free Trade Agreement (JEFTA) and the European Union (EU); has a market scope of more than 502 million people; GDP accounts for about 13.5% of global GDP and about 15% of total world trade; With major markets such as Japan, Canada, and Australia, it promises to open up many opportunities when a new supply chain is formed.
The Korean government said it plans to apply to join the CPTPP before President Moon Jae-in ends his five-year term on May 9. President-elect Yoon Suk-yeol is expected to participate in negotiations on this. The process is expected to take at least a year.
According to the Korea Institute of International Economic Policy, joining the CPTPP could boost both trade and investment for South Korea. GDP is forecasted to increase by 0.33 - 0.35%.
In addition to Korea, a number of countries have been intending to join the CPTPP. Early last year, the UK formally offered to join the CPTPP to open up new avenues for post-Brexit trade. In June 2021, the members of the CPTPP Trade Agreement, including Vietnam, decided to start negotiations on the UK's proposal to join the CPTPP.
In December 2021, a Latin American country, Ecuador, also applied to join the CPTPP. The Ecuadorian leader said he wanted to expand trade with the world's major economies.
Thailand also said it completed the CPTPP Accession Study Report last year. The content of this report points out the advantages and disadvantages of joining the CPTPP for Thailand.
According to trade experts, the attraction of the CPTPP to countries wishing to join recently not only comes from the world's third largest economic union but also from other factors, that includes export benefits; benefits of participating in regional and global supply chains; benefits in terms of institutional reform, employment and income...
In particular, because the CPTPP Agreement includes commitments on environmental protection, the process of opening up, liberalizing trade and attracting investment will be done in a more environmentally friendly way, helping businesses more sustainable economic growth.
