Korea weighs pros and cons of TPP membership

환태평양경제동반자협정 가입 여부, 앞으로 2년 동안 고려할 과제 As transnational trade becomes a norm in the global arena... much efforts have been made to tear down trade barriers. In the headlines in recent weeks and months have been debates across member countries of the Trans-Pacific Partnership... rightfully so... as it is the largest trade deal in history. While member countries seek to gain domestic approval to enact the deal, non-member countries like Korea are weighing IN and OUT the possible impacts of the deal... and whether it's worth joining. Oh Soo-young tells us more in our News Features tonight. 12 countries across the Pacific signed the U.S.-led Trans-Pacific Partnership in February, sealing the largest ever trade pact in history. Each member is now in the process of ratifying the agreement,... some taking longer than others as domestic approval differs from country to country. As for Korea, which isn't part of the trade deal,... this is a time to measure up the pact's impact on the local market,... and whether to pursue a belated membership. According to a report by the World Bank, while most non-member countries won't be greatly affected from the deal, Korea stands to lose out significantly,... as its major trading partners make up 10 of the 12 TPP member countries which will cut down various tariff and non-tariff barriers as well as cooperate on intellectual property rights, SME-related issues and rules of origin. This could undermine Korea's exclusive deals with those countries,... and knock off its competitive edge in their markets. "Korea currently has bilateral FTAs with some of the world's biggest economies and consumer markets such as the U.S. and the EU. Korea competes with Japan across many markets, especially in the automobile sector in North America. Until now, we've reaped great advantages from the Korea-U.S. FTA. But we may see a gradual loss of such benefits. With Japan taking part in the TPP, it will be on par with Korea." Also, being an export dependent country, with a large output of intermediary parts,... there are concerns Korea may be excluded from what experts predict will be a new global value chain. "Developing high value-added intermediary parts and materials is a core mission for our industry,... So during this structural shift, exclusion from the internal supply chain of TPP countries, may cause our exports to suffer. That's the greatest concern." Over 13 billion U.S. dollars may go down the drain for Korea's parts and materials sector,... in the ten years after the deal takes effect. Considering potential losses, the Korean government expressed interest in joining the regional partnership since last year,... but there are various possible points of contention. "Korea will have to consider how much it should pay in membership fee,... and how it will cooperate with Japan and Mexico, the two countries Korea doesn't have an FTA with within the group. Also, the U.S. will most likely request that Korea amends certain regulations and further liberalizes its markets for agriculture,... beef, automobiles and pharmaceuticals." Taking on further concessions raises concerns for various sectors, especially agriculture, a traditionally sensitive market. Japan, with a similarly protected market environment, is currently facing backlash from various interest groups,... after it agreed to remove 81 percent of its tariffs on more than 23-hundred agricultural imports. Korea may be cornered into making similar agreements without much room for negotiation. "As Korea's membership comes belatedly, it would be in a position where it will have to accept already established terms... So its bargaining power would be relatively weaker." Should the country decide to join,... experts say it's a question of when and how we do it. "The TPP needs to expand its membership to reap the full economic benefits that were initially envisioned. But the negotiations won't be favorable for Korea if it stands alone. It can form a bargaining group with other Asian countries." Experts predict the deal to go into effect in 2018. This leaves time for Korea to weigh the pros and cons of joining the bloc,... and analyze various ways to reduce the costs of a belated admission. Oh Soo-young, Arirang News." Visit ‘Arirang News’ Official Pages Facebook(NEWS): http://www.facebook.com/newsarirang Homepage: http://www.arirang.com Facebook: http://www.facebook.com/arirangtv Twitter: http://twitter.com/arirangworld Instagram: http://instagram.com/arirangworld