Table: Major Items Expected to Increase Exports and Tariff Reductions When Participating in TF P 11 in Korea
Versus Japan:
Petroleum products
Fresh agricultural products and food
Aquatic products and fishery processed goods
Some fibers, fabrics etc.
Versus Mexico:
Automobiles and parts
Car tire
Some electronic and electric equipment etc.
Ballpoint pen etc.
Versus Vietnam:
Petroleum products
Automobiles and parts
Some electronic and electric equipment etc.
Versus Malaysia
Some plastic products
Steel plate
Steel material structure etc.
(Source) Korea Trade Association
TPP 11: South Korean government’s dilemma – whether to join,
China North Asia Division
01-Jan-2019
Comprehensive and advanced agreement on the Pacific Rim Partnership (CPTPP, so-called TPP 11):
Representation of the attitude of the Korean government regarding subscription has been delayed (see the December 26, 2018 article).
On the other hand, the cautious theory is deeply rooted in the aspect of promotion of affiliation, and the Korean government is falling into a dilemma that can not be easily decided.
Benefits of joining,
(1) Expansion of TPP 11 exports to Japan and Mexico, which have not yet concluded a free trade agreement (FTA)
(2) Upgrading existing FTAs by joining TPP 11.
(3) TPP 11: It is important to build a new rule of the 21st century type
“Union News” (30th December 2018):
“(If Korea does not join) In the future, as discussion of international rules such as digital trade in new fields centering on TPP 11 progresses, Korea is risking being excluded from discussion.”
Meanwhile, cautious theory persists.
(1) Impact on domestic manufacturing industry due to increased imports to Japan,
(2) Impact on domestic agriculture due to additional opening of agricultural products market,
“Korean economic newspaper” (electronic version December 30, 2018):
In Japan, tariffs on a considerable number of industrial products are already free
If join TPP 11, Korea will unilaterally open the market.
In the automobile industry, if we reduce tariffs on finished cars currently 8%
It is reported that domestic market erosion by Japanese cars .
– JETRO
https://www.jetro.go.jp/biznews/2019/01/72bcd39389ac36c8.html
https://www.jetro.go.jp/biznews/2018/12/562a1bc25d658f84.html