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Korea to reconsider joining CPTPP as U.S. and China tighten trade

Published: 03 Sep. 2025, 19:11

Yeo Han-koo, Korea’s trade minister, left, meets with Douglas Alexander, Britain’s minister of state for trade policy, at the British ambassador’s residence in central Seoul on Sept. 1. [NEWS1]

Korea is reviving consideration of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a free-trade pact it shelved in 2021, as the United States and China tighten protectionist trade measures and pressure builds from business and academic circles to secure new markets.

Finance Minister Koo Yun-cheol announced the plan on Wednesday at an economy and industry ministers’ meeting, where officials also presented follow-up measures to recent U.S. tariff negotiations.

"We will review joining the CPTPP to strengthen economic alliance networks with like-minded countries," the government said in a statement.

The CPTPP is a multilateral FTA that launched in March 2018. Current members include Australia, Brunei, Canada, Chile, Japan, Mexico and Vietnam, with Britain joining in December of last year. The World Bank ranks the CPTPP as the world’s fourth-largest free trade bloc, with a combined GDP equal to about 14 percent of global output.

Korea first raised the idea of membership under former President Moon Jae-in in 2021. Moon called the pact a key pillar of his international economic strategy in a New Year’s address, and then-Finance Minister Hong Nam-ki said that in December, the government would start discussing membership.

Seoul came close to formally applying but retreated due to domestic resistance from farmers and fishers and the absence of National Assembly reporting. The Yoon Suk Yeol administration later signaled interest but made little progress.

Calls to join have grown louder this year as U.S. President Donald Trump’s return to the White House and intensifying U.S.-China trade tensions accelerate protectionism.

During a Cabinet meeting on Tuesday, Trade Minister Yeo Han-koo said Korea must “diversify export markets amid ongoing U.S.-China trade frictions” and “begin a strategic review of joining the CPTPP.”

President Lee Jae Myung also hinted in a recent interview with a Japanese outlet at the need for "a regional economic cooperation framework among Pacific Rim countries, including those in East Asia."

Studies suggest potential gains. The Korea Institute for International Economic Policy estimated last year that CPTPP membership could increase Korea’s GDP by 0.38 percentage points.

Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng, center left, speaks during the closing news conference at the Comprehensive and Progressive Agreement for Trans-Pacific Partnership commission meeting in Vancouver, Canada, on Nov. 28, 2024. [AP/YONHAP]

Since Seoul has not signed FTAs with Japan and Mexico, joining the CPTPP could also expand market access. The European Union has shown interest as well, which analysts say could elevate the pact's global clout if membership proceeds.

The Korea Development Institute urged Korea to pursue membership actively, arguing in a July report that the CPTPP’s high level of openness among its 12 members, excluding the United States and China, could reduce dependency on the two giants and stabilize supply chains.

Officials expect talks to accelerate now that the government has raised the issue again.

“The strategic value of the CPTPP has grown with the Trump administration’s tariff policies,” a Ministry of Trade, Industry and Energy official said. “The situation has changed significantly since 2021, and we will conduct a review based on what best serves the national interest. The government would move step by step, including internal consultations and public engagement.”

But hurdles remain. Membership requires unanimous approval from existing members, with Japan seen as a key gatekeeper.

Domestically, the government must persuade farmers and fishers who fear opening Korea’s sensitive agricultural markets. Japan has also pressed Korea to lift its ban on certain seafood imports, a politically fraught issue expected to test public support.

“The government may have missed the timing, but it is still positive that it is considering joining the CPTPP now,” said Kang Moon-sung, a professor of international studies at Korea University. “Korea has already signed free trade agreements with most CPTPP members, and since it has partially opened its market to Japan through the Regional Comprehensive Economic Partnership, domestic opposition from stakeholders may not be significant.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM WON [[email protected]]