Don't sacrifice national interest over CPTPP

President Lee Jae Myung on Tuesday ordered the government to “start discussions again from scratch” on Korea’s possible entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a multilateral free trade pact involving 12 countries including Japan, Britain and Chile.

The instruction came just a week after Lee appeared to treat membership as a foregone conclusion. On Sept. 29, he wrote on X that FTAs were unavoidable for Korea, an open economy dependent on trade, to expand export markets. Acknowledging opposition from farmers, livestock producers, fishermen and foresters who could suffer losses, he assured them that he understood the strategic importance of their industries.

Lee has now stepped back.

Concerns are growing that the government may sacrifice the national interest to appease farmers, a key support base, after a nationwide farmland survey fueled discontent and contributed to falling approval ratings. With Lee applying the brakes, the government’s original plan to submit an application this year will likely be delayed.

China and Taiwan have already applied for membership, raising concerns that Korea could face disadvantages as a late applicant. Once a leader in pursuing FTAs, Korea increasingly risks becoming a laggard.

Businesses are particularly worried that the CPTPP initiative could again collapse, as an earlier push did in 2021.

As Lee himself said, “most people benefit” from such trade agreements. The economic effects of CPTPP membership bear that out. A recent government analysis estimates that joining would generate an average annual production-inducement effect of 6.3 trillion won ($4.5 billion) to 6.7 trillion won in manufacturing and related upstream and downstream industries over 15 years.

Real gross domestic product is projected to be 0.38 percentage points higher 10 years after accession than if Korea stays outside the pact.

The CPTPP has become even more valuable as Korea struggles amid the U.S.-China tariff conflict. Korea’s trade with CPTPP members last year exceeded its trade with either China or the United States.

There are costs. The tariff elimination rate for agricultural products exceeds 90 percent, compared with rates in the 70 percent range under other FTAs. Agricultural production is consequently projected to decline by an annual average of 710 billion won.

Farmers’ concerns are real and should not be dismissed. But the government can minimize losses and manage conflict through carefully designed compensation and support measures.

Korea cannot afford to abandon a national priority simply to defend presidential approval ratings. The government should protect vulnerable sectors while moving forward with the trade strategy the country’s economic future requires.