South Korea is reviving its efforts to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — a major Asia-Pacific trade bloc led by Japan — as global tariff tensions escalate. Experts believe the move could help the country prepare for a new wave of global protectionism.
South Korea’s Renewed Trade Strategy Amid Global Tariff Conflicts
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The decision comes as a strategic response to the sweeping global tariffs introduced by U.S. President Donald Trump, which have placed heavy pressure on export-driven economies like South Korea to diversify markets and strengthen alternative supply chains.
According to the Ministry of Economy and Finance, the government is officially reviewing the possibility of joining the CPTPP. Deputy Prime Minister and Finance Minister Koo Yun-cheol chaired a key meeting where officials reaffirmed their commitment to reassessing Korea’s trade policies.
Trade Minister Yeo Han-koo emphasized the need to “restructure and diversify export strategies” in light of growing U.S.-China trade tensions, while President Lee Jae Myung reiterated his interest in CPTPP membership during the recent Korea-Japan summit in Tokyo.
What is CPTPP?
Launched in March 2018, the CPTPP is a multilateral free trade agreement including 12 member economies — Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom, and Vietnam — collectively representing about 14% of global GDP. Japan has taken the leadership role in maintaining and expanding the bloc after the U.S. withdrew from the original TPP in 2017.
Economic Benefits and Strategic Importance
Studies by the Korea Institute for International Economic Policy (KIEP) suggest that joining the CPTPP could raise South Korea’s GDP by 0.38 percentage points. Economists point out that South Korea currently lacks bilateral Free Trade Agreements (FTAs) with major CPTPP members such as Japan and Mexico, making CPTPP an essential gateway to those markets.
“CPTPP’s strategic value becomes even more significant as the Trump administration’s tariff policies take full effect,” said Shin Se-don, Emeritus Professor of Economics at Sookmyung Women’s University. “Trade protectionism under Trump’s second term is even stronger than before. Therefore, pursuing CPTPP membership aligns with our national interests.”
Challenges and Domestic Concerns
While the economic upside is evident, agricultural stakeholders remain cautious. A 2022 report by the Korea Rural Economic Institute (KREI) estimated that if 98% of agricultural tariffs were eliminated immediately, the sector could face annual losses of up to 440 billion won (USD 315 million).
Officials have acknowledged that mitigating agricultural risks is critical to successful accession.
Despite potential short-term challenges, experts agree that re-evaluating CPTPP membership is a positive and timely step for South Korea as it seeks to reinforce its economic resilience, strengthen regional trade partnerships, and safeguard its export-driven economy.