Amid fears of a looming trade war and rising protectionism, we're finally seeing some positive developments.
Eleven countries are set to ink a mega-free trade pact.
Kim Hyesung introduces to us the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
A year after the U.S. withdrew from the Trans-Pacific Partnership, the eleven remaining countries are due to sign a new agreement in Chile on Thursday local time.
The deal, rebranded as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), was revamped last year after eleven countries, including Japan, Australia and Canada agreed to keep the trade pact.
The signing of the deal is very meaningful. It serves as an antidote to counter rising protectionism, with the Trump Administration threatening to impose tariffs on steel and aluminum imports,...a shift back to the 1930s when a global trade war took place."
The TPP would have represented around one-third of world trade.
Yet even without Washington, the eleven remaining states represent over 13 percent of the world economy, or 10 trillion U.S. dollars.
The CPTPP spans a market of near 500 million people, greater than the European Union.
It aims to cut import tariffs,... and drops around 20 clauses on intellectual property regulations that had been demanded by the U.S.
It will go into effect 60 days after it's ratified by at least six member countries.
South Korea is not a member of the CPTPP.
But it has bilateral free trade deals with nine of the 11 members, other than Japan and Mexico.
Seoul's trade ministry says it will closely look into the CPTPP, analyze its economic effect and decide whether it will join by the end of this year.
The ministry added that it's looking into joining the Pacific Alliance trade bloc including Mexico, Chile, Peru and Columbia.
Kim Hyesung, Arirang News.
