Korea expands FTAs with emerging economies in Southeast Asia and Latin America
In order to reduce its dependence on major economies, South Korea has just announced plans to conduct or launch free trade agreement (FTA) negotiations with trading partners in Southeast Asia and Latin America. in this year.
|Containers stacked at the South Korean port of Busan. Photo: Yonhap News|
The Korean Ministry of Trade, Industry and Energy said that the country intends to officially sign an FTA with Cambodia in October, seven months after the completion of related negotiations. According to the ministry, this FTA will help Korean companies diversify their production lines in Southeast Asia.
Besides, Korea is waiting for the National Assembly of Indonesia to approve the FTA between the two countries, after Seoul completed the domestic procedures in June. The Korean Ministry of Trade, Industry and Energy also expressed hope The ongoing negotiations with the Philippines will yield positive results.
In addition to bilateral FTAs, South Korea is also waiting for the Regional Comprehensive Economic Partnership (RCEP) with Asian partners, expected to be ratified in October, before taking effect in January. 2022. The agreement was signed in November 2020, with the participating parties including ASEAN, South Korea, China, Japan, Australia and New Zealand, accounting for 30% of the world’s gross domestic product (GDP).