GDP Projected to Grow 0.38% Over 10 Years Following CPTPP Membership

South Korea's economy is projected to experience a growth of 0.38 percent over the next ten years as a result of its potential membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This projection was released by the Ministry of Trade, Industry and Resources (MOTIR) following a comprehensive analysis of the expected impacts on various sectors.

The analysis included contributions from several ministries, including those focused on agriculture, fisheries, and small and medium-sized enterprises (SMEs). It highlighted that the manufacturing sector could see an increase in production impact ranging from 6.3 trillion to 6.7 trillion won annually over the 15 years post-membership.

However, the agricultural sector is anticipated to face challenges, with a projected decline in production by approximately 710 billion won. The CPTPP, which includes 12 member countries such as Japan, Australia, and Canada, accounted for about 15.2 percent of global trade in 2019.

In 2022, South Korea expressed its intention to pursue membership in the CPTPP, although a formal application has yet to be submitted due to concerns from the agricultural and fisheries sectors, as well as diplomatic tensions with Japan. The government is currently reviewing the potential benefits of joining the pact to ensure it aligns with national interests and the welfare of its citizens.