Korea’s determination to become a member of TPP

Korea is preparing to join the Trans-Pacific Partnership (TPP) according to data recently released by the Korea International Trade Association (KITA).

According to Korea, by joining the partnership, could accomplish a 2.2 percent increase in gross domestic product by 2025. The TPP consists of 12 member countries, including the United States, Canada, Japan, Australia, New Zealand, Singapore, Chile, Peru, Brunei, Vietnam, Malaysia and Mexico.

The members account for about 37 percent of the world’s GDP and 30 percent of foreign direct investment. The agency recently released its official estimation that the TPP could help Korea be more price-competitive with longtime rival Japan.

Korea already has massive demand from the 12 TPP members for completed products worth $9 trillion and materials and parts worth $2.2 trillion, also forecasting an obvious challenge – Japan can only obviously gain many benefits from trading with TPP member countries as the nation also manufactures similar products to Korea’s.

TPP countries will not levy tariffs on materials and intermediate goods produced by each other. According to KITA, TPP members procure about 5 percent of their intermediate goods such as materials and parts from Korea and 6 percent from Japan. And this year, KITA has a positive forecast on Korean trade, with exports estimated to jump 4.3 percent to break the $600 billion mark for the first time and imports forecast to jump 5.5 percent to $557 billion.

korean-machinery.com | Blog Magazine of korean-machinery, brands and Goods

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