[Sung-no Choi’s Market Economy] Put the CPTPP Membership Bid on Hold and Reconsider

The government has postponed applying this year to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). On the 8th, it cited the need to prioritize dialogue with farmers and fishermen and the restoration of trust. However, delaying market opening in the name of protecting agriculture amounts to voluntarily limiting our economy’s opportunities for growth. The government should reconsider its decision to postpone the application and take a more active role in expanding free trade.

The global trade environment is becoming increasingly difficult. As the United States and many other countries strengthen tariffs and import restrictions, uncertainty in international trade is growing. The more protectionism spreads, the more important it becomes to secure new markets and diversify trading partners. Even if trade with a particular country becomes difficult, there must be other markets where new opportunities can be found. If Korea, which has grown through trade, is to respond to this trend, it should instead open its markets even wider.

The CPTPP is a free trade agreement involving 12 countries, including Japan, Australia, Canada, and the United Kingdom. The combined economic scale of its member states amounts to about 15% of global GDP. Its core purpose is to lower tariffs on goods and reduce trade barriers across a range of sectors, including services and investment. If Korea joins, its companies will be able to develop sales channels in a broader market and diversify their business partners. It will also help them procure needed raw materials and components on better terms and secure a stable foundation for trade.

The benefits of free trade accrue to consumers and the public. When markets open, consumers can compare and choose from a wider range of goods and services. Competition from foreign companies encourages domestic firms to lower prices and improve quality. Conversely, if imports are restricted and competition in the domestic market is blocked, consumers may face higher prices and fewer choices. Free trade expands growth opportunities for businesses while also enhancing consumer welfare.

Agriculture, too, cannot be exempt from market opening and competition. Korean agriculture has long been sustained under high tariffs and various protectionist policies. According to the OECD, from 2022 to 2024, the prices Korean farmers received when selling agricultural products were on average 54% higher than prices calculated on the basis of international market prices. If high import barriers are maintained in the name of protecting agriculture, competitive pressure weakens and inefficiencies in production and distribution are less likely to be corrected. The longer protection continues, the fewer opportunities agriculture will have to strengthen its own competitiveness.

More decisive market opening is needed precisely to improve agricultural competitiveness. Only by competing with imported agricultural products will efforts to lower production costs and improve quality become more active. For domestic agriculture to become competitive, it must be able to expand production scale, adopt new technologies, and improve distribution methods. Unnecessary regulations that hinder this should be reduced, and private investment and innovation should be encouraged. Agriculture, too, should create the conditions to grow through competition and advance into overseas markets rather than relying on protection in the domestic market.

Along with joining the CPTPP, economic cooperation with major trading partners should also be actively expanded. The more protectionist trends spread, the more important it is to diversify trading partners and broaden the path for free exchange. In particular, with Japan, with which economic exchanges are active, Korea should consider further market opening and bilateral cooperation based on existing trade cooperation. Remaining trade barriers should also be reduced with countries such as Australia and New Zealand, with which free trade agreements have already been concluded.

Our economy has grown through free trade and international exchange. We should open the domestic market more boldly, including agriculture, while actively pursuing a review of CPTPP accession and cooperation with major trading partners. Delaying openness risks missing new opportunities for trade and investment. The government should reconsider its decision to postpone the application and pursue a trade policy that expands free exchange and competition.

Sung-no Choi, President

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Original title: [최승노의 시장경제] CPTPP 가입 신청 보류, 재검토해야

Author: Center for Free Enterprise (CFE)

Date: 2026-10-15

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=press&pn=1&idx=29629