RCEP deal to help boost S. Korea's exports and investment
  • 4 years ago
And staying with the RCEP deal,... our Kim Hyesung tells us more about the possible opportunities the trade deal could bring to the South Korean economy.

The Regional Comprehensive Economic Partnership is expected to help support South Korea's economy, which is heavily reliant on trade.
South Korea already has bilateral free trade agreements with RCEP members with the exception of Japan, meaning it already has market accessibility of goods and services.
But with RCEP, members will use the same rules of origin, which in turn simplifies trade customs and reduces costs.
Goods that have gone through different countries within RCEP in the different stages of production process can also get preferential tariffs.
The deal could also strengthen regional value chains amid rising trade protectionism across the world and the ongoing U.S.-China trade negotiations.
According to the Korea Economic Research Institute, RCEP will add an annual average of one percent to South Korea's GDP, or one-point-one billion U.S. dollars in consumer benefits in the long run.
It is also expected to boost South Korea's current account by 29 billion dollars.
However, RCEP could have a negative impact on South Korea's agriculture and marine sectors as it includes agricultural powerhouses like China, Australia and New Zealand as well as ASEAN members who are Seoul's competitors in the marine goods market.
Kim Hyesung, Arirang News.
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