Song Mi-ryung says trade pact could boost exports, but stresses need to protect domestic production
South Korea should approach membership in a major Asia-Pacific trade pact cautiously, but joining could also open new global opportunities for Korean agriculture, Agriculture Minister Song Mi-ryung said Thursday.
At a news conference in Sejong, Song said the agricultural sector would need to prepare thoroughly for greater import competition while pursuing overseas markets if the government decides to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The CPTPP is a free trade agreement among 12 economies, including Japan, Australia, Canada and Britain, aimed at reducing tariffs and other trade barriers.
“If we combine thorough preparations with an aggressive push into overseas markets, this could become a challenging opportunity for Korean agriculture to make a leap onto the global stage,” Song said.
She cited South Korea’s free trade agreement with Chile as an example of trade liberalization producing benefits that were not initially expected.
When the Korea-Chile deal was negotiated, farmers and industry groups warned that an influx of imports could devastate Korea’s grape industry. Instead, Song said, domestic producers improved their competitiveness and are now approaching $100 million in annual exports.
“Korean agricultural products have excellent quality and competitiveness,” she said. The government will work with farmers’ groups to assess potential opportunities and prepare for further market opening, she added.
Song stressed, however, that the government has not decided to seek CPTPP membership.
“The government’s consistent position is that we will not pursue accession if it runs counter to the national interest or farmers’ interests,” she said. “We will gather sufficient opinions before making a decision.”
She said the government must balance agricultural market opening with maintaining the minimum domestic production necessary to protect the country’s farming base.
Separately, Song said she expects a proposed revision to the Agricultural Cooperatives Act to clear the relevant parliamentary committee this month.
The bill would allow farmer-members to directly elect the chair of the National Agricultural Cooperative Federation. Song said the ruling and opposition parties, as well as the federation, broadly support the change.
There is also broad agreement on strengthening the independence of the federation’s auditing function, although its position within the organization remains under discussion.
“I expect the remaining issues to be resolved smoothly at the committee level within this month,” Song said.
By Lee Ji-yoon (jylee@heraldcorp.com)
