The government is accelerating efforts to diversify export markets by expanding free trade agreement (FTA) negotiations. Amid growing trade uncertainties, including U.S. tariff policies, the government is conducting new or resumed negotiations and improving or following up on existing agreements with 13 countries and groups this year alone.
According to data submitted by the Ministry of Trade, Industry and Energy to the National Assembly's Committee on Trade, Industry, Resources, and Small Ventures, led by People Power Party lawmaker Cho Ji-yeon on the 23rd, the government is pushing to launch or resume FTA negotiations with seven countries and groups: Morocco, Egypt, Argentina, Uruguay, Mercosur (Southern Common Market), Mexico, and Tanzania.
Negotiations are underway with six other countries and groups: Thailand, Pakistan, India, ASEAN, Singapore, and China. New FTA negotiations are being conducted with Thailand and Pakistan; improvements to existing agreements are being pursued with India, ASEAN, and Singapore; and follow-up negotiations on services and investment are continuing with China.
Progress in expanding the FTA network has continued since the beginning of the year. Following a deal reached with Serbia in June, agreements were also concluded with Mongolia in July and Bangladesh in August. Additionally, the government is pursuing negotiation conclusions or signings with Guatemala, Ecuador, the Gulf Cooperation Council, Georgia, Malaysia, the United Kingdom, and others.
As multiple negotiations proceed simultaneously, trade authorities are allocating resources according to the nature and importance of each agreement. In particular, more personnel are being assigned to negotiations with large economies such as China.
The government's rationale for broadening its FTA negotiation targets is to reduce reliance on specific markets and respond to changes in the trade environment. With uncertainties rising due to U.S. tariff policies and other factors, there is an increasing need to secure diverse countries and markets rather than focusing solely on a single major economic bloc.
Park Geun-oh, Policy Officer for Trade Agreements at the Ministry of Trade, Industry and Energy, stated, "It is necessary not to focus on just one direction but to keep all possibilities open and expand our market reach." He added, "Since we cannot predict which markets or industries will become important in the future, it is essential to secure trade relationships with a wide range of countries."
In the recently concluded Korea-Bangladesh agreement, tariffs on diesel, a major Korean export item, are set to be reduced from 6% to 0%, and lubricants will also see their tariffs eliminated entirely, dropping from 28% to 0%. K-food products such as instant noodles will also benefit from reduced tariff burdens.
Bangladesh represents a market of 170 million people and is approaching graduation from LDC (Least Developed Country) status this year. With potential changes in the tariff environment after LDC graduation, securing market access for Korean companies through an FTA holds significant preemptive value. Bangladesh is also pursuing negotiations with the EU (European Union) following its agreement with Korea.
Recently, there has been a renewed trend of active FTA discussions among major countries including the United Kingdom. The government explains that as uncertainties grow due to U.S. trade policies, efforts are increasing to utilize FTAs to stably secure trade foundations and market access between nations.
Jo Ji-yeon (Rep.) emphasized, "What matters more than the number of negotiations initiated is the tangible benefits that Korean companies can actually experience on the ground." He stressed, "The government should not limit itself to merely launching or advancing negotiations but must focus on timely conclusions, implementation, and effective follow-up measures that enhance the utilization of agreements by businesses in the field."
in ECONOMY
