Lee backs CPTPP entry but rejects unfair burden on farmers, fishers

President Lee Jae Myung decided that South Korea would not apply for CPTPP membership during the current year. He said officials must first consult extensively with farmers and fishermen, who fear cheaper imports could damage their livelihoods. The decision gives those groups priority over an application timetable.

The government had been preparing to meet a possible November ministerial meeting deadline. Officials said South Korea needed to publish a notice about planned public hearings in the official government gazette by mid-October. Lee’s order stopped that immediate application process while consultations take place.

Lee did not reject membership permanently. He argued that an export-dependent country needs wider access to overseas markets, but said trade-related losses must be fairly compensated. He also acknowledged that accession could take years and might not be completed during his presidency.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, is a free trade pact involving 12 countries. Membership would expand South Korea’s access to overseas markets by reducing trade barriers within the bloc. That matters because South Korea is an open, trade-oriented economy that depends heavily on exports.

South Korea cannot simply apply and enter automatically. The article says accession requires the consent of all 12 member countries. Before reaching that stage, the government was expected to announce public hearings in the official government gazette so its possible membership could be discussed at a November ministerial meeting.

The process could take years, and Lee said membership was unlikely to be finalized during his presidency. He ordered officials not to apply this year, choosing consultations with farmers and fishermen before pursuing the next step. Their concerns focus on increased competition from cheaper imports.

A government assessment projected that joining the CPTPP would increase South Korea’s real gross domestic product by 0.38 percent over 10 years. This is the estimated economy-wide benefit. It suggests wider trade access could produce a modest national gain, especially for an economy that relies heavily on exports.

The same assessment projected a much sharper effect on agriculture, forestry and fisheries. Their production could decline by approximately 850 billion won each year over a 15-year period. The mechanism is greater competition from cheaper imports, which could reduce domestic production and put pressure on prices and producer incomes.

These are projections, not results from membership. South Korea has not applied this year, and Lee ordered consultations before deciding what comes next. The figures therefore show the policy’s potential trade-off: a small overall GDP gain alongside concentrated losses in primary industries.

South Korea wants more overseas market access because it is an open, trade-oriented economy that depends heavily on exports. Lee described expanded access to global export markets as an enlargement of the country’s “economic territory.” Greater access could help South Korean businesses sell more widely and support the country’s broader economic interests.

The tension is that trade liberalization creates winners and losers. Cheaper imports may benefit consumers or businesses, while farmers and fishermen face stronger competition. The government’s assessment projected a 0.38 percent real GDP increase over 10 years, but also estimated a yearly decline of about 850 billion won in agriculture, forestry and fisheries production over 15 years.

Lee therefore supports laying groundwork for possible CPTPP membership without ignoring vulnerable groups. He says the country cannot depend only on semiconductors or only on agriculture. His approach is wider trade access paired with consultation and compensation for people bearing special losses.

If CPTPP competition lowers prices or sales for locally produced goods, domestic farms, fisheries and related industries could become less profitable. Farmers and fishermen already fear that cheaper imports would threaten domestic production and incomes. The concern is especially serious because rural communities depend on these activities for both earnings and economic stability.

The government’s assessment gives the clearest concrete estimate. It projected that agriculture, forestry and fisheries production would decline by approximately 850 billion won annually over 15 years after accession. Lower-priced imports would create pressure for local producers to reduce prices, sell less, or absorb losses while competing in the domestic market.

The article does not give a precise forecast for individual household incomes or closures. It does show that Lee views primary industries as vital to national security and survival. He says any people making special sacrifices for national policy should receive sufficient compensation, or more.

The government could compensate affected farmers and fishermen with direct payments or a dedicated support fund. Lee said people who make special sacrifices for policies benefiting the whole country should receive sufficient compensation, or more. He also stressed that honoring compensation promises is essential for public trust and support for difficult decisions.

A previous example is the rural cooperation fund created after South Korea’s 2015 free trade agreement with China. The government pledged to raise 1 trillion won and make up a shortfall of roughly 700 billion won. However, only 325.5 billion won had been raised. The fund depended largely on voluntary corporate contributions.

That shortfall shows why compensation must be reliable rather than merely promised. Lee said the government should honor its commitment while consulting affected groups. South Korea has not applied for CPTPP membership this year, so the design and funding of future support remain part of the decisions ahead.

Comparative advantage is an economic idea: countries tend to specialize in goods and services they can produce relatively efficiently compared with other countries. Trade can then expand overall output by allowing economies to focus on those strengths. The article says Lee wants primary industries viewed through a different lens.

Agriculture, fisheries, forestry and livestock farming may contribute a relatively small share of the economy, but Lee calls them vital to national survival and strategic industries. This means their value is not measured only by market size or production efficiency. They can also be connected to food supplies, rural livelihoods and national resilience, as described in his policy argument.

That reasoning supports protecting or compensating these sectors even when trade produces wider gains. Lee still says South Korea needs expanded export markets and cannot abandon necessary policies. His position is that liberalization should proceed without forcing smaller or less powerful groups to bear disproportionate losses.