Moving from ‘efficiency’ to ‘resilience’ in the global trade environment
Expected to diversify and stabilize supply chains such as semiconductors by participating in IPEF
Strengthening economic cooperation with China by participating in various economic blocks
The Ministry of Trade, Industry and Energy announced on the 19th that the Indo-Pacific Economic Framework (IPEF) will contribute to the diversification and stabilization of supply chains such as semiconductors, core minerals, and clean energy.
Through the IPEF explanatory material distributed on the same day, the Ministry of Industry heard about the change in the ‘normal environment’ caused by the COVID-19 pandemic (global pandemic) about the background of the decision to participate in the US-led IPEF.
The Ministry of Trade, Industry and Energy said, “The central axis of the global trade environment has shifted from ‘efficiency’ to ‘resilience’. appeared as ” he introduced.
Participation in IPEF was expected to establish a comprehensive regional economic cooperation system through cooperation in the Indo-Pacific region and a balanced approach to norms. It is expected that the competitiveness of Korean companies in digital and new technologies will be strengthened by diversifying and stabilizing the supply chain and promoting cooperation with major countries in the region such as the United States and Japan. In addition, opportunities to enter the Indo-Pacific market are expected to expand through infrastructure investment, capacity building, and joint project participation.
Regarding the IPEF inauguration schedule, he said, “The launch is expected with President Biden’s visit to Asia as an opportunity.” said
IPEF is a new economic and trade cooperation body, and it is evaluated that it is aimed at checking China when US President Biden announced the Inta economic framework plan at the East Asia Summit (EAS) in October last year.
In response, the Ministry of Trade, Industry and Energy said, “The IPEF emphasizes inclusiveness and openness, and the Korean government also maintains the position that the IPEF should become an inclusive and open economic cooperation body for regional prosperity.” He continued, “We are activating the Regional Comprehensive Economic Partnership Agreement (RCEP) in which 15 countries including China participate and are promoting the accession to the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP). We plan to further solidify our economic cooperation.”
Reporter Sejong Park Seung-gi