According to Yonhap News,

(SEOUL=Yonhap News) The government has decided to focus its trade capabilities on five strategic areas, which are supply chain, technology trade, digital, vaccine, and carbon neutrality.

Yeo Han-koo, trade minister of the Ministry of Trade, Industry and Energy (MOTIE), held the first Trade Promotion Committee (21st session) after taking office at government complex in Sejong on September 2, to discuss the direction of the trade policy which pursue 'national wealth creation', and cooperation measures between related ministries.

Under the current situation in which major countries such as the US are pushing for supply chain reorganization through cooperation between allies, the Korean government is determined to shore up trade so that it can contribute to not only stabilization of the supply chain, but also playing a leading role in the global supply chain.

The government plans to push for trade cooperation on four major items that the US reviewed its supply chains, including semiconductors, batteries, pharmaceuticals, and mineral resource, by supporting companies investing in the US and Korea to resolve difficulties and promoting joint development of next-generation technologies.

Regarding the six industries that the US is conducting studies on supply chains, such as defense, public health, technology/communications, energy, transportation, and food, the government will analyze the domestic supply chain, with a view to maximizing the national interest, and identify cooperative measures between Korea and the US.

The government plans to continue its efforts to stabilize the domestic supply chain by such measures as increasing investment attraction from global key companies, and cooperating for supply chain diversification with New Southern countries, among others.

In addition, the government decided to secure Korea's leadership in the process of global norms setting discussion driven by digital transformation and lay the foundation for digital growth.

It will keep endeavoring to conclude the Korea-Singapore Digital Partnership Agreement (DPA) and to resume negotiations to join the Singapore-New Zealand-Chile Digital Economic Partnership Agreement (DEPA), while actively participating in bilateral and multilateral negotiations such as the World Trade Organization (WTO) negotiations on trade-related aspects of electronic commerce.

In the vaccine field, it will expand the role of trade by establishing a global vaccine hub.

It plans to support companies' overseas expansion by enhancing participation of domestic raw and subsidiary material companies in the global value chain (GVC) and establishing overseas bases in countries where major vaccine companies are located. It will also promote partnerships with major vaccine producing countries and reduce tariffs on raw and subsidiary materials by promoting new establishment and revision of free trade agreements (FTAs) with major countries.

With regard to carbon neutrality and climate change, the government will enhance its capability to respond to new trade norms, such as European Union's legislation on the Carbon Border Adjustment Mechanism (CBAM).

The government will engage in international negotiations so that domestic companies' efforts for carbon-neutrality can be acknowledged as much as possible, while strengthening support for companies' overseas expansion in order to preoccupy future markets in climate change and eco-friendly fields.

In new technology fields such as artificial intelligence (AI) and 5G, the government has decided to prepare a more vigorous technology trade strategy in response to the global competition for technological hegemony.

Starting with the launch of the Vaccine Task Force (TF) on August 30, the government plans to operate the TFs for the rest four fields as well in earnest this month. Trade minister Yeo will be team leaders of all TF teams.

bryoon@yna.co.kr


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Source: Yonhap News (September 2, 2021)