Moon signs RCEP trade pact after summit with leaders of 14 partner nations

SEOUL, Nov. 15 (Yonhap) -- South Korean President Moon Jae-in signed what will be the world's largest free trade agreement on Sunday after concluding related talks during a virtual summit with the leaders of 14 partner countries, Cheong Wa Dae said. The Regional Comprehensive Economic Partnership (RCEP) involves 10 members of the Association of Southeast Asian Nations (ASEAN) as well as South Korea, China, Japan, Australia and New Zealand, and their combined gross domestic product accounts for a third of the world's total. The pact calls for eliminating a considerable amount of tariffs on exports of goods. For instance, a South Korean firm selling automobile parts to Indonesia currently faces as much as 40 percent tariffs, but the rates will be reduced to as low as zero once the RCEP takes effect, according to Moon's office. The "modern, comprehensive, high-quality and mutually beneficial" agreement will also help establish an "open and rules-based trade and investment system" in the region, including the protection of intellectual property rights, it added. Cheong Wa Dae described the RCEP signing as a "core result" of the Moon administration's New Southern Policy aimed at improving strategic ties with Southeast Asian nations and also an opportunity for South Korea to become a "pacesetting" economic power. Moon said it's meaningful to reach the deal to launch such a "mega economic community," despite the global crisis caused by the COVID-19 pandemic, in that it could sound an alarm bell over protectionism and raise awareness on the importance of free trade. RCEP talks began in 2012. India has dropped out of the negotiations, arguing that China would benefit more from the pact. The government plans to speed up domestic procedures for getting the RCEP ratified so that it can go into effect at an early date. It's the first time that South Korea has signed a free trade agreement through an online event. lcd@yna.co.kr (END)