“The competitiveness of Korean exports such as shipbuilding and automobiles has declined in the CPTPP market.”

On the 14th, the Korea Institute for Industrial Economics and Trade explained in its report, ‘Analysis of Korea’s Competitiveness Before and After CPTPP Effectiveness’, that this trend was confirmed as a result of analyzing the competitiveness indicators of 5,185 Korean export products before (2012-2018) and after (2021-2024) CPTPP enforcement.

The years 2019 and 2020, which had a significant impact from COVID-19, were excluded from the analysis period.

According to the report, after CPTPP came into effect, the competitiveness index of Korean export products in the CPTPP region increased for 2,711 items (52.3%), but the competitiveness indicator for 2,474 items (47.7%) decreased.

Among the items whose indicators fell, 796 (32.3%) showed that their competitiveness indicators were maintained or increased outside the CPTPP market.

The report calculated and compared the CPTPP regional symmetrical comparative advantage index (RSCA) for each item of 11 member countries and Korea, excluding the UK, which joined CPTPP at the end of 2024.

The indicator has a value between -1 and 1, and a larger number means that the item is relatively stronger in the CPTPP market.

After CPTPP came into effect, the export items with the largest decline in regional RSCA were para-xylene (0.76 → 0.02), a raw material for petrochemical products, followed by electric vehicles (0.82 → 0.50), and passenger cars (0.26 → 0.03).

The report explained that for automotive items, the tariff gap in the Mexican market had an impact. Korea does not have a free trade agreement (FTA) with Mexico, so the tariff burden is greater than other CPTPP member countries.

When Korean exports with a decline in regional RSCA were grouped into 15 industries, the decline was largest in that order: non-metallic mineral products (-0.296), shipbuilding (-0.262), displays (-0.230), and automobiles (-0.199).

On the other hand, in these 15 industries, the RSCA of all 11 CPTPP countries increased, showing that the competitiveness of member countries has increased.

The report suggested that Korea should be mindful of the possibility that its position in the regional market could be further weakened if it maintains its status as a non-member of the CPTPP.

At the same time, he requested that regardless of whether or not to join the CPTPP, follow-up response measures, such as reviewing ways to improve trade relations with Mexico and monitoring each export item, should be discussed.

CPTPP is a multilateral FTA formed by countries in the Asia-Pacific region, with 12 countries participating, including Japan, Mexico, Australia, New Zealand, Canada, Singapore, Vietnam, Malaysia, Brunei, Chile, Peru, and the United Kingdom.

The Korean government also began discussing membership, but as the agriculture and fisheries industry expressed concerns, President Lee Jae-myung ordered relevant ministries on the 8th not to apply for membership within the year.