ESTABLISHMENT OF WORLD'S LARGEST FTA DEAL

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The world's largest trade deal was clinched on Monday. The Regional Comprehensive Economic Partnership's participants include ASEAN member countries, South Korea, China and Japan. The free trade pact will surely have positive effects on exports but India has decided not to join the mega trade agreement, leaving some sticking points to be addressed.

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​Heads of 15 countries declared the settlement of the Regional Comprehensive Economic Partnership at a summit in Thailand. President Moon Jae-in proposed lowering trade barriers and overcoming the economic downturn together to promote the values of free trade through the mega pact. The Regional Comprehensive Economic Partnership or the RCEP has 15 members, including ten ASEAN member nations, South Korea, China and Japan as well as Australia and New Zealand. The world's largest trade deal covers half of the global population and a third of international production and trade. At a time when the trend of free trade is receding, it is meaningful that South Korea joins the multinational free trade pact

[Soundbite] YOO MYUNG-HEE(TRADE MINISTER) : "The RCEP is expected to significantly improve trade environment as well as help revive Korea's exports and diversify export bases."

The deal is expected to be very helpful when dealing with trade disputes with China or Japan. The government believes the RCEP will bolster its new southern policy, as all ASEAN members are participating in it. However, India decided not to join in this time.

[Soundbite] PROF. HEO YOON(SOGANG UNIVERSITY) : "It appears that India wants to buy time to assess domestic political factors and responses from concerned parties."

The participating countries will sign the deal next year after completing the remaining negotiations on various details including opening up their markets.