South Korea will officially participate in the Green Economy Agreement (GEPA) negotiations led by Singapore, New Zealand, and Chile. This move aims to proactively reflect domestic industrial interests in new green trade norms as climate and environmental-related trade measures, such as the European Union's Carbon Border Adjustment Mechanism (CBAM), become more widespread.
The Ministry of Trade, Industry and Energy announced on September 11 that South Korea's participation in the GEPA negotiations has been formalized. The participation was established through an exchange of letters among the trade ministers of the existing member countries—Singapore, New Zealand, and Chile—finalized by the previous day.
GEPA is a multilateral agreement designed to ensure that policies and regulations introduced by countries to combat climate change do not create unnecessary trade barriers. It also discusses ways to expand trade and investment in green goods and services.
Singapore, New Zealand, and Chile agreed to pursue GEPA negotiations during the APEC summit in Gyeongju last October. These countries have been at the forefront of establishing new trade norms, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA).
The government expects that South Korea's participation will enhance its ability to respond to trade-related climate measures, including the EU's CBAM. The EU has been implementing the CBAM since January, requiring importers of carbon-intensive products such as steel, aluminum, cement, fertilizers, electricity, and hydrogen to purchase and submit certificates equivalent to the carbon emissions embedded in those products.
South Korea plans to reflect the realities and interests of its domestic industry in the process of establishing international standards for low-emission products like low-carbon steel, aiming to secure new export markets. Existing member countries have expressed optimism that South Korea's inclusion will promote green trade and investment and contribute to building a future-oriented agreement framework centered on middle powers.
The Ministry of Trade, Industry and Energy plans to consult with relevant departments and the industry to incorporate the needs and interests of domestic companies into the negotiations.
Park Jeong-sung, head of the Trade Negotiation Headquarters at the Ministry, stated, "As the multilateral trade system centered on the WTO weakens, agreements like GEPA will lead the way in establishing new trade norms. We will prepare for negotiations to ensure that responses to climate change and the expansion of green markets translate into industrial competitiveness and new export opportunities."
* This article has been translated by AI.
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