South Korea, China, and Japan recently convened for their first economic dialogue in five years, primarily to enhance regional trade amidst looming tariffs from U.S. President Donald Trump. The three nations’ trade ministers vowed to work closely together on a comprehensive free trade agreement to bolster both regional and global trade. Their discussions concluded with a commitment to enhance cooperation towards effectively implementing the Regional Comprehensive Economic Partnership (RCEP) and to initiate negotiations for a Korea-China-Japan FTA.
South Korean Trade Minister Ahn Duk-geun emphasized the importance of these efforts, highlighting the need to reinforce RCEP’s execution while fostering trade collaborations among the three countries. The urgency of these talks comes as Trump is set to announce more tariffs, which he refers to as part of a “liberation day” initiative that disrupts established trading relationships. Despite being significant trading partners with the United States, South Korea, China, and Japan have faced ongoing tensions, stemming from territorial disputes and Japan’s controversial disposal of wastewater from the Fukushima nuclear disaster.
Since the inception of trilateral free-trade talks in 2012, meaningful progress has been elusive. RCEP, which took effect in 2022, aims to lower trade barriers among 15 Asia-Pacific nations. However, recent trade policies have raised concerns, particularly Trump’s announcement of a 25% import tariff on vehicles and auto parts, which threatens to adversely impact major Asian automakers that account for a significant share of U.S. car exports.
Following their recent talks, the ministers agreed to convene again in Japan for further discussions, indicating a continued commitment to addressing trade concerns and regional economic stability.