Possibility to Utilize CPTPP Accumulation Rules : Focusing on Raw Materials Trade and Manufacturing Business Investment

In addition to RCEP, discussions on joining the CPTPP, the world's second-largest Mega FTA, are underway in earnest, starting with a public hearing in March 2022. In addition to the feature that the spaghetti ball effect can be mitigated by applying one rule of origin to multiple countries, CPTPP has the feature of applying full accumulation, allowing the accumulation of materials and production simultaneously for all contracting countries for the first time out of Mega FTAs. Full accumulation enhances the possibility of determining origin by allowing the accumulation of not only origin materials but also the added value generated during the production process in a contracting country, which gives higher utilization if they have a global value chain in the contracting country. Further, over time, the direction of production, supply and demand of raw and subsidiary materials will be induced to the contracting countries, which can serve as an opportunity to strengthen economic relation between the contracting countries. Therefore, in this study, focusing on the full accumulation, one of the important features of CPTPP, the possibility of utilizing full accumulation when Korea joins CPTPP has been analyzed by examining the trends in raw and subsidiary material trade and investment status in manufacturing business between contracting countries and candidate countries. As a result, while CPTPP is an agreement with high utilization value as 11 countries are participating, and more than 70% of trade between contracting countries consists of intermediate goods trade, and investment in manufacturing also reaches more than 25%, there is a possibility that the number of new contracting countries will continue to increase as the countries such as UK, China and Taiwan have already showed their intention to participate, such that it is considered to have higher expected effects.