A new report predicts that South Korea's exports will fall by about one percent and its gross domestic product(GDP) will diminish by around zero-point-three percent in the long term after the Trans-Pacific Partnership(TPP) trade agreement goes into effect.
 
The Institute for International Trade under the Korea International Trade Association made the outlook in a report it published after members of the TPP signed a sweeping trade deal in Auckland Thursday. South Korea is not a member of the TPP.
 
According to the report, TPP members' GDP will increase between zero-point-five and eight-point-one percent and their exports will jump around four-point-seven percent to a maximum of 30-point-one percent by 2030 with the deal.
 
The report forecast that Japan's GDP will grow two-point-five percent and its exports will rise 23-point-two percent by 2030. On the other hand, it said, South Korea's GDP is likely to fall about zero-point-three percent and its exports about one percent by 2030.
 
The report noted that South Korea is expected to lose a considerable portion of the comparative advantage it enjoyed under the Seoul-Washington free trade agreement after the TPP goes into effect.
 
Due to customs benefits, the United States could substitute South Korean products with Japanese items.