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Korea FTA Study: promote policies , Difficulties and Prospects

Author: PuZhaoJi
Tutor: XiaoJiaLing
School: Fudan University
Course: International political
Keywords: China-Korea Free Trade Agreement FTA policy obstacle
CLC: F742
Type: Master's thesis
Year: 2011
Downloads: 209
Quote: 0
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Abstract


Within the context of widespread multilateralism and regionalism throughout the world, as well as a result of the Asian financial crisis, economic cooperation in the East Asia region has accelerated considerably. However, East Asia still does not have a free trade agreement comparable to that of the European Union or North American Free Trade Agreement. In particular, although the two major economic powers in East Asia─China and Korea─have raced to establish RTA/FTA systems with other countries, they have yet to establish an institutional framework for economic integration with each other.The close economic ties, complementary economic structures and geographical proximity between China and Korea should be advantageous for establishing a RTA/FTA. If this is the case, why are efforts for a China-Korea (abbreviated as CK) FTA at a standstill? The author believes the answer lies in the difference between their levels of enthusiasm about CK FTA, which are in turn influenced by the pursuit of divergent political and economic interests. In international relations, economic factors interact with political factors, and in the globalization era, there is no such thing as a purely "economic" activity; bilateral FTAs between countries arise from deep political and economic motivations. Therefore, a single perspective is never enough to explain all international relations and international political phenomena.In order for a CK FTA to go beyond the current stage into the substantive phase of negotiations, these two countries must evaluate their own FTA strategy and policy from economic and political perspectives, and have a clear understanding of each other. In particular, China and Korea must recognize in advance what the biggest obstacle is in achieving a bilateral FTA. In order to promote a realistic China-Korea FTA negotiation, this study argues that each country must make adjustments to their basic FTA principles to fit the characteristics of a Northeast Asian FTA. In other words, they must work together to create an orderly, gradual, long-term and general policy, and at the same time, take into consideration each other’s sensitive issues to formulate a middle level FTA. The impact of a CK FTA would be felt in both the economic and political spheres, providing a solid foundation for East Asian economic integration. For the aforementioned reasons, an analysis of FTA between China and Korea from economic and political perspectives is of great importance.

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