Korea’s FTA Policy and Position for a Japan-Korea FTA

초록

The successful conclusion of the first FTA will be especially important to Korea, and other potential FTAs will heavily depend on the first model. Prior to launching its long-term goal of establishing FTAs with larger trade partners such as the US, Japan, China and the ASEAN Free Trade Area (AFTA), Korea needs to pursue FTAs with smaller partners in the short term. The experience will help the government to minimize risks and possible losses, as well as to be better prepared for the operation and negotiation of FTAs. The ratification of the FTA with Chile is an epochal turning point for Korea's trade policy; herewith, Korea established a foothold to progressively cope with global proliferation and the deepening of regionalism. Moreover, it enables Korea to actively prepare for economic integration in the Asia-Pacific region through FTAs with major trade partners such as Japan, Mexico, ASEAN, the US, and China. Both governments of Korea and Japan agreed to conclude the negotiation for a bilateral FTA until the end of 2005, but there are still doubts whether both countries can reach an agreement. Above all, market access will be most difficult issue for the negotiation.