The New Landscape of Trade Policy and Korea's Choices

27 Pages Posted: 31 Dec 2013 Last revised: 8 Nov 2016

Peter A. Petri

Brandeis University - Brandeis International Business School; Brandeis University - Department of Economics; East-West Center

Date Written: December 31, 2013

Abstract

Two mega-regional negotiations are changing the landscape of Asia Pacific trade policy: an Asian track centered on ASEAN (the Regional Comprehensive Economic Partnership or RCEP), and a Trans-Pacific track centered on the Trans-Pacific Partnership (TPP) among 12 economies, including the United States, which Korea is expected to join. Modeling results suggest that both would generate substantial benefits for Korea and the global economy. From Korea’s viewpoint, the agreements would establish new FTAs with China, Japan and smaller economies, improve the utilization of FTAs by permitting the regional cumulation of inputs, and help to upgrade some Korean FTAs to more rigorous standards. By participating in these agreements, Korea could also help to guide them toward inclusive, high-quality regional outcomes. As one of the region’s most open and agile economies, Korea has a large stake in regional integration and would be well advised to pursue both tracks.

Keywords: Trans-Pacific Partnership, RCEP, Korea, Trade Policy, Free Trade Areas, Regional Economic Integration

JEL Classification: F12, F13, F14, F15, F17

Suggested Citation

Petri, Peter A., The New Landscape of Trade Policy and Korea's Choices (December 31, 2013). Journal of East Asian Economic Integration vol. 17, no.4 333-359. Available at SSRN: https://ssrn.com/abstract=2373391

Peter A. Petri (Contact Author)

Brandeis University - Brandeis International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

Brandeis University - Department of Economics

Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

East-West Center

1601 East-West Road
Honolulu, HI 96848
United States

HOME PAGE: http://ppetri.com/

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