A Study on the Regulatory Similarity between Korea and the CPTPP Member States: Focusing on TBT

Abstract

Purpose This paper aims to analyze the Technical Barriers to Trade (TBT) of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member countries with Korea to discuss the importance of the regulatory harmonization and convergence between countries and suggest a direction for the response of Korea to the TBT of the CPTPP. Design/Methodology/Approach This study uses Regulatory Distance (RD), a quantitative methodology that can measure the similarity of TBTs across countries and sectors, and Multidimensional Scaling (MDS), which visualizes it, to compare and analyze regulatory similarities between CPTPP and Korea, China, and the US. Findings First, the TBTs introduced by CPTPP member states generally resemble each other and are more similar in the manufacturing sector than in agriculture. Second, the US regulations that led the TPP were relatively similar to CPTPP, but China showed a large regulatory gap with CPTPP members. Third, the Association of Southeast Asian Nations (ASEAN) countries belonging to the CPTPP generally showed the possibility of regulatory convergence due to their close RD. Finally, Korea showed an overall regulation gap with CPTPP members. Research Implications Although numerous domestic studies on TBT have been primarily qualitative, this study appears to be the first to use RD for the quantitative analysis of the TBT. Furthermore, this study suggests that by using RD to identify countries or industries with regulatory gaps, parties conducting RTA negotiations could use this information as a basis for evaluating countries and industries that require harmonization of technical regulations and standards and preparing countermeasures.