Trilateral Free Trade Agreement Research Articles

Korea's Choice for Asia

The article discusses the Republic of Korea’s role in multiple already working and being negotiated free trade agreements from the viewpoints of the influence of Korea’s domestic affairs on the role and of the political and economic change among its partners in the free trade agreements. It finds that Korea’s position on the free trade agreements remained stable despite the shift to the domination of right-wing parties in Korea’s domestic politics in 2008 and back to domination of left-wing parties in 2017. Both left- and right-wing parties in Korea supported the free trade agreements, despite their rationale was different: in 2000s left-wing parties perceived the free trade agreements to curb negative consequences of the 1990s Asia’s financial crisis, while in 2010s right-wing parties perceived them as a response to the failure of multilateral trade negotiations within the World Trade Organization. It also finds that Korea’s partners in the free trade agreements sometimes seek to re-negotiate the already existing free trade agreements in response to domestic political and economic changes in those countries. In most cases, Korea and its partners managed to find common grounds at re-negotiations and thus to conclude renewed bilateral and multilateral free trade agreements. At the same time, Korea, China, and Japan have so far failed to conclude a trilateral free trade agreement, thus leaving the ASEAN in the position of the exemplary group of countries in the core of the network of Asia’s free trade agreements.

From Counterbalancing to Engaging China: Shift in Japan’s Approach towards the New International Order in the Asia-Pacific under the Second Abe Administration

Since returning to the post of prime minister in 2012, Abe Shinzō has been promoting Japan’s active posture in maintaining international stability in the Asia-Pacific. Abe’s vision of the new international order in the region has been based on Tokyo’s alliance with Washington, both in the security and economic spheres. Through legalization of Japan’s participation in collective self-defense pacts and revision of the Guidelines for Japan–US Defense Cooperation in 2015, Abe strengthened the Japan–US alliance. In parallel, he promoted Japan’s participation in the Trans-Pacific Partnership (TPP), which however was realized as Comprehensive and Progressive Agreement for Trans-Pacific Partnership without the Trump administration’s participation. In addition, Tokyo has been negotiating Regional Comprehensive Economic Partnership (RCEP), Japan–China–Republic of Korea Trilateral Free Trade Agreement, and Free Trade Area of the Asia-Pacific. The article argues that while initially the Japanese prime minister’s regional initiatives were aimed at counterbalancing China’s rise, they gradually started putting more emphasis on engaging China in international cooperation. Applying a neoclassical-realist methodology, this study examines both the international and the domestic determinants of Japan’s shift in approach towards the new international order.

The China–Japan–Korea Trilateral Free Trade Agreement: Why Did Trade Negotiations Stall?

Launched in 2013, the China–Japan–Korea Free Trade Agreement (CJKFTA) negotiations have slowed in recent years. The three countries have convened at 14 rounds of negotiations but failed to make any substantial breakthrough. A number of previous studies have presented a crisis‐driven approach in explaining the progress of the CJKFTA, and argue that the accomplished China–Korea Free Trade Agreement (CKFTA) will accelerate the CJKFTA negotiation. This study questions optimism over the CJKFTA, and investigates the reasons for the stalemate of ongoing negotiations. It does so by considering three sets of factors that have stalled the negotiation – economic interdependence, domestic politics, and industry interest groups – in addition to international politics/national FTA policies. First, the trilateral economic interdependence shows a downward trend in recent years and has weakened the necessity of having a trilateral FTA. Second, domestic sectoral interests remain highly divergent over a potential CJKFTA; opposition from loser groups in Japan remains strong, and the majority of the Korean business world still regard the utility of an accomplished CKFTA more highly than an accomplished CJKFTA. Finally, the three countries have failed to narrow the gaps during past negotiations because no party views the CJKFTA as a top priority, nor wishes to take the leadership. China does not want a high‐level CJKFTA; Japan's lack of political incentive and Korea's cautious “wait and see” stance have also led to a stalemate of the negotiations. In consequence, this article delivers a relatively pessimistic vision for the CJKFTA negotiation in the near future.

Northeast Asia’s Realism: Fated External Influences on Trilateral Economic Integration

This article examines the vicissitudes of Northeast Asian regional integration, with a focus on the development of the trilateral free trade agreement and the trilateral investment treaty. It emphasizes that Northeast Asian regionalism has proceeded through gradualism, informality, and lower-profile approaches as a realistic way for the development of cooperation, which in turn is due to the political fragility generated by Japan’s strained bilateral relations with China and Korea concerning persistent historical and territorial disputes, pushing the triangle to a 2:1 split. The article explores this particular structural problem in Northeast Asia as a fundamental vulnerability to the sound development of trilateral cooperation. The structural instability of Northeast Asian political relations with the cautious steps for the promotion of regionalism also exposes trilateral cooperation to potential external pressures, such as the US-led Trans-Pacific Partnership (TPP), which eventually compelled China and Japan to reach middle ground in their different approaches to integration and generated a key impetus for Northeast Asian integration. The article thus concludes that given the existence of historical and territorial tensions in Northeast Asia, the incremental growth of trilateral integration will continue to be subject to external pressures or growing US pressure on China over its trade practices, which the article identifies as an independent variable. The Trump administration’s decision to withdraw from the TPP in January 2017 thus removes one of the key drivers for the development of trilateral integration.

Economic evaluation of the trilateral FTA among China, Japan, and South Korea with big data analytics

This study quantitatively analyzes the impact of a free trade agreement (FTA) among China, Japan, and South Korea using big data analytics. Using game theory and the computable general equilibrium approach, it proposes a compromise between the two countries for agricultural protection, to reduce possible divergences and confrontations. The findings show that game results differ among the three countries as per interest indexes. Compared to full tariff exemption, an FTA with agricultural protection not only stimulates economic growth in the three countries but also reduces Japan and South Korea’s agricultural concerns and impact on employment. We also evaluate the impacts of the trilateral FTA on manufacturing and services industries. The results show that China will increase imports of energy-intensive products from Japan and South Korea, which may reduce domestic output and generate environmental benefits. Implementing the trilateral FTA with agricultural protection may reduce carbon emission in Northeast Asia by 6.53 million tons. This study can promote economic integration in Northeast Asia and coping with climate change. The analysis also highlights the importance of lifecycle management of energy-intensive industries in China, Japan, and South Korea.

The Multilateral Context of the Project of China-Japan-Republic of Korea Trilateral Free Trade Agreement

The China–Japan–Republic of Korea trilateral free trade agreement may become a critical pillar of Asian regionalism, determining future trade and political regime in the global scale. Undoubtedly, this trilateral political dialogue is to be accompanied by parallel talks over competitive, trans-regional projects involving Asia–Pacific partners, with special regard to the Transpacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). However, given the common challenges of the three analysed countries, in particular the unfavourable demographics, reindustrialization, and inefficient domestic demand, it should be noted that the said trilateral dialogue is facing very serious obstacles resulting from, among others, their historical ballast and territorial claims, as well as the intra-regional competition for leadership between Beijing and Tokyo. The aim of the article is to study both multilateral determinants and implications of the future China–Japan–Republic of Korea FTA.

Diplomatic Objectives in Trade Politics: The Development of the China-Japan-Korea FTA

This article seeks to analyze the development of free trade agreement (FTA) policies adopted by China, Japan, and South Korea with particular interests in the trilateral FTA. It seeks to address what the determinant factors that have conditioned the development of the trilateral FTA are. While the three governments began the informal joint study of the trilateral FTA in 2003, they pursued diverse trade strategies that disturbed a shift to formal negotiations. However, China's strategy to hedge against the US influence in East Asia became a catalyst in shifting from the long-lasting study stage to the launching of negotiations. Moreover, Japan's strategy to participate in TPP negotiations as a soft balancing against China through closer political linkages with the United States weakened China's and South Korea's willingness to engage in the trilateral FTA positively. Thus, the three countries’ commitments to the trilateral FTA were primarily confined by their specific diplomatic objectives responding to the political-economic evolutions in the Asia-Pacific region.

The Potential of China-Japan-South Korea Free Trade Agreement

This article explores the economic calculations behind the recent initiatives for the Free Trade Agreement (FTA) between the Governments of China, Japan and South Korea (CJK) and clarifies the implications for future regional economic integration. First, the proposed trilateral FTA signifies an advancement of China-centered regional economic integration. Regional economic integration led by China may also increase its political clout at the global stage. Second, the Governments of South Korea and Japan seek greater involvement in China's huge domestic market, but the former is concerned that a trilateral FTA will worsen its trade deficit with Japan, and the latter is afraid of losing its market shares in China and America to its Korean rival. Japan, therefore, seeks membership of both the CJK FTA and the Trans-Pacific Partnership (TPP). Third, China and the US' active involvement in regional economic integration will push the three countries to go forward towards greater economic cooperation. However, it will take longer for China-led Regional Comprehensive Economic Partnership (RCEP) and America-led TPP to bear fruit because of the large number of countries involved. Therefore, the conclusion of CJK FTA will be an important boost for the further progress of both RCEP and TPP. It will also be an important stabiliser for the trilateral political relations in the future.

Process of the Economic Integration of China with Asean Countries. An Overview

Process of the Economic Integration of China with Asean Countries. An OverviewChina occupies an important economic position in Eastern Asia, accounting for circa 60% of trade turnover and capital flows in the region. Based on the regional production network in Eastern Asia, the Chinese economy might constitute an integral part of the regional market. China is interested in a liberal, secure and stable regional market which promotes the adoption of an active role of a participant and promoter of regional trade agreements (RTA) by China, i.e. the free trade agreement China - ASEAN, proposed trilateral free trade agreement of South-Eastern Asia, or EAFTA. China is also interested in participating in and promoting regional monetary and financial cooperation, for example as part of the Chiang Mai Initiative and the development of the regional capital market. The Chinese concept of regionalism is complex due to the diversity of the neighbouring geographic areas. Despite the attachment of China to the ASEAN+3 variant, this country is relatively flexible in its approach to the form and nature of its own participation in multi-dimensional integrations structures, i.e. EAS1. At the same time China has made effort for developing institution outside the regional, i.e. for example SOC, potential security system for the North-Eastern Asia based on Hexalateral Talks.

China’s emergence in East Asia under alternative trading arrangements

China’s accelerated global emergence has changed trade patterns in the Asia-Pacific region and exerted important influence on its trilateral relationship with Japan and the United States. In this paper, we evaluate the effects of multilateral and regional trade policy scenarios that are particularly relevant to China, Japan, and the United States using a dynamic global computable general equilibrium (CGE) model. Our results suggest that the three countries would gain substantially from a trilateral free trade agreement and could realize large fractions of the residual gains from global trade liberalization. We contrast this with prospective free trade agreements (FTAs) in East Asia, and we find that these FTAs largely benefit smaller member economies (e.g., ASEAN countries).