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The Hydra revisited: expectations and perceptions of the impact of the EU-Korea free trade agreement

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  • Judith Cherry

    (University of Sheffield)

Abstract

On 1 July 2011, a free trade agreement was provisionally implemented between the EU and South Korea. At the time, there were clear expectations within the EU business community in Seoul about the likely impact of the deal, including an increase in EU exports, the dismantling of tariff and existing non-tariff barriers (NTBs), the possible emergence of new NTBs, the further development of mechanisms for discussion and problem-solving mechanisms, and a shift in Koreans’ perceptions of all imported EU goods as luxury items. Interviews conducted with expatriate executives, diplomats and trade officials in Seoul in 2015 revealed the extent to which these expectations have been fulfilled and also highlighted the importance of broad economic and social trends in the strong performance of EU exports since 2011. These included the maturing of the Korean economy and the growing need for high-end industrial goods, and the Koreans’ increasing purchasing power and the concomitant desire to engage in displays of wealth. In addition to contributing to the general academic debate on the impact of free trade agreements (FTAs) and adding specific colour to the case of the EU-Korea FTA, this research will play an important role in shaping responses to the shifting economic, social and cultural trends that will impact the future outcomes of this key trade deal between the EU and Korea. It will also inform the EC’s discussions with current and future free trade agreement partners and its analysis of the various factors influencing the actual and perceived success or failure of those deals.

Suggested Citation

  • Judith Cherry, 2018. "The Hydra revisited: expectations and perceptions of the impact of the EU-Korea free trade agreement," Asia Europe Journal, Springer, vol. 16(1), pages 19-35, March.
    • Handle: RePEc:kap:asiaeu:v:16:y:2018:i:1:d:10.1007_s10308-017-0481-6
    DOI: 10.1007/s10308-017-0481-6
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    References listed on IDEAS

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    1. Christopher M. Dent, 2006. "New Free Trade Agreements in the Asia-Pacific," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-62791-8.
    2. Dai, Mian & Yotov, Yoto V. & Zylkin, Thomas, 2014. "On the trade-diversion effects of free trade agreements," Economics Letters, Elsevier, vol. 122(2), pages 321-325.
    3. Sanjeev Goyal & Sumit Joshi, 2006. "Bilateralism And Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 749-778, August.
    4. Anne O. Krueger, 1999. "Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 105-124, Fall.
    5. Bhagwati, Jagdish, 2008. "Termites in the Trading System: How Preferential Agreements Undermine Free Trade," OUP Catalogue, Oxford University Press, number 9780195331653.
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    Cited by:

    1. Julia Grübler & Oliver Reiter, 2020. "Non-tariff Trade Policy Analysis: An Ex-post Assessment of the EU-Korea Agreement," wiiw Working Papers 182, The Vienna Institute for International Economic Studies, wiiw.
    2. Bas Hooijmaaijers, 2021. "A comparative analysis of the role of the state in Chinese, Japanese, and Korean investment in the EU," Asia Europe Journal, Springer, vol. 19(4), pages 427-444, December.
    3. Julia Grübler & Oliver Reiter & Robert Stehrer, 2021. "On the new gold standard in EU trade integration: reviewing the EU-Japan EPA," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 611-644, August.
    4. Sae Won Chung & Jae-Seung Lee, 2019. "Building the pillars of the EU-South Korea strategic partnership," Asia Europe Journal, Springer, vol. 17(3), pages 327-340, September.

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