The Korean government launched the negotiation of free trade agreement with the United States from this year. The hot dispute is arising in Korea about the benefits and losses which the KOR-US FTA will bring on. This paper looks at the regional effect...
The Korean government launched the negotiation of free trade agreement with the United States from this year. The hot dispute is arising in Korea about the benefits and losses which the KOR-US FTA will bring on. This paper looks at the regional effects of KOR-US FTA in Korea, examining the direct effect which KOR-US FTA will cause by trade expansion and the indirect effect which KOR-US FTA will bring through regional development policies change. Three points are anticipated. First, the regional disparities might be expanded because the capital metropolitan area has the comparative advantage of participation in international trade networks comparing to the weak position of the non-capital metropolitan area. Second, the regional cohesion policies will be weak because the trade policy substitutes the regional development policy. Third, KOR-US FTA will lead to the violation of the sovereignty in regional and local level because KOR-US Bilateral Investment Treaty(BIT) and investor-state claim restricts the authority of the regional government generally.