POLITICS OF EAST ASIAN FREE TRADE AGREEMENTS This textbook explains the politics of free trade agreements in Japan and South Korea. Examining free trade agreements in Japan and South Korea since the late 1990s, Choi and Oh analyze the role of institutions, political leaders, sectoral interests, and civil society in placing the two countries on alternate paths of free trade agree- ments at different points in time. Systematically approaching the politics of free trade agreements from each perspective, they expose the domestic political under- pinnings of free trade agreements in a global trade order that is increasingly fraught with conflict. A valuable textbook for students of international political economy and interna- tional trade in East Asia, particularly those focusing on Japan and South Korea. It’s also a useful resource for scholars and policymakers looking to better understand trade politics in East Asia. Choi Byung-il is professor and the former Dean of the Graduate School of International Studies (GSIS), Ewha Womans University (Seoul, Korea). He is also the President of Korea Foundation for Advanced Studies. Most recently, he was the President of the Korea Economic Research Institute, a think tank representing the Korean business sector. He served leadership positions at several academic associations, including the President of the Korean International Economic Association, President of the Korean Association of Trade and Industry Studies, and President of the Korea Association of Negotiation Studies. He was a member to various advisory councils for the Korean government, including the National Economic Advisory Council for the President of Korea, Trade Negotiations Advisory Council, Inter-Korea Relations Council, and Advisory Council for the Ministry of Foreign Affair and Trade. Prior to joining the Ewha GSIS in as a founding faculty, he was the Korean chief negotiator for the WTO basic telecom negotiations (1994–1997). His service in the interna- tional area awarded him two medals of excellence from the Korean government. Jennifer S. Oh is an associate professor at the Graduate School of International Studies, Ewha Womans University (Seoul, Korea). She is a political scientist who specializes in comparative political economy and East Asian politics. Her main research areas are the political economy of Japan and Korea, trade politics, agri- cultural politics, and East Asian democracy. Recent publications cover topics such as FTA politics in Japan and Korea, agricultural reform and farm group politics in Japan and Korea, and Korean social mobilization. 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Arifianto Social Capital in Singapore The Power of Network Diversity Vincent Chua, Gillian Koh, Tan Ern Ser and Drew Shih Politics of East Asian Free Trade Agreements Unveiling the Asymmetry between Korea and Japan Byung-il Choi and Jennifer S. Oh For the full list of titles in the series, visit: https://www.routledge.com/Politics-in- Asia/book-series/PIA POLITICS OF EAST ASIAN FREE TRADE AGREEMENTS Unveiling the Asymmetry between Korea and Japan Choi Byung-il and Jennifer S. Oh First published 2021 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2021 Choi Byung-il and Jennifer S. Oh The right of Choi Byung-il and Jennifer S. Oh to be identified as authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Ch’oe, Pyŏng-il, 1958- author. | Oh, Jennifer S., author. Title: Politics of East Asian free trade agreements : unveiling the asymmetry between Korea and Japan / Byung-il Choi, Jennifer S. Oh. Description: New York : Routledge, 2021. | Series: Politics in asia | Includes bibliographical references and index. | Summary: "A textbook which explains the evolution of international political economy in East Asia. Examining the development of Free Trade policy in Japan and South Korea since the late 1990s, Choi and Oh analyse the role of political, institutional, sectoral, and civil society factors in placing the two countries on different paths at different points in time. Systematically approaching this issue from each perspective in turn, they expose the domestic political underpinnings of the free trade system. A valuable textbook for students of international political economy and international trade in East Asia, particularly those focussing on Japan and South Korea. It's also a useful resource for scholars and policymakers looking to better understand the dynamics of free trade policy in East Asia”-- Provided by publisher. Identifiers: LCCN 2020040760 (print) | LCCN 2020040761 (ebook) | ISBN 9780367278922 (paperback) | ISBN 9780367278854 (hardback) | ISBN 9780429298585 (ebook) Subjects: LCSH: Korea (South)--Economic conditions--21st century. | Japan--Economic conditions--21st century. | Korea (South)--Economic policy. | Japan--Economic policy. | Free trade--Korea (South) | Free trade--Japan. | Korea (South)--Commerce--Japan. | Japan--Commerce--Korea (South) | East Asia--Commerce. Classification: LCC HC467.965 .C4714 2021 (print) | LCC HC467.965 (ebook) | DDC 382/.71095195--dc23 LC record available at https://lccn.loc.gov/2020040760 LC ebook record available at https://lccn.loc.gov/2020040761 ISBN: 978-0-367-27885-4 (hbk) ISBN: 978-0-367-27892-2 (pbk) ISBN: 978-0-429-29858-5 (ebk) Typeset in Bembo by SPi Global, India To Jiyoung, Stephen, Christine, Yon Sog, Frances, and Jerome. CONTENTS List of Figures and Tables viii Preface ix List of Abbreviations xi 1 Introduction 1 2 Asymmetric evolution of Korea and Japan’s FTAs, late 1990s–2020 15 3 Trade policymaking institutions 34 4 Political leadership and trade policymaking 58 5 Civil society, interest groups, and FTA politics 81 6 Geopolitics and changing Japan and Korea’s trade relations 100 7 Conclusion 117 Index 122 FIGURES AND TABLES FIGURE 1.1 Framework 9 TABLES 2.1 Korea’s FTAs and Share of Food Imports 20 2.2 Japan’s FTAs and Share of Food Imports 21 2.3 Overview of Argument 29 3.1 Domestic Trade Governance and Japan and Korea’s FTAs, 1990s–2020 35 PREFACE “How could Korea negotiate an FTA (free trade agreement) with the U.S.? Aren’t you afraid of angry opposition from farmers?” The Japanese Vice Minister of Agriculture was puzzled. On April 2007, one of the authors of this book met with a team of high-level delegation from Japan. The purpose of their visit was to seek an answer or clue to understand the audacity of the Korean government in its pursuit of an FTA with the U.S., one of the biggest exporters of farm products. In early April 2007, Korea and the U.S. had successfully concluded their FTA negotiations. To the eyes of the Japanese delegation, the Korean government’s move was risky and tantamount to political suicide. One question haunted the Japanese delegation. What enabled the Korean government to embark on such a bold adventure, while Japan could not? “Do you think Korea will join the TPP (Trans-Pacific Parntership)?” Across the dining table, the Japanese Minister of Agriculture was beaming. It was June 2016 and the same author had a breakfast meeting with the Japanese Minister of Agriculture in Tokyo. Japan in 2016 was very different from the Japan the author had encountered in 2007. In early 2016, Japan had entered into the TPP with 11 countries including the U.S. Korea was not one of the 11 countries. In the time span of about a decade, Japan had become bolder and more adventurous in its pursuit of FTAs. Japan must have found its answer to the questions posed in 2007. Korea and Japan thrive on trade. Through trade, the two countries have emerged as global manufacturing powerhouses. To keep their manufacturing sectors com- petitive, securing and enhancing market access is critical. The global race for FTAs, which gained momentum in the late 1990s and became intensified at the dawn of the new millennium, pushed the two countries to an uncharted territory in trade policymaking. They were forced to seriously consider opening their heavily pro- tected agriculture sectors. Otherwise, FTAs with major countries or a meaningful FTA with any country would be virtually impossible. Somehow, Korea stood up to