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21. The Impact of the U.S.-Korea Free Trade Agreement On Both Economies

Author:
Yoon-Shik Park
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
Four and a half years after the agreement between the U.S and Korean governments, the U.S.-Korea Free Trade Agreement (KORUS FTA or KORUS) was finally approved by both the U.S. Congress and the Korean Parliament in late 2011 and has been in effect since March 15, 2012. KORUS is the most important free trade agreement for the U.S. since the North American Free Trade Agreement (NAFTA) that came into force in 1994. Korea has become an important trade partner of the United States, for which Korea is the 7th largest trading partner, 5th largest export market for agricultural products, 2nd largest market for U.S. services in Asia, and 10th largest market for information technology products. The total U.S.-Korea trade volume tripled over just two decades between 1990 and 2011. However, the relative importance of two countries' bilateral trade has declined in recent decades. This trendline decline is expected to be reversed in the coming years because of the KORUS. Several studies have been conducted to estimate the potential effects of KORUS. The U.S. International Trade Commission (ITC) study in 2007 estimated that U.S. GDP would increase by $10 to $12 billion (about 0.1%) and U.S. exports would rise by $9.7 billion to $10.9 billion, if KORUS were fully implemented. A University of Michigan study, commissioned by the Korea Economic Institute, estimated that U.S. GDP would increase by $25 billion (0.14% of GDP). This estimate was larger than the US ITC result, in part because the study included the effects of liberalization in services trade. The Korea Institute for International Economic Policy (KIEP) estimated the potential economic impact of KORUS on Korea's economy. The study concluded that KORUS would lead to an increase of 0.42% to 0.59% in Korean GDP according to a static analysis and 1.99% to 2.27% according to a dynamic analysis. A study by the U.S. Chamber of Commerce in 2009 found that America would suffer a net loss of more than 345,000 jobs, $35 billion in lost export sales and U.S. GDP failing to grow by $40 billion, if KORUS were NOT implemented while the European Union and Canada moved forward to implement FTAs with Korea.
Topic:
Economics
Political Geography:
United States and Korea

22. Performance of the Services Sector in Korea: An Empirical Investigation

Author:
Donghyun Park and Kwanho Shin
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
There is a widespread perception that Korea's services sector lags behind its dynamic world-class manufacturing sector. This paper empirically analyzes the past performance of Korea's services sector in order to assess its prospects as an engine of growth. The analysis resoundingly confirms the conventional wisdom of an underperforming service sector. In light of Korea's high income and development level, the poor performance of modern services is of particular concern. The authors identify a number of factors underlying the poor performance and set forth policy recommendations for addressing them. Overall, Korea faces a challenging but navigable road ahead in developing a high value-added services sector.
Topic:
Development, Economics, Emerging Markets, Industrial Policy, and International Trade and Finance
Political Geography:
Israel and Korea

23. Assessing the Asia Pivot

Author:
Walter Lohman
Publication Date:
06-2012
Content Type:
Journal Article
Journal:
The Journal of International Security Affairs
Institution:
Jewish Institute for National Security Affairs
Abstract:
In the course of two months in the fall of 2011, the President and his administration—particularly the Secretary of State—conducted a political and diplomatic offensive to prove American staying power in Asia. It marked a 180-degree turn from where the White House had begun three years earlier. The fall offensive began with the long-awaited passage of the Korea-U.S. FTA (KORUS), an agreement of major economic importance. After years of accumulated opportunity costs, in October, the administration finally pushed the agreement forward and arranged for South Korean President Lee Myun-bak to be in Washington for the occasion of its passage. Secretary of State Hillary Clinton framed the new approach in her November “America's Pacific Century” speech, wherein she declared the Administration's “Asia Pivot.”1 President Obama gave the approach authority and economic substance at APEC, where the U.S. secured a game-changing commitment from Japan to join the Transpacific Partnership trade pact (TPP). The President then embarked on his third visit to the Asia Pacific. In Australia, he announced new training rotations of up to 2,500 U.S. Marines through Australia's northern shore, a move with obvious implications for the security of our allies and sea lanes, and in Indonesia, he became the first American president to participate in the East Asian Summit (EAS). At the EAS meeting of 18 regional leaders, President Obama raised the importance of maritime security and freedom of navigation and “expressed strong opposition to the threat or use of force by any party to advance its territorial or maritime claims or interfere in legitimate economic activity”—thereby tying American interests to regional concerns about China. For her part, Secretary Clinton headed to Manila to commemorate the 60th anniversary of the U.S.-Philippines Mutual Defense Treaty (MDT)—and then on to America's other treaty ally in Southeast Asia, Thailand. In Manila Bay, she signed a reaffirmation of the U.S.-Philippines MDT on the deck of a U.S. Navy destroyer and essentially declared America ready to “fight” for the Philippines. She also announced the dispatch to Manila of the second (of what will likely be four) refurbished coast guard cutters. En route to Indonesia, President Obama phoned long-suffering Burmese human rights icon Aung San Suu Kyi to get her blessing for a Burma visit from Secretary Clinton. Clinton arrived in Burma by the end of November, meeting Suu Kyi and the Burmese president and beginning a careful, “action for action” process of normalization that could have major implications for the U.S. strategic position in the region. The Chinese have long taken advantage of Burma's isolation from the U.S. If Burmese political reform proves to be real, it will offer an opportunity for the U.S. to reassert itself there. It will also remove a roadblock in America's relationship with the Association of Southeast Asian Nations (ASEAN) with which it has long disagreed on Burma. A democratic Burma would tip the scales in ASEAN—a hodgepodge of governing systems—in favor of democracy, a state of play that improves the sustainability of American engagement.
Topic:
Security, Economics, and Human Rights
Political Geography:
Afghanistan, Japan, America, Washington, Asia, Australia, and Korea

24. Global Matrix: A conceptual and organisational framework for researching the future of global governance

Author:
Daniel Gros, Richard Youngs, Michael Emerson, Christian Egenhofer, Nathalie Tocci, Giovanni Grevi, and Jean-Pierre Cassarino
Publication Date:
07-2011
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Conceptually, Global Matrix advances in a systematic and structured inter-disciplinary (matrix) framework a research agenda for examining the stance of major world actors on the key policy dimensions to world politics (political ideologies, economics, migration, climate change, security and world view); drawing out evidence of cross-cutting linkages (between sectors and among major actors); and evaluating the evolution and adequacy of existing multilateral institutions in relation to the emerging multi-polarity, and formulating recommendations.
Topic:
Security, Climate Change, Economics, Globalization, International Cooperation, International Organization, and Governance
Political Geography:
Japan, South Africa, Brazil, and Korea

25. Securitizing trade: the case of the Korea–US free trade agreement

Author:
Min Gyo Koo and Yul Sohn
Publication Date:
09-2011
Content Type:
Journal Article
Journal:
International Relations of the Asia-Pacific
Institution:
Japan Association of International Relations
Abstract:
The Korea–US free trade agreement (KORUS FTA) of 2007 clearly shows how countries simultaneously pursue economic benefits and strategic interests in trade negotiations. This study argues that the surprise launch and the successful conclusion of the KORUS FTA illustrate the joint efforts by the United States and the Republic of Korea to re-securitize their bilateral economic relations. Security and strategic calculations held by top policy-makers on both sides catalyzed the official launch of FTA negotiations by removing a number of longstanding trade irritants such as Korea's screen quotas and ban on US beefs. At the post-negotiation stage, however, the lack of bipartisanship— particularly in the United States—to provide trade liberalization for their allies in favor of their own broader strategic interests has led to the legislative stalemate of executive efforts at re-securitization of trade relations. This study concludes that the stalemated ratification process shows the erosion, not the strength, of US power to provide security and trade liberalization as public goods.
Topic:
Economics
Political Geography:
United States and Korea

26. G-20 Reforms of the International Monetary System: An Evaluation

Author:
Edwin M. Truman
Publication Date:
11-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
With great French fanfare the G-20 committed itself in Seoul, Korea a year ago “to build a more stable and resilient international monetary system (IMS), including by further strengthening global financial safety nets.” As subsequently elaborated by French President Sarkozy and other French government officials, the agenda for IMS reform included five elements: surveillance of the global economy and financial system, the international lender-of-last-resort mechanisms (global financial safety nets), the management of global capital flows, reserve assets and reserve currencies, and IMS governance.
Topic:
Economics, Globalization, International Trade and Finance, Markets, and International Monetary Fund
Political Geography:
Korea

27. Why Russia is Not South Korea

Author:
Sergei Guriev and Ekaterina Zhuravskaya
Publication Date:
06-2010
Content Type:
Journal Article
Journal:
Journal of International Affairs
Institution:
School of International and Public Affairs, Columbia University
Abstract:
By January 1992, the Soviet Union had dissolved and the new Russian government had liberalized prices for most goods and services, ushering in a new Russian economy. In 2010, this economy turned eighteen years old and has, in Russian terms, come of age. In this article, we assess the current state of the Russian economy and its long-term prospects. Where is the Russian economy today, and where is it heading?
Topic:
Economics
Political Geography:
Russia and Korea

28. Notes on Equilibrium Exchange Rates: January 2010

Author:
William R. Cline and John Williamson
Publication Date:
01-2010
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In June 2009 we issued our annual update of estimates of fundamental equilibrium exchange rates (FEERs) for 34 major economies (Cline and Williamson 2009). At that time the dollar had already begun correction from the substantial overvaluation that had arisen from the strong safe-haven effect associated with the global financial crisis of 2008–09. In this policy brief we report on changes in disequilibria in the exchange markets since the date those earlier calculations referred to, namely March 2009. We first present estimates of the extent of movement toward FEER-consistent bilateral dollar exchange rates from March to December 31, 2009, and then look at how effective exchange rates have altered in the same period. We also re-estimate the FEER-consistent dollar rate for one important currency, the Korean won.
Topic:
Economics, Foreign Exchange, International Political Economy, and Monetary Policy
Political Geography:
Korea

29. The G-20 and International Financial Institution Governance

Author:
Edwin M. Truman
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper addresses the agenda for the Group of Twenty (G-20) leaders' meeting in Seoul, Korea in November 2010. This is an opportunity and challenge for Asian leaders in particular. Their test will be, first, to demonstrate that they can responsibly advance economic recovery. They must also deliver on institutional reform, in particular of the International Monetary Fund (IMF). I advocate a substantial expansion of the IMF's role as lender of last resort that is integrated with the surveillance role of the IMF in the form of comprehensive prequalification for IMF assistance and policy advice and a substantial increase in the IMF's financial resources. I also propose an approach to meaningful reform of the distribution of IMF quotas along with limiting European seats on the IMF executive board.
Topic:
Economics, Emerging Markets, Global Recession, Financial Crisis, and Governance
Political Geography:
China, Israel, Asia, and Korea

30. Chronology of North Korea-South Korea Relations

Publication Date:
01-2010
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
No abstract is available.
Topic:
Economics
Political Geography:
North Korea and Korea