The Possibility of a China-Japan-South Korea Free Trade Agreement: How Free Trade Developed in East Asia and How It Determined the Economic Growth of the East Asian Region

Abstract

Ever since being introduced into the modern economy, Free Trade Agreements (FTAs) have been a fundamental tool for the development of economic integration all around the world. FTAs created a possibility for developing countries to be able to enter the international economic arena, establishing mutually beneficial trade agreements with developed countries. In particular, the East Asian region has been especially prolific with the establishment of FTAs, with China, Japan, and South Korea (CJK) becoming extremely important trade partners for many countries after experiencing a long catching-up process which was essential for their economic growth. Additionally, China, Japan, and South Korea managed to create a solid trade system, integrating their economies, and becoming each other’s main trade partners. However, despite the three countries experiencing strong economic integration, a trilateral Free Trade Agreement has yet to be established. Discussions regarding a CJK FTA have been ongoing for almost 10 years but there are many obstacles that have been and are still stalling further developments such as economic divergences but also historical and political reasons. This dissertation will discuss why these three pillars of East Asia have yet to accomplish an FTA that will not only expand their economic growth even further but also increase their prestige and importance at the international level, with this bloc of countries becoming one of the influential economic blocs of the world.