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Free trade agreements (FTAs) are proliferating in the Asia-Pacific region. For the first time, Korea is pursuing such accords as part of a strategy to restructure its economy and sustain the recovery from its 1997-98 economic crisis. Should it open talks with its largest trading partner, the United States? This study examines the economic and political benefits and challenges of pursuing bilateral FTA negotiations, the impact of a prospective pact on other trading partners, on the Asia-Pacific Economic Cooperation (APEC) forum, and on the multilateral trading system.

Preface

Acknowledgments

1. Introduction

2. Bilateral Trade and Investment

3. Bilateral Trade Frictions

4. Potential Benefits of a Korea-US FTA

5. External Implications of a Korea-US FTA

6. Prospects for an FTA

7. Conclusions

8. Appendix A

9. Appendix B

References

Index