Asymmetry in Japan and Korea's agricultural liberalization in FTA: domestic trade governance perspective

Abstract

Agricultural liberalization is one of the most contentious trade issues in Japan and Korea. Yet, important differences characterize the Japanese and Korean governments’ positions on agricultural liberalization when negotiating on free trade agreements (FTA). The Korean government supports substantial agricultural liberalization, whereas the Japanese government is reluctant to abandon farm interests even at the risk of undermining its FTAs. Given strong similarities in their agricultural structure and politics, how do you explain divergent government positions between Japan and Korea? The structure of a country's domestic trade governance largely explains the Japanese and Korean governments’ varying approach to agricultural liberalization during FTA negotiations. Domestic trade governance refers to the decision-making structure and process on foreign economic policies. Cohesive domestic trade governance enabled the Korean government to pursue agricultural liberalization under the broader national agenda of promoting trade through FTAs. In contrast, fragmented domestic trade governance gave disproportionately larger weight to agricultural interests within the Japanese government, ultimately allowing agriculture to undermine the success of Japan's FTAs.

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