Deadlocked FTA Negotiations between Korea and Japan: Domestic Politics of KJFTA in Japan

Abstract

Since 2000s, Japan has been gradually strengthening its drive forces for trade liberalization into a global market. However, it seems that the case of Korea-Japan FTA has been revealed an exceptionally different trend from Japans recent FTA initiatives under Abe administration and Koreas proactive FTA policies. The KJFTA has not come to an agreement yet since the negotiations have started in 2003 up to now in the mid-2016. This thesis aims to investigate what sort of constraints have been tackled further negotiations of the KJFTA, mainly whether it is caused by political or economic reasons in Japanese society. I would like to examine the current barrier factors in the progress of KJFTA talks concentrating on the Japans domestic political constraints, which is producing a huge obstacle to the agreement. Many scholars observe that the issue of non-competitive sectors and Japans domestic FTA politics, which can be interpreted as the iron triangle or triad alliance relationships of the political party (or politicians), bureaucrats and interest groups, have been generating the strongest domestic hurdles to the trade negotiations. Then, what explains the impact of the iron-triangle alliance on the process of KJFTA negotiations? How have these factors materially affected to conflicting issues behind trade negotiations? My thesis pays close attention to the Japans domestic policymaking process and deals with the recent traces for iron-triangle interaction which are resistant to trade liberalization in the agricultural politics. By doing so, this paper contributes to bring out the issue of Japanese domestic politics, particularly agricultural politics, related to the prolonged KJFTA negotiations as well as analyze it together which has been rarely applied in the analysis yet in this field. Even though the two nations have a long road ahead, it is too early to conclude that the future of KJFTA negotiation is bleak. Most notably, the recent movements of Japans foreign economic policy under Abe administration show its strong desire for participating either bilateral or multilateral economic talks. Last but not least, PM Abe has insisted on substantial reforms on agricultural politics by weakening the influence of agriculture cooperatives to trade negotiations and it has been successfully done so far. Yet, these efforts are still tangential to the success of KJFTA negotiations. Against all odds, when the Korean and Japanese government achieve the agreement of KJFTA, it will definitely bring out a new momentum beyond current diplomatic impasse for the bilateral relations, and even for East Asian economic integration.