10. EU and South Korea: A Model Example for Foreign Trade Policy Relations?

The EU-Korea Free Trade Agreement (KOREU) is the first free trade agreement (FTA) the EU concluded with a trading partner from Asia. Beyond the comprehensive liberalization of industrial and agricultural tariffs, KOREU covered a broad range of behind-the-border measures, such as rules of origin, non-tariff barriers, industrial regulation, intellectual property rights, services, public procurement, competition and sustainability. Coming into force in July 2011, Europe’s deep recession at that time initially put a strain on the agreement, which led to some disappointment in Korea at first. Nevertheless, bilateral trade expanded significantly in a very difficult trade environment, especially when compared with both sides’ trade with third parties. Beyond the stimulation of trade and investment, KOREU generated various merits for both sides of the agreement. The EU was able to assert its industrial regulatory standards and establish itself firmly as an attractive, albeit demanding, trade policy actor in Asia. Korea undertook a regulatory modernization and positioned itself as a frontrunner in international trade liberalization, as FTAs with the US and China, its two other heavyweight trade partners followed suit. In parallel to the expansion of trade and investment, the bilateral political relations were strengthened, too.