The prospect of the Korea – EAEU cooperation based on the possible bilateral FTA

Abstract

This research is about the importance of economic cooperation between Korea and Russia and furthermore between Korea and EAEU based on the possible bilateral FTA. Because of Western economic sanctions and international low oil prices, Russia suffered economic hardships. As a solution to this situation, Russia is seeking new economic partners in the Asia-Pacific region with a policy of New East Asia Policy. As a result, EAEU is moving not only to expand its membership but also to strengthen economic cooperation with countries in the Asia-Pacific area. Recently, Russia’s economic relations with the Asia-Pacific region, which is leading the EAEU, have steadily developed. In the meanwhile, Korea is facing a number of challenges under escalating economic uncertainty around the world. Korea will need to diversify its partnerships with emerging economies and reduce its economic dependence on the Chinese market. In these days, the Free Trade Agreements (FTAs) became the most popular preferential law style in various types of international economic agreements. In 2016, Korea and EAEU completed a joint study on the feasibility of concluding a free trade agreement. The EAEU member countries have shared a common consensus on the need to promote industrial cooperation through the expansion of EAEU investment by Korean companies beyond the limits of traditional FTAs. However, in comparison with the necessity and importance of FTA negotiations between Korea and EAEU, there are relatively few studies and researchers on the field of economic cooperation between Korea and EAEU. This research contributes to suggest way to strengthen economic cooperation between Korea and EAEU countries. This paper starts from the basic explanations of information on the FTAs in Korea, Russia and the EAEU and analyses the current statues of Korea and the EAEU economic cooperation. In order to carry out this research, the primary data such as documents related to the EAEU and the Intergovernmental Treaty Concerning the FTA were analysed. It also conducted statistical analysis through institutional and government reports related with EAEU and FTA.
Key words: Free Trade Agreement (FTA), Eurasian Economic Union (EAEU), Economic cooperation, Korea, Russia.