Background of Research
The world economy had been pursuing multilateral systems under the WTO. However, regionalism has intensified with rapid expansion of free trade agreements since 1990. On the other hand, the international trade order is recently changing from bilateral FTAs to Mega FTAs. TPP, which was concluded at the end of 2015, is an agreement, intended for economic integration of 12 countries, and by TPP, negotiation of RCEP is also accelerating.
Korea has concluded 15 FTAs with 52 countries as of July 2016 and bilateral FTAs with major countries are about to be completed. Therefore, it is time to review negotiation strategies on TPP and RCEP as well as trade policy of Mega FTA.
This study reviews issues to consider when negotiating TPP and RCEP, drawing negotiation strategy. Also, it aims to suggest trade strategy which can minimize impact on the agricultural sector and utilize Mega FTAs.


Method of Research
Literatures regarding trends of international trade order and discussion on Mega FTAs were reviewed to study background of new international trade order. Also, current trade issues which Korea is facing were analyzed through the results of TPP negotiation, discussion and issues of RCEP, previous studies and statistical data.
Regular forums and seminars were held to discuss current agricultural trade issues and the implications drawn from the forums were reflected in this study. The agricultural trade forum was formed of experts from agricultural and non-agricultural sectors and it was used as a door to collect extensive opinions.

Research Results and Implications
It is expected that the international trade negotiation will be developed, mainly by Mega-FTA and certain agendas in future. In particular, TPP established regulations on new trade issues over free trade of goods, including regulations which have not been treated in the WTO.
Korea is required to have attitude of careful access since it has to adopt the existing agreement as a late comer. Most of all, conflicts between agricultural and non-agricultural sectors concerning market opening are likely to occur, so responses need to be prepared to minimize social conflicts and costs considering domestic and overseas requirements. In particular, we need to prepare for additional market opening of sensitive products such as rice and measures on reinforcement of SPS regulations.
Since Korea opened ASEAN and Chinese markets at a low level through FTAs, RCEP is likely to have bigger effect than that of TPP. Particularly, because there are a lot of agricultural exporters in RCEP, we need to prepare for responses to market access and regulations.
Through Mega FTA, Korea will be able to create added value in terms of backward participation which exports manufactured products using the materials from overseas. Not only expanding exports of processed food with customs benefit of materials imported through Mega FTAs, but we also need to make it as an opportunity to export agricultural materials to the member countries.

Researchers: Kim Younghoon, Eor Myongkeun, Lee Sanghyeon, Cho Sungju, Chung Daehee, Ahn Soojung, Oh Saera
Research Period: 2016. 1. ~ 2016. 12.
E-mail address: shlee@krei.re.kr