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Ideas or Institutions? : Explaining the Protectionism in South Korea

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The purpose of this study is to explain the protectionist tendency manifested in the course of Korea-Chile FTA. FTA is a measure to increase trade volume by mutual tariff elimination. Although FTA has discriminatory nature to non-member nations it basically opens up domestic market especially when a nation has multiple FTAs. However, we could observe strong presence of protectionism in Korea-Chile FTA negotiations and ratification process. Several commodities - apples and pears for Chile and freezer and washing machine for Korea- which both countries are especially interested in were excluded from the tariff elimination list mainly due to the strong opposition of Korean agricultural sector. Two parties have settled for agreement which fails to realize the economic potential of the FTA. Moreover, during the ratification process the Korean government provided huge compensation in order to soften up the angry farmers and oppositional coalition in the National Assembly. While the government aimed at trade liberalization, the outcome only confirmed the strong protectionism in Korea.
The most important variable here is the role of electoral institution(district apportionment institution) which enables agricultural interests to overrepresent in the National Assembly. The existence of protectionist culture alone cannot explain the power of agricultural interests. Electoral institution created by the political calculation has unintended implication to trade policy. Thus, the focus on trade-related institutions has critical limitation in explaining the protectionist policy of Korea.
As long as the agricultural interests are overrepresented in the National Assembly, Korea’s trade policy especially related to the agricultural market opening will continuously incline to protectionism. Even in negotiation process, the government has no choice but to consider the possibility of ratification in the National Assembly hence throws protectionist goals to negotiation table. A recent negotiation over rice market opening show how powerful the agricultural interests in Korea. Again the sheer number of agricultural population does not explain Korea’s inclination to protectionism. The electoral institution which creates overrepresentation of agricultural interests in the legislative politics should be taken seriously.

Most Common Document Word Stems:

trade (113), korea (105), institut (102), polici (73), korean (67), chile (60), interest (56), polit (52), fta (51), agricultur (46), elector (42), negoti (41), govern (41), idea (37), vote (35), district (34), nation (33), agreement (32), domest (30), ratif (28), econom (28),

Author's Keywords:

Korea, ideas, institutions, protectionism, electoral institution, FTA
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Name: International Studies Association
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http://www.isanet.org


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Yu, Hyun-Seok. "Ideas or Institutions? : Explaining the Protectionism in South Korea" Paper presented at the annual meeting of the International Studies Association, Hilton Hawaiian Village, Honolulu, Hawaii, Mar 05, 2005 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p70652_index.html>

APA Citation:

Yu, H. , 2005-03-05 "Ideas or Institutions? : Explaining the Protectionism in South Korea" Paper presented at the annual meeting of the International Studies Association, Hilton Hawaiian Village, Honolulu, Hawaii Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p70652_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: The purpose of this study is to explain the protectionist tendency manifested in the course of Korea-Chile FTA. FTA is a measure to increase trade volume by mutual tariff elimination. Although FTA has discriminatory nature to non-member nations it basically opens up domestic market especially when a nation has multiple FTAs. However, we could observe strong presence of protectionism in Korea-Chile FTA negotiations and ratification process. Several commodities - apples and pears for Chile and freezer and washing machine for Korea- which both countries are especially interested in were excluded from the tariff elimination list mainly due to the strong opposition of Korean agricultural sector. Two parties have settled for agreement which fails to realize the economic potential of the FTA. Moreover, during the ratification process the Korean government provided huge compensation in order to soften up the angry farmers and oppositional coalition in the National Assembly. While the government aimed at trade liberalization, the outcome only confirmed the strong protectionism in Korea.
The most important variable here is the role of electoral institution(district apportionment institution) which enables agricultural interests to overrepresent in the National Assembly. The existence of protectionist culture alone cannot explain the power of agricultural interests. Electoral institution created by the political calculation has unintended implication to trade policy. Thus, the focus on trade-related institutions has critical limitation in explaining the protectionist policy of Korea.
As long as the agricultural interests are overrepresented in the National Assembly, Korea’s trade policy especially related to the agricultural market opening will continuously incline to protectionism. Even in negotiation process, the government has no choice but to consider the possibility of ratification in the National Assembly hence throws protectionist goals to negotiation table. A recent negotiation over rice market opening show how powerful the agricultural interests in Korea. Again the sheer number of agricultural population does not explain Korea’s inclination to protectionism. The electoral institution which creates overrepresentation of agricultural interests in the legislative politics should be taken seriously.

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Document Type: .PDF
Page count: 20
Word count: 8081
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Ideas or Institutions?: Explaining the Protectionism in Korea Hyun-Seok Yu Department of Political Science Kyung Hee University Republic of Korea hsyu@khu.ac.kr Prepared for Annual ISA Convention March 1-5 2005 at Hilton Hawaiian Village Honolulu Hawaii U.S.A. Draft. Not for citation. I. Introduction Korea is world's 12th largest country in terms of trade volume and more than 70 percent of its GDP comes from foreign trade. Despite of heavy dependence on foreign trade Korea is often accused of being protectionist.
Helen. 1997. Interests Institutions and Information: Domestic Politics and International Relations. Princeton: Princeton University Press. ----------. 1992. "International Theories of Cooperation: Strengths and Weakness." World Politics 44 Prestowitz Clyde V. Jr. 1988. Trading Places. New York: Basic Books. Rogowski Ronald. 1987. "Trade and the Variety of Democratic Institutions". International Organization 41 no. 2 spring. Shim Ji-Yeon and Meen-Geon Kim. 2001 "The Evaluation of Electoral District Apportionment(in Korean). Korea Political Science Review 35 no. 1 Verdier Daniel. 1994. Democracy and


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