Abstract
Trends of regionalism have helped Japan and Korea turn their attention toward forming an FTA. The two countries have continued to debate the FTA, having muddled through an agreement to complete negotiations by 2005. Japan-Korea FTA negotiations should take place to establish broad dialogue channels and eliminate mutual misunderstandings, rather than to simply promote economic benefits. In addition, government agreements must produce concrete solutions to deal with the national consensus, with Japan fully recognizing Korea’s need of reducing its trade deficit with Japan, and its hope of increased FDI and technology inflow. Of course, at the current level of progress, it is still too early to jump to any conclusions, but given the need for bilateral cooperation, differences in opinion between Japan and Korea will be narrowed down as government negotiations continue. It is highly likely that this development will lead to a detailed policy response.
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