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KIET Monthly Industrial EconomicsKIET Korea Institute for Industrial Economics and Trade

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Changes of the world trade environment and trade strategies of the next government

Author Yoon Huh Date 2017.05.17 Issue No

The uncertainty of the world trade system has been heightened. The inauguration of Trump administration and protectionism bound from the U.S. have negative impacts on the world economy. In Europe, a tendency of isolationism, for example, Brexit is surfacing. In China, non-tariff barriers of the economic retaliation action are emerging as a big interest, resulting from the THAAD deployment in South Korea. In the meantime, the anti-globalization movement is likely to reverse the direction of neo-liberalism.

Korea became the 71st contracting party of the GATT regime in 1967 and it has been the biggest beneficiary of the world Free Trade Agreements over the last half a century. Joining the multilateral trade system of the GATT, Korea came to benefit from the tariff concession that had referred to the existing contracting parties in accordance with MFC (Most Favored Nation Treatment). Without the expansion of tree trades based on the GATT regime, there would have been no “Miracle of Han river”.