중남미

Many Asian countries are concerned that as the negotiations for the proposed Free Trade Agreement of the Americas (FTAA) are concluded in 2005, it may erode their share of the largest trading market, North America. As a first step toward assessing the impact of the FTAA on Asian countries, this paper evaluates the effects of FTAA’s predecessor, the North American Free Trade Agreement (NAFTA), on Korean external trade. Analyses of the shift in shares, trade intensity indices, and gravity models are used to assess the impact at a macro level, while trade diversion and creation effects are tested at sub-industry levels. Some lessons for future action are also drawn.