A Study on the Direction for the Korea-ASEAN FTA Upgrade: Focusing on Supply Chain and Digital Trade Issues

Since its entry into force in 2007, the Korea-ASEAN Free Trade Agreement (FTA) has significantly contributed to expanding trade and investment between the two parties. However, in light of recent changes in the global trade environment, such as the risk of global supply chain disruption and the expansion of digital trade, revisions to this Agreement are necessary. This study identifies key elements and strategic directions for upgrade negotiation of the Korea-ASEAN FTA by comparing it with other relevant trade agreements, including the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the ASEAN-Australia-New Zealand FTA (AANZFTA). As key partners in economic cooperation and integration, both Korea and ASEAN could benefit economically and strategically by upgrading the Korea-ASEAN FTA to a level beyond the RCEP. This could include further liberalizing the market, establishing safeguards in response to changes in global supply chains, and expanding digital trade. Particularly, there is a need to strengthen rules of origin on cumulation, introduce a new chapter on supply chain cooperation to enhance supply chain resilience, and elevate regulatory standards through the establishment of a digital trade chapter.