The Korea-Australia Free Trade Agreement and Its Security Implications

This article surveys the security implications of the Korea-Australia Free Trade Agreement. It does so by exploring the extent to which any such accord provides the basis for favorable political and security relationships between countries. The negative impact of asymmetrical commercial interdependence between countries can be offset by the nature of their diplomatic relationship. This is particularly the case for the relationship between Korea and Australia given Australia’s close security relations with a United States that is firmly committed to defending South Korea in any future inter-Korean conflict. The security ties between the two countries therefore constitute an important prerequisite for the positive security externalities of economic interdependence through close bilateral commercial ties. The policy implication of this situation is that both Australia and the Republic of Korea will pursue economic as well as security cooperation, as both are mutually reinforcing. By doing so, the two countries could reduce any relative gain problem and maximize the positive security effects of commercial ties.