A middle power’s trade policy under U.S.-China FTA competition: South Korea’s double hedging FTA diplomacy

Existing studies on the roles and foreign policies of middle powers place too much focus on their security policies, while there is a dearth of scholarship on their trade policies. Middle powers have used free trade agreement (FTA) politics not only to obtain economic benefits through trade expansion, but also to achieve broader foreign policy goals. Given the U.S.-China FTA competition in East Asia, as a middle power, South Korea, has developed double hedging FTA diplomacy by supporting both powers’ FTA initiatives in order to avoid potential conflicts and maintain favourable relationships with both powers. Specifically, Korea has tried to maximize its national interest and, furthermore, to maintain regional stability by establishing two bilateral FTAs, the Korea-U.S. FTA and the Korea-China FTA, and by showing interest and participating in larger FTA discussions, such as the US-led Trans-Pacific Partnership and the China-led Regional Comprehensive Economic Partnership.