The computable general equilibrium analysis of the reduction in tariffs and non-tariff measures within the Korea-Japan-European Union free trade agreement

The trilateral Korea-Japan-EU FTA with the removal of tariffs can contribute to the increase GDPs of Korea, Japan, and the EU. The reduction of NTMs gives more benefits from the Korea-Japan-EU FTA. In particular, trilateral Korea-Japan-EU FTA with the reduction of both import tariffs and NTMs can give the larger increases in Korea, Japan and the EU’s GDPs, exports, and imports. Furthermore, the Korea-Japan-EU FTA also provides the positive welfare effects to all participating countries such as Korea, Japan the EU. And it can also contribute to increase the whole world’s welfare level. Thus, the Korea-Japan-EU FTA will be a win-win FTA strategy not only to Korea, Japan, and EU but also to the global world.