• International Commerce and Information Review
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• v.13 no.3
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• pp.511-541
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• 2011

The study analyzes the optimum Korea-China FTA negotiations by utilizing the Putnam's two- level game theoretic approach. According to the Putnam's theory, the size of the win-set depends on the strategies of the Level 1 negotiators. The size of the win-set depends also on the level 2 political institutions and the distribution of power, preferences, and possible conditions among Level 2 constituents. The basic principles for the successful future Korea-China FTA negotiations should be based on comprehensiveness, substantial liberalization and gradual liberalization with consideration of sensitive sectors. This study concludes that mid-level FTA strategy with comprehensive but low tariff reduction would be of best strategy for Korea. This study also suggests the utilization of the EHP(Early Harvest Program) for the successful Korea-China FTA negotiations.