The Trans‐Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) are two of the most discussed preferential trade agreements (PTAs) in the 21st century. However, the future of these PTAs—whether they will be implemented—still remains mired in debate. This paper empirically explores various factors contributing to the development of the agreements based on the recent patterns of multilateral PTAs across the globe. It also discusses the Comprehensive and Progressive Trans‐Pacific Partnership (CPTPP), for which negotiations have just begun among the TPP members, without the United States. The analysis reveals both political and economic factors that affect the complex situation surrounding these PTAs. In addition, a trilateral PTA among China, Japan, and South Korea may help promote the implementation of the RCEP. The chances of the CPTPP forming are higher than that of the TPP, which means the TPP is likely to form without the United States.

This study examines why and when South Korea has pursued free trade agreements. Empirical analysis evaluates Korea’s free trade partners based on (1) market size, (2) levels of economic development, (3) geographic proximity, (4) democratic governance, and (5) trade competition with China and Japan.

The rapid proliferation of preferential trade agreements (PTAs) has prompted numerous studies on why states seek PTAs. However, very little research examines why states vary in choosing different forms of PTAs, while states’ decisions to enter bilateral or multilateral PTA affect the global, regional, and national political economies. This paper thus finds global patterns regarding which pairs of states are more likely to enter bilateral or multilateral PTAs. Based on a wide range of existing research, the paper begins with hypothesizing different effects of economic and political factors that give rise to these PTAs during the last two decades. The empirical analysis then tests these hypotheses. The result shows stark differences in pairs of states joining the two types of PTAs. Bilateral PTAs are more likely to develop between democratic states with a large market size and the World Trade Organization (WTO) membership. Multilateral PTAs tend to form between less democratic states with greater political affinity.