An analysis on Export Similarity Index between Korea-China and Korea-Japan in the Australian and New Zealand markets following the implementation of RCEP

Abstract

RCEP is the world's largest free trade agreement, with a total of 15 countries participating, including 10 ASEAN countries, Korea, Japan, China, Australia and New Zealand.. Accordingly this study analyzed the export similarity index of China and Japan, which are competing in the Australian and New Zealand markets, for Korea's top 20 export products. As a result of the analysis, it can be seen that beauty or makeup products and basic makeup products(3304) compete with Chinese and Japanese products in the Australian and New Zealand markets. In addition, there is competition for Japanese auto parts and accessories(8708) in the Australian market, and in the New Zealand market, the telephone(8517) shows fierce competition with Japanese products. Therefore, Korea should devise high value-added strategies to strengthen competitiveness and cost reduction measures for items that are experiencing increased export competition with rival countries, and use a business model that can utilize RCEP.