Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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A Study on the Expansion of the Global Supply Chain in Southeast Asia Using the FTA Outward Processing

FTA 역외가공방식을 활용한 동남아시아 지역의 글로벌 공급망 확대에 관한 연구

  • Received : 2020.10.05
  • Accepted : 2020.10.29
  • Published : 2020.10.31
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Abstract

In the environment of protectionism and bilateral trade agreements, Korea has promoted the conclusion of FTAs for its export-oriented trading policy, and 16 FTAs have entered into force at present. The main goal of this paper is to introduce the ISI system and its benefits and to extend the preferential rule of origin regime by using the Integrated Sourcing Initiative in the U.S. Code of Federal Regulations. The ISI illustrates with impressive clarity the fact that it considered as a tool of expanding the geographic limit of states and maximizing the global sourcing strategy of multinational corporations, allowing the developing countries to gain access to the market of developed ones that avoid the complexity and costs of many rules of origin regimes. This paper utilizes the literature research and analyzes a case study of FTAs which have adopted the ISI system. In conclusion, it presents several implications of additional measures to satisfy rules of origin in Korea's existing FTAs relating to the global supply chain strategy.

Keywords

References

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