• Korea Trade Review
• /
• v.44 no.1
• /
• pp.207-220
• /
• 2019

In the context of export-oriented growth strategy, Korea has promoted the conclusion of FTAs and 16 FTAs have entered into force or concluded so far. Despite of these efforts, the expansion of the global value chain (GVC) has resulted in fragmentation of production processes and international companies have been struggling to meet the criteria for determining the rule of origin. In order to overcome these difficulties, some foreign FTAs have been introducing cross-cumulation of origin. In this paper, we try to examine empirically whether the easing of the rules of origin using cross-cumulation contributes to the increase in actual value-added exports. we quantify the effects of cross-cumulation included in the EU-Vietnam FTA on Korean exports of the textile through a gravity model using the concept of value-added export. Based on the analysis results, the proportion of value-added exports in Vietnam increased by adoption of cross-cumulation of origin, which consequently resulted into an increase in total exports. This paper tries to draw several implications for the rules of origin in Korea's FTAs including cross-cumulation considering the export value chain of Korea.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.60
• /
• pp.257-279
• /
• 2013

Nine FTA like Korea-Chile FTA, Korea-Singapore FTA, Korea-EFTA FTA, Korea-ASEAN FTA, Korea-India CEPA, Korea-EU FTA, Korea-U.S.A. FTA, Korea-Peru FTA and Korea-Turkey have been concluded and implemented in 46 countries as of May, 2013. In addition to these nine FTA, Korea has been negotiating FTA or CEPA(Comprehensive Economic Partnership Agreement) with China and Vietnam and Indonesia. Now Korean government is about to conclude FTA agreement with Indonesia which is one of crucial trading partners in Asian countries so the objective of this paper is to suggest how to design ROO schemes properly in such upcoming FTA agreement since more activation of trade and more utilization of FTA can be depend on the details of ROO schemes. As a result, this paper suggests well-design of ROO schemes as follows ; First, self-issuance origin proof system can be considered because authority-issuance origin proof system may reduce the utilization ratio of FTA. Second, combination of indirect and direct verification system in terms of origin verification system will be more preferable because this will be more fitting to Asian countries as considering trading environments and characteristics of Asian market. Third, criteria to determine origin can be based on wholly obtained plus substantial transformation system which contains CTC plus VC along with some percentage of de minimis. In addition to this, the number of products stipulated in PSR should be minimized and applied similar manner to avoid complexity of deciding origin.

• Fashion & Textile Research Journal
• /
• v.18 no.2
• /
• pp.139-148
• /
• 2016

There is an expanding global network of free trade agreements (FTA). High-quality, comprehensive free trade agreements play an important role to support global trade liberalization and are explicitly allowed under the World Trade Organization (WTO) rules. An FTA is an international treaty that removes barriers to trade and facilitates stronger trade and commercial ties that contribute to increased economic integration between participating countries. Korea benefits from the global FTA trend; however it has started and developed FTA negotiations later than other countries. Current FTA agreements exist with Chile, Singapore, EFTA, ASIAN, India, EU, Peru, USA, Turkey, Australia, and Canada; in addition, there are ongoing negotiations with China, Colombia, New Zealand, and Vietnam. FTA open up opportunities for the textile/clothing industry to expand businesses into key overseas markets. FTA improve market access across all areas of trade to help maintain and stimulate the competitiveness of textile/clothing firms. This study examines the expansion of free trade agreements in light of changes in the international trade environment and the status of the Korean textile/clothing industry. Korea's textile/clothing export/import products and concession of tariff, country of origin covered under Korea-US/China FTA are investigated to identify problems. This study provides practical and policy implications for the textile/clothing industry in regards to the Korea-US/China FTA.

• International Area Studies Review
• /
• v.21 no.4
• /
• pp.101-124
• /
• 2017

This study is to examine the current situation of the AEC (ASEAN Economic Community) and analyze macroeconomic situation of Vietnam since the launch of AEC. According to recent trade indicators, Vietnam is expected to be more productive in the manufacturing and processing sectors because it is at the heart of the global value chains (GVCs) in electronics, telephones, and textiles and shoes industry. Vietnam has signed or is negotiating free trade agreements with various countries around the world including Korea, Israel, EU and RCEP and so on. Therefore, it is expected that Vietnam's trade dependency and FDI inflows to Vietnam increase more and more. However, the fact that the proportion of exports by foreign-invested companies accounts for about 70% of the total exports implies the uncertainty of Vietnam's economy in the future. Attracting FDI investment can further reduce the competitiveness of domestic companies in Vietnam. Therefore, in order for Vietnam to maintain sustainable development in the future, it is necessary to reform the momentum of foreign-invested enterprises to the development of Vietnamese companies.