• International Commerce and Information Review
• /
• v.12 no.4
• /
• pp.49-65
• /
• 2010

We have analyzed the trade effect of Korea-EU FTA on the Korean fishery sector, after reviewing the trade pattern and the tariff barriers of fishery sector between Korea-EU. For the trade effects, we have categorized into three cases: 1) the complete tariff elimination of all items, 2) the half tariff reduction on top ten valued items, with complete tariff elimination of other items, and 3) the complete tariff elimination, except unbinding top three valued items. The effect of the complete tariff elimination of all items implies the effect of the full achievement of FTA. For other two cases, these effects imply the effects of the transitional phenomenon of FTA since the complete tariff elimination happens gradually over more than ten years. For the complete elimination of tariff, we found that imports are increased by 1.1 billion dollars which is 12.9% increase in average imports during years 2006-2009. Also, exports are increased by 1.3 billion dollars which is 14.5% increase in average exports during same years.

• The Journal of Fisheries Business Administration
• /
• v.49 no.2
• /
• pp.37-48
• /
• 2018

This study analyzed the impact of FTA tariff elimination on the export prices for Norwegian fresh and chilled salmon, of which Korean import has significantly increased since the Korea-EFTA FTA implementation. Korea's fresh and chilled salmon market is almost monopolized by Norway, and Korea's price level is higher than other countries, so it is highly likely that price discrimination occurs. This study theoretically explained that exporters could adjust their prices by market power when tariffs are eliminated in imperfectly competitive markets. And the empirical analysis provided evidence that the exporters have made price adjustments since the FTA took effect, and similar results were found in the relative price comparison with trade statistics and Nasdaq Salmon Index. Therefore, in order to increase consumer welfare in Korean salmon market, it is required to transform the monopolistic market structure into a competitive one.

• The Journal of Fisheries Business Administration
• /
• v.43 no.2
• /
• pp.1-14
• /
• 2012

The main purpose of this study is to analyze the effect of Korea-China free trade agreement(FTA) on Korea's fisheries trade using the partial equilibrium analysis model of Feenstra(1995). The study tries to show the impact on trade flows and welfare of the elimination of tariffs Korea-China FTA on Korea's fisheries sector among several scenarios of trade liberalization. The results of the study indicate that the increase of fisheries export to China is lower than that of fisheries import from China. Therefore Korea-China FTA results in the decrease of domestic of fisheries production even though total welfare effect is positive. The study suggest several policy proposals for soft-landing of Korea-China FTA on Korea's fisheries sector. One of them is to lengthen the term of tariff elimination to minimize the impact on domestic fisheries sectors.

• Korea Trade Review
• /
• v.45 no.4
• /
• pp.1-24
• /
• 2020

This study aims to analyze the export effects of Korea-Canada FTA's tariff reduction, which was launched on January 1, 2015. First, as a groundwork, this study reviewed trade creation and trade diversion by investigating all possible cases of both initial FTA and additional FTA. The review was done by using the simple model of three countries assuming FTA means elimination of tariff. The review suggested that additional FTA doesn't have any negative impact on import country's social welfare contrary to initial FTA. In additional FTA, Trade diversion could happen between FTA partner countries, but it always increases import country's social welfare. In this sense, it can be called favorable trade diversion. Second, this study analyzed the export effects of Korea-Canada FTA using Clausing's product level model based on Canadian government import data from Korea which is not open to the public. It turned out that Korea-Canada FTA's tariff reduction boosted Canadian import growth rate from Korea. On the other hand, Canadian import growth rate from rest of the world was not negatively affected by Korea-Canada FTA's tariff reduction. Rather, it increased as Canadian import growth rate from Korea was higher. These findings implied trade creation rather than trade diversion of Korea-Canada FTA when it comes to Korea's export to Canada.

• 한국디지털정책학회:학술대회논문집
• /
• 2007.06a
• /
• pp.33-40
• /
• 2007

The Customs Administration, unlike other administrative service, should respond to constantly changing external environment. The Customs has to actively adapt itself to government policy changes, economic changes and international environment changes to facilitate the flow of trade logistics and maintain trading relations wi th other countries. The purpose of this paper is to explain policy directions of the Korea Customs Service which enforces various policies related to tariff and non-tariff barrier elimination for the trade liberalization while the Korean government is pursuing FTAs on a multi-track basis. This paper aims to seek ways to apply FTA policies to the Korean society and economy in a smooth manner. First of all, this paper examines changes in Customs administration brought by the proliferation of FTAs to such areas as FTA negotiations, import/export management, duties and taxes collection, drawback reduction/exempt ion of duty application area of preferential tariff rate and country of origin management. Then, the paper sets FTA missions of "supporting Customs Administration to lead the new trend of free trade environment" after analyzing the environment changes. To achieve the FTA mission mentioned above, the KCS designated 4 strategies and 40 implementation tasks. The 4 strategies are named "4C Strategies" taking initial letters from Client-oriented, Customized procedures, Cooperation and Constitution. "4C" also refers to Foresee(strategies to foresee the successful establishment of FTA policies) or For C(Customer or Customs). The KCS will continue to create new tasks through various channels and monitor their implementation process, and to help FTA regime successfully take root in Korea.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.67
• /
• pp.187-208
• /
• 2015

The Korea China FTA was signed on June 1 2015. It includes some concessions regarding major export items in the manufacturing sector for the protection of primary industries and preferential tariffs for a number of products produced in the Kaesong Industrial Complex. Primary industries are what the Korean government paid the greatest attention to. Rice was excluded from the negotiations from the get go, and was joined by 548 other food items including pork, apples, pears, beef, chili, garlic etc. These foodstuffs account for about one-third of the agricultural and livestock products that Korea produces, and are not going to be subject to tariff elimination. The results of the study are as follows: Korean government policy is to maintain of agri-food export support system, eliminate of agri-food non-tariff barriers, foster of agri-food export SMEs and expand of investment of foreign agri-food company. Korean firms strategy is to establish of regional marketing strategy, ensure of high quality agri-food and develop of food packaging technologies, establish of agri-food export logistics center and take advantage of the FTA preferential tariff.

• International Commerce and Information Review
• /
• v.17 no.1
• /
• pp.265-285
• /
• 2015

After the establishment of WTO for strengthening of GATT in 1995, the world economy has gradually been integrating toward economic globalisation. Even though this multilateral agreement may be beneficial to many countries but it also interferes domestic policies of member countries and threatens the role of local government and policy independence. For these reasons, FTA between countries or regions has been increasing. According to this trend, Korea and China has reached a substantial agreement of Korea-China FTA for mutual benefits. In general, the Korean automobile industry will benefit from Korea-China FTA due to its competitiveness in the global market and improvement of market access. However in the provisional schedule of concessions and commitment reported by press, the automobile seems to be excluded in this schedule of concessions. Hence, Korean automobile industry can not use the price competitiveness from tariff elimination. Therefore, Korean automobile industry needs aggressive marketing strategies for enhancement of brand equity as well as development of environment-friendly cars for following environment policies of Chinese government. Furthermore, they should make efforts to create the efficient investment environment by the removal of non-tariff barriers.

• International Commerce and Information Review
• /
• v.9 no.2
• /
• pp.351-371
• /
• 2007

This study article is a study on the rules of origin review and rules of origin judgement. and The purpose of this article shall be studies to korea foreign law and Korea American FTA in origin country regulation. this article are two most important elements in determining market access in a FTA. that is the coverage of tariff elimination and rules of origin. The rule of origin in a FTA greatly influences the creation of economic profit and distribution. Therefor, The Result of the article is review to protection of domestic customers and domestic industries in rules of origin. This study contributes to a understanding of judgement of rules of origin and extend level of generalization of exchange law, WTO, FTA Regulations by review interaction relation.

• The Korean Journal of Air & Space Law and Policy
• /
• v.35 no.2
• /
• pp.247-280
• /
• 2020

For customs-free and liberalization on the trade of aircraft parts, the WTO Agreement on Trade in Civil Aircraft was separately concluded as plurilateral trade agreement at the time of launching WTO in 1995, and currently 33 countries including the United States and the EU are acceded but Korea does not. Major details of the Agreement on Trade in Civil Aircraft include product coverage, the elimination of customs duties and other charges, the prohibition of government-directed procurement of civil aircraft, the application of the Agreement on Subsides and Countervailing Measures, and the consultation on issues related to this Agreement and dispute resolution. Article 89 paragraph 6 of the current Customs Act was newly established on December 31, 2018, and the tariff reduction rate for imports of aircraft parts will be reduced in stages from May 2019 and the tariff reduction system will be abolished in 2026. Accordingly, looking at the impact of the Agreement on Trade in Civil Aircraft on the aviation industry, first, as for the impact on the air transport industry, an tariff allotment of the domestic air transport industry is expected to reach about 160 billion won a year from 2026, and upon acceding to the Agreement on Trade in Civil Aircraft, the domestic air transport industry will be able to import aircraft parts at no tariff, so it will not have to pay 3 to 8 percent import duties. Second, as for the impact on the aviation MRO industry, if the tariff reduction system for aircraft parts is phased out or abolished in stages, overseas outsourcing costs in the engine maintenance and parts maintenance are expected to increase, and upon acceding to the Agreement on Trade in Civil Aircraft, the aviation MRO industry will be able to import aircraft parts at no tariff, so it will reduce overseas outsourcing costs. If the author proposes a policy direction for the trade liberalization of aircraft parts to ensure competitiveness of the aviation industry, first, as for the tariff reduction by the use of FTA, in order to be favored with the tariff reduction by the use of FTA, it is necessary to secure the certificate of origin from foreign traders in the United States and the EU, and to revise the provisions of Korea-Singapore and Korea-EU FTA. Second, as for the push of acceding to the Agreement on Trade in Civil Aircraft, it would be resonable to push the acceding to Agreement on Trade in Civil Aircraft for customs-free on the trade of aircraft parts, as the tariff reduction method by the use of FTA has limits. Third, as for the improvement of the tariff reduction system for aircraft parts under the Customs Act, it is expected that there will take a considerable amount of time until the acceding to the Agreement on Trade in Civil Aircraft, so separate improvement measures are needed to continue the tariff reduction system of aircraft parts under Article 89 paragraph 6 of the Customs Act. In conclusion, Korea should accede to the WTO Agreement on Trade in Civil Aircraft to create an environment in which our aviation industry can compete fairly with foreign aviation industries and ensure competitiveness by achieving customs-free and liberalization on the trade of aircraft parts.

• International Commerce and Information Review
• /
• v.17 no.3
• /
• pp.177-201
• /
• 2015

Korea-China FTA was initialized in 2015. Korea has a high level of dependence on trade for its economic growth, especially to China. Technical Barriers to Trade(TBT) among various non-tariff barriers is becoming increasingly important. Elimination of TBT is one of the key issues in which the South Korean government is interested since technical barriers significantly affect trade between the two countries. MRA has been considered as an effective tool to relieve such technical barriers. Several studies and surveys showed that MRA would mitigate the barriers of import and solve the problems that many companies face in international market. This study tries to seek utilization plan of MRA for Korea-China FTA. It suggests suitable utilization plan of MRA considering the difference of technical regulations between two countries. This paper has value in that it provides specific MRA strategies targeting China while other prior studies have merely analyzed the necessity of MRA.