• International Commerce and Information Review
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• v.15 no.4
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• pp.147-170
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• 2013

The Free Trade Agreement between Korea and Peru entered into force in 2011. Under the agreement, both countries will eliminated all tariffs within ten years after it takes effect. The Korea-Peru Free Trade Agreement turned out to have significantly boosted Korea's exports to the South American state, as well as its relative share in the local import market. Korea mainly imports resources such as zinc and copper, and exports such goods as passenger car and color televisions. The FTA opens up a larger market for Korean home appliances like color televisions. Korea's trade with Peru has been mainly about concentrated investment into mining and exporting limited variety of export items. This paper analyzes the recent trends of problems of trade between Korea and Peru and suggests solutions for boosting trade to provide proper strategic guidelines for Korea that are planning to expand to Peruvian market

• Journal of Korea Trade
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• v.26 no.8
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• pp.58-76
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• 2022

Purpose - This study examined the Rules of Origin (RoO) as a factor affecting free trade agreements' (FTA) utilization and analyzed the causal relationship and the effects of these factors on the export performance of automobile parts companies. Design/methodology - We analyzed and verified the impact of FTA utilization and the export performance of automobile parts companies by dividing the characteristics of the RoO into complexity and uncertainty. Following which, various statistical analyses were conducted on the interrelationships among these variables. Findings - This research analyzed the effect of the RoO factors of complexity and uncertainty on the use of FTA and the export performance of automobile parts companies. We found that these characteristics of RoO were generally related to and affected the FTA use and export performance of these companies. Based on this, this study's investigation into the characteristics of the RoO would then help companies in better utilizing the FTA, as well as providing suggestions on how to effectively respond to the application of the FTA in the future. Originality/value - Companies that want to utilize FTAs in international trade must follow the RoO. In the Regional Trade Agreement (RTA), the country-of-origin is a key factor, with the RoO being an important requirement for the application of preferential tariffs. These regulations are a requirement for receiving FTA preferential treatment; however, they also cause difficulties to companies in using the FTA.

• Journal of Korea Trade
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• v.26 no.2
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• pp.65-83
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• 2022

Purpose - The purpose of this study is to evaluate the economic effects of FTAs using the concept of value-added exports. So far, the economic effects of FTAs have been dependent on decrease in import prices due to tariff cuts in importing countries, but the actual tariff reduction need to consider the value added of the exporting countries. Design/methodology - Value-added export refers to the added value created in the exporting country out of total exports. Among value-added exports, direct value-added export is interpreted as the Regional Value Contents (RVC), from which the economic effect of the FTA can be analyzed. A modified GTAP-VA model takes into account RVC in order to estimate accurate effects of FTAs. Findings - By the re-evaluation of the FTA based on the RVC, this paper makes it clear that the economic effects of the existing FTA methodology have the possibility of overestimation. In addition, as a new FTA with a strengthened Rules of Origin (ROO) is being initiated, a negative impact on international trade and GVC utilization may occur. Originality/value - This study introduces the concept of value-added export in analyzing the effects of FTAs. The new analysis methodology of this paper emphasizes the importance of value-added exports. Re-organization of GVCs would change regional trade agreements and empower ROO by weakening existing GVCs and transforming the value chain from global into regional scope.

• Journal of Korea Trade
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• v.23 no.3
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• pp.84-104
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• 2019

Purpose - This paper explains why free trade agreements (FTAs) are more popular than customs unions (CUs) in respect of tariff coordination. Design/methodology - This paper employs an equilibrium theory of trade agreements with tariff coordination. I set up three-country partial equilibrium model with competing exporters. Domestic and exporting firms decide their optimal production under given tariffs and each country levies its tariff under the trade agreements. I found stability of implicit tariff coordination and preference of each country between an FTA and a CU. Findings - I demonstrate that two FTA members can keep their external tariffs higher than separately decided external tariffs by keeping the status-quo. This implicit tariff coordination can benefit each member through trade diversion. In a CU, each member country must have a common optimal external tariff and it must incur costs because each country may seek different external tariffs for their own national welfare. The benefit of implicit coordination in an FTA and the cost of explicit coordination in a CU account for the popularity of the FTA. Originality/value - This paper uses the idea of implicit tariff coordination in trade agreements. In a CU, tariff coordination is explicit and mandatory. All member countries must have a single common external tariff for each good. On the other hand, in an FTA, each country establishes its external tariff with the goal of maximizing its own welfare. However, each country can also coordinate "implicitly" by keeping the status-quo after establishing an FTA.

• International Commerce and Information Review
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• v.6 no.1
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• pp.267-284
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• 2004

The expansion of regionalism has resulted in the creation of blocs of the world economy, so that those countries not belonging to one or more blocs can discriminated. Though recently singed on the bill of FTA with Chile, Korea is actually alienated from major stream of the blocs. Therefore, Korea government makes efforts to contract more FTAs with countries such as Singapore and Japan. FTA is believed to be an important method to secure export and national competitiveness in the long term. Therefore, we need to exactly understand critical issues and the long-run effect of FTA. The paper tries to find out important issues and potential strategies relating to electronic commerce in Korea-Singapore and Korea-Japan FTA. According to the historical facts, economic effect of FTA depends a lot on the contents of the agreement. Therefore, additional intensive studies are required before contracting FTA in the future.

• Korea Trade Review
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• v.44 no.2
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• pp.203-219
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• 2019

Recently, the Trump administration initiated a new United States-Mexico-Canada Agreement (USMCA) that strengthened NAFTA's rules of origin to enhance protectionism while maintaining the framework of trade agreements rather than completely abolishing them. This study focuses on the behavior of firms motivated to influence the government to practice protectionist trade by analyzing the rules of origin verification and adopting the political economics model. This paper explains the process of endogenous determination of the stringency of rules of origin verification as a non-tariff barrier using the lobbying model. Comparative static analysis shows that the more efficient technology a domestic firm has and the more government prefers to raise political contribution, the more is verification likely to be strict. This suggests that a rationale exists to maintain a free trade agreement in the form of the new agreement (USMCA) without abolishing the current NAFTA regime.

• Monthly Duck's Village
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• s.45
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• pp.52-53
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• 2007

• 발명특허
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• v.37 no.3
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• pp.44-51
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• 2012

• KCID journal
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• v.10 no.2
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• pp.153-159
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• 2003

• Monthly Duck's Village
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• s.48
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• pp.34-37
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• 2007