• International Commerce and Information Review
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• v.12 no.2
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• pp.213-237
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• 2010

Duty refund taken exports of raw materials in the manufacture of goods for import duties paid, and refunds, as a system, enhance the price competitiveness of domestic exporters to promote exports is established for them. The duty drawback system is consumed in the production of export goods levied on imported inputs does not exceed the level of reimbursement is established within the WTO rules do not restrict the export support policy is one of. Korea-EU FTA negotiations is a drawback in the ongoing maintenance of claims, while the EU claims that the duty drawback system can not be negotiated until the end of the field of focus is discussed. Intermediate goods imports to Korea is a higher percentage was pointed out the importance of duty drawback, EU FTA, the duty drawback is not a party to remain exporters of raw materials, such as 3rd party can not go back because the benefits were opposed to. The final one-EU Concessions for the current duty drawback system was to maintain continuous.

• Journal of Korea Trade
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• v.23 no.6
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• pp.1-13
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• 2019

Purpose - This study deals with a strategic plan for meeting the value added criteria effectively, which is one of the methods of determining origin used in preferential trade such as FTA. Automobile products, one of the major Korean export items, were selected to give a practical use against the FTA requirements. Design/methodology - This study is based on the value-added criteria of the Korea-US and Korea-EU FTAs that apply various value-added criteria. The Korea-US FTA adopts the RVC method based on the integration, deduction and net cost methods, while the MC method is employed in the Korea-EU FTA. The methodology used in this work is an extended literature review, analysis of the value-added criteria applied to automobile products under Korea-US and Korea-EU FTA with some secondary statistics. Findings - Based on in - depth analysis of the value - added criteria requirements for automobile products stipulated in the Korea - US FTA and the Korea - EU FTA, two strategic considerations are suggested. First is 'appropriate value-added strategy' and the second is 'strategy of changing production and trade structure'. The second strategy is a bit used in Korea but this is not considered best if the first strategy is ignored or forgotten. The second one is meaningful when this becomes inevitable. Research limitations/implications - This study is primarily designed to assist Korean auto mobile industry players exporting to EU and USA but this may help to auto part or material producers in FTA counter party territories being EU or USA as the preferential tariffs are applied on a inter region basis. A further research other than auto mobiles using other major FTAs might be followed later. Originality/value - There has been so far little research on strategic factors to meet the value-added origin requirements. This study, therefore, is expected to contribute facilitating the decision of FTA origin and to improve the utilization of FTA by allowing exporting companies using value added criterion to more smoothly meet origin requirements. This will also enable the tax authorities to utilize the value-added criterion to validate effectively the origin of imports where preferential tariffs are applied.

• Korea Trade Review
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• v.41 no.3
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• pp.1-25
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• 2016

This study reviews international discussions about the trade-labor linkage and examines the labor chapters of FTAs enforced by the US and the EU from a comparative perspective. Since early 1990s, starting from the NAFTA, the US has included forceable labor provisions in its FTAs and this trend continues to the TPP which was concluded in October 2015. On the other hand, the EU's labor provisions in its FTAs have been composed of promotional elements on labor rights based on cooperations and dialogues. These different features of labor provisions in the US and European FTAs are mainly due to the motives of the FTAs of the US and the EU respectively as well as their domestic situations with regards to domestic law and institutional set-ups. The coordination of labor provisions involves a long-term institutional as well as regulatory convergence which triggers not only economic but also social changes, compared to a relatively short-term effect of tariff elimination. For Korea which has been a FTA partner country both with the US and the EU, it is significant to keep the different characteristics in the labor provisions in mind, particularly in the process of its implementation. Concerning the implementation of Korea-US FTA, it might be problematic if Korean law and its regulatory practice on labor-management relations do not comply with that of the US. The Korea-EU FTA case can also have an indirect impact on Korea's labor laws since it stipulates in its provisions that both parties should have discussions not only within each government but also with the civil communities including NGOs. Thus, Korea should pay more attention to the true meaning in labor provisions of both FTAs in order to promote its firms to be equipped with the right labor-management system in their operations abroad.

• International Commerce and Information Review
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• v.16 no.3
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• pp.253-273
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• 2014

The Korea-EU FTA has substantially escalated the volumes of South Korea's export and investment in the United Kingdom since its ratification. Coupling with the FTA effect, the ease of doing business in the United Kingdom will increase even more trade and investment by South Korean multinational corporations. In the meantime, the UK Bribery Act 2010 was enforced to end bribery by individuals and business entities which have close connection with the United Kingdom. The punishment of violating the Act is severe than ever because of "unlimited" fine. Without fully understanding the Act and have compliance measures as described in the Guidance issued by the UK Ministry of Justice, South Korean corporations may risk its whole business. Therefore, this paper will analyze the UK Bribery Act in details to provide critical implications for South Korean corporations under the Korea-EU FTA.

• International Commerce and Information Review
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• v.13 no.3
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• pp.143-166
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• 2011

This paper describes the characteristics and outline of rules of origin among Korea and USA, EU, ASEAN. The main focus of this paper is to conduct comparative analysis on rules of origin. Rules of origin are used to determine the country of origin of a product for purposes of international trade. There are two common types of rules of origin depending upon application, the preferential and non-preferential rules of origin Non-preferential rules of origin are used to determine the country of origin for certain purposes. The basis for the non-preferential rules originates from the Kyoto convention which states that if a product is wholly obtained or produced completely within one country the product shall be deemed having origin in that country. For a product which has been produced in more than one country, the product shall be determined to have origin in the country where the last substantial transformation took place. To determine exactly what was the last substantial transformation, three general rules are applied : Change of tariff classification(on any level, though 4-digit level is the most common), Value added-rule.(ad-valorem), and Specific process rule. While criteria of wholly obtained or produced in one country is almost similar to those of theses area and countries, in compliance with value percentages of Substantial Transformation, sufficient working or processing, Korea-US FTA adapts 'Regional Value Content', meanwhile Korea-EU FTA adapts 'Import Content' rule. Finally, Korea-US FTA and ASEAN FTA adapt FOB price for the calculation value added, on the other hand Korea-EU FTA adapts EXW price.

• Journal of Korean Society of Rural Planning
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• v.14 no.2
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• pp.13-23
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• 2008

In this paper, we estimated the economic impacts of Korea-EU FTA on the agricultural sector in GyeongGi-Do. In particular, we estimated the economic impacts of agricultural production decrease resulting from Korea-EU FTA for 31 sub-regions in GyeongGi-Do by 15 industrial sectors. We employ a regional economic impact model combining a regional input-output model with a spatial allocation model. We found that the size of inter-industrial impacts are quite different across regions. Our results suggest the importance of agricultural and industrial policy considering the impacts of industrial sectors at the regional level.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.267-286
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• 2013

Origin verification is regarded most essential for FTA performance administration. This administration is divided into direct and indirect system where Korea has adapted indirect system to Korea-EU FTA while direct system to Korea-USA FTA. A comparative analysis was conducted on the system of origin verification and provisions contained in preferential tariff law of each countries. The study finds that Korean origin verification system is a bit lack of procedural provision resulting in less protection of domestic trader's rights. Another point is that Korean Customs Authority is weak, in respect of organization and man power, to protect illegal bilateral tariff application by counter part FTA countries. And therefore this study suggests the policy makers to arrange detailed FTA origin verification procedures with earliest meeting with counter part FTA countries, and further stress that make up of organization and man power for origin verification in a timely manner.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.7
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• pp.648-655
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• 2016

As the FTAs' implementations are accelerated, an Ex-post assessment, such as an analysis of the tariff schedule and agricultural trade has been emerging as an important national issue for an agricultural sector Korea-EU FTA, which was to be implemented in the five years from July 2016 as one of the giant FTA. The purpose of this study was to determine the demand of an ex-post assessment on agricultural sector as a trade negotiation procedural law. In addition, by providing policy direction for the agricultural policy part requiring amendments and supplements through ex-post assessment, the conflicting arguments between agricultural and non-agricultural sector can be evaluated more objectively. The current evaluation method on the economic impact ex-post assessment of a FTA is generally compared using the change in trade balance before and after the time of FTA implementation. On the other hand, this comparison cannot be said to be the pure FTA effects and objective, tightening economic impact assessment of the FTA in all combined situations, such as the effects of exchange rates and international macroeconomic changes and climate change & occurrence of pests. Over the last 4 years, however, Korea-EU FTA's total accumulated agricultural GDP loss was measured to be 2,178 billion by these research attempts with dynamic analysis as ex-post assessment methodology. The greatest impact was mainly livestock and pork followed by cereals and vegetables. In addition, this research is expected to contribute to policy evaluations in the future.

• International Commerce and Information Review
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• v.10 no.3
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• pp.407-436
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• 2008

The purpose of this study is to verify the economic effects of the on going Korea-EU FTA negotiations upon the regional economy and to present some strategic economic countermeasures to deal with the forthcoming changes on the economic environments. In comparing with the industrial structure between Korea and EU, due to the different specific part of their industrial competitiveness both parts would have complementary cooperative transactions and trade as well. And also Korea and EU would have the similar understanding of the importance of the field of agriculture and service in accordance with the economic standpoint respectively. The level of degree and magnitude of the effect of Korea-EU FTA upon the regional economy would be decided in accordance with the industrial structure and the level of income of the regional economy. We are not to confirm and specify the economic influences of Korea-EU FTA negotiations on the economic conditions of Gangwon province but to prepare rational economic countermeasures fit to its structural character. One of the political strategies that might be feasible is the inflow of foreign direct investment from the developed European countries to the regional economy. This developing model would mean a new experiment to activate any regional economy and a new formation of the policy of economic growth.

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