• Korea Trade Review
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• v.45 no.4
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• pp.171-194
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• 2020

Although there is a lot of literature on the effectiveness of regional trade agreements(RTAs), it is usually analyzed only using trade-related theories and data. However, this paper has a differentiation in that we examine the linkage between international trade and financial markets through the stock markets reactions when the trade agreements related news arrived. Specifically, using an event study, we look into the Korea-US free trade agreement(KORUS FTA) which is the most commercially significant FTA in almost two decades for both the countries. Korean stock market generally responded more sensitively to FTA news than the US stock market, especially in 'Auto & Parts', 'Electrical Equipment' and 'Chemicals' industries. And the investors' perception toward the effect of KORUS FTA on Korean industries changed from negative to positive as negotiations proceed. Korea has a comparative advantage in the production of labor-intensive goods relative to US, but the economies of scale hypothesis does not hold.

• Korean Journal of Organic Agriculture
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• v.31 no.3
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• pp.211-228
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• 2023

The Korea-US FTA was one of the most controversial FTAs Korea has ever signed and was expected to have a significant effect on the agriculture sector, especially the livestock industry. This study ex-post analyzed the impact of the Korea-US FTA on the Korean beef industry including the Jeonnam province using a dynamic partial equilibrium model. According to the scenario analysis results, if there was no Korea-US FTA, the beef imports would be reduced to as low as 0.24% to 4.19% compared to the Baseline applying existing Korea-US FTA beef tariff rates over the 2012 to 2022 periods. In addition, if there was no Korea-US FTA, the agricultural product value of Jeonnam and national Korean beef cattle would increase from 0.25% to 7.37% and 0.25% to 7.33%, respectively, compared to the Baseline. The results of the analysis are expected to be used as important information for policy establishment in preparation for CPTPP and supplementation of current FTA policies regarding Korean beef cattle not only for the central government but also Jeonnam province.

• Journal of Digital Convergence
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• v.10 no.10
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• pp.13-18
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• 2012

This paper aims at examining the Korean export competitiveness of clean robot industry and presenting the strategy to improve capability of clean robot industry under Korea-US FTA. For this purpose, the current status and environment of Korea-US clean robot industry and the core points of Korea-US FTA are analyzed. In addition, using SWOT analysis of Korean clean robot field, we analyzed the characteristics of Korean cleaning robot industry and proposed the strategy for export expansion and strength of export competitiveness. Through above analyzation and strategies, we found out that Korean clean robot industry have some advantage to go into the US market and get the opportunity to improve the export capability though Korea-US FTA. In conclusion, to improve current status and to get the competitiveness, government and companies should recognize and utilize Korea-US FTA effect significantly.

• Fashion & Textile Research Journal
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• v.17 no.6
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• pp.978-987
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• 2015

This study investigates the awareness levels of Korean textile companies and develops appropriate response plans for the Korea-US Free Trade Agreement. The study also explores practical and realistic directions that the Korean textile industry must initiate. A qualitative study was conducted on 10 individuals for a more in-depth and demonstrative understanding that provide a better awareness on the responses of the textile industry towards the Korea-US FTA. The results of this study are as follows. First, the effect of the Korea-US FTA on the textile industry was insignificant. Second, industry members determined that fabric sectors and specialized fabrics (such as industrial materials and finished clothing products) could realize benefits through the Korea-US FTA. Third, industry members emphasize that the current focus is on FTAs by countries that have solidified their positions as manufacturing and sewing bases for the US and Europe (such as Southeast Asia) and not the Korea-US FTA. Based on results acquired through this study, the response measures to enter the U.S. market are as follows. First, the industry must develop high-performance and high value-adding direct export products suited to the needs of the US market in order to realize the benefits of the Korea-US FTA. Second, the industry and government must cooperate to actively host and participate in overseas trade shows that can actively open sales channels within the US. Third, the self-sustainability of textile companies must be cultivated through continuous and focused government training.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.13 no.10
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• pp.4551-4556
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• 2012

This paper aims at examining the Korea export competitiveness of robot industry and presenting the strategy to improve capability of robot industry under Korea-US FTA. For the purpose, the current status and environment of Korea-US robot industry and the core points of Korea-US FTA are analyzed. In addition, using SWOT analysis of Korean robot field, we analyzed the characteristics of Korean robot industry and proposed the strategy for export expansion and strength of export competitiveness. Through above analyzation and strategies, we found out that Korea robot industry have some advantage to go into the US market and get the opportunity to improve the export capability though Korea-US FTA. In conclusion, to improve current status and to get the competitiveness, government and companies related with robot industry should recognize and utilize Korea-US FTA effect significantly.

• International Commerce and Information Review
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• v.8 no.1
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• pp.337-356
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• 2006

The Korea-US dispute on telecom standards has shown the inability of existing trade rules that can be applicable to standardization policy in telecom services sector. It has entailed plenty of dissenting but unsolved trade issues, including legal jurisdiction over technical standards on telecom services and their compatibility with WTO agreements. Question remains how US will cope with this tricky trade puzzle. This paper points out that Korea-US negotiations on telecom standards have provided US with a momentum to think seriously over the necessity of further rule-setting on telecom standards, and FTAs are the rescue train for US to ride on for that purpose. That is to say, US is taking advantage of FTA as a means to promote its national commercial goals by creating trade rules, which seek to deprive its trading partners of regulatory autonomy in telecom standardization. Based upon the research output, it is very important for Korean government in the upcoming Korea-US FTA negotiations to ensure facilitating public policy objectives in telecom standardization as possible as it can, and not to adopt the provision of international standards in the existing US' FTAs.

• International Commerce and Information Review
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• v.9 no.2
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• pp.399-422
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• 2007

Like in other trade negotiations covering comprehensive sectors, it is reported that KOREA-US FTA tried so-called 'package deal' at the last minutes, when telecom services sector was positioned at the forefront and expected to partly play a role in buffering US' market-opening pressure on other sectors. Before everything else, Korean negotiators had to enhance the value of foreign ownership deregulation in telecom services sector as a leverage in the course of KOREA-US FTA negotiations. In addition, since foreign ownership change, if any, is highly sensitive issue either politically or policy-wise, it seems very difficult to find a breakthrough. Focusing on foreign ownership regulation in telecom services sector, this paper seeks how Korea has developed its strategic reasoning for negotiations and evaluates the outcomes of KOREA-US FTA negotiations.

• 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.

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

• 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.