• Title/Summary/Keyword: Non-Tariff Barrier

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An Empirical Study on the Effects of Non-Tariff Barriers on FTAs: Regarding Import Control Measures of the Target Country on Korea's FTA (자유무역협정에 대한 비관세장벽의 효과에 관한 실증연구: 한국의 자유무역협정과 체결 대상국의 수입규제조치에 대하여)

  • Oh, Dae-Hyuck
    • Asia-Pacific Journal of Business
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    • v.12 no.2
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    • pp.187-203
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    • 2021
  • Purpose - The purpose of this study is to analyze the effects of non-tariff barriers on the Free Trade Agreement. Currently, it has achieved significant export effects by signing free trade agreements with many countries in Korea. However, most countries have implemented non-tariff barriers to protect their industries. This study analyzes the effects of non-tariff barriers in counterpart countries that have signed a free trade agreement. Design/methodology/approach - For analysis, first, prior studies were summarized, and second, the current status of free trade agreements and non-tariff barriers were identified. And, based on the current situation, the relationship between non-tariff barriers and export volume was analyzed. The targets of analysis are the United States, China, and Vietnam, which are Korea's three largest exporters. As for non-tariff barriers, anti-dumping tariffs, countervailing tariffs, and emergency import restrictions were analyzed as import regulatory measures. Findings - In the case of the United States, it can be seen that the decline in textiles, steel and electronics sectors is even greater. In the case of China, it can be seen that exports declined after imposing non-tariff barriers in the steel sector. Finally, it can be seen that exports declined after Vietnam implemented a non-tariff barrier on the steel sector. It was found that non-tariff barriers offset the effects of the Free Trade Agreement. Research implications or Originality - Currently, Korea has free trade agreements with numerous countries. However, after the free trade agreement entered into force, the number of annual average import regulation investigations for Korean products is on the rise. In the end, the implementation of non-tariff barriers is offsetting the effects of free trade agreements. Therefore, when signing a free trade agreement, it is necessary to thoroughly prepare for import regulatory measures such as the insertion of provisions of non-tariff barriers.

Use of non-Tariff Barriers for protection of domestic industries and its implications: focusing on the Chinese Cosmetic Certification System (자국 산업보호를 위한 비관세장벽 활용과 시사점: 중국 화장품 인증제도를 중심으로)

  • Yoon, Sung-Wook;Lee, Handara
    • Korea Trade Review
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    • v.43 no.6
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    • pp.113-138
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    • 2018
  • The purpose of this research is to analyze how the Chinese cosmetics certification system works as a Non-Tariff Barriers(NTBs) for Korean exporting companies to access the Chinese market. China is the largest market for Korea's cosmetic exports, but China's policy of protecting domestic industry has become a barrier to Korea's cosmetics exports to China. Therefore, this research, through the analysis of regulations of the Chinese certification system for imported cosmetics. revealed that there are such problems as ① information leakage ② duplication of inspection ③time delay. In order to verify those problems, surveys and face-to-face interviews with Korean cosmetic exporting companies to China have been conducted. In conclusion, Chinese cosmetics certification system not only protects its own industry, but also serves as a NTBs to disturb the access of imported cosmetics to the Chinese market in order to foster Chinese cosmetic industry.

Customs Administration strategies under FTA's trade environment (FTA 무역환경에서의 관세행정 전략)

  • Choe, Hui-In
    • 한국디지털정책학회:학술대회논문집
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    • 2007.06a
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    • pp.33-40
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    • 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.

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The study on the Ways to Activation of the Youth Starting up a Business by Korea-China FTA (한·중 FTA 체결에 따른 청년창업 활성화방안에 관한 연구)

  • KIM, Dong-Ho
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.69
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    • pp.617-632
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    • 2016
  • After contracting of Korea-China FTA, we have expected the trade volume has mutually been increasing a lot. If we are using this contract, we would make an activation of Korea economy. Especially, Korea youngman has been caught a big chance to make a business in Korea & China. For example, Xian, which is one of center of silk road, has become big strategy area. As we need to focus on this area, we will be expected to indirect influences of consumer's industries like cosmetic, fishery products, food service, eco-friendly items. Recently, the youngman starting up a business has become a trend of kinds of alternative new job. Then, we have to provide practical solution for young man. One of this solution is 'starting up a business'. In this study, I empirically investigated the relation between Korea-China FTA and the youth starting up a business. So, I believe that this study can light up on the direction of effective starting up for making & success a business in China.

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Estimating the Economic Impact of Technological Barrier to Trade between Korea and China (한·중 기술무역장벽의 경제적 효과 추정)

  • Ha, Tae-Jeong;Chon, Joo-Yong
    • International Area Studies Review
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    • v.15 no.1
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    • pp.469-493
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    • 2011
  • This paper attempts to examine the economic impact of technological barrier to trade(TBT) between Korea and China by using international input-output approach. With the tariff/quota reduced or eliminated since WTO's launch, the interest in TBT as a non-tariff barrier has been increased, and then there have so far been a large number of empirical studies on quantifying its effect in foreign. But still this area of study in Korea is limited in the literature survey. In encouraged in this situation, focusing on bilateral trade between Korea and China, which has been significantly increased in recent years, we have tried to estimates the impact of TBT on their output and employment. We use Asian International Input-Output Table(AIIO) for the year 2000 published by IDE-JETRO, and also use the estimated sectoral TBT provided by Ha et al.(2010). According to the result, there will be generated $3.63 billions values in outputs, and 18.1 millions persons in employments at most. And also we found that there is weak interdependence in sectoral and spatial linkage between two countries.

A Study on the Effects That SMEs' Response to Non-Tariff Barriers Exerts on Export Performance: Focusing on Technical Barriers to Trade

  • Joo, Se-Hwan;Lee, Jae-Sung
    • Journal of Korea Trade
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    • v.25 no.6
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    • pp.105-125
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    • 2021
  • Purpose - This study analyzes the effects that the response to the technical barriers to trade (TBT), which are used by various countries as means to restrict imports, exerts on exports at a time when protectionism is emerging in the face of a global economic downturn. TBT has been widely used in developed countries for the safety and protection of their people. Recently, the use of TBT as a tool of protectionism has increased considerably in developing countries as well. Therefore, this study analyzes the South Korean SMEs' response and export performance. Design/methodology - To analyze SMEs' response to TBT and their export performance, this study conducted empirical analysis through statistical analysis. To this end, the research established a theory based on previous research and designed its hypothesis and research model. To verify the hypothesis and research model, factor analysis addressing validity and reliability was performed using SPSS 25 and AMOS 26, and the structural equation model was analyzed. Findings - This study found the causal relationship between the independent variable, the mediating variable, and the dependent variable adopted against the theoretical background to have little or no effect, in contrast with previous studies. In a break from previous studies, all hypotheses were rejected for innovation strategic competencies, one of the sub-factors of the independent variable, which is believed to be a result of the lack of practical research related to TBT. Originality/value - Previous studies performed analysis using trade statistics or macro data. A number of such studies analyzed the relationship between technical regulation and trade volume. This study differs from previous studies in some respects, because it analyzed the export performance of companies by establishing a hypothesis and implementing a research model with the factors analyzed in previous studies. In addition, a new attempt has been made by classifying the TBT response factors into technology competencies, human resource competencies, and innovation strategic competencies, and utilizing technology innovation and the export support system as mediating effects.

Classification and Practical Consequences of Malicious Additional Conditions from Letter of Credit (신용장 악의적 부가조건의 유형과 실무상 유의점)

  • KIM, Hee-Kyung;PARK, Kwang-So
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.76
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    • pp.103-123
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    • 2017
  • If additional condition in letter of credit is used in malicious way, it affects the international trade transaction in jeopardy. Therefore, it's significant to identify whether additional conditions are malicious or ordinary in the transaction with letter of credit. In normal cases, thanks to lots of useful features as an international payment method, such as security of payment, legal protection, and versatility, a letter of credit is widely used in international trade. However, even with these advantageous features, a letter of credit is complicate and costly to use, compared to other payment methods. Furthermore, due to its principle of independence from underlying contract, a use of letter of credit creates another type of concern for proper handling and needs significant caution upon field use. At some points, malicious additional conditions are used for buyer's advantage in deal making and fraud instance in worst situation. In addition, some countries request malicious conditions against sellers as a non-tariff barrier. Therefore it's extremely important to recognize whether malicious additional condition exists in letter of credit and, if so, how to deal with it. This study delivers the information to distinguish and categorize the malicious conditions in various cases and to figure out how to deal with them for safer trade with less risk.

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Changes in China's Rare Earth Industry Policy and their Implications (중국 희토류산업정책의 변화와 정책적 함의)

  • PARK, In-Sop;SONG, Jae-Do
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.71
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    • pp.297-324
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    • 2016
  • China not only has the largest amount of rare earth reserves, but it also produces the most rare earth products. However, China lacks appropriate supervision and management systems of its rare earth industry. The Chinese government's inappropriate mechanisms have been cause for reckless development by national rare earth providers characterized by excessive competition, environmental pollution, and smuggling. In response to the problems, China implemented regulatory measures to restructure the rare earth industry. The Chinese central government intensifies its efforts to control the total quantity of rare earth products and tackle environmental pollution. Six leading conglomerates have been selected to promote the Chinese central government's policy. A new environmental guideline has been drawn up to reduce the discharging of wastewater and air pollution substance. Huge transition and a great influence of its policy changes are expected. These policy changes are bound to entail huge transitions, and the policy is expected to have a great influence in the future structure of the rare earth industry. In consideration of these changes, the Korean government, in collaboration with private enterprises needs to take appropriate measures, such as overseas resources development, R&D expansion, tactical stockpiling, professional manpower training and so on.

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An Endogenous Decision on the Stringency of the Rules of Origin Verification and its Implications: Focusing on Lobbying a Myopic Government (원산지규정 사후검증제도의 엄격성에 대한 내생적 결정과 함의 : 근시안적인 정부에 대한 로비모형을 중심으로)

  • Woo, Han-Soun;Hwang, Seok-Joon;Hwang, Uk
    • 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.

A Study on The Protection of Intellectual Property Right about The Electronic Commerce - Focusing on the Domain Name And the Trademark Infringement - (전자상거래상(電子商去來上) 지식재산권(知識財産權)의 보호문제(保護問題)에 관한 연구(硏究) - Domain Name과 상표권(商標權) 침해여부(侵害與否)를 중심(中心)으로 -)

  • Lee, Han-Sang
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.1013-1032
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    • 2000
  • At present, the scale of Electronic Commerce through internet has been rapidly increasing due to the development of information & communication technology, and aggregated to 2.4 billion dollar in America last year (1998). The market scale of worldwide electronic commerce is also presumed to be about 130 billion dollar in 2000, and to occupy more than 20% of the whole world trade in world 2020. Since the right of trademark, despite of being effective only in registered nations on the principle of territorialism, is unified on the cyber space of internet without domestic barrier or local limitation which make it easier to conduct the distribution of information rapidly through the address-internet domain name, those are very important that the systematic dispute-solving plan on problems such as decision of its Act and international jurisdiction to be established, in an effort to prevent the newly emerging dispute instances such as trademark infringement and improper competitiveness. In addition, it is natural that on the threshold of the electronic commerce age which formed with an unified area without the worldwide specific regulation, each country including us makes haste with the enactment of "electronic commerce Act" aiming at coming into force in 1999, in keeping with getting through "non-tariff law on electronic commerce" by U. S. parliament on May, 1998. In view of the properties of electronic commerce transactions through internet, there are the large curtailment of distributive channel, surmounting of restrictions on transaction area, space and time and the easy feedback with consumer and the cheap-required capital, from which the problems may arise - registration of trademark, the trademark infringement of domain name and the protection of prestigious trademark. Therefore, it is necessary to take the counter-measure, with a view of reviewing the infringement of trademark and domain name and the instances of each national precedent and to preventing the disputes. The improvement of the persistent system should be needed to propel the harmonious protection of those holding trademark right's credit and demanders' expectant profit by way of the righteous use of trademark.

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