• Korean Journal of Agricultural Science
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• v.47 no.2
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• pp.337-347
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• 2020

Since 2012, despite the fact that tariff rate quotas (TRQ) in the form of dried peppers has not been imported, the imports of pepper-related items such as low- tariff frozen peppers (27%) and other sauces (45%) have increased, there has been a problem in the domestic pepper industry, in which the domestic self-sufficiency rate has declined. The purpose of this study was to find out whether the operation of chili pepper TRQ has the effect of suppressing the imports of pepper-related items from China. We analyzed the import substitution effect (import suppression effect) through causal analysis of the imports of red pepper TRQ, frozen peppers, and other sauces using the structural equation model analysis method. As a result of the hypothetical scenario analysis, when the government imports and releases 7,185 tons of pepper TRQ in 2019/20 (scenario), private imports were estimated to decrease by only 3,060 tons. In other words, the import substitution effect between imported items was estimated to decrease about 2,079 tons of private dried peppers, and about 981 tons of imported pepper-related items. There was an effect of suppressing the imports of pepper-related items such as frozen peppers, but it was analyzed to be insignificant. That reason was that the replacement substitution elasticity of the pepper-related items for TRQ import was less than 1 (inelastic). Therefore, it is judged that the government's operation of the pepper TRQ is preferably focused on stabilizing domestic prices rather than focusing on import control of pepper-related items.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.1
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• pp.725-731
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• 2020

This study analyzed the impact of increasing orange imports on the domestic fruit markets, focusing on the period January to May when oranges were imported and sold intensively after implementation of the Korea-US FTA. In this study, only citrus fruits that compete with U.S. oranges were limited to domestic fruits; of these, Hallabong, which is consistent with consumption of U.S. oranges, was selected as an analysis target. A dynamic recursive simulation model was established to evaluate the ex-post effects of the Korea-U.S. FTA, and to conduct mid and long-term forecasts for the Hallabong market. In addition, major policy simulations were performed on the Hallabong market to assess the effect of each scenario. The ex-post impact evaluation reveals that between December and February, Hallabong had no effect on the seasonal tariff of oranges. However, from 2012 to 2017, the actual import decreased by 21.9 billion won annually due to the TRQ, with the accumulated 6-year decrease being 131.5 billion won. Major policy simulation analysis shows that the change in the unit cost of import due to the U.S orange crop and the increase of Hallabong export will help in expanding the market, and thus effectively increase income.

• Journal of Agricultural Extension & Community Development
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• v.10 no.2
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• pp.211-227
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• 2003

According to the TRQ system created by WTO agreement on agriculture, Korea notified the WTO of the application of tariff rate quotas for 67 agricultural commodities(now, 63 commodities). Among these government administrate state-operated trade for 17 commodities. However, WTO/DDA negotiation will bring about lowering tariffs and increasing quantities of tariff quota. This study suggest the development programs corresponding WTO/DDA agriculture negotiation. First, from the viewpoint of the protection of domestic agriculture & improving transparency of agricultural import administration, the administration system of the state-operated trade will be necessary to be transformed for market oriented methods. Second, the administration system of the state-operated trade will be necessary to be rendered unified organization also. The current system of the state-operated trade shows the phenomena og many divergency. And third, The quantities of market access of FTA between Korea and Chile will be desirable to be administrate by state-operated trade. Because, according to diffusion of FTA treaties, the amount of market access quantities of FTA increase rapidly henceforth.

• International Commerce and Information Review
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• v.11 no.1
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• pp.441-463
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• 2009

FTA is acting as a central axis to accomplish the worldwide trade liberalization as FTA has been globally spreading with competition. As the global economic depression and the trend of new protectionism are getting grave, and the trade liberalization of GATT and WTO is getting delayed, FTA is spread as an alternative. FTA is often called as RTA: Regional Trade Agreement(regional free trade agreement) which takes place mainly around the neighbor nations or regular districts, and these days, it is tending towards agreements between long distant nations, so, it's not limited to the regular districts. Among the FTA agreement items, in addition to the customs abolition, the opening and investment liberalization of service market like finance, communication etc., intellectual property rights are included in the government's target range. Korea also is actively proceeding FTA conclusion. Korean government has concluded the agreements with Singapore, european nations beginning from Chile concluded in 2003, and is proceeding more the negotiations with Japan, Canada, Mexico, India etc. Now in 2009, FTA of Korea-United States is actually waiting for just the passage of assembly ratification. But, if FTA becomes effective, because our domestic market should be entirely opened, it is expected that the blow against our domestic agricultural field which is weak, compared with that of the United States, a nation of worldwide agricultural products, is not an ordinary one. According to it, we need a whole plan to cope with, so, the purpose of this study is to suggest the strategy by comparing and analysing the Korean agricultural competitive power, and to find the other development stratagem.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.4
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• pp.538-545
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• 2020

This study measured the economic impact (from 2012 through the end of 2017) of the KOR-USA FTA (Free Trade Agreement) on the Korean citrus industry according to importing orange from the USA after the implementation of the KOR-USA FTA. Citrus fruits were divided into field citrus grown in open fields, house citrus grown in green houses, and late-maturing citrus (including winter season citrus) based on the cultivation methods and the varieties of citrus. We specified the structural and dynamic recursive demand-supply equilibrium models of three citrus fruits to analyze policy simulations. The results showed that for field citrus, due to the impact of some amounts of TRQ, the annual average of the real gross revenue dropped by 2.39 billion KRW between 2012 and 2017. As for house citrus, due to the impact of oranges and cherries, the annual average of the real gross revenue declined by 3.01 billion KRW between 2012 and 2017, and for late-maturing citrus (including winter season citrus), the annual average of the real gross revenue fell by 15.11 billion KRW between 2012 and 2017. This paper also suggests several policy implications.