• Korea Trade Review
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• v.42 no.6
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• pp.155-176
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• 2017

As an increasing number of the FTA, there have also been increasing interests in FTA utilization. It is critical to understand and implement the rules of origin for FTA utilization appropriately. However, due to the spaghetti bowl effect, the restrictiveness index, which is a measure of the degree of difficulty of meeting Product-Specific Rule(PSR) of origin, gets increased. Furthermore, there is a distortion in the method of calculating the correct restrictiveness index. Therefore, we implemented an enhanced method in a context of fishery product to correctly measure the restrictiveness index of Product Specific Rules (PSR) among the rules of origin.

• Korea Trade Review
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• v.41 no.3
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• pp.63-107
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• 2016

This paper analyzed the restrictiveness of the rules of origin of the 15 FTAs of Korea utilizing the restrictiveness index suggested by Estevadeordal(2000). The main purpose of the paper is to provide an update of the current status and characteristics of the restrictiveness of the rules of origin based on product type and country. The research showed that FTA with EU and Turkey showed the highest restrictiveness, whereas New Zealand, Peru and India showed the lowest. Overall, Korea's restrictiveness index was found to be at appropriate levels. Additionally, in terms of the current status by restrictiveness index, over time with the exception of European countries in the FTA, products with the lowest score in restrictiveness index of 2 continued to be processed in the Korea-Peru FTA which illustrated the current trend of easing restrictiveness. In terms of restrictiveness index based on product type, commodity products, processed food, clothing-fabric-general merchandise were found to be very strict. However, in categories such as general machinery, electronics, chemical products and precision instruments, the restrictiveness index showed the lowest readings. The results imply the high restrictiveness in sensitive products that are vulnerable from competition through high tariffs, and easing of restrictiveness in competitive products in order to vitalize trade. The results also show that in Korea's FTA, Korea's rules of origin in FTA vary and are sorted in a complicated manner. With an increasing number of FTAs and a number of different rules of origin, there is a need for standardized criteria for Korea. This study was significant in that it compiled all the rules of origin and the restrictiveness index of all FTAs that came into effect and have been negotiated in Korea. The results of the research are expected to be used as an informative and meaningful guideline for Korea's FTAs.