• 무역상무연구
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• 제69권
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• pp.567-588
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• 2016

Korea-China FTA and Korea-U.S. FTA are the most significant FTA in volume and economic effect for Korea's perspective. Developed countries have dealt with environmental issues one of the main issues in FTA negotiation, while developing countries have been reluctant to it. Both Korea-China FTA and Korea-U.S. FTA have separate environment chapter respectively. A separate environment chapter was firstly introduced in Korea-U.S. for Korea's perspective. Both environment chapters provide high level of environment protection, recognition of multilateral environmental agreements, enforcement of environmental laws, and environmental cooperation. Both environment chapters require that each party make effort to improve environmental laws and measures. Korea-China FTA provides establishment a "Committee on Environment and Trade", and Korea-U.S. FTA provides establishment a "Environment Council" to oversee the implementation of environment clauses. Korea-China FTA and Korea-U.S. FTA have very similar provisions on environment and trade, and are expected to contribute to enhancing environment protection. However, a lot of provisions are somewhat declaratory rather than mandatory. Therefore, further environmental cooperation is encouraged to achieve the goals and objectives of the environment clauses and FTA.

• East Asian Economic Review
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• 제22권4호
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• pp.403-425
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• 2018

This paper documents the presence of "sensitive sectors" in Free Trade Agreements, defined as sectors for which the within-FTA tariffs remain positive. The paper includes some brief theoretical discussion of the welfare implications of these, but the main emphasis is on reporting two measures of this phenomenon for countries in FTAs that entered into force between 1994 and 2003. One measure is the percentage of tariff lines that remain dutiable, and the second is the change, from before the FTA to after, in the average maximum (across 6-digit products) positive tariffs. Both measures are derived from data in the UNCTAD TRAINS database, and are then related to measures of country characteristics that might explain them. Low per capita GDP countries tend to have larger fractions of dutiable tariff lines, while higher income countries tend to post larger increases in average maximum positive tariffs. Both suggest that the favored treatment of sensitive sectors is undermining the potential gains from trade that FTAs could provide.

• 수산경영론집
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• 제53권2호
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• pp.21-41
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• 2022

The effect of change in exchange rates on an economy is very important, especially, to a small open economy like South Korea. I explore whether Free Trade Agreements (FTAs) have positive influences on exchange rate-pass through import price of import market for fishery products in South Korea. Competition among FTA partners is enhanced after FTAs are effective. I expect that the extent to which are exchange rate pass-through (hereafter, ERPT) into import price of fishery products (in terms of Korea currency) would be reduced since the import market for fishery products in South Korea is an oligopolistic market. Specifically, I investigate two research questions with six South Korea's FTA partners-Norway, Thailand, Peru, U.S., China and Vietnam. First, whether the extent to which are exchange rate pass-through into import price of fishery products from six FTA partners would decrase in the post-FTA era; seconds, the size of reduction has a negative relation with the size of their market share in the import market for fishery products in South Korea if it decreases. The empirical results indicate that the degree of ERPT into import price from other FTA partners than Norway has been reduced after FTA, statistically and significantly; however, I do not find the evidence that the size of reduction is related to their market share. The findings in this study imply that FTAs have negative effects on producers' economic welfare in South Korea's fishery industry by reducing the extent to which are exchange rate pass-through as well as reducing tariff barriers.

• Journal of Korea Trade
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• 제26권1호
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• pp.33-56
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• 2022

Purpose - This paper explains how free trade agreements (FTAs) work as a building block to achieve global free trade and be better than other trade regimes. Design/methodology - This paper utilizes a trade liberalization game setup. Three countries choose a trade agreement strategy based on a given trade regime. Trade agreement is made only when all member countries agree. The paper evaluates each trade regime concerning FTAs and customs union (CU) by area size of global free trade equilibrium on the technology or demand gap between countries. Findings - FTAs make global free trade easier. In this game, there are two main reasons for failure to reach global free trade. First, a trade regime with FTAs makes non-member face difficulties in refusing trade agreements in the existence of a technology gap than a trade regime without FTAs. Also, a trade regime with FTAs causes it harder to exclude non-members in the existence of a demand gap than a trade regime with only CUs. Therefore, a trade regime with FTAs can work better in reaching global free trade. Originality/value - The concept of "implicit coordination" was used, which assumes that FTA members keep external tariffs for non-members the same as before an FTA. Without this consideration, FTA members lower their tariffs to non-members, and it makes non-member refuse free trade easier. FTA can prevent it sufficiently only with implicit coordination. This makes the trade regime with FTAs more effective to reach global free trade.

• 통상정보연구
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• 제8권2호
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• pp.249-274
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• 2006

This study extensively investigated Japan's FTA strategy and plan of FTA policy and analyzed the economic effect caused by it. In the analysis of economic effect using world economical model shows not only positive economic effect in home country but also to the foreign country. Recently, Japan's bilateral relation with Korea and China is getting worse, not in a friendly way. Consequently Japan's future FTA negotiation will be expected to be focused on the East-Asia region. In other words, Japan expressed assistance for the purpose of communication, stability and prosperity in the East-Asia and will seek individual economic cooperation with each East-Asia country trying to reinforce the stand of Japan. This means that Japan is trying to improve the relation with Korea and China in the other way because it cannot change the relation with Korea and China on its own. That is to say, It can be interpreted as Japan is trying to reinforce the economic cooperation with other East-Asia countries for the realization of East Asia community rather than directly negotiating with Korea or China.

• 무역상무연구
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• 제77권
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• pp.239-258
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• 2018

The purpose of this study is to examine the legal standards of agreements on the origin of liability and the relevant laws in Korea, to suggest implications for custom authorities and traders wishing to benefit from preferential tariff via FTA, citing the excluded cases of related FTA preferences (court cases and administrative judgments). In order to examine the provisions related to supporting evidence of the origin of liability in FTA, we examined FTAs agreed between Korea and EU, EFTA, ASEAN, U.S., and India relevant to FTA Special Customs Act, court cases and administrative judgements. If verifying the origin to protect the fair trade order impedes to promote utilizing FTA, solutions will need to be suggested. If FTA preference is exempted due to verifying the origin by the import customs authorities, the importer shall pay the income tax calculated in accordance with the general tax rate. This is because the certificate of origin confirmed during verification process is different from the actual origin. In most agreements, the exporter (the producer) shall issue the certificate of origin and since the importer has no other option than obtaining the certificate of origin from the exporter, it may face consequences such as declined credibility from the custom authorities in addition to being disqualified for FTA preferential, if the certificate of origin received from the exporter has flaws. On the other hand, the exporter cannot help but being punished by the customs authorities due to issuing defective origin certificates, but it doesn't have conventionary liabilities for damages incurred to the importer. As a result, importers are forced to pursue legal proceedings to claim damages to exporters or to give up FTA preference. As FTA is increasingly utilized, the number and amount of origin verification in Korea has continuously been increasing while administrative judgements indicates other FTA exporters doesn't seem to gain any support in utilizing FTA like Korea does. It has been 8 years since full-scale supports in FTA launched and now is the time to introduce more efficient and intensive FTA support system In this regard, it is desirable to conduct comprehensive verification on export Next, an institutions that assures FTA-based exports should be established in order to compensate the importer's damages that may occur from disqualified certificate of origin issued by the exporter.

• 통상정보연구
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• 제12권4호
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• pp.509-535
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• 2010

This paper examines the Spaghetti bowl effect that different tariffs and rules of origin in multiple FTAs have resulted in increasing the significantly additional burden for business when it comes to apply for the use of FTA preference. The wide spread of FTAs in the several years, from 2003 to 2010, has been the most important trade policy development in economically important Korea. Korea presently has 5 FTAs in effect, and made 3 additional agreements which will be expected to take effect in next year. With the study result and expecting a growing number of FTAs in Korea in a next decade, the international trading firms will face rise of transaction costs for enterprises, particularly small- and medium-sized enterprises(SMEs) to cope with multiple tariffs and rule of origins in FTAs. To help mitigate negative effects and facilitate a more SEMs to use the FTA preference, providing new computer programs system, increasing the awareness of FTA provisions, improving business participation in FTA consultations, and SME support in light of education, and financial support are needed.

• East Asian Economic Review
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• 제26권3호
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• pp.227-253
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• 2022

Despite the proliferation of free trade agreements (FTAs), many exporting firms are still confronted with several challenges in utilizing the FTA preferential tariffs. Based on the Technology-Organization-Environment (TOE) framework, this study empirically examines the factors affecting the utilization of FTA schemes by exporting firms. To clarify the key factors influencing FTA utilization, this study develops a conceptual model from the perspective of the adoption of information technology innovations. Eight factors derived from the TOE framework are proposed to explore the determinants of FTA utilization in export. Partial least squares structural equation modeling is employed to analyze the data collected from 162 exporting small- and medium-sized enterprises in the South Korean textile industry. The findings reveal that compatibility and trading partner influence are positively associated with FTA utilization, while complexity is negatively related. Factors of organizational context do not show any relationship with FTA utilization. This study is the first to theoretically analyze and empirically test the determinants of FTA utilization from the perspective of technological innovation adoptions. By examining the relative importance of TOE factors in the utilization of FTA schemes, this study expects to advance a holistic understanding on the perceived factors that could potentially affect the utilization of FTA schemes.

• Journal of Korea Trade
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• 제26권8호
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• pp.58-76
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• 2022

Purpose - This study examined the Rules of Origin (RoO) as a factor affecting free trade agreements' (FTA) utilization and analyzed the causal relationship and the effects of these factors on the export performance of automobile parts companies. Design/methodology - We analyzed and verified the impact of FTA utilization and the export performance of automobile parts companies by dividing the characteristics of the RoO into complexity and uncertainty. Following which, various statistical analyses were conducted on the interrelationships among these variables. Findings - This research analyzed the effect of the RoO factors of complexity and uncertainty on the use of FTA and the export performance of automobile parts companies. We found that these characteristics of RoO were generally related to and affected the FTA use and export performance of these companies. Based on this, this study's investigation into the characteristics of the RoO would then help companies in better utilizing the FTA, as well as providing suggestions on how to effectively respond to the application of the FTA in the future. Originality/value - Companies that want to utilize FTAs in international trade must follow the RoO. In the Regional Trade Agreement (RTA), the country-of-origin is a key factor, with the RoO being an important requirement for the application of preferential tariffs. These regulations are a requirement for receiving FTA preferential treatment; however, they also cause difficulties to companies in using the FTA.

• 통상정보연구
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• 제11권2호
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• pp.259-279
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• 2009

Recently, FTA is quickly spreading out all over the world. In Korea, roles of trade in the economy are significantly important. Therefore, in order to adapt quickly to changed international trade environment, FTA negotiation and its agreements have been accelerated. In Korea, the trade deficit is expected to continue in telecommunications services sector. Meanwhile, pressures to open the market have been intensified in telecommunications services at WTO and FTA negotiations. Therefore, in the middle of opening the market, the expansion plans to increase the competitiveness of our telecommunications services are required to be searched. Thus, in this paper, we reviewed the Korea trade policy status related to telecommunications services based on realistic situation. Also, after reviewing the trade issues which are raised in the WTO and FTA negotiations, the major issues in WTO and FTA were driven to the lessons.