• International Commerce and Information Review
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• v.14 no.2
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• pp.447-470
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• 2012

A Certificate of Origin is used in international trade. It is a printed form, completed by the exporter or its agent and certified by an issuing body, attesting that the goods in a particular export shipment have been wholly produced, manufactured or processed in a particular country. FTA rules of origin in recent FTA agreement is a very complex procedure that requires international negotiations in the field has become the largest issues. Case of Korea-Chile FTA, starting with the origin criteria for each agreements is inconsistent due to differences between countries is an area that is not easy to negotiate. This study is covered in the agreement signed on the origin criteria for adequate review and comparison by item currently being pursued through the FTA was signed during the implications that can be applied to the agricultural sector has to offer.

• The Journal of Fisheries Business Administration
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• v.37 no.1 s.70
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• pp.45-71
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• 2006

The main objective of this study is to analyze problems of the Country of Origin Labeling(COOL) in small live fish(SLF) trade by applying the asymmetric information theory which is called ${\ulcorner}$Lemon Market Theory${\lrcorner}$. The purpose of importing SLF is to enhance fishing household income and import substitution effect as well. SLF importation is quite different in its nature from importing general fish and fish products for final/direct consumption. SLF are imported for the purpose of domestic aquaculture and naturalization where domestic production/supply of SLF is less than domestic demand for or such species are not native to Korean waters. Information asymmetric problems arise even in SLF trade as the same way in general goods and services. However, the information asymmetry issues in SLF trade are much more complex than non-living goods because SLF are traded in the live state. To alleviate such problems the Korean government initiated the general COOL scheme to imported SLF. However, many experts argues that such policy on SLF would not be appropriate because of SLF's very nature. Applying the lemon market theory, we can analyze how information discovery schemes are able to signal correct information to SLF trading parties and to result in more symmetric information in SLF trade markets. This research carried out a case study about small live eel(SLF) trade and its farming. The results showed that applying the COOL to small live eels just right upon coming into fish farms tends to increase substantially fish farmer's income and at the same time to lower unnecessary transaction costs. In particular, such transaction costs by imposing simply the general COOL on SLF may easily outweigh its benefits. For instance, to resolve the problems, the Korean ministry of agriculture and forestry(KMAF) has developed a quite different COOL rules from the general ones and has applied them to imported live cattle and medium/small livestocks. The KMAF's differentiated COOL policy on some imported livestocks may be a good case which can be applied to imported SLF. In addition to the differentiated COOL on SLF, Sanitary and Phytosanitary (SPS) and traceability system would play crucial complementary roles in alleviating information asymmetry problems in SLF trade. Advanced fisheries tend to strengthen their SPS system rather than to adopt the general comprehensive COOL schemes into imported SLF trades and domestic market exchanges.