• Proceedings of the Safety Management and Science Conference
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• 2003.05a
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• pp.255-263
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• 2003

The drug industry of China is faster than before, so it will rank 5$^{th}$ at world-wide markets in 2010. This is because of expansion of purchase power on increase in economic growth, extended human life expectancy. As it is entered the WTO in January 2002, it will positively affect on export of Korea for China. This paper focuses on the analysis of export increase caused by reduction of custom tariff in China. The time schedule on average reduction of custom tariff is 15% in 2000, 10% in 2005, 5% in 2010. As the empirical test, it presents 8.48% export increase rate for China of Korea on reduction of custom tariff.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.49
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• pp.545-566
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• 2011

This paper study on the effect of the removal or reduction of the tariff on Korea-India trade by CEPA between Korea & India and then examines the effects of increased exports & imports to Korea on India. Despite the analysis is based on data over a short period of time, this paper shows that CEPA between Korea & India has substantially increased Korean exports(42.7%) and imports(37%) to India in 2010. It is also shown that CEPA between Korea & India has had a considerable impact on market. As a result can be summarized as follows. The potential fields of expanding the trade between the two countries due to the tariff concessions of the removal or reduction. Consequently the effect of the removal or reduction of tariff will be low our expectation but CEPA between Korea & India would have a positive effect on Korea's exports to India in the long term. This paper has examined the impact of CEPA between Korea & India on general economy. It needs a further study to estimate trade diversion effect of CEPA and to find out the impacts on specific industry.

• Korea Trade Review
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• v.45 no.4
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• pp.1-24
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• 2020

This study aims to analyze the export effects of Korea-Canada FTA's tariff reduction, which was launched on January 1, 2015. First, as a groundwork, this study reviewed trade creation and trade diversion by investigating all possible cases of both initial FTA and additional FTA. The review was done by using the simple model of three countries assuming FTA means elimination of tariff. The review suggested that additional FTA doesn't have any negative impact on import country's social welfare contrary to initial FTA. In additional FTA, Trade diversion could happen between FTA partner countries, but it always increases import country's social welfare. In this sense, it can be called favorable trade diversion. Second, this study analyzed the export effects of Korea-Canada FTA using Clausing's product level model based on Canadian government import data from Korea which is not open to the public. It turned out that Korea-Canada FTA's tariff reduction boosted Canadian import growth rate from Korea. On the other hand, Canadian import growth rate from rest of the world was not negatively affected by Korea-Canada FTA's tariff reduction. Rather, it increased as Canadian import growth rate from Korea was higher. These findings implied trade creation rather than trade diversion of Korea-Canada FTA when it comes to Korea's export to Canada.

• The Korean Journal of Air & Space Law and Policy
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• v.35 no.2
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• pp.247-280
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• 2020

For customs-free and liberalization on the trade of aircraft parts, the WTO Agreement on Trade in Civil Aircraft was separately concluded as plurilateral trade agreement at the time of launching WTO in 1995, and currently 33 countries including the United States and the EU are acceded but Korea does not. Major details of the Agreement on Trade in Civil Aircraft include product coverage, the elimination of customs duties and other charges, the prohibition of government-directed procurement of civil aircraft, the application of the Agreement on Subsides and Countervailing Measures, and the consultation on issues related to this Agreement and dispute resolution. Article 89 paragraph 6 of the current Customs Act was newly established on December 31, 2018, and the tariff reduction rate for imports of aircraft parts will be reduced in stages from May 2019 and the tariff reduction system will be abolished in 2026. Accordingly, looking at the impact of the Agreement on Trade in Civil Aircraft on the aviation industry, first, as for the impact on the air transport industry, an tariff allotment of the domestic air transport industry is expected to reach about 160 billion won a year from 2026, and upon acceding to the Agreement on Trade in Civil Aircraft, the domestic air transport industry will be able to import aircraft parts at no tariff, so it will not have to pay 3 to 8 percent import duties. Second, as for the impact on the aviation MRO industry, if the tariff reduction system for aircraft parts is phased out or abolished in stages, overseas outsourcing costs in the engine maintenance and parts maintenance are expected to increase, and upon acceding to the Agreement on Trade in Civil Aircraft, the aviation MRO industry will be able to import aircraft parts at no tariff, so it will reduce overseas outsourcing costs. If the author proposes a policy direction for the trade liberalization of aircraft parts to ensure competitiveness of the aviation industry, first, as for the tariff reduction by the use of FTA, in order to be favored with the tariff reduction by the use of FTA, it is necessary to secure the certificate of origin from foreign traders in the United States and the EU, and to revise the provisions of Korea-Singapore and Korea-EU FTA. Second, as for the push of acceding to the Agreement on Trade in Civil Aircraft, it would be resonable to push the acceding to Agreement on Trade in Civil Aircraft for customs-free on the trade of aircraft parts, as the tariff reduction method by the use of FTA has limits. Third, as for the improvement of the tariff reduction system for aircraft parts under the Customs Act, it is expected that there will take a considerable amount of time until the acceding to the Agreement on Trade in Civil Aircraft, so separate improvement measures are needed to continue the tariff reduction system of aircraft parts under Article 89 paragraph 6 of the Customs Act. In conclusion, Korea should accede to the WTO Agreement on Trade in Civil Aircraft to create an environment in which our aviation industry can compete fairly with foreign aviation industries and ensure competitiveness by achieving customs-free and liberalization on the trade of aircraft parts.

• Korean Journal of Organic Agriculture
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• v.28 no.1
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• pp.31-57
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• 2020

Korea-US FTA amendment became effective January 1, 2019 through several trade negotiations between the two countries. These amendments did not include changes in the agricultural sector. However, given the policy direction of the Trump administration, it is difficult to be certain that the existing Korea-US FTA on the agricultural sector will remain unchanged. This study examines the potential impact of changes in the US beef import tariff rates under the Korea-US FTA, which is progressively eliminated until 2026 using a dynamic partial equilibrium model. The modelling system is simulated with 100% decreases of tariff rates over 2020~2026 period and then compared to the baseline which is developed based on the current Korea-US FTA tariff rates. According to the scenario analyses results, 100% decreases of US beef tariff rate lowered Korean beef cattle production value up to 4.23%. Looking at this change in terms of absolute value rather than percentage, the total production value over 2020~2026 is expected to decrease by 815 billion won compared to Baseline. This reduction in production value in dynamic analysis is 67 billion won higher than the comparative static analysis.

• KDI Journal of Economic Policy
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• v.29 no.3
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• pp.75-109
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• 2007

This paper empirically investigates the effects of import tariff on within-plant productivity growth in Korean manufacturing, using the detailed plant-level longitudinal data of the Korea Census of Manufacturers for the period of 1993-2003. Our main findings are as follows: First, the productivity changes of Korean manufacturing for the period under analysis were mostly induced by within-plant productivity gains, rather than within-industry and/or between-industry resource reallocations. Second, after controlling for firm-specific heterogeneity, the estimation results indicate that lowering tariff-barriers has a positive impact on within-plant TFP growth. We interpret the results in a way that trade liberalization through the removal of tariff and non-tariff barriers heightens the competitive pressure, which in turn creates incentives to reduce production and managerial inefficiency and to invest more on innovative activities. Third, we also find that plant productivity growth from reducing tariff barriers is particularly conspicuous within a year after tariff changes, which implies that plants are quickly adjusting to heightened import competition. On the other hand, our results show that the trade effect on employment creation proceeds relatively slow.

• Environmental and Resource Economics Review
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• v.18 no.4
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• pp.715-744
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• 2009

This study was analyzed the change of the tariff reduction for the Korea's fishery according to the Non Agricultural Market Access(NAMA) negotiations of the WTO. Four scenarios of tariff liberalization of NAMA are conducted on the basis of a Swiss formula. Using import demand function, we estimated price elasticities of imported fishery. The results of the analysis with mark up 20% show that, in the position of developed member, the value of import increase was between 405 billion won and 439 billion won, and analyzed between 232 billion won and 254 billion won with less than cut 50%. On the other hand, in the position of developing country, the value of import increase was between 311 billion won and 356 billion won, and analyzed between 174 billion won and 201 billion won with less than cut 50%. Also, the results was showed that the highest effects for increasing value of import are a fresh Pollack.

• Ocean and Polar Research
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• v.32 no.1
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• pp.23-40
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• 2010

This study investigated the effects of imported fisheries products on WTO/DDA tariff negotiations. To calculate the results, the study estimated the demand functions of imported fisheries products by using unit root and cointegration approaches. These approaches allowed us to solve spurious regression problems with macro-economic variables. In addition, this study surmised the effects of change by individually imported fish products from a tariff negotiation model using price elasticities of estimated import demand function. In a process of the analysis for estimating import effects, this study found out that 39 out of 128 imported fish products had positive (+) price elasticities or did not exhibit cointegrations. To cure this problem, this study suggested that the effects of these 39 imported products be estimated with the average variation rate of import volume, rather than by the Ordinary Least Squares approach. In this study, a case-study of tariff formula with coefficient 8 based on a 'Swiss formula' for priority duty rate of 2001 and 2008 was used by to analyze the effect of change in the 128 imported fish products of both years, respectively.

• Journal of Wellbeing Management and Applied Psychology
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• v.3 no.4
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• pp.1-4
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• 2020

Purpose: This research, based on the tariff reduction table negotiated by South Korea and China free trade area, the specific tariffs of the two countries in the implementation of the Korea-China Free Trade Agreement are calculated, and the global equilibrium model, the global trade analysis project (GTAP) model, is used to simulate and analyze the impact of the Korea-China free trade area on the output and trade of the two countries. Research design, data and methodology: The study conducted a survey on 2018 year GTAP 9.0data. After empirically analyzing the data, we believe that the Major industry in Korea and China will maintain its growth momentum. Results: This study shows that under the assumption that the average tariff of China and South Korea at the beginning of FTA was reduced to 20%, two scenarios were simulated. Two scenarios are simulated under the assumption that the average tariff of China and South Korea FTA will be reduced to 10%. Conclusions: This paper assumes that the average tariff of China-Korea FTA is set at 20%, 10% and zero tariff respectively in the early, middle and long term of the FTA construction. It considers the impact of China-Japan-Korea FTA on China- Korea FTA.

• Journal of IKEEE
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• v.25 no.2
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• pp.388-398
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• 2021

This paper proposes a particle swarm optimization (PSO)-based peak shaving scheme using energy storage system (ESS) for electricity tariff reduction. The proposed scheme compares the actual load with the estimated load consumption, calculates the additional output power that the ESS needs to discharge additionally to reduce peak load, and adds the input. In addition, in order to compensate for the additional power, the process of allocating power to the determined point is performed, and an optimization that minimizes the average of the load expected at the active power allocations using PSO so that the allocated value does not affect the peak load. To investigated the performance of the proposed scheme, case study of small and large load prediction errors was conducted by reflecting actual load data and load prediction algorithm. As a result, when the proposed scheme is performed with the ESS charge and discharge control to reduce electricity tariff, even when the load prediction error is large, the peak load is successfully reduced, and the peak load reduction effect of 17.8% and electricity tariff reduction effect of 6.02% is shown.