An Empirical Study on the Utilization Ratio of FTAs by Korean Firms

INKYO CHEONG,JUNGRAN CHO 한국무역학회 2009 Journal of Korea trade Vol.13 No.2

Overlapping and complicated FTAs have been progressing ahead in East Asia, but the issue of the ‘Asian noodle bowl’ rose as one of the research topics in regional economic integration a few years ago. The topic gave rise to concern with the finding of low business utilization ratio of FTAs in sample East Asian countries. This raised the necessity of a survey on the utilization ratio of Korea’s FTAs since the country has been promoting FTAs most actively in the region for last several years. This paper tried to study Korean firms’ utilization of FTAs under current implementation and the general attitude towards FTAs. One of main findings is that only one out of five Korean firms surveyed utilizes FTAs, although about half of the firms evaluated FTAs to be beneficial for their businesses. This paper asserts that the government has been less successful in promoting useful FTAs for business so far. It emphasizes that the government should push forward various schemes for enhancing the firms’ utilization of FTAs rather than voicing up the merits of FTAs.

An Empirical Study on the Utilization Ratio of FTAs by Korean Firms

정인교,조정란 한국무역학회 2009 Journal of Korea trade Vol.13 No.2

Overlapping and complicated FTAs have been progressing ahead in East Asia, but the issue of the ‘Asian noodle bowl’ rose as one of the research topics in regional economic integration a few years ago. The topic gave rise to concern with the finding of low business utilization ratio of FTAs in sample East Asian countries. This raised the necessity of a survey on the utilization ratio of Korea’s FTAs since the country has been promoting FTAs most actively in the region for last several years. This paper tried to study Korean firms’ utilization of FTAs under current implementation and the general attitude towards FTAs. One of main findings is that only one out of five Korean firms surveyed utilizes FTAs, although about half of the firms evaluated FTAs to be beneficial for their businesses. This paper asserts that the government has been less successful in promoting useful FTAs for business so far. It emphasizes that the government should push forward various schemes for enhancing the firms’ utilization of FTAs rather than voicing up the merits of FTAs.

편단화된 FTA체제의 통합방안 연구 : 이익과 손해 분석을 중심으로

최원목 법무부 2011 통상법률 Vol.- No.97

FTA는 다양한 경제적 이익을 가져다 준다. 그럼에도 불구하고, 그 동안의 FTA체결추진 정책을 통해 우리는 정치투쟁 비용을 과다하게 지불해왔으며 산엽 구조조정 과정 왜곡으로 인한 사회적 비용을 치루는 악순환을 겪어왔다. 더구나 복잡하게 얽히는 FTA특혜 원산지규정으로 인해 기업들이 느끼는 실질적인 거래비용은 점증하고 있다. 이러한 추가비용은 북미, 유럽 및 아시아 지역에서 이미 발생하고 있으며, 우리경제와 같이 전세계로부터 원재료를 들여와 전 세계를 상대로 최종제품을 수출하고 있는 경우에는 극대화되게 된다. 우리의 FTA정책은 지속적인 FTA체결에 못지않게 그러한 과정에서 복잡다기하게 얽히는 FTA 원산지기준들을 통일하고,FTA간의 통관제도를 비롯한 각종 제도화 규정 들의 상응성을 높임으로써 거래비용을 줄여나가는 노력을 병행해야 한다. 동시다발적 FTA체결로 인해 발생하는 이익은 물론 그에 수반되는 비용이 무엇인지를 이익 손해분석 (cost-benefit analysis)을 통해 분명 히 따져 보아야 할 필요가 있는 것 이다. 그러고 나서 가급적 손해를 줄일 수 있는 방안, 즉 편단화 되고 있는 FTA간의 편단성을 극복할 수 있는 통합방안을 도출해내야 한다. 우리의 장기적 FTA정책의 원칙은 FTA간의 경제적 효율성과 제도적 상응성을 제고하고, 동북아 정치·경제·안보 안정화에 기여하며, 다자주의로의 궁극적인 통합에 상응하도록, FTA를 상호 연결해나가는데 주어져야 한다. 지역적으로는 북미지역의 NAFTA와의 연결을 중단기 목표로 추진해야 하며, 이와 병행하여 아시아 지역 자체 및 EU와의 연결을 함께 추진해야 한다. 이 과정에서 북한경제와의 경제협력도 본격화하여 FTA를 통한 연결에 대비해야 한다. 우선, 원산지 교차누적평가 제도를 연결대상 FTA간에 도입하여 상호간 원산지 규정을 통일시켜 나가고, FTA간의 세관절차의 통일, 통관의 원활화, 통관과정에서의 투명성 증대, 무역구제 및 투자 관련 규범의 통일, 분쟁해결 규범의 통일 등 주로 규범 · 제도화 관련 분야에서의 통일을 기해나가야 한다. 이러한 과정과 경험을 통해 궁극적으로는 새로운 복수국간 지역무역협정을 체결함으로써 FTA간의 통합을 완성해야 한다. 그렇게 되면, 편단화된 FTA에서 발생하는 각종 거래비용을 영구히 방지할 수 있고, 다자주의로의 통합이라는 궁극적 방향과도 일치하게 된다. Free trade agreements (FTAs) provide participating economies with many benefits. Nonetheless, Korea has paid an excessive amount of costs of political struggle and industrial adjustments in the process of concluding and implementing FTAs in the past. In addition, the spread of complicated web of FTAs and their preferential rules of origin have increased costs of doing business around the world. These costs are generated everywhere including in the North America, Europe, and Asia, and they are maximized in the case of Korean economy which heavily relies on foreign source materials and exports its final products all over the world. The long-term FTA policy of Korea must be accompanied by systemic efforts to reduce costs of FTAs and to harmonize their different rules of origin. A thorough cost and benefit analysis should be conducted to identify sources of the costs, and solutions must be found to address those sources. The Korean FTA policy must be based on the principles to raise economic efficiency of FTAs and their mutual responsiveness, to contribute to the political, economic and security stability in the Northeast Asia, and to align FTAs to an eventual integration into the multilateralism. In this regard, Korea can pursue to integrate its economy with the North American economies while seeking FTA harmonization in Asia and with the European economies. In this process, FTA integration with the North Korea can also be taken into account on a long-term basis. The first step can be to introduce the diagonal cumulation system into FTAs, which will contribute to the harmonization of preferential rules of origin. Further harmonization of customs procedures, transparency, trade remedy and investment rules, and dispute settlement procedures under FTAs will lead to an upgraded level of convergence or harmonization of FTAs. Ultimately, a new plurilateral FTA may be concluded in place of several FTAs to complete the harmonization process. This gradual approach will substantially reduce costs arising from fragmented FTAs and make regionalism paths a genuine building blocks to global free trade.

The Effectiveness of the Cooperation Agenda in FTAs: Ways to Promote Foreign Investment and Development Assistance in Asia*

Nany Hur 한국무역학회 2021 Journal of Korea trade Vol.25 No.6

Purpose – This paper aims at analyzing the functions and effectiveness of the cooperation agenda in Free Trade Agreements (FTAs), focusing on the cases of Asian countries. This paper estimates the contribution of this agenda to the sustainable development in Asia by providing the ‘side payment’ of the economic integration that encourages foreign investment and change in global value chains (GVC). Design/methodology – This study analyzes the functions of the cooperation chapter in FTAs by applying the cooperative game theory and reviewing the structures of the related FTAs. Also, as an empirical study, the existing FTA provisions and related development assistant programs in Asia are reviewed in this paper, especially focusing on the FTAs signed by Korea. Findings – Our main findings can be summarized as follows: The drawback of the economic inte￾gration, which would be the imbalanced economic benefit, can be redressed by the cooperation chapter in FTAs functioning as a ‘side payment’. Indeed, as the examples of Korean FTAs show, more foreign investment and the GVC expansion in Asian countries have been encouraged thanks to the implementation of the cooperation chapters. Originality/value – This paper attempts to find how a legally binding agreement would influence the cooperation agenda in Asia which has never been analyzed despite the increasing number of so-called ‘cooperation’ chapters in the FTAs.

The Need for Green Sourcing in Free Trade Agreements

박명섭,신수용 한국무역연구원 2013 무역연구 Vol.9 No.3

Free Trade Agreements (FTAs) connect countries to major economies and new markets through eliminations of tariffs, import quotas, and preferences on most goods and services between agreed members. Increased number of such agreements worldwide has led to an increased interest in Rules of Origins (ROOs) which is necessary for identifying a nationality of a product in order to receive the benefit under FTAs. However,complex characteristics of ROOs damage the principle benefit of FTAs which leaves cost burdens to companies. Because of such complexity, harmonization of ROOs has long been argued. Harmonizing the complex ROOs may benefit many countries and businesses. However, the current issues related to FTAs or use of ROOs rather seem to pay most attention only on reducing costs while the current century is faced with ever-challenging environmental issues. Environment should never be neglected. Considering green efforts in FTAs would be necessary. FTAs could consider strategies that accompany green efforts namely green sourcing, for example. Applying green sourcing in FTAs should allow companies to focus on their supply chains with sustainability to give positive effects on the environment. Such efforts should also provide them with further cost benefits. This paper aims to study FTAs with related issues of ROOs in order to argue for the need of green sourcing in them.

The Need for Green Sourcing in Free Trade Agreements

박명섭(Myong-Sop Pak),신수용(Soo-Yong Shin) 한국무역연구원 2013 貿易 硏究 Vol.9 No.3

오늘날 자유무역협정은 전 세계적으로 이루어지고 있는 추세이다. 자유무역협정은 협정을 맺은 양 국가들 간에 관세 혜택을 부여함으로 세금에 대한 부담이 줄어들어 기업들의 활발한 무역활동을 촉진시킬 수 있다. 자유무역협정에서 관세에 대한 혜택을 부여받기 위해서는 원산지규정에 따른 원산지 증명이 반드시 이루어져야하는데 원산지 증명에 대한 국가별 규정이 각기 상이하고 절차가 복잡하여 규모가 큰 기업뿐 아니라 규모가 다소 작은 기업들도 혜택을 부여받는데 어려운 실정이다. 기존의 자유무역협정이 가지고 있는 관세 혜택의 장점을 살리지 못하는 문제점을 해결하기 위해서는 원산지규정 간편화를 통해 기업들의 자발적이고 접근성을 용이하게 해야 비용 및 시간을 절감할 수 있다는 연구들은 기존에 다수 존재하고 있다. 하지만 비용 및 시간 절감 이외에도 환경적 인 부분을 고려해야 한다고 생각한다. 자유무역협정으로 맺어진 양 국가간의 무역활성화는 경제적인 측면에서 두 국가에게 이득을 제공할 수 있지만 경제적 발전을 위한 개발과 산업화는 지속적으로 환경을 파괴함으로써 전 세계가 공통적으로 문제점을 삼고 있는 온난화를 촉진 시킬 우려가 있다. 따라서 자유무역협정을 통한 경제적 이득과 환경적인 측면을 고려한 그린소싱과 같은 녹색 전략이 자유무역협정 규정에 정책적으로 다가갈 수 있는 연구가 필요하다고 생각한다. 본 연구에서는 관세혜택을 바탕으로 이루어지는 무역활동에 있어 비용적 측면 이외에도 환경적 측면을 고려한 녹색 자유무역협정에 대해 연구를 하고자 한다. Free Trade Agreements (FTAs) connect countries to major economies and new markets through eliminations of tariffs, import quotas, and preferences on most goods and services between agreed members. Increased number of such agreements worldwide has led to an increased interest in Rules of Origins (ROOs) which is necessary for identifying a nationality of a product in order to receive the benefit under FTAs. However, complex characteristics of ROOs damage the principle benefit of FTAs which leaves cost burdens to companies. Because of such complexity, harmonization of ROOs has long been argued. Harmonizing the complex ROOs may benefit many countries and businesses. However, the current issues related to FT As or use of ROOs rather seem to pay most attention only on reducing costs while the current century is faced with ever-challenging environmental issues. Environment should never be neglected. Considering green efforts in FTAs would be necessary. FTAs could consider strategies that accompany green efforts namely green sourcing, for example. Applying green sourcing in FTAs should allow companies to focus on their supply chains with sustainability to give positive effects on the environment. Such efforts should also provide them with further cost benefits. This paper aims to study FTAs with related issues of ROOs in order to argue for the need of green sourcing in them.

Brexit and Its Implications for FTAs: The Cases of CETA and TTIP

( Chih-mei Luo ) 한국EU학회 2018 Asia-Pacific Journal of EU Studies Vol.16 No.1

This paper aims to identify whether and how Brexit has impacted free trade agreements (FTAs) through examination of how this issue emerged and developed first, and under what circumstances, the result of Brexit has delivered so as to clarify whether Brexit was an outcome in a UK-specific context or it involved more general and structural issues for worldwide FTAs. This paper follows to look into the cases of CETA and TTIP to observe how these two regional FTAs have been impacted by Brexit. This paper argues that the appearance and developments of Brexit was a national product of UK-specific politics. However, the characteristics of voting behaviours and divisions revealed in the referendum have more structural and general implications for worldwide FTAs. This paper found that Brexit has led to changes in the dynamics of the EU’s trade policy-making, both internally and externally, and resulted in difficulties of signing the CETA and negotiating TTIP. This paper, accordingly, warns that if the economic inequality and distributive injustice could not be effectively alleviated other than through approaches of trade defense instruments and protectionism that the EU and the US currently resorted to, then anti-free trade sentiments would be a ‘new normal’ in the world economy. Not only would significant FTAs become harder to envisage, but also existing ones would be under threat of being undermined. The world would risk repeating the history of reversing globalization in the early 20th century.

자유무역협정 대응을 위한 스마트팜 사례 연구

이지수 한국관세학회 2017 관세학회지 Vol.18 No.4

This paper aims to explore the barriers to the adoption and diffusion of smart farming as a countermeasure for FTAs. This also purports to navigate the relationship between FTAs and the diffusion of smart farming technologies and to suggests the implication on government support for agriculture in implementing FTAs. By doing so, this paper has importance practically in suggesting the overall policy directions in the diffusion of technologies for liberalization of agriculture under FTAs, and academically in extending the theoretical background of FTAs to the theories on the diffusion of technologies in agriculture sector. With the results, this paper suggest policy measures that cover the far-reaching effect of FTAs on the diffusion of technologies in agriculture sectors. This includes the reform of agriculture education to reduce the digital divide in agriculture sector for the successful diffusion of smart farming. It is also important to prepare for the legislation for the sector that covers data from smart farming. As well, it is proposed that the financial safety net is necessary in mitigating the unemployment caused from the automation and the polarization of small and big farms caused from the big farm oriented technologies adoption. 이 글은 FTA의 대응책으로 제안된 스마트팜의 확산이 빠르게 진행되는데 있어 장애는 무엇이고, FTA와 스마트팜의 확산 간의 어떠한 영향 관계가 있는지, 이러한 영향이 농업분야 FTA 이행에 있어 정부의 지원정책에 갖는 함의를 무엇인지를 탐색해 보는 것을 목표로 한다. 이 글은 실천적으로는 농업분야 FTA 대응을 위한 정부지원정책이중복되거나 연속성 없이 제시되지 않도록 방향성을 제시하는데 기여한다는 점에서 중요하며, 학문적으로는 스마트팜을 통한 농업분야 기술의 확산과 FTA의 활용에 대한 이론 간 융합을 시도한다는 점에서 의의를 갖는다. 연구결과를 통해 FTA의 대응책으로서 스마트팜을 성공적으로 보급하기 위해서는 농업분야의 정보격차를 해결할수 있는 농업교육정책과, 농업 데이터의 플랫폼 산업을 위한 입법, 대농 중심의 기술보급을 통한 양극화를 줄이고실업에 대한 안전망이 될 수 있는 재정적인 지원 등 FTA의 기술보급에 대한 광범위한 영향을 고려한 정책적 대응이 필요하다고 결론 짓는다.

The Other Side of the FTAs: China’s Multilateralism and the Balkanization of the Global Trading Rules

Jaemin Lee 이준국제법연구원 2015 China and WTO Review Vol.1 No.2

FTA 체결국과 비체결국의 항공무역 수출입 특성 비교

박범순,임재환,김영록,김인배 한국항공운항학회 2021 한국항공운항학회지 Vol.29 No.4

In this study, based on actual data for the past 20 years, the factors affecting aviation trade were identified by classifying the countries that concluded FTAs with Korea and those that did not, through panel analysis. The amount was analyzed by dividing it into exports and imports, and differences between countries with FTAs and non-FTAs were also derived. As a result of the analysis, both exports and imports showed a positive(+) direction for the counterpart country's GDP per capita and Korea's GDP, and a negative(-) direction for the counterpart country's GDP and Korea's per capita GDP in the case of a country that signed an FTA. On the other hand, in the case of non-FTA countries, the GDP of both countries showed a positive(+) direction and per capita GDP showed a negative(-) direction. International oil prices did not show any significant results. As such, the results of the analysis of exports and imports are similar, but the difference is that the GDP variable acts in different directions between countries with and without FTAs.