This study analyzed the characteristics of each operational method of the tariff-rate quota (TRQ) system for fishery products, which has been widely introduced in Koreas free trade agreements (FTA). For this purpose, we examined the fill rate of quota...
This study analyzed the characteristics of each operational method of the tariff-rate quota (TRQ) system for fishery products, which has been widely introduced in Koreas free trade agreements (FTA). For this purpose, we examined the fill rate of quota, import characteristics, and the impact on import demand as well as its elasticity for major items such as shrimp, clam, and sole.
According to the analysis results, the fill rate was low on a first-come-first-served basis, contrary to general expectations. Moreover, in the open competitive bidding method, the unit price of the quantity within the quota was significantly higher than that of the quantity outside the quota due to the importers pursuit of margins. In addition, it was found that the operation of the TRQ system affected an increase in shrimp imports and the elasticity of import demand, but no other cases were confirmed. These results can be used as a reference for Koreas additional FTA negotiations.