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Korea's Policy Package for Enhancing its FTA Utilization and Implications for Korea's Policy

Author

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  • Inkyo CHEONG

    (Inha University)

Abstract

Korea’s trade with most of its 46 free trade agreement (FTA) partner countries has been expanded continuously. Its FTA utilization ratios were as low as 20% before 2010, and some suspicions regarding the benefits of FTA were raised, despite the government’s active promotion. But Korea recorded higher than 70% FTA utilization in the case of Korea-US FTA and the EU-Korea FTA in 2013. Today’s high performance could be achieved due to the strategic approach and diverse support mechanisms initiated by the government of Korea since 2010. The supporting programs for businesses included education courses for companies and consulting, workshops to explain the FTAs and provide information on FTAs, building the portals for FTAs, and the expos for FTAs in foreign countries. Several policy implications can be drawn from Korea’s experience in assisting businesses with FTA utilization. First, the major barriers that prevent companies from utilizing FTAs should be clearly identified. Secondly, coordination among national supporting agencies is critical in increasing the efficiency of the infrastructure assisting FTA utilization. Thirdly, governments should promote FTAs with large economies, which are expected to bring high economic gains in general. Fourthly, authorities of trade and industry should understand the importance of the quality of FTAs.

Suggested Citation

  • Inkyo CHEONG, 2014. "Korea's Policy Package for Enhancing its FTA Utilization and Implications for Korea's Policy," Working Papers DP-2014-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2014-11
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    Cited by:

    1. Kenneth Baltzer, 2015. "Institutional and policy adjustments to implement Free Trade Agreements with the European Union: A developing country perspective," WIDER Working Paper Series 127, World Institute for Development Economic Research (UNU-WIDER).
    2. Kazunobu Hayakawa & Nuttawut Laksanapanyakul & Shujiro Urata, 2016. "Measuring the costs of FTA utilization: evidence from transaction-level import data of Thailand," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(3), pages 559-575, August.
    3. Ikumo Isono & Yoshifumi Fukunaga & Lili Yan Ing, . "Enhancing the Utilisation of Free Trade Agreements in Brunei Darussalam," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Grumiller, Jan & Raza, Werner G. & Staritz, Cornelia & Tröster, Bernhard & von Arnim, Rudi, 2018. "The economic and social effects of the Economic Partnership Agreements on selected African countries," Research Reports 7/2018, Austrian Foundation for Development Research (ÖFSE).
    5. Kazunobu HAYAKAWA & Nuttawut LAKSANAPANYAKUL & Pisit PUAPAN & Sasatra SUDSAWASD, 2015. "Government Strategy and Support for Regional Trade Agreements: The Case of Thailand," Working Papers DP-2015-37, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Kenneth Baltzer, 2015. "Institutional and policy adjustments to implement Free Trade Agreements with the European Union: A developing country perspective," WIDER Working Paper Series wp-2015-127, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    : Free trade agreement (FTA); FTA utilization; rules of origin (ROO); tariff elimination; ASEAN-Korea FTA;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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