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Some New Insights into the Effects of the EU-South Korea Free Trade Area: The Role of Non Tariff Barriers

Author

Listed:
  • Yvan Decreux

    (CEPII, Paris and ITC, Geneva)

  • Chris Milner

    (University of Nottingham, GEP)

Abstract

The present study proposes an updated and extended quantitative assessment of the EU-South Korea FTA, through a new version of MIRAGE CGE model. Several distinctive contributions are offered. Firstly, the quantitative assessment takes into account non-tariff barriers (NTBs) as well as tariffs. Second, it considers trade liberalization of goods, services as well as FDI (establishment). A third contribution is that simulations of policy changes are closely aligned with the actual agreement for each industry and service category. Finally, this article relies on recent techniques for calculating the tariff equivalents of NTBs following Kee et al. (2009). The main findings show that the EU may increase trade performance in several industries (chemicals, machinery, other manufactured and food products) as well as in specific services to a lesser extent (business, insurance and transport services ). On the other hand, Korea takes advantage of the agreement for specific manufactured products (textiles, leather/clothing, cars and other transport equipment).

Suggested Citation

  • Yvan Decreux & Chris Milner, 2010. "Some New Insights into the Effects of the EU-South Korea Free Trade Area: The Role of Non Tariff Barriers," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 783-817.
    • Handle: RePEc:ris:integr:0526
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    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Fontagné, Lionel & Mitaritonna, Cristina, 2013. "Assessing barriers to trade in the distribution and telecom sectors in emerging countries," World Trade Review, Cambridge University Press, vol. 12(1), pages 57-78, January.
    3. Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008. "Import Demand Elasticities and Trade Distortions," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 666-682, November.
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    5. Decreux, Yvan & Fontagné, Lionel, 2011. "Economic Impact of Potential Outcome of the DDA," Conference papers 332090, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Christophe Blot & Marion Cochard, 2008. "L'énigme des exportations revisitée. Que faut-il retenir des données de panel ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 67-100.
    7. repec:spo:wpecon:info:hdl:2441/10189 is not listed on IDEAS
    8. repec:spo:wpmain:info:hdl:2441/10189 is not listed on IDEAS
    9. Yvan Decreux & Hugo Valin, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 2007-15, CEPII research center.
    10. Fontagné, Lionel & Guillin, Amélie & Mitaritonna, Cristina, 2010. "Estimations of Tariff Equivalents for the Services Sectors," Conference papers 331941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    Citations

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    Cited by:

    1. Julia Grübler & Oliver Reiter, 2020. "Non-tariff Trade Policy Analysis: An Ex-post Assessment of the EU-Korea Agreement," wiiw Working Papers 182, The Vienna Institute for International Economic Studies, wiiw.
    2. Julia Grübler & Oliver Reiter & Robert Stehrer, 2021. "On the new gold standard in EU trade integration: reviewing the EU-Japan EPA," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 611-644, August.
    3. Beniamino Quintieri & Giovanni Stamato, 2023. "Are preferential agreements beneficial to EU trade? New evidence from the EU–South Korea treaty," The World Economy, Wiley Blackwell, vol. 46(12), pages 3511-3541, December.
    4. Sae Won Chung & Jae-Seung Lee, 2019. "Building the pillars of the EU-South Korea strategic partnership," Asia Europe Journal, Springer, vol. 17(3), pages 327-340, September.
    5. Yutaka Kurihara, 2017. "The Impact of ‘Brexit’ on Japanese International Trade in EU," Business, Management and Economics Research, Academic Research Publishing Group, vol. 3(6), pages 57-61, 06-2017.
    6. Jacob Wood & Jie Wu & Yilin Li & Jungsuk Kim, 2019. "The Impact of TBT and SPS Measures on Japanese and Korean Exports to China," Sustainability, MDPI, vol. 11(21), pages 1-23, November.
    7. Jacob Wood & Jie Wu & Yilin Li & Jungsuk Kim, 2017. "TBT and SPS impacts on Korean exports to China: empirical analysis using the PPML method," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 31(2), pages 96-114, November.

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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