Parallel Session 7: Regional integration

Transcription

1 ASIA-PACIFIC RESEARCH AND TRAINING NETWORK ON TRADE ARTNeT CONFERENCE ARTNeT Trade Economists Conference Trade in the Asian century - delivering on the promise of economic prosperity rd September 2014 Parallel Session 7: Regional integration

2 Prepared for 2014 ARTNet (Bangkok, Sep , 2014) Korea s Policy for Enhancing FTA Utilization and Policy Implications Inkyo Cheong Economics, Inha University Contact: inkyoc@gmail.com

3 An early version of this paper was published as an ERIA Discussion Paper on the title of Korea s Policy Package for Enhancing its FTA Utilization and Implications for Korea s Policy in April 2014.

4 1. Background : Korea s FTA Network In force or concluded Negotiations Pre-negotiations EFTA Russia Canada EU Turkey GCC China Korea Japan USA Mexico Colombia India ASEAN Singapore Peru MERCOSUR Aus. NZ Chile 4

5 1. Background : Korea s FTA Network 2008 was a critical year for Korea s FTA policy EU Turkey Korea USA Colombia Peru 5

6 1. Background : Korea s FTA Utilization FTA Utilization Preferences as of 2008 (percent of respondents by country) 6 Source: Kawai and Wignaraja (2011)

7 2. Survey : Recognition of FTAs Perception of Implemented FTAs (percent of respondents by country) Know Don't Know Chile ASEAN EFTA Note: Survey based on 221 firm samples. Source: Cheong and Cho (2010) 7

8 2. Survey : Impediments to FTA Use Impediments to FTA Use (percent of respondents by country) Low tariff preference Lack of information ROO-related costs Other administrative costs Remaining NTBs Note: Survey based on 221 firm samples. Source: Cheong and Cho (2010) 8

9 2. Survey : Awareness of ROOs Awareness of ROOs (percent of respondents by country) In details General issues No idea Note: Survey based on 221 firm samples. Source: Cheong and Cho (2010) 9

10 3. Organization for the Promotion of FTA UItilization 3.1. A Control Tower FTAPPAA National FTA Utilization Center (FTAUC) Regional (local) FTA Assistance Centers (13) FTAPPAA Policy-maker and national coordinator FTA Promotion and Policy Adjustment Authority (FTAPPAA) FTAUC Assistance Centers Implementation agency The National FTA Utilization Center (FTAUC) Regional (local) FTA Assistance Centers. 10

11 3. Organizations for the Promotion of FTA Utilization (2010) 3.2. Major Components of Korea s FTA Support Business demand survey FTA business information FTA expert consulting Direct assistance for business FTA system maintenance Major contents Regular and special meeting and surveys for industrial agencies, representative companies - FTA homepages for tariffs, rules of origin - Seminars, workshops - Guide books, pocket books, brochures - Cyber-learning system on FTAs - FTA class in universities and graduate schools - Courses for FTA consultants and experts - FTA business consulting - FTA call center - Local FTA Assistance Centers - Integrated Business ROO center - Integrated FTA Info Center Governen t agency - FTAPPAA and national related agencies - National FTA Utilization Center (New) FTAPPAA and related agencies FTAPPAA and related agencies, universities, business forum, academic associations Related national agencies, customs brokers, FTAPPAA Korea Customs Se rvices, Center for ROO, Chamber of Commerce, KITA, etc. 11

12 4. FTA Utilization Targets 4.1 Utilization Ratio Utilization Ratio Utilization target ratio of 60% 40% by % by 2013 Consulting Number of Companies Total 600 2,000 3,000 5,000 10,600 12

13 4. FTA Utilization Targets 4.2 Recent Performance Utilization Ratio Higher than 60% utilization ratio for most FTAs under implementation 69% for the Korea-US FTA 78% for the EU-Korea FTA FTA Utilization Ratio by FTA and Export-Imports Export Import March March 2013 Chile( 04) EFTA( 06.9) ASEAN( 07) India( 10.1) EU( 11.7) Peru( 11.8) USA( 12.3) Source: Committee on Domestic FTA Promotion ( ) 13

14 5. Policy Package for FTA Utilization 5.1 New Package (2013) Procedural improvement FTA business information Business capacity building External affairs Domestic FTA support 14

15 5. Policy Package for FTA Utilization 5.2 Details of Supporting Measures Procedural Improvement Simplification of the certificate of origin (CO) Support for obtaining the Authorized Economic Operator (AEO) FTA Business Information Integrated FTA Business Portal Integrated trade information system for FTA partners Integrated portal for preferential tariff rates under Korean FTAs Integrated portal for FTA rules of origin (ROO) Business oriented domestic workshop for businessmen Domestic FTA Support Improve coordination for FTA business supports by various agencies Install the regional FTA centers in major cities/localities/industrial hubs Organize FTA Expos, FTA workshops in FTA partner countries 15

16 5. Policy Package for FTA Utilization 5.2 Details of Supporting Measures Business Capacity Building National consulting system for companies Education for FTA business professionals FTA classes in undergraduate universities Graduate FTA courses/departments System for the management of the rules of origin (ROO) External affairs FTA implementation in FTA partner countries Cooperation between customs authorities of FTA partners Improve and update existing FTAs (especially tariff liberalization) Outreach for FTA utilization by companies of FTA partners 16

17 5. Policy Package for FTA Utilization 5.3 Examples of FTA Supporting Measures Integrated portal for preferential tariff rates under Korean FTAs 17

18 5. Policy Package for FTA Utilization 5.3 Examples of FTA Supporting Measures Integrated portal for FTA rules of origin (ROO) 18

19 5. Korea s Policy Package for Enhancing its FTA Utilization 5. Policy Package for FTA Utilization 5.3 Examples of FTA Supporting Measures FTA call center Ask anything about FTA utilization FTA call center Number 1380 anywhere in Korea 19

20 5. Korea s Policy Package for Enhancing its FTA Utilization 6. Policy Implications for Developing Countries Business Mind for FTA Utilization Common interests for exporters and importers CEOs recognition on FTA businesses Easy materials for CEOs FTA business models Implications Based on Korea s Experience Identify the barriers which prevent businesses to utilize FTAs Coordination among national agencies FTAs with large economies Quality of FTAs Cooperation between FTA partners 20

21 6. Policy Implications for Developing Countries Tariff elimination ratios in Korea s major FTAs 21

22 6. Policy Implications for Developing Countries Political economy of active trade policy National consensus for developing economy Political leaders commitment to trade policy Building human capacity for trade 22