Research Reports
Issues and Directions of Korea-China FTA Negotiations in the Agricultural Sector
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AuthorEor, Myongkeun
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Publication Date2008.11.01
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Original
The purpose of this study is to analyze some results of the Joint Study meeting and prospected issues in the agricultural sector. Also, it derives some policy implications for Korea and China FTA negotiations.
Some findings of this study are as follows;
First, three issues of the rules of origin(ROO), sanitary and phyto-sanitary(SPS), and special safe-guard(SG) are reviewed in this study. There are some possibilities for China to raise the 'regionalization' issue in the ROO part. Korea need to propose the establishment of separate SG measures for agriculture in the negotiation.
Second, this study reviewed the possibility of intra-industry trade in the agricultural sector and the grain export restraints of China. It may be very difficult for Korea and China to have substantial intra-industry trade in the agricultural sector, since horizontal as well as vertical division of labor may be possible only in the restricted extent. That's why Korea should require exceptionally flexible treatments for some highly sensitive agricultural products.
Third, Korea should consider and maintain consistency with the DDA negotiations in selecting the sensitive items for the FTA with China. Since they have already agreed to allow Special Products(SP) for the developing member countries in DDA, Korea, as a developing member, need to deal the SP with the sensitive items to be treated exceptionally in the FTA.
Fourth, it may be possible for Korea to expand its agricultural exports to China after the FTA through enhancing human networks in China. Also, it needs to introduce image marketing for the target customer group of high income society. A niche market strategy may be useful to expand the sales of high-quality and high-price goods in the Chinese markets.
Finally, Korea should enhance its quarantine systems for Chinese agricultural products. Since Korean customers' interests and concerns on the food safety as well as the qualities have intensified, both countries need to cooperate to raise the sanitary level of food and agricultural goods produced in China.
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