Research Reports
Negotiation Strategies of FTA Counterpart Countries: Turkey
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AuthorChoi, Wonmog
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Publication Date2010.10.01
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Original
Korea already finished FTA negotiations with 45 countries including the U.S., EU, ASEAN and India. Korea also try to make a conclusion in some other FTA negotiations with Canada, Mexico, Colombia, Australia, New Zealand, and Turkey. Therefor remaining major economies scheduled to negotiate will be China, Japan, Russia, and Brazil. In the short run FTA negotiations with China and Japan will be started or resumed. FTA negotiations with Turkey started from 2010.
Some country's outcome of FTA negotiations may affect to following negotiations and it is important to analyse negotiation partners' previous cases. Major objectives of this study are to analyse Turkey's outcome of previous FTA and provide information for Korea·Turkey negotiations.
Turkey tends to take a request offer formula. Turkey's interests are focused on hazel nuts, figs, cherry, dried apricots, soybean oil, sunflower oil, and corn oil. Major concerns are also given to confectionary, chocolates, pasta, bakery, cucumber, fruits, and fruit juice. Tariffs are reduced partially, e.g. 15 percent or 50 percent, within the agreed quantity of imports. Turkey·Morocco FTA represents a low level of market opening for Turkey. Turkey provides small TRQ for limited items to Morocco and keeps applied tariff rates for major commodities instead of tariff elimination. Turkey expanded agricultural market liberalization to the EU. Tariffs are eliminated for most of the agricultural products except for some sensitive items. Partial reduction of tariffs instead of elimination, tariff ceiling or seasonal tariff systems are introduced for sensitive commodities to minimize negative impacts on the agricultural sector.
Rules of origin are key factors to achieve preferential trade agreements such as FTAs. Qualifications of originating goods can be divided into two categories; one is wholly obtained and the other is not wholly obtained, i.e. goods produced with imported materials. Turkey accepts vegetable goods as wholly obtained when harvested in one country. For animal and animal products, born and raised criterion is accepted. Changes in tariff classification criterion is applied solely or together with value added criterion. De minimis of 10 percent and diagonal cumulation are accepted in Turkey's FTA.
Korea needs to maximize exceptions of market opening for sensitive agricultural products for the negotiation with Turkey. Various supplementary measures against possible negative impacts from coming FTA negotiations need to be introduced in the agreements. Cooperation programs in agricultural and rural areas can be positively considered one of FTA policy strategies.
Korea needs to keep a strict rules of origin for fresh agricultural products. Standards of planted and harvest for vegetable products and born and raised for animal products are strongly requested to be maintained as Korea's position. For the changes in tariff classification, HS 2 digit level will be better to protect fresh products while HS 4 to 6 digit level can be positively considered for processed food. Exceptions of de minimis application need to be introduced for agricultural products. Due restrictions on non tariff measures including embargo and subsidies also need to be included in FTA. Special treatments for agricultural products are requested in government procurement agreements.
Researchers: Won-Mog Choi, Sei-Kyun Choi, Dae-Hee Chung
Research period:
E-mail: wmchoi@ewha.ac.kr
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