NOT ALL GOODS ARE CREATED EQUAL: TARIFF CONCESSIONS IN THE KOREA–CHINA FREE TRADE AGREEMENT

2017 ◽  
pp. 1-15
Author(s):  
HYEJOON IM
Keyword(s):  
Free Trade ◽  
Logit Model ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Multinomial Logit Model ◽  
Multinomial Logit ◽  
Agricultural Products ◽  
Most Favored Nation ◽  
Import Share ◽  
Tariff Rates

In this paper, we use a multinomial logit model and identify the important factors in determining the staging categories of Korean tariff concessions in the Korea–China free trade agreement (FTA). We find that most-favored-nation (MFN) tariff rates and whether a product is agricultural or not are the most influential determinants of tariff concessions in the FTA. The results also show that the effects of the determinants are heterogeneous over industries: the influence of the Chinese import share is more pronounced for agricultural products than for manufactured goods, while that of MFN tariffs is less prominent for agricultural products. The latter result implies that quite a few Korean agricultural products are heavily protected in the FTA, despite their relatively low MFN rates.

scholarly journals Trade Creation and Trade Diversion in the North American Free Trade Agreement: The Case of the Agricultural Sector

2007 ◽  
Vol 39 (1) ◽  
pp. 121-134 ◽  
Author(s):  
Dwi Susanto ◽  
C. Parr Rosson ◽  
Flynn J. Adcock
Keyword(s):  
Free Trade ◽  
North American ◽  
Free Trade Agreement ◽  
Agricultural Sector ◽  
Trade Agreement ◽  
Trade Diversion ◽  
The North ◽  
Tariff Rates ◽  
Agricultural Imports ◽  
The U.S

This paper examines the effect of the U.S.-Mexico trade agreement under the North American Free Trade Agreement (NAFTA). The results suggest that U.S. agricultural imports from Mexico have been responsive to tariff rate reductions applied to Mexican products. A one percentage point decrease in tariff rates is associated with an increase in U.S. agricultural imports from Mexico by 5.31% in the first 6 years of NAFTA and by 2.62% in the last 6 years of NAFTA. U.S. imports from Mexico have also been attributable to the pre-NAFTA tariff rates. Overall, the results indicate that the U.S-Mexico trade agreement under NAFTA has been trade creating rather than trade diverting.

scholarly journals The Potential For High-Value Agricultural Products Under The North American Free Trade Agreement: The Case of Beef in Mexico and Canada

1995 ◽  
Vol 27 (2) ◽  
pp. 377-385 ◽  
Author(s):  
Okwudili O. Onianwa
Keyword(s):  
Free Trade ◽  
North American ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Agricultural Products ◽  
Standard Of Living ◽  
The North ◽  
Beef Products

AbstractThe prospects for U.S. beef products in the advent of a North American Free Trade Agreement were examined using a system-wide approach to import allocation. Results indicate that increases in the standard of living in Mexico and Canada would stimulate increased importation of processed and unprocessed beef products. Bulk beef product in both countries had expenditure elasticities greater than one, while semi-processed and highly processed beef products had expenditure elasticities of less than one.

scholarly journals Impact of Free Trade Agreement Use on Import Prices

2018 ◽  
Vol 33 (3) ◽  
pp. 643-660
Author(s):  
Kazunobu Hayakawa ◽  
Nuttawut Laksanapanyakul ◽  
Hiroshi Mukunoki ◽  
Shujiro Urata
Keyword(s):  
Free Trade ◽  
Fixed Effects ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Firm Characteristics ◽  
Most Favored Nation ◽  
Rules Of Origin ◽  
Import Prices ◽  
Percentage Points ◽  
The Impact

Abstract We examine the impact of free trade agreement (FTA) use on import prices. For this analysis, we employ establishment-level import data with information on tariff schemes, that is, the FTA and most-favored-nation schemes used for importing. Unlike previous studies, we estimate the effects of FTA use on prices by controlling for differences in importing-firm characteristics. There are three main findings. First, the effect of FTA use is overestimated when not controlling for importing firm-related fixed effects. Second, on average, firms’ FTA use reduces tariffs by 12 percentage points and raises import prices by 3.6–6.7 percent. Third, in general, we do not find a price rise resulting from the costs of complying with rules of origin.

scholarly journals Trade Impacts of South Asian Free Trade Agreements in Sri Lanka

2019 ◽  
Vol 20 (1) ◽  
pp. 1-18
Author(s):  
Hiroyuki Taguchi ◽  
Don Chalani Imasha Rubasinghe
Keyword(s):  
Sri Lanka ◽  
Free Trade ◽  
South Asian ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Sri Lankan ◽  
Trade Model ◽  
Preferential Tariff ◽  
Tariff Rates ◽  
Gravity Trade Model

This article aims to examine the trade effects of the South Asian Free Trade Agreement (SAFTA) with a focus on Sri Lanka, by applying a gravity trade model. The study targets the following three FTAs: the SAFTA, the India–Sri Lanka Free Trade Agreement (ISFTA), and the Pakistan–Sri Lanka Free Trade Agreement (PSFTA). The outcomes of the gravity trade model estimation suggested that the trade creation effects were identified in the ISFTA, while those were not verified in the SAFTA and that the PSFTA had the trade creation effects only on the Sri Lankan imports. Those results seem to reflect the differentials in the preferential tariff rates. In particular, ISFTA could have the predominant positive effects on Sri Lankan trade flows due to its lowest preferential tariff rates, and thus the SAFTA effect might be crowded out at the current stage of Sri Lankan trade. JEL: F13, F14, O53

scholarly journals Foreign trade in agricultural products between the Republic of Serbia and the Republic of Kazakhstan: A decade since the signing of the Free trade Agreement

Skola biznisa ◽  
2020 ◽  
pp. 86-111
Author(s):  
Milica Simić ◽  
Biljana Stankov
Keyword(s):  
Foreign Trade ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Agricultural Products ◽  
Economic Relations ◽  
Trade Relations ◽  
The Republic

Modern international economic relations, among other things, are characterized by establishing bilateral and multilateral cooperation between countries in order to liberalize trade relations. The implementation of reached free trade agreements affects economic trends in the signatory countries, the intensification of their foreign trade as wll as the increase in the attractiveness of countries as investment destinations. From 2000 onwards, Serbia has signed several free trade agreements with European countries and the United States. Ten years ago, a free trade agreement was signed with the Republic of Kazakhstan in order to encourage the development of mutual trade and economic relations, accelerate economic development, improve living and working conditions, increase employment and establish fair competition between economic entities from Serbia and Kazakhstan. The subject of the mentioned trade relations are also agri-food products, whose production in Serbia is supported by an excellent raw material base, and has always been a part of national tradition and culture. The research subject of this paper is foreign trade of agricultural products between Serbia and Kazakhstan with regard to free trade agrrements. The research aim is to determine the differences in the movement of exports and imports between the mentioned countries in the period before and after the signing of the free trade agreement.

Use it or lose it? Ukraine amends its law on GIs*

2019 ◽  
Vol 15 (1) ◽  
pp. 17-18
Author(s):  
Anastasiia Kyrylenko
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Legal Protection ◽  
Trade Agreement ◽  
Agricultural Products ◽  
Geographical Indications ◽  
Eu Regulation ◽  
The Eu

Abstract Law of Ukraine ‘On the amendments to certain legal acts of Ukraine concerning the legal protection of geographical indications’, No 123-IX, 20 September 2019 Ukraine has recently amended its basic legislation on geographical indications (GIs) (Law of Ukraine ‘On protection of geographical indications’, No 752-XIV, 16 June 1999). The amendments, modelled upon EU Regulation No 1151/2012 on quality schemes for agricultural products and foodstuffs, entered into force on 1 January 2020 and are aimed at bringing Ukrainian legislation in compliance with the EU/Ukraine free trade agreement.

Indo-Japan CEPA and Agro-trade: Opportunities and Challenges for India

2021 ◽  
pp. 321-330
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Pacific Salmon ◽  
Trade Agreement ◽  
Cottonseed Oil ◽  
Financial Assistance ◽  
Agricultural Products ◽  
Defensive Strategy ◽  
Gradual Reduction

In 2011, two of Asia's largest economies signed free trade agreement called Indo-Japan CEPA. From the signing of the agreement, based on trade value, India will abolish tariffs on items covering about 90 percent of its imports from Japan by 2021, whereas Japan will eliminate tariffs on items covering about 97 percent of its imports from India in the same year. Trade-in goods' agreement proposes to gradually reduce tariffs for over 4500 tariff lines or products at the six-digit level by 2021 on both sides. The study aimed to identify the list of potential agricultural products in which India will gain from increased exports and a list of commodities where India needs to adopt a defensive strategy in trading with Japan. It covered ten years from 2007-08 to 2017-18, and the same was divided into two sub-periods: the pre-FTA period (2007-08 to 2010-11) and the post-FTA period (2011-12 to 2017-18). Seventeen agricultural products such as chickpeas, frozen pacific salmon, ground-nut oil-cake, cottonseed oil-cake, frozen livers and roes, fennel seeds, opium sap, wheat, and meslin were identified as potential products in which India can gain from increasing its exports to Japan. Eight agricultural products were identified as sensitive products; out of these five were kept under the Exclusion category by India under IJCEPA. Therefore, India cautiously defended these products, but three products, such as soups and broths, pasta, and yeasts subjected to a gradual reduction in tariffs (i.e., duty-free by 2021). Technical and financial assistance to the traders and producers of these products will help them to match the requirements imposed by Japan of SPS and TBT measures and increase their exports. Government should also provide clear directives and necessary assistance to the domestic producers or processors to counter the competition from Japanese exporters

scholarly journals Trade Agreements and Export Creation: An Empirical Analysis of Pakistan’s Exports at Industry Level

2020 ◽  
Vol 25 (2) ◽  
pp. 93-118
Author(s):  
Tehseen Ahmed Qureshi ◽  
Anwar Shah
Keyword(s):  
Empirical Analysis ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Most Favored Nation ◽  
Industry Level ◽  
Net Exports ◽  
Export Subsidies

This paper examinespatternsof export creation and diversion by analyzing Pakistan’s trade agreements at the two-digit industry level for all 88 export-oriented industries. We compare the net change in exports with nine free trade agreement (FTA) partners and the top15 partners with most-favored nation (MFN)status. We find that 45 industries account for USD4.1 billion inexport creation across all Pakistan’s FTA partners.Here, net exports increase after FTAs with both FTA and MFN partners. Conversely, export diversion worth USD137million occurs in 10 industries with all FTA partners as net exports to FTA partners rise while net exports to MFN partners fall. In the same manner, we find that net exports in 33 industries declined by USD500 million with FTA and MFN partners. The totalnet exports addition after FTAs was USD3.5 billion or,on average,USD350 million annually,accounting for about 1.4 percent of Pakistan’s total annual goods exports. On average, Pakistan has successfullycreatedexports in half itsexport-oriented industries, althoughhighly subsidized industries exhibit either export diversion or a net decline with both MFN and FTA partners. A difference-in-differenceanalysis shows that exports to China and Mauritius rose significantly while the remainingseven FTA partners did not have a significant increase in exports after the FTAs were implemented. In view of these findings, wesuggest revisiting the policy of export subsidies.

scholarly journals FREE TRADE BETWEEN THE RUSSIAN FEDERATION AND SERBIA AND THE SEGMENT OF FOODSTUFFS AND AGRICULTURAL PRODUCTS IN FOREIGN TRADE BETWEEN THEM

2020 ◽  
pp. 105-119 ◽  
Author(s):  
V. V. Vityuk
Keyword(s):  
Food Security ◽  
Foreign Trade ◽  
Free Trade ◽  
Russian Federation ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Agricultural Products ◽  
The World ◽  
Balkan Region ◽  
The Russian Federation

The article analyzes and comments the content of cooperation between the Russian Federation and Serbia, which is based on the strategic status of the partners and the geopolitical position of modern Serbia in the world, Europe, Balkan region. The article characterizes the results of foreign trade activities of the parties, including in the framework of the free trade agreement and foodstuffs and agricultural products, as applied to the objectives of ensuring food security of Russia.

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