scholarly journals The Impact of Potential Korea-U.S. Free Trade Agreement Renegotiation on the Korean Rice Market and Trade

2019 ◽  
Vol 51 (3) ◽  
pp. 434-449
Author(s):  
Byung Min Soon ◽  
Patrick Westhoff ◽  
Wyatt Thompson
Keyword(s):  
Free Trade Agreement ◽  
Structural Model ◽  
Consumer Preferences ◽  
Trade Agreement ◽  
Tariff Rate ◽  
Policy Changes ◽  
Import Quota ◽  
Rice Market ◽  
The Impact ◽  
Korean Rice

AbstractKorea replaced its rice import quota with a tariff rate quota (TRQ) in 2015. A structural model representing the Korean rice market is developed to evaluate this new trade policy and examine the possibility of Korean rice imports under uncertainty. Results indicate that rice imports in excess of the current TRQ quantity are unlikely for a range of market conditions. Two scenarios, which are the over-quota tariff rate reduction and the TRQ quantity expansion, show how the market responds to policy changes. In addition, Korean rice imports are sensitive to consumer preferences for different rice types.

Three essays on agricultural trade and policy

2017 ◽  
Author(s):  
◽  
Byung Min Soon
Keyword(s):  
Trade Policy ◽  
Agricultural Trade ◽  
Tariff Rate ◽  
New Method ◽  
Alternative Methods ◽  
Spongiform Encephalopathy ◽  
Rice Market ◽  
Cointegration Tests ◽  
The Impact ◽  
Korean Rice

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] The first essay introduces a new method to measure non-tariff barriers (NTBs). NTBs to agricultural trade are believed to have increased while tariffs fell. Hence, measuring NTBs is important and several alternative methods have been used. I develop a method that combines cointegration tests and an equilibrium model. These seemingly disparate methods are used to estimate the size of NTBs and to assess their economic impact. I apply our method to the Russian chicken import ban and find larger impacts compared to a common method based on price gaps. This new method can help trade policy analysts convert implicit economic assumptions of cointegration test results into explicit NTB measures that can explain the observed pattern in time series price data and estimate their impacts. The second essay examines the impact of the impacts of the Bovine Spongiform Encephalopathy (BSE) outbreak in the U.S. on the Japanese beef market. The time-varying Armington model allows us to examine how the BSE outbreak affected the elasticity of substitution and the country of origin bias. Moreover, I estimate beef demands in the case that the BSE outbreak did not occur. The BSE outbreak caused higher demand for Australian beef and lower demand for U.S. beef, while domestic beef demand was only modestly affected. Specifically, the outbreak affected imported frozen beef demands more than imported chilled beef demands. The third essay explores the impact of tariff rate quota (TRQ) on the Korean rice market. Korea replaced its rice import quota with a TRQ in 2015. A structural model representing the Korean rice market is developed to evaluate this new trade policy and examine the possibility of Korean rice imports under uncertainty. Results indicate that rice imports in excess of the current TRQ quantity are unlikely for a range of market conditions. Two scenarios, which are the over-quota tariff rate reduction and the Minimum Market Access (MMA) quantity expansion, show how the market responds to policy changes. In addition, Korean rice imports are sensitive to consumer preferences for different rice types.

Assessing the Impact of the Australia-United States Free Trade Agreement (AUSFTA) on Australian and Global Medicines Policy

2005 ◽  
Author(s):  
Thomas Alured Faunce ◽  
Evan Doran ◽  
David Henry ◽  
Peter Drahos ◽  
Andrew Searles ◽  
...  
Keyword(s):  
United States ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The Impact

scholarly journals Estimating the Impact of ASEAN China Free Trade Agreement on Indonesia’s Trade Balance

2019 ◽  
Vol 1 (1) ◽  
pp. 18-37
Author(s):  
Muhammad Arif Junaidi
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Significant Role ◽  
Trade Balance ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Flows ◽  
Insignificant Effect ◽  
Asean Countries ◽  
The Impact

Using trade flows data of ASEAN countries and China from 2002 to 2017, this studyestimates the impact of ACFTA on ASEAN countries and China’s trade balance in general,and also for Indonesia’s trade balance in specific by elaborating the impact of ACFTA onthe trade flows both exports and imports. Using the gravity model and estimating by OLSand PPML, this paper finds that the impact of tariffs elimination due to the implementationof ACFTA increased exports and imports for ASEAN countries and China in general, andfor Indonesia in particular. However, the aggregate trade balances of ASEAN membercountries and China is zero since the impact of ACFTA on imports offset the impact ofACFTA on exports. Tariff’s elimination due to the implementation of ACFTA on Indonesiashows a negative and statistically insignificant effect on imports and exports. Thus, tariffshave not played significant role on increasing Indonesia’s exports and imports. As a result,the impact of ACFTA on Indonesia’s trade balance cannot be quantified clearly since theimpact of tariffs on exports and imports are not significant.

scholarly journals The Effect of IJ-EPA to Indonesia Export: Interupted Time Series (ITS) Approach

2020 ◽  
Vol 2 (1) ◽  
pp. 128-145
Author(s):  
Yuafanda Kholfi Hartono ◽  
Sumarto Eka Putra
Keyword(s):  
Time Series ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Time Series Data ◽  
Current Account Deficit ◽  
Trade Agreement ◽  
Export Market ◽  
Series Data ◽  
The Government ◽  
The Impact

Indonesia Japan Economic Partnership Agreement (IJ-EPA) is a bilateral free-trade agreement between Indonesia and Japan that has been started from July 1st, 2008. After more than a decade of its implementation, there is a question that we need to be addressed: Does liberalization of IJ-EPA make Indonesia’s export to Japan increase? This question is important since the government gives a trade-off by giving lower tariff for certain commodities agreed in agreement to increase export. Using Interrupted time series (ITS) analysis based on time-series data from Statistics Indonesia (BPS), this article found that the impact of IJ-EPA decreased for Indonesia export to Japan. Furthermore, this paper proposed some potential commodities that can increase the effectiveness of this FTA. The importance of this topic is that Indonesia will maximize the benefit in implementing of agreement that they made from the third biggest destination export of their total export value, so it will be in line with the government's goal to expand export market to solve current account deficit. In addition, the method that used in this paper can be implemented to other countries so that they can maximize the effect of Free Trade Agreement, especially for their export.

scholarly journals Pakistan’s Experience with the Pakistan–China FTA: Lessons for CPEC

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 1-24 ◽  
Author(s):  
Theresa Theresa ◽  
Nida Jamil ◽  
Azam Chaudhry
Keyword(s):  
Free Trade Agreement ◽  
Market Access ◽  
Value Added ◽  
Trade Agreement ◽  
Policy Implications ◽  
Firm Level ◽  
Trade Data ◽  
Chinese Markets ◽  
The Impact ◽  
Tariff Reductions

As Pakistan enters the CPEC era, there is a sense of optimism as well as concern in the country, given the uncertain economic impact of this major collaboration between China and Pakistan. Using firm-level and trade data, we empirically test the impact of the 2006 free trade agreement (FTA) between the two countries on the productivity, size and value added of potentially affected Pakistani firms. These results have important policy implications for CPEC initiatives. We start with a difference-in-difference analysis, comparing trends in those sectors in Pakistan made more vulnerable by tariff reductions on Chinese goods relative to sectors for which the tariff did not change significantly. Next, we examine those sectors in Pakistan that were given greater access to Chinese markets through reductions in the Chinese tariff on Pakistani goods relative to sectors for which market access remained roughly the same. In the sectors made more vulnerable by reductions in Pakistani tariffs on Chinese goods, imports to Pakistan have risen, while productivity, value added and value added per worker have fallen relative to other sectors since the FTA. In the sectors for which Pakistan gained access to Chinese markets, exports and employment have risen, but productivity and value added have fallen relative to other sectors since the FTA.

The impact of the NAFTA treaty on wage competition, immigration, labor standards and cross-border co-operation

2001 ◽  
Vol 7 (3) ◽  
pp. 494-514 ◽  
Author(s):  
Alfredo Hualde ◽  
Miguel Angel Ramírez
Keyword(s):  
Trade Unions ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Living Standards ◽  
Labor Standards ◽  
Cross Border ◽  
The North ◽  
Economic Area ◽  
The Usa ◽  
The Impact

The signing of the North American Free Trade Agreement (NAFTA) in 1993 led to the formation of a social and economic area characterized by marked asymmetry between its members: the USA, Mexico and Canada. Seven years later the results in terms of salaries, employment and labor standards are not very positive, although they have not produced the catastrophic results foreseen by some. In Mexico several hundred thousand jobs were created, especially in the maquiladora export industry, but this has been associated with falling living standards and rising poverty. Migration from Mexico to the USA has increased. Poor labor standards and illegal employment have led to collaboration between NGOs and trade unions on both sides of the frontier.

FREE TRADE AGREEMENTS AND BRIDGEHEAD EFFECT: EVIDENCE FROM KOREA–CHILE FTA

2016 ◽  
Vol 61 (05) ◽  
pp. 1550098
Author(s):  
KICHUN KANG ◽  
PHYLLIS KEYS ◽  
YOON S. SHIN
Keyword(s):  
South America ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Direct Evidence ◽  
Recent Literature ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
The Impact ◽  
Aggregate Industry

Recent literature on the dynamics of export destinations has argued that firms export their products to new markets that are geographically close and culturally related to their previous export destinations. A modified version of [Melitz, M (2003). The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71(6), 1695–1725.] model suggests that a preferential trade agreement may provide inefficient firms with opportunities to export their products to third destination countries. This paper finds that new Korean products have been exported to the Chile market because of reductions in Chilean tariffs and the experience gained from exporting to the Chilean market has increased the likelihood of subsequent export to other countries in South America. The paper provides direct evidence that a free trade agreement (FTA) can serve as a stepping stone to other markets.

Modelling welfare effects under Pakistan–China free trade agreement

2018 ◽  
Vol 11 (3) ◽  
pp. 202-218 ◽  
Author(s):  
Lubna Uzair ◽  
Ahmad Nawaz
Keyword(s):  
Trade Policy ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Academic Research ◽  
Trade Agreement ◽  
Policy Formulation ◽  
Trade Creation ◽  
Content Type ◽  
The World ◽  
The Impact

PurposeThis paper aims to empirically examine the trade creation and diversion impacts on merchandise imports of Pakistan under the Pakistan–China Free Trade Agreement (FTA). The analysis of Pakistan’s preferential treatment with its largest trade partner as well as the most substantial exporter of the world will help to shape trade policy, open windows for academic research and also gives an immense contribution in literature.Design/methodology/approachA disaggregated panel data on the imports of Pakistan from China and other WTO member countries and tariff concessions at Harmonized System (HS) two-digit level used for the agreement period of 2006-2012. The empirical analysis takes care of bias through robust and panel-corrected standard errors with time, industry-specific effects and controlling for multilateral trade resistance.FindingsEvidence found in support of trade creation under the Pakistan–China FTA. It means overall this agreement increased the welfare of Pakistani consumers.Practical implicationsFindings are in favour of negotiations and signing for the next round of this agreement and with other major trade partners like the US and Saudi Arabia.Originality/valueIt is worth investigating empirically the impact of preferential trade liberalization between Pakistan – a developing country – and China – the largest importer of the world – explicitly, in the form of trade creation or diversion. The empirical assessment of this FTA signed with the world’s largest exporter will not only contribute immensely to the literature but also help in trade policy formulation and open windows for academic research. Another unique aspect of this study is the use of disaggregated data consisting of all goods imports along with tariff concessions at two-digit Harmonized System (HS) code.

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