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Study on the Strategies for Mega FTAs: A Comparative Analysis of TBT Chapters of Korea’s FTAs multilateral negotiations, barrier to trade

Author YOO Saebyul Series 16-04 Language Korean Date 2016.09.12

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  This research intends to suggest countermeasures and strategies in response to mega-FTAs, based on a comparative analysis of the Technical Barriers to Trade (TBT) chapters of Korea’s FTAs and the TPP Agreement. A particular focus is placed on the impact that mega-FTAs such as the TPP and RCEP would have on Korea in terms of technical policy and institutions, based on an analysis of the key articles of Korea’s existing FTA TBT agreements. We also examine what stance Korea should take, and what strategies the country should choose, if and when Korea joins mega-FTAs including the TPP.
  Among the 15 FTAs Korea has signed, 11 lay down TBT agreements in a separate chapter. This study compares and analyses the main articles of existing FTA TBT agreements, especially those on technical regulations, standards, conformity assessment procedures and transparency.
In the following chapter, based on the main features of Korea's existing TBT agreements, we take a look at the TBT chapter of the TPP, in which Korea may possibly participate. Overall, the TPP regulates TBT articles at a level similar to the WTO agreement or Korea's existing TBT agreements. However, some new regulations that were previously unseen are adopted in certain articles, including those on conformity assessment, transparency, grace period, cooperation and the Annex. In this respect, the TPP can be said to have the strictest regulations of all FTAs or RTAs concluded up until present.
  As the TPP is mostly based on the WTO Agreement, TPP accession is expected to have a limited affect on domestic industries. However, several articles related to specific products, as well as the WTO plus and TBT plus articles, require the improvement of the domestic system or the enactment and amendment of domestic law. It will be necessary for Korea to review agendas related to (1) the testing, inspection and certification industry, (2) improving the competitiveness of certain industries such as the medical device and pharmaceutical industries, and (3) the elimination of local presence requirements (adjustment of requirement levels).
  Based on the outcomes of the analyses conducted above, we suggest domestic and external policy directions, as well as negotiation strategies to be used for future mega-FTAs, with consideration to current technical regulation policies and systems. First, in terms of domestic policy, we propose (1) reviewing and activating domestic technical regulation policy, (2) monitoring the regulatory reform of other countries, (3) gathering the opinions of interested small and medium-sized businesses, (4) adopting and enforcing a TBT expert training system, and (5) actively participating in international conferences held by the WTO TBT Committee. Next, in terms of external policy, we make suggestions for future mega-FTA negotiations, including the TPP and RCEP, for example (1) introducing a policy on regulatory mitigation to expand market-opening, (2) promoting a single agreement for certain products, and (3) introducing, adopting and applying new regulations by improving the existing system.
 

 

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