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Result of Korea-China FTA Negotiations on Agriculture and the Corresponding Plans (Final)Full-length paper
2015-01-21
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Sung-Jae Chun

Public-Service Advocate of Korea

This article is a news release of the Ministry of Trade, Industry & Energy, Republic of Korea which was distributed on November 10, 2014. It mentions about reaching consensus on a FTA between Korea and China.

http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=156694&bbs_cd_n=81

 

Explanatory note on fishery products in Korea-China FTA

(Ministry of Oceans and Fisheries, Government of Republic of Korea)

 

1. Current status of trade concerning fishery products between Korea and China

□ (Current Status) China is a major fishery product trading partner to Korea, consisting of 27.2% of fishery import (US $ 1 billion). The trade deficit for the Korean side is approximately US $ 650 million per year.

(unit: million US $)

Import and export of fishery products from China

2009

2010

2011

2012

2013

Export (A)

146

231

464

372

370

Import (B)

854

1,096

1,250

1,082

1,026

Trade balance (A-B)

-708

-865

-786

-710

-656

* Average tariff rate of fishery products in Korea (2012): 18.0%

** Export (in million US $): 1st Japan (981), 2nd China (372) / Import (in million Us $): 1st China (1,802), 2nd Russia (654)

 

○ Major imported products are major domestically consumed fishery products such as octopuses, yellow corbina, hair tail and others. Exported products are focused on raw material for process such as fish eggs and squids.

* Major Products on imports from China (Percentage of imports): Octopuses (15.3%), Yellow corbina (11.7%), hair tail (5.8%)

 

(unit: million US $)

Rank

Export

Import

1

Fish eggs

46

Octopuses

165

2

Squids

40

Yellow corbina

127

3

Alaska pollack

34

Hair tail

63

4

Seaweed

31

Other fishes

59

5

Cod

29

Shrimps

56

6

Tuna

23

Shrimp meat

55

7

Bastard hailbut

20

Goose fishes

48

8

Spanish mackerel

20

Loaches

44

9

Sea-bream

13

Short necked clam

41

10

Other crustaceans

10

Crabs

34

 

○ Due to rapid economic development in China, the consumption of fishery products is acutely increasing as well, providing an opportunity for export of fishery products.

* Fishery product consumption per person in China (kg/year): (2000) 11 à (2009) 30 à (2020) 40.8 (estimated)

 

2. The process of Korea-China FTA negotiations

(Stage 1) Settlement on the level of liberalization and on dealing with normal track∙sensitive∙ highly sensitive items

Normal Track

Sensitive Track

Highly sensitive track

Tariff elimination within 10 years

Tariff elimination after 10 years and within 20 years

Excluded from concession, Partial elimination of tariff, TRQ*, Seasonal Tariff

Level of liberalization 90%, 85%

For highly sensitive track, 10%, 15%

 

○ Stating the agenda “sustainable and responsible fisheries” on the modality, providing a basis to discuss about illegal catching of fishes at the second stage.

(Stage 2) Based on the modality at the first stage, the first draft of FTA agreements and concessions of items were discussed during the second stage.

○ (Items) Detailed discussions were made concerning which items will be included in normal track (tariff elimination within 10 years), sensitive track (tariff elimination in 10-20ears).

○ (Cooperation on agriculture and fisheries) The Korean government explained about its position on “sustainable and responsible fisheries” and argued that illegally caught fishes cannot be subjected to preferential tariffs.

 

3. Major results of negotiations

□ (Agriculture and fisheries) Parties agreed as following: total rate of liberalization 70 (number of items) /40 (Amount of Imports), TRQ/Partial reduction of tariff 30% (TRQ 16%, Partial reduction 14%).

 

○ Rate of liberalization

70% (number of items), 40% (amount of imports)

○ TRQ

Agriculture and fisheries 16% (amount of imports)

(Percentage of agricultural and fishery products)

7% (Agricultural products): within WTO TRQ items

9% (Fishery products): within 340 requested items by the Chinese government

(Amount)

Weighted average on all items 40%**

③ Partial Reduction

Agriculture and Fisheries 14% (amount of imports)

Decreased to the average of 20% within 5 years

(High tariff)

Including 15 agricultural products (reduced below 130%)

* Major production and trading products such as octopuses, yellow corbina, goose fishes, crabs

** Taking the sensitivity into account, the quantity was distributed among the TRQ items within the average of 40%

 

□ (Concessions on Korean fishery products) Highly sensitive track 64.3% (Excluded from concession 30.4%, TRQ 29.2%, Reduction of Tariff 4.7%) is secured, with the rate of liberalization 86.2% of the items, 35.7% of the amount of imports.

○ Draft for concession is written with the consideration of economic factors such as the amount of imports with China, the amount of domestic production, policy factors such as TAC, adjustment duties and opinions of related parties.

Classification

Method

Number of Items

Percentage of items

Amount of import from China

Percentage among imports

Major products

Highly sensitive

Excluded from concession, TRQ, seasonal tariff

87

13.8

690

64.3

 

TRQ

14

2.2

313

29.2

Unavoidable import products among the second request from China such as Octopus (frozen), Goose fish (frozen) and others

Partial reduction

9

1.4

50

4.7

High tariff products among the second request from China such as crab (frozen), Globe fish(frozen) and others

Excluded from concession

64

10.1

327

30.4

Subjects to illegal fishing such as yellow corbina (Frozen), hair tail (frozen) and major production/resource management fish types

Sensitive

Tariff elimination in 20 years

429

68.3

384

35.5

Shrimps, shrimp meat (frozen)

Normal track

Tariff elimination in 10 years

113

17.9

2

0.2

salmon, shells

Total

629

100.0

1,076

100.0

 

 

○ (Excluded from concession) Items that are excluded from concession are mainly those required to be excluded from preferential duty to Chinese fishery products such as items subjected to illegal fishing, items under tax adjustment, resource management.

* Related to illegal fishing: Yellow corbina (frozen), Hair tail (frozen), Bastard hailbut (frozen), Hastard halibut (live), Sting ray (frozen), Sea-bream (frozen), Anchovy (dried) and others

* Related to tax adjustment: Mackerel pike (frozen), Sea-bass (live), Sea-bream (live), Croakers (live), Croakers (frozen), Eel (live), Squid (frozen) and others

* Related to resource management: Pen shell(live, frozen, dried), Crab (live, frozen), Mackerel (frozen), Top-shell and others

 

○ (TRQ) Items with the amount of imports already great and unavoidable, but are necessary to be capped to regulate the amount due to sensitivities.

* Octopuses (live, cold-storage, frozen), loaches (live), short-necked clam (live, cold-storage, frozen), goose fishes (cold-storage, frozen) and others

○ (Partial Reduction) Tariff will be partially reduced among the items that are not excluded from concession nor under TRQ (mostly 20 % of high tariff items) in order to minimize the opening of the market.

* Crab (frozen), globe fish (frozen), oyster (frozen, salting), sea tangle (dried), seaweed (seasoning, dried), sea mustard (dried)

□ (Concession of Chinese fishery products) Chinese fishery products are under complete liberalization (100%) and there is a possibility of increase in exports of fishery products to China.

* Average tariff of Chinese fishery products: 10.4% vs. Average tariff of Korean fishery products: 18.0%

○ Tariffs of most of 62 major export products to China such as seaweed, sea mustard, bastard halibut, abalone, sea cucumber and others are immediately eliminated or eliminated within 10 years, allowing the opportunities on market opening.

□ (Illegal fishery products) In order to achieve sustainable and responsible fishing activities, an agreement was made to activate a sound fishery trading.

○ Moreover, in order to exclude preferential tariff to illegal fishery products, major products subjected to illegal fishing such as yellow corbina, hair tail, crab, anchovy are included in highly sensitive list.

□ (Rules of origin) Indirect imports are blocked by applying the most conservative wholly obtained criterion to fishery∙crustacea∙mollusca and other fishery products in littoral sea.

○ Comparatively less strict rules of origin is applied to prepared or processed products that may be exported.

 

4. Evaluation on the result of negotiations

□ China is the biggest importer of fishery products in Korean market (27.2%) and Korea-China FTA achieved the lowest level of market opening among other FTAs in order to minimize damages and opened the possibilities for export by entirely opening the Chinese market.

* Rate of liberalization on fishery products in major FTAs (number of items/amount of imports)

- Korea∙US FTA: 99.3%/100%, Korea∙EU FTA: 99.3%/99.3%

** Rate of liberalization on fishery products of Korea∙China FTA: number of items 86.1% / amount of imports 35.7%

○ (Minimizing the damage) Safeguard measures on production and resource management of domestic fishery products were secured by including most of imported products from China in highly sensitive list.

- Twenty major domestic products (85.3% of the total amount of production) such as squid, bastard halibut, anchovy, hair tail, seaweed, mackerel, crab, abalone, yellow corbina and others are included in highly sensitive list.

- Moreover, items under adjustment tax such as sea-bass, sea-bream, croakers, eel and items under resource management such as crab, top-shell, saurel, sting ray are included in highly sensitive list.

- Partial reduction of tariff (within 2% p) is applied in items under comparatively high rate of tariff (20% of high rate of tariff) such as oyster, cod, sea mustard and others in order to minimize the opening of the market.

- Items that require restriction on imports and need to control domestic supply by applying TRQ on certain amount due to high percentage of imports and weak basis of domestic production.

* Such measure will minimize the impact on domestic market by operating TRQ to control domestic supply and secure supplementary domestic plans by preparing public auction payments of more than 10 billion Korean won.

 

 

Items

Tariff

Amount of imports (2012, unit: in US $ 1,000)

Octopus (frozen)

20

106,807

Octopus (live, fresh cold-storage)

20

42,521

Short necked clam (live, fresh or cold-storage)

20

32,231

Short necked clam (frozen)

20

1,099

Top-shell (processed or processed for storage)

20

200

□ 35.5% of fishery products other than items under highly sensitive list (64.3%) are to be applied 15 years to 20 years of long-term tariff elimination.

○ Items under short-term tariff elimination within 10 years are merely 0.2%, therefore the impact on the domestic market is not expected to be big.

* Fishery products (highly sensitive) 64.3%, (sensitive list) 35.5%, (normal track) 0.2%

□ Fishery market in China will be 100% liberalized and such measure will give an opportunity for the expansion of exports to China.

* Average tariff of Chinese fishery products: 10.4% vs. Average tariff of Korean fishery products: 18.0%

○ Liberalization of the market will be greatly increased by immediate elimination or elimination within 10 years concerning most of 62 major products exported to China such as seaweed, sea mustard, bastard halibut, abalone, sea cucumber and others.

※ A relaxed rules of origin will be applied in order to increase the export of Korean fishery products and processed products with possibilities to export to Chinese market.

□ Due to illegal fishing in China, major products that are from illegal fishing are included in the highly sensitive list in order to exclude them from preferential tariff.

○ (Exclusion from preferential tariff) Based on the illegally caught fishery products as found and confiscated by the Korea coast guard, such products are excluded from concession or applied minimum reduction of tariff. Measures such as minimization of TRQ amount are also promoted.

- Especially, major products under illegal fishing by Chinese ships in Korean EEZ such as yellow corbina, hair tail, anchovy, bastard halibut and others are excluded from concession.

* Excluded from concession: Yellow corbina (frozen), hair tail (frozen), bastard halibut (frozen), bastard halibut (live), sting ray (frozen), sea-bream (frozen), anchovy (dried), mackerel (frozen), flatfish(frozen) and others

* Partial reduction: Crab (frozen)à 1% tariff reduction (original 14% à after reduction 13.86%)

* TRQ: Goose fish (cold-storage, frozen) à Only 10% of the amount imported in 2012 are subjected to tariff quota.

○ (Cooperation in fishery matters) Two countries agreed to cooperate on the establishment of measures on regulating illegal fishing on the FTA agreement in order to achieve sustainable and responsible fishing and a sound trading of fishery products.

 

5. Domestic plans

 

◈ After the final agreement on Korea-China FTA, it is stipulated that domestic supplementary measures should be established after six months of agreement, based on the economic assessment of the impact of FTA.

*Special Act on assistance to farmers, Fishermen, etc. Following the conclusion of free Trade Agreements (FFAs)

 

 

□ Directions of the plan

○ FTA will be considered as an opportunity to improve the fishery industry by ameliorating the structure and to strengthen the competitiveness of the fishery industry by discovering new engines for growth.

* Improving the competitiveness of culturing industry, modernizing of fishery resource management, reforming fishing vessel fishery structure.

○ Expansion of domestic basis will be achieved by improving the supply structure of fishery products and by raising processed products industry. Life style of fishery village will be improved by stabilizing fishermen and by enhancing the welfare of fishery village.

* Raising fishery food industry, improving supply structure of fishery products, stabilizing fishermen income, enhancing welfare of fishery village.

○ Preemptive reaction to the liberalization of the opening of gigantic Chinese market will give opportunities to expand exports to China by promoting export infrastructure and marketing.

* Trading office (Shanghai), Anchor shop for fishery products (Wuhan), Fishery Expo (Fuzhou), Ultralow temperature cold-storage (Chengdu)

□ Establishment of plans

○ “FTA Comprehensive Plan Bureau” in Ministry of Oceans and Fisheries will establish scientific plans by joint analysis with professional research institutes.

* Research project concerning domestic plans on Korea-China FTA (May 2014 ~ May 2015)/ Korea Maritime Institute

○ On establishing domestic plans, fishermen’s participation will be encouraged to prepare an effective plan that fishermen could substantially be benefited.

* Dispatch of field investigators consisted of fishermen to China (four times), gathering of opinions by opening several meetings for different types of businesses.

□ Upcoming plans

○ Analysis of production per items and impact on import and export: immediately after the agreement

○ Submission of established plans to the National Assembly: Within six months after the agreement

 

Appendix 1  Top 30 Imported products from China

#

Finalized product

Detailed product

Tariff rate (%)

Amount of imports worldwide (in US $ 1,000)

Amount of imports from China (in US $ 1,000)

Percentage of imports from China (%)

Trade balance per product (in US $ 1,000)

1

Yellow corbina

Yellow corbina

(frozen)

10

124,703

124,661

100.0

-123,562

2

Octopus

Octopus

(frozen)

20

132,210

106,807

80.8

-131,539

3

Hair tail

Hair tail

(frozen)

10

101,215

61,854

61.1

-97,080

4

Other shrimps

Shrimp meat (excluding smoked products)

20

151,272

54,228

35.9

-151,102

5

Goose fish

Goose fish

(frozen)

10

65,423

47,363

72.4

-64,983

6

Loaches

Loaches

(live)

10

44,011

44,011

100.0

-43,968

7

Octopus

Octopus

(live/fresh, cold-storage)

20

42,702

42,521

99.6

-42,415

8

Crab

Crab (frozen)

14

44,379

33,952

76.5

-38,223

9

Short necked clam

Short necked clam (live/fresh, cold-storage)

20

32,239

32,232

100.0

3,389

10

Other fishes

Other fishes (others/frozen)

10

172,877

27,529

15.9

-170,114

11

Sea-bass

Sea-bass

(live, excluding fries for cultivation)

28

25,533

25,533

100.0

-25,482

12

Shrimp

Shrimp and penaeidea shrimp (others)

20

67,801

20,216

29.8

-67,719

13

Sand eel

Sand eel (frozen)

10

19,070

19,070

100.0

-18,928

14

Other mollusca

Other mollusca (others)

20

40,029

18,886

47.2

-38,303

15

Squid

Seasoned squid

20

22,692

16,695

73.6

-15,770

16

Other shrimps

Other shrimps (dried)

20

16,158

16,012

99.1

-15,994

17

Salt

Table salt

8

16,283

15,536

95.4

-14,260

18

Scallop

Scallop (live/fresh, cold-storage)

20

24,990

14,375

57.5

-24,969

19

Sea-bream

Sea-bream (live, excluding fries for cultivation)

28

34,832

14,069

40.4

-34,831

20

Salt

Bay salt

1

168,704

13,269

7.9

-167,977

21

Globe fish

Globe fish (frozen)

10

14,261

12,862

90.2

-14,157

22

Other mollusca

Other mollusca (fresh, cold-storage)

20

14,835

12,640

85.2

-8,535

23

Mackerel

Mackerel (frozen)

10

61,248

12,330

20.1

743

24

Sea-bream

Other sea-bream (frozen)

10

15,263

11,547

75.7

20,313

25

Croaker

Croaker (live)

28

10,457

10,457

100.0

-10,457

26

Other crabs

Other crabs (frozen)

14

44,560

10,454

23.5

-30,660

27

Other fishes

Other fishes (live)

10

9,432

9,217

97.7

-5,933

28

Other shrimps

Other shrimp meat (excluding smoked products)

20

141,213

9,129

6.5

-133,593

29

Other shrimps

Other shrimps (salted, in brine)

38

9,508

9,008

94.7

-8,910

30

Other fishes

Other fishes (frozen)

10

37,401

8,092

21.6

9,131

 

Appendix 2  Top 20 products based on the amount of production

#

Product

Amount of production in 2012 (in KRW million)

Percentage of production (%)

Accumulated percentage (%)

Related products (number)

1

Tuna

1,034,028

13.4

13.4

34

2

Squid

757,197

9.8

23.3

8

3

Bastard halibut

652,846

8.5

31.8

7

4

Anchovy

286,224

3.7

35.5

6

5

Hair tail

285,063

3.7

39.2

3

6

Seaweed

277,507

3.6

42.8

7

7

Mackerel

266,296

3.5

46.3

5

8

Crab

256,952

3.3

49.6

3

9

Abalone

251,149

3.3

52.9

7

10

Yellow corbina

202,237

2.6

55.5

3

11

Oyster

200,059

2.6

58.1

9

12

Rock fish

188,181

2.4

60.6

2

13

Eel

173,319

2.3

62.8

6

14

Flatfish

169,597

2.2

65.0

6

15

Octopus

161,590

2.1

67.1

8

16

Conger

157,848

2.1

69.2

7

17

Spanish mackerel

139,130

1.8

71.0

2

18

Small octopus

128,798

1.7

72.7

2

19

Croaker

128,600

1.7

74.3

2

20

Shrimp

106,416

1.4

75.7

17

Others

Sea mustard

80,897

1.1

76.8

7

Sea tangle

50,211

0.6

77.4

6

 

Appendix 3  Other factors under consideration on the policy

□ TAC items, items subjected to adjustment tax, items subjected to resource management will be considered in formulating the policy

○ (TAC items) Eleven individual fishery products (single fish species) in which the amount of yearly catch is being capped in order to manage the resources

#

Finalized product

Detailed product

Tariff rate (%)

Amount of imports worldwide (in US $ 1,000)

Amount of imports from China (in US $ 1,000)

Percentage of imports from China (%)

Trade balance per product (in US $ 1,000)

1

Mackerel

Mackerel (frozen)

10

61,248

12,330

20.1

743

2

Mackerel

Mackerel (salted, in brine)

20

0

0

-

2,779

3

Mackerel

Mackerel (Fresh, cold-storage)

20

0

-

-

3,756

4

Crab

Crab (Frozen)

14

44,379

33,952

76.5

-38,223

5

Crab

Crab (Live, fresh, cold-storage)

20

1

0

-

1,059

6

Snow crab

Snow crab (Live, fresh, cold-storage)

20

60,805

0

-

-59,439

7

Snow crab

King crab (Frozen)

20

16,475

0

-

-3,787

8

Top-shell

Top-shell (Frozen)

20

617

0

-

94

9

Top-shell

Top-shell (Live, fresh, cold-storage)

20

0

-

-

9,892

10

Top-shell

Top-shell (salted, in brine)

20

0

-

-

2

11

Squid

Squid (salted, in brine)

10

434

433

99.7

-134

12

Squid

Squid (Dried)

10

36,829

376

1

-34,099

13

Squid

Squid (Live/fresh, cold-storage)

10

0

-

-

30

14

Saurel

Saurel (Frozen)

10

11,350

2,545

22.4

16,299

15

Saurel

Saurel (Fresh, cold-storage)

20

0

-

-

89

16

Saurel

Saurel (salted, in brine)

20

0

-

-

67

17

Pen shell

Pen shell (frozen)

20

8,595

5,073

59

-7,919

18

Pen shell

Pen shell (dried)

20

59

-

-

-59

19

Pen shell

Pen shell(Live/fresh, cold-storage)

20

0

-

-

6,660

20

Sting ray

Sting ray (frozen)

10

41,387

339

0.8

-41,330

*3 items among the 11 total TAC items do not have HS code (Sandfish, Washington clam, Jeju Top-shell)

○ (Items for adjustment tax) Eight items that have weak international competitiveness and may be subjected to market disturbance or disintegration of industrial foundation due to increase in imports.

#

Finalized product

Detailed product

Tariff rate (%)

Amount of imports worldwide (in US $ 1,000)

Amount of imports from China (in US $ 1,000)

Percentage of imports from China (%)

Trade balance per product (in US $ 1,000)

1

Sea-bass

Sea-bass (Live, excluding fries for cultivation)

28

25,533

25,533

100.0

-25,482

2

Sea-bream

Sea-bream (Live, excluding fries for cultivation)

28

34,832

14,069

40.4

-34,831

3

Croaker

Croaker (Live)

28

10,457

10,457

100.0

-10,457

4

Croaker

Croaker (Frozen)

43

12,081

1,198

9.9

-9,400

5

Shrimp

Penaeidea shrimp (Salted, in brine)

38

230

230

100.0

-230

6

Eel

Eel and others (Anguilla (live))

27

2,257

110

4.9

2,489

7

Alaska Pollack

Alaska Pollack (frozen)

25

231,537

67

0.0

-175,345

8

Mackerel pike

Mackerel pike

28

61,790

14

0.0

-52,262

9

Squid

Squid

22

54,872

4,580

8.3

53,948

○ (Items for resource management) fifteen items that require management in order to achieve stabilized development of fishery industry in the littoral sea and to maintain sustainable basis of fishery production.

#

Finalized product

Detailed product

Tariff rate (%)

Amount of imports worldwide (in US $ 1,000)

Amount of imports from China (in US $ 1,000)

Percentage of imports from China (%)

Trade balance per product (in US $ 1,000)

1

Flatfish

 

10

3,037

32

1.0

-3,030

2

Flatfish

 

20

21

 

-

-21

3

Hair tail

 

10

101,215

61,854

61.1

-97,080

4

Hair tail

 

20

4,843

39

0.8

-4,787

5

Hair tail

 

20

0

-

-

760

6

Octopus

 

20

132,210

106,807

80.8

-131,539

7

Octopus

 

20

42,702

42,521

99.6

-42,415

8

Cod

Cod (dried)

20

2,059

2,037

98.9

-1,688

9

Cod

Cod (fresh, cold-storage)

20

1,945

1,734

89.1

-1,942

10

Cod

Flatfish (Filet/frozen)

10

47,414

1,732

3.7

-12,105

11

Cod

Flatfish (Filet/cold-storage)

20

66

66

100.0

-65

12

Yellow corbina

Hair tail (frozen)

10

124,703

124,661

100.0

-123562

13

Filefish

Hair tail (fresh, cold-storage)

20

47,337

5,270

11.1

-47,106

14

Filefish

Hair tail (salted, in brine)

10

3,961

3,215

81.2

-3,928

 

 

Octopus (frozen)

 

 

 

 

 

 

 

Octopus (live/fresh, cold-storage)

 

 

 

 

 

* Omitted the redundant indication of TAC products

* Sandfish, Washington clam, blue abalone do not have HS code. There is no import from China regarding sharp tooth eel.

 

Appendix 4  Current status of fishery TRQ in the concluded FTAs

FTA

Product

TRQ method

Tariff rate

Amount of Import Quota (in tons)

Standard amount of import (A)

Amount in the early stage (B)

B/A

Rate of increase

Korea-EFTA (went into force in 1 September 2006)

*Standard amount of import is the average amount during 2002 to 2004.

Frozen mackerel

Allotted designated institution

10%

8,538

500

6%

Fixed

Korea-Asean FTA (went into force in 1 June 2007)

*Standard amount of import is the average amount during 2003 to 2005.

Shrimp, small shrimp (frozen shrimp meat)

Public Auction

20%

10,299

5,000

50%

Fixed

Shrimp, small shrimp (live, fresh, cold-storage)

20%

3,758

300

8%

Cuttlefish (frozen)

10%

2,793

2,000

72%

Shrimp, small shrimp (processed)

20%

2,186

2,000

91%

Korea-EU FTA (went into force in 1 July 2011)

*Standard amount of import is the average amount during 2007 to 2009.

Frozen bastard hailbut

By order of arrival

10%

1,331

800 à 1,727 tons (12th year)

60%

8%

 

Korea-US FTA (went into force in 15 March 2012)

*Standard amount of import is the average amount during 2003 to 2005.

Frozen bastard hailbut

By order of arrival

10%

3,057

1,530 à 3,303 tons (11th year)

50%

8%

Frozen Alaska Pollack

30%

3,939

4,000à 12,263 tons (14th year)

102%

9%

Frozen croakers

53%

4

1,000à 1,629 tons (11th year)

25,000%

5%

 

Appendix 5 Current status on Korea-China Trade

□ Current status of trade between China: US $ 228.8 billion (US $ 62.8 billion trade surplus)

 

(Unit: US $ 100 million)

Classification

2009

2010

2011

2012

2013

Trade Amount Worldwide (Percentage among the worldwide trade)

Export

867

1,168

1,342

1,343

1,458

5,596 (26.1%)

Import

542

716

864

808

830

5,156 (16.0%)

Total Amount of Trade

1,409

1,884

2,206

2,151

2,288

 

Trade Balance

325

453

478

535

628

 

 

□ Current Status of Fishery Products Trade between China: US $ 1.4 billion (US $ 700 million trade deficit)

(Unit: Us $ million)

Classification

2009

2010

2011

2012

2013

Export

Total

565

787

1,189

1,279

1,317

Agricultural products

327

447

625

654

675

Livestock products

18

23

37

131

145

Forest products

74

86

62

122

127

Fishery Products

146

231

465

372

370

Import

Total

3,676

4,323

5,233

5,297

5,740

Agricultural products

1,702

1,946

2,447

2,364

2,747

Livestock products

42

53

60

138

142

Forest products

1,078

1,228

1,476

1,712

1,825

Fishery Products

854

1,096

1,250

1,083

1,026

Trade balance of fishery products

r 708

r865

r785

r711

r656

 

□ Top 10 Fishery Products on Import and Export to China (Based on the data in 2012)

(Unit: US $ million)

Rank

Export

Import

1

Fish egg

46

Octopus

165

2

Squid

40

Yellow corbina

127

3

Alaska Pollack

34

Hair tail

61

4

Seaweed

31

Other fishes

59

5

Cod

29

Shrimp

56

6

Tuna

23

Shrimp meat

55

7

Bastard halibut

20

Goose fish

48

8

Spanish mackerel

20

Loaches

44

9

Sea-bream

13

Short necked clam

41

10

Other crustacean

10

Crab

34

 

[Explanatory note from Korea Forest Service]

 

□ The impact on the forest product by the agreement of Korea-China FTA is limited.

○ Most of forest products in which there is a large amount of imports from China and those under fierce price competition such as plywood and lumber are excluded from concessions and therefore it was decided that tariff rate will not be reduced. Other products with a small amount of imports from China are under partial reduction or elimination after 20 years. Thus, the impact on the forest product by Korea-China FTA is expected to be limited.

○ Originally, it was worried that forest products may face strong price competition and that upon tariff elimination there will be a strong impact on the domestic industry, especially on plywood thicker than 6mm and lumber (Radiata pine).

○ However, the result of negotiation shows that products subjected to competition such as plywood thicker than 6mm and lumber (Radiata pine) are excluded from concession and other products with large amount of import are under partial reduction or elimination in 20 years therefore the impact on the domestic industry will be limited.

○ On the other hand, short-term income forest products such as chestnut and fragrant mushroom lentinus edodes are in the same category with agricultural and fishery products. Therefore essential products are decided to be excluded from concession. Other products are under tariff elimination in 20 years and therefore the impact on the domestic industry is viewed as limited.

 

Date submitted: January 15, 2015

Reviewed, edited and uploaded: January 21, 2015

 

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