Method of Research
The research method of this study is composed of literature reviews and quantitative analysis. Through the literature and data review, the status of non-tariff measures by types, major countries, and items and the characteristics of each are analyzed. To this end, the non-tariff measures database is processed around the WTO’s Integrated Trade Intelligence Portal data, and data from UNCTAD, the World Bank, WITS, and UN Comtrade are utilized.
For econometric analysis, first, we analyze the determinants of the non-tariff measures considering domestic and foreign factors such as macroeconomic factors, trade structure and agricultural structure of each country. Second, we analyze the effect of non-tariff measures on the exports of our agricultural products using the gravity model.
Research Results and Implications
In general, non-tariff measures tend to be expanded. In recent years, they are concentrated on technical non-tariff measures such as SPS and TBT although various measures have been applied in the past.
We examined the major non-tariff measures issues in Korea's primary trading partners such as Japan’s revised list of pesticide standards and food labeling, China’s regulations on food safety, the US’s revision of the food safety modernization act, the EU’s mandatory inspection and revision of the food labeling law, and Vietnam's pest risk analysis. Although there is a difference depending on the partners, most cases of border rejections for Korean agricultural products pertain to ingredient nonconformity and labeling.
The analysis of the impacts of economic, political and social factors on non-tariff measures shows that increases in import penetration rates, decreases in tariff rates, increases in the relative price level and increases in agricultural value added significantly affect non-tariff measures upward. The results show that the level of non-tariff measures
is expected to be prolonged, the level of technological measures may increase and non-technical measures may vary from one continent to another.
The results of analyzing the effect of non-tariff measures in importing countries on Korean agricultural exports show that technical measures such as SPS and TBT have had negative effects on agricultural exports in Korea. Specifically, when exporting to OECD countries, both SPS and TBT significantly hindered the export of fresh agricultural products, and processed agricultural products were more influenced by TBT. When exporting to Korea’s primary trading partners, the SPS and TBT measures of these countries significantly inhibited the export of fresh agricultural products and processed agricultural products.
Based on the results of analyzing the determinants of non-tariff measures and the effects of non-tariff measures on Korean agricultural trade, it is possible to intervene in two directions. First, the internal and external factors of each country affect the increase and decrease of non-tariff measures, but it is very difficult to directly intervene in the internal and external factors of other countries. The fact that the non-tariff measures are different from country to country also suggests that countermeasures are needed at the national level. Therefore, it is necessary to anticipate and respond to non-tariff measures in the future by strengthening monitoring, focusing on major countries and major factors, and identifying changes in the international economic and political environment.
Next, the analysis of the effects of non-tariff measures on Korea’s exports suggests that countermeasures for each item and country are necessary. Therefore, in order to respond to non-tariff measures, it is first necessary to make efforts to improve the trust level of Korean agricultural products. Second, it is advised to enhance support for identifying and observing related systems for technical non-tariff measures and to specify procedures for resolving disputes in trade agreements. Third, non-tariff measures of importing countries do not necessarily have negative effects on the export of agro-food products in Korea and thus non-tariff measures can be used as an opportunity for agricultural exports.
This study focuses on suggesting research projects rather than suggesting concrete
policies. Although existing studies on non-tariff measures in the agricultural sector have largely focused on identifying the current status of non-tariff measures and presenting countermeasures, this study has provided a comprehensive analysis of the effects of non-tariff measures on trade and the factors influencing non-tariff measures.
The results obtained from the current study would help to grasp more objective situations and develop specific strategies for further research projects.
Researchers: Kim Jongsun, Ji Seongtae, Choi Yongwoog, Choi Minjung E-mail Address: sun589@krei.re.kr
Backgrounds & Purpose of Research
The technical cooperation projects in the agricultural sector are an important means for agricultural capacity development in developing countries in terms of achieving the goal of 'poverty eradication and hunger relief' of SDGs (Sustainable Development Goals). In addition, technical cooperation projects play an important role in enhancing food security and productivity in developing countries. Therefore, in order to enhance outcomes of technical cooperation projects in the agricultural sector, we should find the problems and solutions by analyzing the implemented projects in Korea;
agricultural technology development and research, education and training for stakeholders (public officials, farmers, public employees, etc.) and policy consulting.
To enhance outcomes of technical cooperation projects, this study is 1) to identify the types and characteristics of the technology cooperation projects in the agricultural sector, 2) to examine the (domestic/overseas) cases of the technical cooperation projects and 3) to suggest implementationstrategy for each project type and implementing phase.
Method of Research
This study mainly focuses on the agricultural technical cooperation projects which are promoted by the Ministry of Agriculture, Food and Rural Affairs (MAFRA). In order