The impact of the future Free Trade Agreement between the European Union and South Korea on the European and Romanian economies – a marketing research (original) (raw)
Related papers
2007
Korea is an attractive FTA partner that has achieved an impressive growth in human capital. Korea has been transformed from an agricultural economy in the 1960s to an industrial economy by the 1990s. Its GDP per capita is comparable to that of Portugal and other new EU member states and it is now the 11th largest economy in the world. When compared to the EU's other FTA partners, Korea's average growth rate (5.2%) has been higher than that of Chile (4.4%), Mexico (2.7%) or South Africa (3.8%) over the period 2000-05. Especially in trade (exports plus imports), Korea is a far more significant trade partner than any of EU's three recent FTA partners. The economic importance of Korea for Europe can be summarised as follows: • Korea is a dynamic country with good growth potential with a pool of skilled labour that is comparable to that of some EU countries. • Korea is also a strategic partner in a region that is signing bilateral agreements with other competitor countries. • Among the EU's trade partners, Korea is the 8 th most important trade partner (EUROSTAT, 2007). • Among Korea's trade partners, the EU is the 4 th most important trade partner (EUROSTAT, 2007). Nevertheless, the EU's motivation to pursue an FTA with Korea is not based on purely economic interests. Even after the provisional suspension of the WTO DDA (Doha Development Agenda) negotiations, the EU's main trade policy remains loyal to multilateralism. However, the EU also recognises that there is a need for a new breed of FTA, one that does not contradict the principles of multilateralism, to contribute to the EU's competitiveness and growth. It should be emphasised that the pace of change in Korea is fast and the EU needs to target long-term gains from this FTA. For example, both the evolution of the human capital and its effects on the R&D and innovation capacity of Korea imply that its production and trade patterns will change. Ten years from now, when Korea reaches a certain level of innovation capacity, it may well be high-technology sectors where the trade issues may arise. Another external factor is China catching up with Korea, which we can already see happening in the automotive sector. This will put additional pressure on Korea to 'specialize' in its exports. This has clear implications for the negotiation process. This implies that all sectors and horizontal issues are equally important in terms of EU's negotiating efforts (e.g. on removing NTBs (non-tariff barriers) in the automotive sector, as well as IPRs (intellectual property rights)).
Assessment of potential economic effect of Free Trade Agreement between RM and EU
This study is focused on the changes in import into a market of the Republic of Moldova as well as produced by this the social and an economy effect when there is reformed a trade policy. In this context, under the trade policy reforming we understand the liberalization of trade of the Republic of Moldova with EU induced by adoption of Free Trade Agreement as well as with Turkey because it is a precondition of the EU. Proposed effect is generated by elimination of custom duties in the mutual trade and will be expressed in cheaper price of import from EU and Turkey. For government, it is important to estimate and foreseen the impact of this trade policy option. In this study impact of trade reform, that includes assessment of import increasing, tariff revenue change, welfare effects for the population, was defined at the partial equilibrium modeling tool. Results of this study can be used to anticipate the economic effects of trade policy adopted, such as: distribution of the potential benefits and losses from policy changes. This will assist in identifying the sensitive commodity goods where negotiating efforts should be focused as well the evaluation adjustment costs dealing with trade reform implementation.
Process of the European integration effects on the marketing activity
The Union was constituted and functioned based on the principle of unification of the norms with a view to generating a superior level of the standard of living of its citizens. It follows the same desideratum but this time by grouping a continually increasing quantity of resources (natural, human, financial etc.), to the detriment of quality, we could say. After ’90 the enlargement was more powerful than before this seems to change the mechanisms of new members inclusion. I our perception the inclusion process was replace with a “communicating recipients” process. In this context it was talked about the effects that the integration of Romania into the European Union will generate at the level of the trading companies, which will materialize into a series of mutations concerning their marketing and management. The first question is “Why?” the Romanian companies have to approach and implement the principles of top management, learning from the experience of the West-European countrie...
The Trade Effects of the EU-South Korea Free Trade Agreement in the Automotive Industry
Social Science Research Network, 2017
The EU-South Korea FTA, enforced in 2011, represents a significant case of a trade deal signed between two major developed economies that also belong among the largest car exporters in the world. This paper examines the effects of the EU-South Korea FTA on bilateral automotive industry trade, comparing them to the changes in total bilateral trade. The empirical analysis applies the gravity model framework with its contemporary methodological advancements and estimation techniques. The empirical results show that the trade-enhancing effects of the FTA in the auto trade are substantially higher than in total trade. Additionally, EU bilateral auto exports have increased more than South Korea's exports. The dynamics of the post-FTA trade flows suggest that the removal of the automotive industry's non-tariff barriers have played an important role in trade facilitation, especially for EU exports. The enforcement of the FTA has also been followed by notable changes in the structure of EU auto exports with the share of higher value final goods increasing and input goods decreasing.
Trade in Goods under the EU–Korea FTA: Market Access and Regulatory Measures
This chapter deals with the rules on trade in goods in the EU-Korea Free Trade Agreement. It is organized, as follows. First, the rules on market access, that is, the EU-Korea FTA provisions related to import measures applicable at the border, will be delineated and analyzed. Subsequently, aspects of one of the most innovative parts of the agreement will be examined in detail: the section containing rules on domestic regulation, in particular, on technical regulations and standards. This paper shows two sides of the EU–Korea FTA. On the one hand, it is a very traditional trade agreement, largely based on existing WTO provisions. This is particularly the case in those parts of the agreement concerning border measures. On the other hand, in particular, concerning the sector-specific rules on technical barriers to trade, the agreement is quite innovative and breaks new grounds, with respect to the regulation of domestic instruments. Moreover, the Agreement is, to a large extent, a ‘living instrument’. Many of the remaining lacunae in the field of domestic regulation must be dealt with in the future, through cooperation and consultations within the different committees and working groups. This is the Agreement’s approach to tackle its endogenous incompleteness, which is inherent in any trade agreement. From this angle, the EU–Korea FTA may not only be understood as a static body of rules, but also as a framework for collaboration that helps to find prompt and appropriate responses to changes in real-world conditions, thus facilitating trade relations between the parties in the long run.
The Prospects of ASEAN-Korea Free Trade Area (AKFTA) A Qualitative and Quantitative Analysis
ASEAN ECONOMIC BULLETIN, 2012
The current global economic crisis has alerted East Asian countries to the risks of excessive dependence on exports to the United States and EU. This shared sense of vulnerability is likely to promote regional economic integration. In particular, intra-regional trade is now viewed as a new potential engine of growth. The ASEAN-Korea Free Trade Area (AKFTA) is a concrete example of this general trend. This paper qualitatively and quantitatively examines the economic feasibility and desirability of AKFTA-qualitatively using the theory of economic integration and quantitatively by applying a CGE model. Our analysis provides some grounds for optimism about AKFTA's prospects.
Trade Impact Assessment (Trade SIA) of An EU-ASEAN Free Trade Agreement
IIDE Discussion …, 2009
TRADE IMPACT ASSESSMENT (TRADE SIA) OF AN EU-ASEAN FREE TRADE AGREEMENT This study deals with the analysis of the effects of a potential Free Trade Agreement (FTA between EU27 and ASEAN. Towards this end, it employs the IIDE Computable Equilibrium (ICE) model of the global economy. EU and ASEAN are seen as front-runners in regionalism, so it is worthwhile to consider the possible impact of an interregional FTA, especially in the context of the rapid proliferation of regional agreements in the last few years. The baseline scenarios used in the analysis have three key features. First, the world economy is projected to 2014 in order to take ASEAN's increasing growth rates into account, and to be able to go beyond the immediate short term impact of the FTA. Second, it is taken as given that the trade and investment agreement negotiated is a WTO-compatible FTA for goods and services. Lastly, we assume a FTA-plus setting where agreements on non-tariff and regulatory areas are included. The results on the whole, point to positive effects for most of ASEAN under all scenarios, and small but positive effects over the long-run for the European Union. Throughout the study, some negative results are observed for other ASEAN countries (Brunei, Cambodia, Laos, and Myanmar). As expected, income and trade gains increase as liberalization deepens and as more dynamic effects are taken into account. The latter is particularly important for ASEAN, whose growth is often constrained by insufficient capital resources. In terms of income effects, the EU and Singapore gain the most, 51 and 78 percent of these gains, respectively, are due to the removal of the barriers to Services trade. It is Vietnam, however, that reaps the largest rise in GDP growth, while the EU, followed by Thailand, gains the most from the removal of non-tariff barriers. For the EU, about 87 percent of the income rise between these two scenarios is due to direct and indirect effects of trade facilitation alone.
2011
Expanding trade with East Asia’s “Big Three” economic giants—the People’s Republic of China (PRC), Japan, and the Republic of Korea—offers a new potential source of growth for ASEAN in the post-global-crisis period. In fact, ASEAN has been actively pursuing trade liberalization with the Big Three. The central objective of this paper is to qualitatively and quantitatively assess the different permutations of ASEAN’s free trade agreements (FTAs) with the Big Three (e.g., ASEAN–PRC, ASEAN–Japan, ASEAN–Republic of Korea, and ASEAN+3). Our qualitative analysis is based on the theory of economic integration, and our quantitative analysis is based on a CGE model. The two types of analyses both suggest that an ASEAN+3 FTA would deliver the largest benefits for the region.