earticle

영어

This paper analysed the effects of the preferential rules of origin in Korea-Eu FTA, highlighting the aspects that might possibly generate some trade-barriers effects. I review characteristics of existing preferential trade agreements with special emphasis on lessons from the European experience, and analyze some important features of the existing rules of origin in Korea and EU free trade agreements. The empirical analysis of the effects of preferential rules of origin focuses on the Kore and EU Free Trade Area (Korea-EU FTA), with the aim of providing a rough estimate of the costs of requesting preferential rules of origin. The results suggest that preferential tariffs favorably affect intra-regional imports only at very high margins but it make some trade barriers because of high administration cost in exploiting the rules of origin. This points to the likelihood of high administrative costs attached to the exploitation of preferences, particularly with regard to the compliance with Korea-EU FTA's rules of origin.