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The impact analysis of the EU-Korea FTA on the Czech sensitive sectors with special attention to the automotive industry

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Frame of Image tial fulfillment of the requirements for the degree of
MASTER OF PUBLIC POLICY
2010 Professor Park, Hun Joo
ABSTRACT
THE IMPACT ANALYSIS OF THE EU-KOREA FTA ON THE CZECH SENSITIVE SECTORS WITH SPECIAL ATTENTION TO THE AUTOMOTIVE INDUSTRY
By
Sarka Baladova
Strong objections appeared in the Czech Republic, especially in the automotive industry, against the EU-Korea free trade agreement right after its adoption in October 2009. There were fears that the Agreement would endanger Czech competitiveness in the European market while new opportunity for Czech exporters in the Korean market would be limited. The thesis aims to analyze the impacts of the Agreement on the Czech sensitive sectors. Using the data from the International Trade Centre (ITC), the Czech statistical office, and the UN COMTRADE, the sensitive sectors are defined. The restrictiveness of the rules of origin is measured by the Hariss index, the methodology of the European Commission is utilized to estimate potential savings in effect of duty drawback, and a qualitative analysis of the nontariff barriers is applied. Regarding the automotive industry, the analysis shows that Czech competitiveness within heading 8703 (cars) will not be endangered in effect of the Agreement while there might be some difficulties within heading 8708 (parts & accessories for motor vehicles). The Czech Republic does not perform any revealed competitive advantage in trade of services. The arguments of Czech car makers against the Agreement


Full Text
Title The impact analysis of the EU-Korea FTA on the Czech sensitive sectors with special attention to the automotive industry
Similar Titles
Material Type Reports
Author(English)

Baladova, Sarka

Publisher

[Seoul]:KDI School of Public Policy and Management

Date 2010
Pages 57
Subject Country South Korea(Asia and Pacific)
Czech Republic(Europe)
Language English
File Type Documents
Original Format pdf
Subject Economy < Trade
Holding KDI School of Public Policy and Management

Abstract

Strong objections appeared in the Czech Republic, especially in the automotive industry,
against the EU-Korea free trade agreement right after its adoption in October 2009. There
were fears that the Agreement would endanger Czech competitiveness in the European market
while new opportunity for Czech exporters in the Korean market would be limited. The thesis
aims to analyze the impacts of the Agreement on the Czech sensitive sectors. Using the data
from the International Trade Centre (ITC), the Czech statistical office, and the UN
COMTRADE, the sensitive sectors are defined. The restrictiveness of the rules of origin is
measured by the Hariss index, the methodology of the European Commission is utilized to
estimate potential savings in effect of duty drawback, and a qualitative analysis of the nontariff
barriers is applied. Regarding the automotive industry, the analysis shows that Czech
competitiveness within heading 8703 (cars) will not be endangered in effect of the Agreement
while there might be some difficulties within heading 8708 (parts & accessories for motor
vehicles). The Czech Republic does not perform any revealed competitive advantage in trade
of services. The arguments of Czech car makers against the Agreement about the trade within heading 8703 are not admitted. Further research is needed to analyze if the Agreement will have harmful effects on Czech competitiveness within heading 8708. The Agreement will not
bring up any notable opportunity for Czech exporters in the Korean market.

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Thesis(Master)