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WTO시대의 신통상의제(The new trade agenda of the WTO Era) : 정책함의와 대응(Policy implications and response)

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Title WTO시대의 신통상의제(The new trade agenda of the WTO Era)
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Sub Title

정책함의와 대응(Policy implications and response)

Material Type Reports
Author(Korean)

신광식

Publisher

[서울]:한국개발연구원

Date 1998
Series Title; No 연구보고서 / 97-04
Pages 258
Subject Country South Korea(Asia and Pacific)
Language Korean
File Type Documents
Original Format pdf
Subject Economy < Trade
Holding KDI; KDI School

Abstract

The objective of this report is to suggest desirable and specific alternatives to modify and improve local policies and systems in preparation for the international standardization. As international trade agendas gain momentum in the face of the global economy, the paper presents a strategic approach towards international discussions and negotiations.

In the WTO system, the interaction between competition policy and trade, the environment and trade, and multilateral trade norms, are newly emerging as issues. The international enforcement of competition law is being strengthened as international trade agendas are expanding their impact. This will greatly affect the Korean economy, which is greatly influenced by market intervention in industrial and trade policies, and a custom of limited competition, leading to the inevitable task of improving the existing policy, system, and practice. Thus, this report seeks to provide a strategic response to the discussion and negotiation of competition law, trade policy, international investment, market environmental problems, and suggest a proposal to modify the domestic policies and system in line with international norms.

While the cartel is exempted from the Fair Trade Act according to the various individual laws, modification plans must be conducted only on the premise that the criteria and range reflect the internationally-accepted level and legitimacy. The Fair Trade Act and policies must be redeveloped to such a way that they are not just regarded as a domestic policy, but modified in a way that its implementation methods are in accordance with the international framework and trend.

The positive effect of Multilateral Agreements on Investment (MAI) is that they expand the opportunity for Korean companies in entering a foreign market, and help maintain and strengthen the international competitiveness of the industry. They also create an atmosphere which makes foreign investment easier, thus improving the economic efficiency and reforming in the industrial structure.

Expanding MAIs toward the opening of the entire sector must be used as an opportunity to vitalize competition, and companies with weak competiveness will inevitably have to step out of the market. In principle, all hostile M&As except those regarding the protection of national security and public good must be liberalized. Foreign investors must also be allowed to participate in the privatization of public companies, leaving a saving clause for only undesirable circumstances related to national security.

As discussion outcomes regarding the trade and environment of multilateral environmental agreements, such as the WTO or United Nations Framework Convention on Climate Change (UNFCC), will greatly affect Korea, there is a need to create new response approaches. Should the WTO approve its preferential measures towards non-members of the agreement, multilateral environmental agreements will grow more concrete based on a set of reinforced disciplinary measures. Given the circumstance, Korea should attract attention on the local trade environment based on discussions, improve local conditions by modifying the cost efficiency and quality of local environmental policies.

This study has provided suggestions on response measures and policy development/establishment in two perspectives. First, new trade agendas including competition law policies, international investment, and environmental problems must be evaluated from a first-person perspective to draw out major problems, and must be dealt in a world trading system context, thereby providing a desirable approach. Second, a well-organized forecast of the development of international rules must be set, and the impact and changes in the local policy environment from this must be analyzed to draw out the major policy implications (agenda) to provide specific approaches.