This study aims to determine if agreements could be reached at the Uruguay Round multilateral trade negotiations, and to analyze the effects the negotiations might have on Korea.
Governments of economically developed countries that export agricultural products, especially the United States and those of the European Community, are experiencing challenges due to surpluses of agricultural products. This has been caused by the protection of agriculture, and the accumulated financial burdens of income compensation. These issues are so serious that the involved countries cannot continue these policies.
On the other hand, developing countries have made efforts to be self-sufficient in terms of agricultural products, for the sake of national security. These efforts resulted in an increase in agricultural production and a decrease in import demand. Eventually, global agricultural trade decreased and international agricultural product prices declined. This trend encouraged countries around the world to develop their economy (as the second oil crisis in the late 1970s caused a global recession), and strengthen protection against international trade. As a result, international free trade has increasingly been regulated and controlled. It was the multilateral trade negotiations in the Uruguay Round that started the addressing of these issues. The negotiation agenda of the Uruguay Round related to agriculture included provision of subsidy (which has a direct and indirect impact on export associated with liberalization of agricultural product trade), liberalization of agricultural product trade by eliminating tariffs and non-tariff measures, and the liberalization of the natural resource trade and tropical products produced by developing countries.
Negotiations in the Uruguay Round will be led by the United States, European Community, and major agricultural exporters, and are expected to take approaches that do not consider Korea. Therefore, Korea needs to develop measures based on its agricultural conditions and the current trend in agricultural import.
First, Korea should prepare for measures that will help reach an agreement in the Uruguay Round. Second, Korea should take into account the results of negotiations to improve its import programs for agricultural products, and develop a reasonable response to import liberalization. Third, Korea needs to seek new policy for agricultural restructuring following the trade liberalization of agricultural products.
The import programs for agricultural products need to be improved. As negotiations in the Uruguay Round could reach an agreement that will meet the needs of agricultural exporters, given Korea’s agricultural conditions, Korea requires agricultural imports. Therefore, a basic mechanism must be established to ensure import programs are operated in a sustainable manner.
Improvements to import programs of agricultural products can be summarized in three points: First, import of agricultural products that are disadvantaged in terms of production (except for strategic agricultural products including rice) should be allowed. Second, trade liberalization can be allowed for agricultural products for which Korea has a competitive advantage. Third, trade liberalization can be allowed for tropical products exported by developing countries since they require too many resources to be produced in Korea.
새로운 국제무역질서의 전개방향과 우리의 대응과제(New direction for international trade order and our response)
농산품부문(The agricultural product sector)
|Series Title; No||정책연구시리즈 / 88-09|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade|
|Holding||KDI; KDI School|