An analysis of ex-post assessment on Korea-Chile Free Trade Agreement with respect to the agricultural sector

Abstract

As the existing FTAs’ implementations are being accelerated, ex-post assessments, such as tariff schedules and agricultural trade analyses results, have been emerging as important national issues for the agricultural sector. Korea-Chile FTA is the first FTA in Korea, and more than ten years have passed since April 2004. It will be necessary to measure the impacts of the agreement on the domestic agricultural industry by analyzing concessions made on traded items of farm products on prices, agricultural trade, and so on. The purpose of this study is to prepare for the request for ex-post assessments on the agricultural sector by trade negotiation procedural law. Additionally, by providing policy direction for agricultural policy segments requiring amendments and supplements through an ex-post assessment, we can more objectively evaluate the conflicting arguments between the agricultural and non-agricultural sectors. Current evaluation methods about ex-post impact assessment of FTA are generally comparison analysis on the change of trade balance before and after FTA implementation. However, this simple comparison analysis cannot be said to pure FTA effects and objective, tightening economic impact assessment of the FTA because of all combined situations such as effects of exchange rates, international macroeconomic changes, climate change, and the occurrence of pests. This research attempts to use dynamic analysis as its ex-post assessment methodology and is expected to contribute to future policy evaluation.