Abstract

Purpose – This study examines the characteristics of the rules of origin for RCEP, an agreement concluded by Korea, identifies problems that may arise when applying the rules of origin of RCEP, and proposes countermeasures. Design/Methodology/Approach – Whether or not the benefits of FTAs are realized depends on the various characteristics of FTAs, among which is the Rule of Origin (RoO). Looking at the relationship between the unification of the criteria for determining the country of origin, as each FTA determines the country of origin differently, the cost is greater than the tariff benefit that occurs when applying this to the FTA. As such, it is a realistic issue that may force giving up the FTA due to the spaghetti ball effect. We intend to contribute to the facilitation of trade through the unification of origin determination criteria to solve the problem. Findings – By examining the characteristics of the rules of origin and presenting institutional problems and supplementary points that may occur when the RCEP's rules of origin are applied, conclusions that can serve as references for the remaining FTA negotiation tasks have been drawn. Research Implications – The suggested four implications establish a more diversified trade structure by converging on all active, efficient, and feasible exports and imports, and contribute to the increase in Korea's trade volume through trade liberalization and market opening in the current situation wherein the international trade environment is rapidly changing. For this purpose, RCEP must be applied effectively.

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