Rhee Jinwoo. (2020). An Analysis of the Economic Impacts of International Regulatory Co-operation and FTA TBT Clauses. Korea-China Economic & Cultural Review, 14, 273-293.
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Technical barriers to trade (TBT), one of the non-tariff barriers, have significantly increased in almost every countries since they had established acts or regulations for various purposes. To alleviate or eliminate the trade restriction effects of TBT, countries introduce International Regulatory Co-operation including WTO regime, Regional Trade Agreement or Free Trade Agreement, or Mutual Recognition Arrangement. This paper examines the economic impacts of International Regulatory Co-operation for TBT, especially focused on Korea’s FTAs. Korea have made FTA with USA, EU, Australia, China whose positioned as Korea’s major trade partners for several trade periods. This paper estimates multiple regression using the Gravity Model. Data are extracted from Entry Rejection List in Korea International Trade Association and TBT database in UNCTAD TRAINS. Also, it tries to make a distinguish in estimation by sorting TBT following their characteristic and considering WTO+ factors in each FTA. The empirical analysis shows Articles of FTA has no statistical significance in International Regulatory Co-operation, which means FTA TBT Clauses are not enough to control negative trade effects of TBT. However, if there are more advanced and favorable Articles regarding reciprocal duties to lessen effects of TBT, that sectors show significant trade promotion. Therefore, based on the above analysis, to alleviate or eliminate the trade restriction effects of TBT, we take account of introduction compulsory and favorable clauses in the FTA TBT Chapter upon the FTA negotiation and revision tables.