This article is a news release of the Ministry of Trade, Industry & Energy, Republic of Korea which was distributed on November 10, 2014. It mentions about reaching consensus on a FTA between Korea and China.
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=1...
Explanatory note on fishery products in Korea-China FTA
(Ministry of Oceans and Fisheries, Government of Republic of Korea)
1. Current status of trade concerning fishery products between Korea and China
□ (Current Status) China is a major fishery product trading partner to Korea, consisting of 27.2% of fishery import (US $ 1 billion). The trade deficit for the Korean side is approximately US $ 650 million per year.
(unit: million US $)
|
Import and export of fishery products from China
|
2009
|
2010
|
2011
|
2012
|
2013
|
|
Export (A)
|
146
|
231
|
464
|
372
|
370
|
|
Import (B)
|
854
|
1,096
|
1,250
|
1,082
|
1,026
|
|
Trade balance (A-B)
|
-708
|
-865
|
-786
|
-710
|
-656
|
* Average tariff rate of fishery products in Korea (2012): 18.0%
** Export (in million US $): 1st Japan (981), 2nd China (372) / Import (in million Us $): 1st China (1,802), 2nd Russia (654)
○ Major imported products are major domestically consumed fishery products such as octopuses, yellow corbina, hair tail and others. Exported products are focused on raw material for process such as fish eggs and squids.
* Major Products on imports from China (Percentage of imports): Octopuses (15.3%), Yellow corbina (11.7%), hair tail (5.8%)
(unit: million US $)
|
Rank
|
Export
|
Import
|
|
1
|
Fish eggs
|
46
|
Octopuses
|
165
|
|
2
|
Squids
|
40
|
Yellow corbina
|
127
|
|
3
|
Alaska pollack
|
34
|
Hair tail
|
63
|
|
4
|
Seaweed
|
31
|
Other fishes
|
59
|
|
5
|
Cod
|
29
|
Shrimps
|
56
|
|
6
|
Tuna
|
23
|
Shrimp meat
|
55
|
|
7
|
Bastard hailbut
|
20
|
Goose fishes
|
48
|
|
8
|
Spanish mackerel
|
20
|
Loaches
|
44
|
|
9
|
Sea-bream
|
13
|
Short necked clam
|
41
|
|
10
|
Other crustaceans
|
10
|
Crabs
|
34
|
○ Due to rapid economic development in China, the consumption of fishery products is acutely increasing as well, providing an opportunity for export of fishery products.
* Fishery product consumption per person in China (kg/year): (2000) 11 à (2009) 30 à (2020) 40.8 (estimated)
2. The process of Korea-China FTA negotiations
□ (Stage 1) Settlement on the level of liberalization and on dealing with normal track∙sensitive∙ highly sensitive items
|
Normal Track
|
Sensitive Track
|
Highly sensitive track
|
|
Tariff elimination within 10 years
|
Tariff elimination after 10 years and within 20 years
|
Excluded from concession, Partial elimination of tariff, TRQ*, Seasonal Tariff
|
|
Level of liberalization 90%, 85%
|
For highly sensitive track, 10%, 15%
|
○ Stating the agenda “sustainable and responsible fisheries” on the modality, providing a basis to discuss about illegal catching of fishes at the second stage.
□ (Stage 2) Based on the modality at the first stage, the first draft of FTA agreements and concessions of items were discussed during the second stage.
○ (Items) Detailed discussions were made concerning which items will be included in normal track (tariff elimination within 10 years), sensitive track (tariff elimination in 10-20ears).
○ (Cooperation on agriculture and fisheries) The Korean government explained about its position on “sustainable and responsible fisheries” and argued that illegally caught fishes cannot be subjected to preferential tariffs.
3. Major results of negotiations
□ (Agriculture and fisheries) Parties agreed as following: total rate of liberalization 70 (number of items) /40 (Amount of Imports), TRQ/Partial reduction of tariff 30% (TRQ 16%, Partial reduction 14%).
|
○ Rate of liberalization
|
70% (number of items), 40% (amount of imports)
|
|
○ TRQ
|
Agriculture and fisheries 16% (amount of imports)
|
|
(Percentage of agricultural and fishery products)
|
7% (Agricultural products): within WTO TRQ items
9% (Fishery products): within 340 requested items by the Chinese government
|
|
(Amount)
|
Weighted average on all items 40%**
|
|
③ Partial Reduction
|
Agriculture and Fisheries 14% (amount of imports)
Decreased to the average of 20% within 5 years
|
|
(High tariff)
|
Including 15 agricultural products (reduced below 130%)
|
* Major production and trading products such as octopuses, yellow corbina, goose fishes, crabs
** Taking the sensitivity into account, the quantity was distributed among the TRQ items within the average of 40%
□ (Concessions on Korean fishery products) Highly sensitive track 64.3% (Excluded from concession 30.4%, TRQ 29.2%, Reduction of Tariff 4.7%) is secured, with the rate of liberalization 86.2% of the items, 35.7% of the amount of imports.
○ Draft for concession is written with the consideration of economic factors such as the amount of imports with China, the amount of domestic production, policy factors such as TAC, adjustment duties and opinions of related parties.
|
Classification
|
Method
|
Number of Items
|
Percentage of items
|
Amount of import from China
|
Percentage among imports
|
Major products
|
|
Highly sensitive
|
Excluded from concession, TRQ, seasonal tariff
|
87
|
13.8
|
690
|
64.3
|
|
|
TRQ
|
14
|
2.2
|
313
|
29.2
|
Unavoidable import products among the second request from China such as Octopus (frozen), Goose fish (frozen) and others
|
|
Partial reduction
|
9
|
1.4
|
50
|
4.7
|
High tariff products among the second request from China such as crab (frozen), Globe fish(frozen) and others
|
|
Excluded from concession
|
64
|
10.1
|
327
|
30.4
|
Subjects to illegal fishing such as yellow corbina (Frozen), hair tail (frozen) and major production/resource management fish types
|
|
Sensitive
|
Tariff elimination in 20 years
|
429
|
68.3
|
384
|
35.5
|
Shrimps, shrimp meat (frozen)
|
|
Normal track
|
Tariff elimination in 10 years
|
113
|
17.9
|
2
|
0.2
|
salmon, shells
|
|
Total
|
629
|
100.0
|
1,076
|
100.0
|
|
○ (Excluded from concession) Items that are excluded from concession are mainly those required to be excluded from preferential duty to Chinese fishery products such as items subjected to illegal fishing, items under tax adjustment, resource management.
* Related to illegal fishing: Yellow corbina (frozen), Hair tail (frozen), Bastard hailbut (frozen), Hastard halibut (live), Sting ray (frozen), Sea-bream (frozen), Anchovy (dried) and others
* Related to tax adjustment: Mackerel pike (frozen), Sea-bass (live), Sea-bream (live), Croakers (live), Croakers (frozen), Eel (live), Squid (frozen) and others
* Related to resource management: Pen shell(live, frozen, dried), Crab (live, frozen), Mackerel (frozen), Top-shell and others
○ (TRQ) Items with the amount of imports already great and unavoidable, but are necessary to be capped to regulate the amount due to sensitivities.
* Octopuses (live, cold-storage, frozen), loaches (live), short-necked clam (live, cold-storage, frozen), goose fishes (cold-storage, frozen) and others
○ (Partial Reduction) Tariff will be partially reduced among the items that are not excluded from concession nor under TRQ (mostly 20 % of high tariff items) in order to minimize the opening of the market.
* Crab (frozen), globe fish (frozen), oyster (frozen, salting), sea tangle (dried), seaweed (seasoning, dried), sea mustard (dried)
□ (Concession of Chinese fishery products) Chinese fishery products are under complete liberalization (100%) and there is a possibility of increase in exports of fishery products to China.
* Average tariff of Chinese fishery products: 10.4% vs. Average tariff of Korean fishery products: 18.0%
○ Tariffs of most of 62 major export products to China such as seaweed, sea mustard, bastard halibut, abalone, sea cucumber and others are immediately eliminated or eliminated within 10 years, allowing the opportunities on market opening.
□ (Illegal fishery products) In order to achieve sustainable and responsible fishing activities, an agreement was made to activate a sound fishery trading.
○ Moreover, in order to exclude preferential tariff to illegal fishery products, major products subjected to illegal fishing such as yellow corbina, hair tail, crab, anchovy are included in highly sensitive list.
□ (Rules of origin) Indirect imports are blocked by applying the most conservative wholly obtained criterion to fishery∙crustacea∙mollusca and other fishery products in littoral sea.
○ Comparatively less strict rules of origin is applied to prepared or processed products that may be exported.
4. Evaluation on the result of negotiations
□ China is the biggest importer of fishery products in Korean market (27.2%) and Korea-China FTA achieved the lowest level of market opening among other FTAs in order to minimize damages and opened the possibilities for export by entirely opening the Chinese market.
* Rate of liberalization on fishery products in major FTAs (number of items/amount of imports)
- Korea∙US FTA: 99.3%/100%, Korea∙EU FTA: 99.3%/99.3%
** Rate of liberalization on fishery products of Korea∙China FTA: number of items 86.1% / amount of imports 35.7%
○ (Minimizing the damage) Safeguard measures on production and resource management of domestic fishery products were secured by including most of imported products from China in highly sensitive list.
- Twenty major domestic products (85.3% of the total amount of production) such as squid, bastard halibut, anchovy, hair tail, seaweed, mackerel, crab, abalone, yellow corbina and others are included in highly sensitive list.
- Moreover, items under adjustment tax such as sea-bass, sea-bream, croakers, eel and items under resource management such as crab, top-shell, saurel, sting ray are included in highly sensitive list.
- Partial reduction of tariff (within 2% p) is applied in items under comparatively high rate of tariff (20% of high rate of tariff) such as oyster, cod, sea mustard and others in order to minimize the opening of the market.
- Items that require restriction on imports and need to control domestic supply by applying TRQ on certain amount due to high percentage of imports and weak basis of domestic production.
* Such measure will minimize the impact on domestic market by operating TRQ to control domestic supply and secure supplementary domestic plans by preparing public auction payments of more than 10 billion Korean won.
|
Items
|
Tariff
|
Amount of imports (2012, unit: in US $ 1,000)
|
|
Octopus (frozen)
|
20
|
106,807
|
|
Octopus (live, fresh cold-storage)
|
20
|
42,521
|
|
Short necked clam (live, fresh or cold-storage)
|
20
|
32,231
|
|
Short necked clam (frozen)
|
20
|
1,099
|
|
Top-shell (processed or processed for storage)
|
20
|
200
|
□ 35.5% of fishery products other than items under highly sensitive list (64.3%) are to be applied 15 years to 20 years of long-term tariff elimination.
○ Items under short-term tariff elimination within 10 years are merely 0.2%, therefore the impact on the domestic market is not expected to be big.
* Fishery products (highly sensitive) 64.3%, (sensitive list) 35.5%, (normal track) 0.2%
□ Fishery market in China will be 100% liberalized and such measure will give an opportunity for the expansion of exports to China.
* Average tariff of Chinese fishery products: 10.4% vs. Average tariff of Korean fishery products: 18.0%
○ Liberalization of the market will be greatly increased by immediate elimination or elimination within 10 years concerning most of 62 major products exported to China such as seaweed, sea mustard, bastard halibut, abalone, sea cucumber and others.
※ A relaxed rules of origin will be applied in order to increase the export of Korean fishery products and processed products with possibilities to export to Chinese market.
□ Due to illegal fishing in China, major products that are from illegal fishing are included in the highly sensitive list in order to exclude them from preferential tariff.
○ (Exclusion from preferential tariff) Based on the illegally caught fishery products as found and confiscated by the Korea coast guard, such products are excluded from concession or applied minimum reduction of tariff. Measures such as minimization of TRQ amount are also promoted.
- Especially, major products under illegal fishing by Chinese ships in Korean EEZ such as yellow corbina, hair tail, anchovy, bastard halibut and others are excluded from concession.
* Excluded from concession: Yellow corbina (frozen), hair tail (frozen), bastard halibut (frozen), bastard halibut (live), sting ray (frozen), sea-bream (frozen), anchovy (dried), mackerel (frozen), flatfish(frozen) and others
* Partial reduction: Crab (frozen)à 1% tariff reduction (original 14% à after reduction 13.86%)
* TRQ: Goose fish (cold-storage, frozen) à Only 10% of the amount imported in 2012 are subjected to tariff quota.
○ (Cooperation in fishery matters) Two countries agreed to cooperate on the establishment of measures on regulating illegal fishing on the FTA agreement in order to achieve sustainable and responsible fishing and a sound trading of fishery products.
5. Domestic plans
|
◈ After the final agreement on Korea-China FTA, it is stipulated that domestic supplementary measures should be established after six months of agreement, based on the economic assessment of the impact of FTA.
*Special Act on assistance to farmers, Fishermen, etc. Following the conclusion of free Trade Agreements (FFAs)
|
□ Directions of the plan
○ FTA will be considered as an opportunity to improve the fishery industry by ameliorating the structure and to strengthen the competitiveness of the fishery industry by discovering new engines for growth.
* Improving the competitiveness of culturing industry, modernizing of fishery resource management, reforming fishing vessel fishery structure.
○ Expansion of domestic basis will be achieved by improving the supply structure of fishery products and by raising processed products industry. Life style of fishery village will be improved by stabilizing fishermen and by enhancing the welfare of fishery village.
* Raising fishery food industry, improving supply structure of fishery products, stabilizing fishermen income, enhancing welfare of fishery village.
○ Preemptive reaction to the liberalization of the opening of gigantic Chinese market will give opportunities to expand exports to China by promoting export infrastructure and marketing.
* Trading office (Shanghai), Anchor shop for fishery products (Wuhan), Fishery Expo (Fuzhou), Ultralow temperature cold-storage (Chengdu)
□ Establishment of plans
○ “FTA Comprehensive Plan Bureau” in Ministry of Oceans and Fisheries will establish scientific plans by joint analysis with professional research institutes.
* Research project concerning domestic plans on Korea-China FTA (May 2014 ~ May 2015)/ Korea Maritime Institute
○ On establishing domestic plans, fishermen’s participation will be encouraged to prepare an effective plan that fishermen could substantially be benefited.
* Dispatch of field investigators consisted of fishermen to China (four times), gathering of opinions by opening several meetings for different types of businesses.
□ Upcoming plans
○ Analysis of production per items and impact on import and export: immediately after the agreement
○ Submission of established plans to the National Assembly: Within six months after the agreement
Appendix 1 Top 30 Imported products from China
|
#
|
Finalized product
|
Detailed product
|
Tariff rate (%)
|
Amount of imports worldwide (in US $ 1,000)
|
Amount of imports from China (in US $ 1,000)
|
Percentage of imports from China (%)
|
Trade balance per product (in US $ 1,000)
|
|
1
|
Yellow corbina
|
Yellow corbina
(frozen)
|
10
|
124,703
|
124,661
|
100.0
|
-123,562
|
|
2
|
Octopus
|
Octopus
(frozen)
|
20
|
132,210
|
106,807
|
80.8
|
-131,539
|
|
3
|
Hair tail
|
Hair tail
(frozen)
|
10
|
101,215
|
61,854
|
61.1
|
-97,080
|
|
4
|
Other shrimps
|
Shrimp meat (excluding smoked products)
|
20
|
151,272
|
54,228
|
35.9
|
-151,102
|
|
5
|
Goose fish
|
Goose fish
(frozen)
|
10
|
65,423
|
47,363
|
72.4
|
-64,983
|
|
6
|
Loaches
|
Loaches
(live)
|
10
|
44,011
|
44,011
|
100.0
|
-43,968
|
|
7
|
Octopus
|
Octopus
(live/fresh, cold-storage)
|
20
|
42,702
|
42,521
|
99.6
|
-42,415
|
|
8
|
Crab
|
Crab (frozen)
|
14
|
44,379
|
33,952
|
76.5
|
-38,223
|
|
9
|
Short necked clam
|
Short necked clam (live/fresh, cold-storage)
|
20
|
32,239
|
32,232
|
100.0
|
3,389
|
|
10
|
Other fishes
|
Other fishes (others/frozen)
|
10
|
172,877
|
27,529
|
15.9
|
-170,114
|
|
11
|
Sea-bass
|
Sea-bass
(live, excluding fries for cultivation)
|
28
|
25,533
|
25,533
|
100.0
|
-25,482
|
|
12
|
Shrimp
|
Shrimp and penaeidea shrimp (others)
|
20
|
67,801
|
20,216
|
29.8
|
-67,719
|
|
13
|
Sand eel
|
Sand eel (frozen)
|
10
|
19,070
|
19,070
|
100.0
|
-18,928
|
|
14
|
Other mollusca
|
Other mollusca (others)
|
20
|
40,029
|
18,886
|
47.2
|
-38,303
|
|
15
|
Squid
|
Seasoned squid
|
20
|
22,692
|
16,695
|
73.6
|
-15,770
|
|
16
|
Other shrimps
|
Other shrimps (dried)
|
20
|
16,158
|
16,012
|
99.1
|
-15,994
|
|
17
|
Salt
|
Table salt
|
8
|
16,283
|
15,536
|
95.4
|
-14,260
|
|
18
|
Scallop
|
Scallop (live/fresh, cold-storage)
|
20
|
24,990
|
14,375
|
57.5
|
-24,969
|
|
19
|
Sea-bream
|
Sea-bream (live, excluding fries for cultivation)
|
28
|
34,832
|
14,069
|
40.4
|
-34,831
|
|
20
|
Salt
|
Bay salt
|
1
|
168,704
|
13,269
|
7.9
|
-167,977
|
|
21
|
Globe fish
|
Globe fish (frozen)
|
10
|
14,261
|
12,862
|
90.2
|
-14,157
|
|
22
|
Other mollusca
|
Other mollusca (fresh, cold-storage)
|
20
|
14,835
|
12,640
|
85.2
|
-8,535
|
|
23
|
Mackerel
|
Mackerel (frozen)
|
10
|
61,248
|
12,330
|
20.1
|
743
|
|
24
|
Sea-bream
|
Other sea-bream (frozen)
|
10
|
15,263
|
11,547
|
75.7
|
20,313
|
|
25
|
Croaker
|
Croaker (live)
|
28
|
10,457
|
10,457
|
100.0
|
-10,457
|
|
26
|
Other crabs
|
Other crabs (frozen)
|
14
|
44,560
|
10,454
|
23.5
|
-30,660
|
|
27
|
Other fishes
|
Other fishes (live)
|
10
|
9,432
|
9,217
|
97.7
|
-5,933
|
|
28
|
Other shrimps
|
Other shrimp meat (excluding smoked products)
|
20
|
141,213
|
9,129
|
6.5
|
-133,593
|
|
29
|
Other shrimps
|
Other shrimps (salted, in brine)
|
38
|
9,508
|
9,008
|
94.7
|
-8,910
|
|
30
|
Other fishes
|
Other fishes (frozen)
|
10
|
37,401
|
8,092
|
21.6
|
9,131
|
Appendix 2 Top 20 products based on the amount of production
|
#
|
Product
|
Amount of production in 2012 (in KRW million)
|
Percentage of production (%)
|
Accumulated percentage (%)
|
Related products (number)
|
|
1
|
Tuna
|
1,034,028
|
13.4
|
13.4
|
34
|
|
2
|
Squid
|
757,197
|
9.8
|
23.3
|
8
|
|
3
|
Bastard halibut
|
652,846
|
8.5
|
31.8
|
7
|
|
4
|
Anchovy
|
286,224
|
3.7
|
35.5
|
6
|
|
5
|
Hair tail
|
285,063
|
3.7
|
39.2
|
3
|
|
6
|
Seaweed
|
277,507
|
3.6
|
42.8
|
7
|
|
7
|
Mackerel
|
266,296
|
3.5
|
46.3
|
5
|
|
8
|
Crab
|
256,952
|
3.3
|
49.6
|
3
|
|
9
|
Abalone
|
251,149
|
3.3
|
52.9
|
7
|
|
10
|
Yellow corbina
|
202,237
|
2.6
|
55.5
|
3
|
|
11
|
Oyster
|
200,059
|
2.6
|
58.1
|
9
|
|
12
|
Rock fish
|
188,181
|
2.4
|
60.6
|
2
|
|
13
|
Eel
|
173,319
|
2.3
|
62.8
|
6
|
|
14
|
Flatfish
|
169,597
|
2.2
|
65.0
|
6
|
|
15
|
Octopus
|
161,590
|
2.1
|
67.1
|
8
|
|
16
|
Conger
|
157,848
|
2.1
|
69.2
|
7
|
|
17
|
Spanish mackerel
|
139,130
|
1.8
|
71.0
|
2
|
|
18
|
Small octopus
|
128,798
|
1.7
|
72.7
|
2
|
|
19
|
Croaker
|
128,600
|
1.7
|
74.3
|
2
|
|
20
|
Shrimp
|
106,416
|
1.4
|
75.7
|
17
|
|
Others
|
Sea mustard
|
80,897
|
1.1
|
76.8
|
7
|
|
Sea tangle
|
50,211
|
0.6
|
77.4
|
6
|
Appendix 3 Other factors under consideration on the policy
□ TAC items, items subjected to adjustment tax, items subjected to resource management will be considered in formulating the policy
○ (TAC items) Eleven individual fishery products (single fish species) in which the amount of yearly catch is being capped in order to manage the resources
|
#
|
Finalized product
|
Detailed product
|
Tariff rate (%)
|
Amount of imports worldwide (in US $ 1,000)
|
Amount of imports from China (in US $ 1,000)
|
Percentage of imports from China (%)
|
Trade balance per product (in US $ 1,000)
|
|
1
|
Mackerel
|
Mackerel (frozen)
|
10
|
61,248
|
12,330
|
20.1
|
743
|
|
2
|
Mackerel
|
Mackerel (salted, in brine)
|
20
|
0
|
0
|
-
|
2,779
|
|
3
|
Mackerel
|
Mackerel (Fresh, cold-storage)
|
20
|
0
|
-
|
-
|
3,756
|
|
4
|
Crab
|
Crab (Frozen)
|
14
|
44,379
|
33,952
|
76.5
|
-38,223
|
|
5
|
Crab
|
Crab (Live, fresh, cold-storage)
|
20
|
1
|
0
|
-
|
1,059
|
|
6
|
Snow crab
|
Snow crab (Live, fresh, cold-storage)
|
20
|
60,805
|
0
|
-
|
-59,439
|
|
7
|
Snow crab
|
King crab (Frozen)
|
20
|
16,475
|
0
|
-
|
-3,787
|
|
8
|
Top-shell
|
Top-shell (Frozen)
|
20
|
617
|
0
|
-
|
94
|
|
9
|
Top-shell
|
Top-shell (Live, fresh, cold-storage)
|
20
|
0
|
-
|
-
|
9,892
|
|
10
|
Top-shell
|
Top-shell (salted, in brine)
|
20
|
0
|
-
|
-
|
2
|
|
11
|
Squid
|
Squid (salted, in brine)
|
10
|
434
|
433
|
99.7
|
-134
|
|
12
|
Squid
|
Squid (Dried)
|
10
|
36,829
|
376
|
1
|
-34,099
|
|
13
|
Squid
|
Squid (Live/fresh, cold-storage)
|
10
|
0
|
-
|
-
|
30
|
|
14
|
Saurel
|
Saurel (Frozen)
|
10
|
11,350
|
2,545
|
22.4
|
16,299
|
|
15
|
Saurel
|
Saurel (Fresh, cold-storage)
|
20
|
0
|
-
|
-
|
89
|
|
16
|
Saurel
|
Saurel (salted, in brine)
|
20
|
0
|
-
|
-
|
67
|
|
17
|
Pen shell
|
Pen shell (frozen)
|
20
|
8,595
|
5,073
|
59
|
-7,919
|
|
18
|
Pen shell
|
Pen shell (dried)
|
20
|
59
|
-
|
-
|
-59
|
|
19
|
Pen shell
|
Pen shell(Live/fresh, cold-storage)
|
20
|
0
|
-
|
-
|
6,660
|
|
20
|
Sting ray
|
Sting ray (frozen)
|
10
|
41,387
|
339
|
0.8
|
-41,330
|
*3 items among the 11 total TAC items do not have HS code (Sandfish, Washington clam, Jeju Top-shell)
○ (Items for adjustment tax) Eight items that have weak international competitiveness and may be subjected to market disturbance or disintegration of industrial foundation due to increase in imports.
|
#
|
Finalized product
|
Detailed product
|
Tariff rate (%)
|
Amount of imports worldwide (in US $ 1,000)
|
Amount of imports from China (in US $ 1,000)
|
Percentage of imports from China (%)
|
Trade balance per product (in US $ 1,000)
|
|
1
|
Sea-bass
|
Sea-bass (Live, excluding fries for cultivation)
|
28
|
25,533
|
25,533
|
100.0
|
-25,482
|
|
2
|
Sea-bream
|
Sea-bream (Live, excluding fries for cultivation)
|
28
|
34,832
|
14,069
|
40.4
|
-34,831
|
|
3
|
Croaker
|
Croaker (Live)
|
28
|
10,457
|
10,457
|
100.0
|
-10,457
|
|
4
|
Croaker
|
Croaker (Frozen)
|
43
|
12,081
|
1,198
|
9.9
|
-9,400
|
|
5
|
Shrimp
|
Penaeidea shrimp (Salted, in brine)
|
38
|
230
|
230
|
100.0
|
-230
|
|
6
|
Eel
|
Eel and others (Anguilla (live))
|
27
|
2,257
|
110
|
4.9
|
2,489
|
|
7
|
Alaska Pollack
|
Alaska Pollack (frozen)
|
25
|
231,537
|
67
|
0.0
|
-175,345
|
|
8
|
Mackerel pike
|
Mackerel pike
|
28
|
61,790
|
14
|
0.0
|
-52,262
|
|
9
|
Squid
|
Squid
|
22
|
54,872
|
4,580
|
8.3
|
53,948
|
○ (Items for resource management) fifteen items that require management in order to achieve stabilized development of fishery industry in the littoral sea and to maintain sustainable basis of fishery production.
|
#
|
Finalized product
|
Detailed product
|
Tariff rate (%)
|
Amount of imports worldwide (in US $ 1,000)
|
Amount of imports from China (in US $ 1,000)
|
Percentage of imports from China (%)
|
Trade balance per product (in US $ 1,000)
|
|
1
|
Flatfish
|
|
10
|
3,037
|
32
|
1.0
|
-3,030
|
|
2
|
Flatfish
|
|
20
|
21
|
|
-
|
-21
|
|
3
|
Hair tail
|
|
10
|
101,215
|
61,854
|
61.1
|
-97,080
|
|
4
|
Hair tail
|
|
20
|
4,843
|
39
|
0.8
|
-4,787
|
|
5
|
Hair tail
|
|
20
|
0
|
-
|
-
|
760
|
|
6
|
Octopus
|
|
20
|
132,210
|
106,807
|
80.8
|
-131,539
|
|
7
|
Octopus
|
|
20
|
42,702
|
42,521
|
99.6
|
-42,415
|
|
8
|
Cod
|
Cod (dried)
|
20
|
2,059
|
2,037
|
98.9
|
-1,688
|
|
9
|
Cod
|
Cod (fresh, cold-storage)
|
20
|
1,945
|
1,734
|
89.1
|
-1,942
|
|
10
|
Cod
|
Flatfish (Filet/frozen)
|
10
|
47,414
|
1,732
|
3.7
|
-12,105
|
|
11
|
Cod
|
Flatfish (Filet/cold-storage)
|
20
|
66
|
66
|
100.0
|
-65
|
|
12
|
Yellow corbina
|
Hair tail (frozen)
|
10
|
124,703
|
124,661
|
100.0
|
-123562
|
|
13
|
Filefish
|
Hair tail (fresh, cold-storage)
|
20
|
47,337
|
5,270
|
11.1
|
-47,106
|
|
14
|
Filefish
|
Hair tail (salted, in brine)
|
10
|
3,961
|
3,215
|
81.2
|
-3,928
|
|
|
|
Octopus (frozen)
|
|
|
|
|
|
|
|
|
Octopus (live/fresh, cold-storage)
|
|
|
|
|
|
* Omitted the redundant indication of TAC products
* Sandfish, Washington clam, blue abalone do not have HS code. There is no import from China regarding sharp tooth eel.
Appendix 4 Current status of fishery TRQ in the concluded FTAs
|
FTA
|
Product
|
TRQ method
|
Tariff rate
|
Amount of Import Quota (in tons)
|
|
Standard amount of import (A)
|
Amount in the early stage (B)
|
B/A
|
Rate of increase
|
|
Korea-EFTA (went into force in 1 September 2006)
*Standard amount of import is the average amount during 2002 to 2004.
|
Frozen mackerel
|
Allotted designated institution
|
10%
|
8,538
|
500
|
6%
|
Fixed
|
|
Korea-Asean FTA (went into force in 1 June 2007)
*Standard amount of import is the average amount during 2003 to 2005.
|
Shrimp, small shrimp (frozen shrimp meat)
|
Public Auction
|
20%
|
10,299
|
5,000
|
50%
|
Fixed
|
|
Shrimp, small shrimp (live, fresh, cold-storage)
|
20%
|
3,758
|
300
|
8%
|
|
Cuttlefish (frozen)
|
10%
|
2,793
|
2,000
|
72%
|
|
Shrimp, small shrimp (processed)
|
20%
|
2,186
|
2,000
|
91%
|
|
Korea-EU FTA (went into force in 1 July 2011)
*Standard amount of import is the average amount during 2007 to 2009.
|
Frozen bastard hailbut
|
By order of arrival
|
10%
|
1,331
|
800 à 1,727 tons (12th year)
|
60%
|
8%
|
|
Korea-US FTA (went into force in 15 March 2012)
*Standard amount of import is the average amount during 2003 to 2005.
|
Frozen bastard hailbut
|
By order of arrival
|
10%
|
3,057
|
1,530 à 3,303 tons (11th year)
|
50%
|
8%
|
|
Frozen Alaska Pollack
|
30%
|
3,939
|
4,000à 12,263 tons (14th year)
|
102%
|
9%
|
|
Frozen croakers
|
53%
|
4
|
1,000à 1,629 tons (11th year)
|
25,000%
|
5%
|
Appendix 5 Current status on Korea-China Trade
□ Current status of trade between China: US $ 228.8 billion (US $ 62.8 billion trade surplus)
(Unit: US $ 100 million)
|
Classification
|
2009
|
2010
|
2011
|
2012
|
2013
|
Trade Amount Worldwide (Percentage among the worldwide trade)
|
|
Export
|
867
|
1,168
|
1,342
|
1,343
|
1,458
|
5,596 (26.1%)
|
|
Import
|
542
|
716
|
864
|
808
|
830
|
5,156 (16.0%)
|
|
Total Amount of Trade
|
1,409
|
1,884
|
2,206
|
2,151
|
2,288
|
|
|
Trade Balance
|
325
|
453
|
478
|
535
|
628
|
|
□ Current Status of Fishery Products Trade between China: US $ 1.4 billion (US $ 700 million trade deficit)
(Unit: Us $ million)
|
Classification
|
2009
|
2010
|
2011
|
2012
|
2013
|
|
Export
|
Total
|
565
|
787
|
1,189
|
1,279
|
1,317
|
|
Agricultural products
|
327
|
447
|
625
|
654
|
675
|
|
Livestock products
|
18
|
23
|
37
|
131
|
145
|
|
Forest products
|
74
|
86
|
62
|
122
|
127
|
|
Fishery Products
|
146
|
231
|
465
|
372
|
370
|
|
Import
|
Total
|
3,676
|
4,323
|
5,233
|
5,297
|
5,740
|
|
Agricultural products
|
1,702
|
1,946
|
2,447
|
2,364
|
2,747
|
|
Livestock products
|
42
|
53
|
60
|
138
|
142
|
|
Forest products
|
1,078
|
1,228
|
1,476
|
1,712
|
1,825
|
|
Fishery Products
|
854
|
1,096
|
1,250
|
1,083
|
1,026
|
|
Trade balance of fishery products
|
r 708
|
r865
|
r785
|
r711
|
r656
|
□ Top 10 Fishery Products on Import and Export to China (Based on the data in 2012)
(Unit: US $ million)
|
Rank
|
Export
|
Import
|
|
1
|
Fish egg
|
46
|
Octopus
|
165
|
|
2
|
Squid
|
40
|
Yellow corbina
|
127
|
|
3
|
Alaska Pollack
|
34
|
Hair tail
|
61
|
|
4
|
Seaweed
|
31
|
Other fishes
|
59
|
|
5
|
Cod
|
29
|
Shrimp
|
56
|
|
6
|
Tuna
|
23
|
Shrimp meat
|
55
|
|
7
|
Bastard halibut
|
20
|
Goose fish
|
48
|
|
8
|
Spanish mackerel
|
20
|
Loaches
|
44
|
|
9
|
Sea-bream
|
13
|
Short necked clam
|
41
|
|
10
|
Other crustacean
|
10
|
Crab
|
34
|
[Explanatory note from Korea Forest Service]
□ The impact on the forest product by the agreement of Korea-China FTA is limited.
○ Most of forest products in which there is a large amount of imports from China and those under fierce price competition such as plywood and lumber are excluded from concessions and therefore it was decided that tariff rate will not be reduced. Other products with a small amount of imports from China are under partial reduction or elimination after 20 years. Thus, the impact on the forest product by Korea-China FTA is expected to be limited.
○ Originally, it was worried that forest products may face strong price competition and that upon tariff elimination there will be a strong impact on the domestic industry, especially on plywood thicker than 6mm and lumber (Radiata pine).
○ However, the result of negotiation shows that products subjected to competition such as plywood thicker than 6mm and lumber (Radiata pine) are excluded from concession and other products with large amount of import are under partial reduction or elimination in 20 years therefore the impact on the domestic industry will be limited.
○ On the other hand, short-term income forest products such as chestnut and fragrant mushroom lentinus edodes are in the same category with agricultural and fishery products. Therefore essential products are decided to be excluded from concession. Other products are under tariff elimination in 20 years and therefore the impact on the domestic industry is viewed as limited.
|
Date submitted: January 15, 2015
Reviewed, edited and uploaded: January 21, 2015
|
Result of Korea-China FTA Negotiations on Agriculture and the Corresponding Plans (Final)
This article is a news release of the Ministry of Trade, Industry & Energy, Republic of Korea which was distributed on November 10, 2014. It mentions about reaching consensus on a FTA between Korea and China.
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=1...
Explanatory note on fishery products in Korea-China FTA
(Ministry of Oceans and Fisheries, Government of Republic of Korea)
1. Current status of trade concerning fishery products between Korea and China
□ (Current Status) China is a major fishery product trading partner to Korea, consisting of 27.2% of fishery import (US $ 1 billion). The trade deficit for the Korean side is approximately US $ 650 million per year.
(unit: million US $)
Import and export of fishery products from China
2009
2010
2011
2012
2013
Export (A)
146
231
464
372
370
Import (B)
854
1,096
1,250
1,082
1,026
Trade balance (A-B)
-708
-865
-786
-710
-656
* Average tariff rate of fishery products in Korea (2012): 18.0%
** Export (in million US $): 1st Japan (981), 2nd China (372) / Import (in million Us $): 1st China (1,802), 2nd Russia (654)
○ Major imported products are major domestically consumed fishery products such as octopuses, yellow corbina, hair tail and others. Exported products are focused on raw material for process such as fish eggs and squids.
* Major Products on imports from China (Percentage of imports): Octopuses (15.3%), Yellow corbina (11.7%), hair tail (5.8%)
(unit: million US $)
Rank
Export
Import
1
Fish eggs
46
Octopuses
165
2
Squids
40
Yellow corbina
127
3
Alaska pollack
34
Hair tail
63
4
Seaweed
31
Other fishes
59
5
Cod
29
Shrimps
56
6
Tuna
23
Shrimp meat
55
7
Bastard hailbut
20
Goose fishes
48
8
Spanish mackerel
20
Loaches
44
9
Sea-bream
13
Short necked clam
41
10
Other crustaceans
10
Crabs
34
○ Due to rapid economic development in China, the consumption of fishery products is acutely increasing as well, providing an opportunity for export of fishery products.
* Fishery product consumption per person in China (kg/year): (2000) 11 à (2009) 30 à (2020) 40.8 (estimated)
2. The process of Korea-China FTA negotiations
□ (Stage 1) Settlement on the level of liberalization and on dealing with normal track∙sensitive∙ highly sensitive items
Normal Track
Sensitive Track
Highly sensitive track
Tariff elimination within 10 years
Tariff elimination after 10 years and within 20 years
Excluded from concession, Partial elimination of tariff, TRQ*, Seasonal Tariff
Level of liberalization 90%, 85%
For highly sensitive track, 10%, 15%
○ Stating the agenda “sustainable and responsible fisheries” on the modality, providing a basis to discuss about illegal catching of fishes at the second stage.
□ (Stage 2) Based on the modality at the first stage, the first draft of FTA agreements and concessions of items were discussed during the second stage.
○ (Items) Detailed discussions were made concerning which items will be included in normal track (tariff elimination within 10 years), sensitive track (tariff elimination in 10-20ears).
○ (Cooperation on agriculture and fisheries) The Korean government explained about its position on “sustainable and responsible fisheries” and argued that illegally caught fishes cannot be subjected to preferential tariffs.
3. Major results of negotiations
□ (Agriculture and fisheries) Parties agreed as following: total rate of liberalization 70 (number of items) /40 (Amount of Imports), TRQ/Partial reduction of tariff 30% (TRQ 16%, Partial reduction 14%).
○ Rate of liberalization
70% (number of items), 40% (amount of imports)
○ TRQ
Agriculture and fisheries 16% (amount of imports)
(Percentage of agricultural and fishery products)
7% (Agricultural products): within WTO TRQ items
9% (Fishery products): within 340 requested items by the Chinese government
(Amount)
Weighted average on all items 40%**
③ Partial Reduction
Agriculture and Fisheries 14% (amount of imports)
Decreased to the average of 20% within 5 years
(High tariff)
Including 15 agricultural products (reduced below 130%)
* Major production and trading products such as octopuses, yellow corbina, goose fishes, crabs
** Taking the sensitivity into account, the quantity was distributed among the TRQ items within the average of 40%
□ (Concessions on Korean fishery products) Highly sensitive track 64.3% (Excluded from concession 30.4%, TRQ 29.2%, Reduction of Tariff 4.7%) is secured, with the rate of liberalization 86.2% of the items, 35.7% of the amount of imports.
○ Draft for concession is written with the consideration of economic factors such as the amount of imports with China, the amount of domestic production, policy factors such as TAC, adjustment duties and opinions of related parties.
Classification
Method
Number of Items
Percentage of items
Amount of import from China
Percentage among imports
Major products
Highly sensitive
Excluded from concession, TRQ, seasonal tariff
87
13.8
690
64.3
TRQ
14
2.2
313
29.2
Unavoidable import products among the second request from China such as Octopus (frozen), Goose fish (frozen) and others
Partial reduction
9
1.4
50
4.7
High tariff products among the second request from China such as crab (frozen), Globe fish(frozen) and others
Excluded from concession
64
10.1
327
30.4
Subjects to illegal fishing such as yellow corbina (Frozen), hair tail (frozen) and major production/resource management fish types
Sensitive
Tariff elimination in 20 years
429
68.3
384
35.5
Shrimps, shrimp meat (frozen)
Normal track
Tariff elimination in 10 years
113
17.9
2
0.2
salmon, shells
Total
629
100.0
1,076
100.0
○ (Excluded from concession) Items that are excluded from concession are mainly those required to be excluded from preferential duty to Chinese fishery products such as items subjected to illegal fishing, items under tax adjustment, resource management.
* Related to illegal fishing: Yellow corbina (frozen), Hair tail (frozen), Bastard hailbut (frozen), Hastard halibut (live), Sting ray (frozen), Sea-bream (frozen), Anchovy (dried) and others
* Related to tax adjustment: Mackerel pike (frozen), Sea-bass (live), Sea-bream (live), Croakers (live), Croakers (frozen), Eel (live), Squid (frozen) and others
* Related to resource management: Pen shell(live, frozen, dried), Crab (live, frozen), Mackerel (frozen), Top-shell and others
○ (TRQ) Items with the amount of imports already great and unavoidable, but are necessary to be capped to regulate the amount due to sensitivities.
* Octopuses (live, cold-storage, frozen), loaches (live), short-necked clam (live, cold-storage, frozen), goose fishes (cold-storage, frozen) and others
○ (Partial Reduction) Tariff will be partially reduced among the items that are not excluded from concession nor under TRQ (mostly 20 % of high tariff items) in order to minimize the opening of the market.
* Crab (frozen), globe fish (frozen), oyster (frozen, salting), sea tangle (dried), seaweed (seasoning, dried), sea mustard (dried)
□ (Concession of Chinese fishery products) Chinese fishery products are under complete liberalization (100%) and there is a possibility of increase in exports of fishery products to China.
* Average tariff of Chinese fishery products: 10.4% vs. Average tariff of Korean fishery products: 18.0%
○ Tariffs of most of 62 major export products to China such as seaweed, sea mustard, bastard halibut, abalone, sea cucumber and others are immediately eliminated or eliminated within 10 years, allowing the opportunities on market opening.
□ (Illegal fishery products) In order to achieve sustainable and responsible fishing activities, an agreement was made to activate a sound fishery trading.
○ Moreover, in order to exclude preferential tariff to illegal fishery products, major products subjected to illegal fishing such as yellow corbina, hair tail, crab, anchovy are included in highly sensitive list.
□ (Rules of origin) Indirect imports are blocked by applying the most conservative wholly obtained criterion to fishery∙crustacea∙mollusca and other fishery products in littoral sea.
○ Comparatively less strict rules of origin is applied to prepared or processed products that may be exported.
4. Evaluation on the result of negotiations
□ China is the biggest importer of fishery products in Korean market (27.2%) and Korea-China FTA achieved the lowest level of market opening among other FTAs in order to minimize damages and opened the possibilities for export by entirely opening the Chinese market.
* Rate of liberalization on fishery products in major FTAs (number of items/amount of imports)
- Korea∙US FTA: 99.3%/100%, Korea∙EU FTA: 99.3%/99.3%
** Rate of liberalization on fishery products of Korea∙China FTA: number of items 86.1% / amount of imports 35.7%
○ (Minimizing the damage) Safeguard measures on production and resource management of domestic fishery products were secured by including most of imported products from China in highly sensitive list.
- Twenty major domestic products (85.3% of the total amount of production) such as squid, bastard halibut, anchovy, hair tail, seaweed, mackerel, crab, abalone, yellow corbina and others are included in highly sensitive list.
- Moreover, items under adjustment tax such as sea-bass, sea-bream, croakers, eel and items under resource management such as crab, top-shell, saurel, sting ray are included in highly sensitive list.
- Partial reduction of tariff (within 2% p) is applied in items under comparatively high rate of tariff (20% of high rate of tariff) such as oyster, cod, sea mustard and others in order to minimize the opening of the market.
- Items that require restriction on imports and need to control domestic supply by applying TRQ on certain amount due to high percentage of imports and weak basis of domestic production.
* Such measure will minimize the impact on domestic market by operating TRQ to control domestic supply and secure supplementary domestic plans by preparing public auction payments of more than 10 billion Korean won.
Items
Tariff
Amount of imports (2012, unit: in US $ 1,000)
Octopus (frozen)
20
106,807
Octopus (live, fresh cold-storage)
20
42,521
Short necked clam (live, fresh or cold-storage)
20
32,231
Short necked clam (frozen)
20
1,099
Top-shell (processed or processed for storage)
20
200
□ 35.5% of fishery products other than items under highly sensitive list (64.3%) are to be applied 15 years to 20 years of long-term tariff elimination.
○ Items under short-term tariff elimination within 10 years are merely 0.2%, therefore the impact on the domestic market is not expected to be big.
* Fishery products (highly sensitive) 64.3%, (sensitive list) 35.5%, (normal track) 0.2%
□ Fishery market in China will be 100% liberalized and such measure will give an opportunity for the expansion of exports to China.
* Average tariff of Chinese fishery products: 10.4% vs. Average tariff of Korean fishery products: 18.0%
○ Liberalization of the market will be greatly increased by immediate elimination or elimination within 10 years concerning most of 62 major products exported to China such as seaweed, sea mustard, bastard halibut, abalone, sea cucumber and others.
※ A relaxed rules of origin will be applied in order to increase the export of Korean fishery products and processed products with possibilities to export to Chinese market.
□ Due to illegal fishing in China, major products that are from illegal fishing are included in the highly sensitive list in order to exclude them from preferential tariff.
○ (Exclusion from preferential tariff) Based on the illegally caught fishery products as found and confiscated by the Korea coast guard, such products are excluded from concession or applied minimum reduction of tariff. Measures such as minimization of TRQ amount are also promoted.
- Especially, major products under illegal fishing by Chinese ships in Korean EEZ such as yellow corbina, hair tail, anchovy, bastard halibut and others are excluded from concession.
* Excluded from concession: Yellow corbina (frozen), hair tail (frozen), bastard halibut (frozen), bastard halibut (live), sting ray (frozen), sea-bream (frozen), anchovy (dried), mackerel (frozen), flatfish(frozen) and others
* Partial reduction: Crab (frozen)à 1% tariff reduction (original 14% à after reduction 13.86%)
* TRQ: Goose fish (cold-storage, frozen) à Only 10% of the amount imported in 2012 are subjected to tariff quota.
○ (Cooperation in fishery matters) Two countries agreed to cooperate on the establishment of measures on regulating illegal fishing on the FTA agreement in order to achieve sustainable and responsible fishing and a sound trading of fishery products.
5. Domestic plans
◈ After the final agreement on Korea-China FTA, it is stipulated that domestic supplementary measures should be established after six months of agreement, based on the economic assessment of the impact of FTA.
*Special Act on assistance to farmers, Fishermen, etc. Following the conclusion of free Trade Agreements (FFAs)
□ Directions of the plan
○ FTA will be considered as an opportunity to improve the fishery industry by ameliorating the structure and to strengthen the competitiveness of the fishery industry by discovering new engines for growth.
* Improving the competitiveness of culturing industry, modernizing of fishery resource management, reforming fishing vessel fishery structure.
○ Expansion of domestic basis will be achieved by improving the supply structure of fishery products and by raising processed products industry. Life style of fishery village will be improved by stabilizing fishermen and by enhancing the welfare of fishery village.
* Raising fishery food industry, improving supply structure of fishery products, stabilizing fishermen income, enhancing welfare of fishery village.
○ Preemptive reaction to the liberalization of the opening of gigantic Chinese market will give opportunities to expand exports to China by promoting export infrastructure and marketing.
* Trading office (Shanghai), Anchor shop for fishery products (Wuhan), Fishery Expo (Fuzhou), Ultralow temperature cold-storage (Chengdu)
□ Establishment of plans
○ “FTA Comprehensive Plan Bureau” in Ministry of Oceans and Fisheries will establish scientific plans by joint analysis with professional research institutes.
* Research project concerning domestic plans on Korea-China FTA (May 2014 ~ May 2015)/ Korea Maritime Institute
○ On establishing domestic plans, fishermen’s participation will be encouraged to prepare an effective plan that fishermen could substantially be benefited.
* Dispatch of field investigators consisted of fishermen to China (four times), gathering of opinions by opening several meetings for different types of businesses.
□ Upcoming plans
○ Analysis of production per items and impact on import and export: immediately after the agreement
○ Submission of established plans to the National Assembly: Within six months after the agreement
Appendix 1 Top 30 Imported products from China
#
Finalized product
Detailed product
Tariff rate (%)
Amount of imports worldwide (in US $ 1,000)
Amount of imports from China (in US $ 1,000)
Percentage of imports from China (%)
Trade balance per product (in US $ 1,000)
1
Yellow corbina
Yellow corbina
(frozen)
10
124,703
124,661
100.0
-123,562
2
Octopus
Octopus
(frozen)
20
132,210
106,807
80.8
-131,539
3
Hair tail
Hair tail
(frozen)
10
101,215
61,854
61.1
-97,080
4
Other shrimps
Shrimp meat (excluding smoked products)
20
151,272
54,228
35.9
-151,102
5
Goose fish
Goose fish
(frozen)
10
65,423
47,363
72.4
-64,983
6
Loaches
Loaches
(live)
10
44,011
44,011
100.0
-43,968
7
Octopus
Octopus
(live/fresh, cold-storage)
20
42,702
42,521
99.6
-42,415
8
Crab
Crab (frozen)
14
44,379
33,952
76.5
-38,223
9
Short necked clam
Short necked clam (live/fresh, cold-storage)
20
32,239
32,232
100.0
3,389
10
Other fishes
Other fishes (others/frozen)
10
172,877
27,529
15.9
-170,114
11
Sea-bass
Sea-bass
(live, excluding fries for cultivation)
28
25,533
25,533
100.0
-25,482
12
Shrimp
Shrimp and penaeidea shrimp (others)
20
67,801
20,216
29.8
-67,719
13
Sand eel
Sand eel (frozen)
10
19,070
19,070
100.0
-18,928
14
Other mollusca
Other mollusca (others)
20
40,029
18,886
47.2
-38,303
15
Squid
Seasoned squid
20
22,692
16,695
73.6
-15,770
16
Other shrimps
Other shrimps (dried)
20
16,158
16,012
99.1
-15,994
17
Salt
Table salt
8
16,283
15,536
95.4
-14,260
18
Scallop
Scallop (live/fresh, cold-storage)
20
24,990
14,375
57.5
-24,969
19
Sea-bream
Sea-bream (live, excluding fries for cultivation)
28
34,832
14,069
40.4
-34,831
20
Salt
Bay salt
1
168,704
13,269
7.9
-167,977
21
Globe fish
Globe fish (frozen)
10
14,261
12,862
90.2
-14,157
22
Other mollusca
Other mollusca (fresh, cold-storage)
20
14,835
12,640
85.2
-8,535
23
Mackerel
Mackerel (frozen)
10
61,248
12,330
20.1
743
24
Sea-bream
Other sea-bream (frozen)
10
15,263
11,547
75.7
20,313
25
Croaker
Croaker (live)
28
10,457
10,457
100.0
-10,457
26
Other crabs
Other crabs (frozen)
14
44,560
10,454
23.5
-30,660
27
Other fishes
Other fishes (live)
10
9,432
9,217
97.7
-5,933
28
Other shrimps
Other shrimp meat (excluding smoked products)
20
141,213
9,129
6.5
-133,593
29
Other shrimps
Other shrimps (salted, in brine)
38
9,508
9,008
94.7
-8,910
30
Other fishes
Other fishes (frozen)
10
37,401
8,092
21.6
9,131
Appendix 2 Top 20 products based on the amount of production
#
Product
Amount of production in 2012 (in KRW million)
Percentage of production (%)
Accumulated percentage (%)
Related products (number)
1
Tuna
1,034,028
13.4
13.4
34
2
Squid
757,197
9.8
23.3
8
3
Bastard halibut
652,846
8.5
31.8
7
4
Anchovy
286,224
3.7
35.5
6
5
Hair tail
285,063
3.7
39.2
3
6
Seaweed
277,507
3.6
42.8
7
7
Mackerel
266,296
3.5
46.3
5
8
Crab
256,952
3.3
49.6
3
9
Abalone
251,149
3.3
52.9
7
10
Yellow corbina
202,237
2.6
55.5
3
11
Oyster
200,059
2.6
58.1
9
12
Rock fish
188,181
2.4
60.6
2
13
Eel
173,319
2.3
62.8
6
14
Flatfish
169,597
2.2
65.0
6
15
Octopus
161,590
2.1
67.1
8
16
Conger
157,848
2.1
69.2
7
17
Spanish mackerel
139,130
1.8
71.0
2
18
Small octopus
128,798
1.7
72.7
2
19
Croaker
128,600
1.7
74.3
2
20
Shrimp
106,416
1.4
75.7
17
Others
Sea mustard
80,897
1.1
76.8
7
Sea tangle
50,211
0.6
77.4
6
Appendix 3 Other factors under consideration on the policy
□ TAC items, items subjected to adjustment tax, items subjected to resource management will be considered in formulating the policy
○ (TAC items) Eleven individual fishery products (single fish species) in which the amount of yearly catch is being capped in order to manage the resources
#
Finalized product
Detailed product
Tariff rate (%)
Amount of imports worldwide (in US $ 1,000)
Amount of imports from China (in US $ 1,000)
Percentage of imports from China (%)
Trade balance per product (in US $ 1,000)
1
Mackerel
Mackerel (frozen)
10
61,248
12,330
20.1
743
2
Mackerel
Mackerel (salted, in brine)
20
0
0
-
2,779
3
Mackerel
Mackerel (Fresh, cold-storage)
20
0
-
-
3,756
4
Crab
Crab (Frozen)
14
44,379
33,952
76.5
-38,223
5
Crab
Crab (Live, fresh, cold-storage)
20
1
0
-
1,059
6
Snow crab
Snow crab (Live, fresh, cold-storage)
20
60,805
0
-
-59,439
7
Snow crab
King crab (Frozen)
20
16,475
0
-
-3,787
8
Top-shell
Top-shell (Frozen)
20
617
0
-
94
9
Top-shell
Top-shell (Live, fresh, cold-storage)
20
0
-
-
9,892
10
Top-shell
Top-shell (salted, in brine)
20
0
-
-
2
11
Squid
Squid (salted, in brine)
10
434
433
99.7
-134
12
Squid
Squid (Dried)
10
36,829
376
1
-34,099
13
Squid
Squid (Live/fresh, cold-storage)
10
0
-
-
30
14
Saurel
Saurel (Frozen)
10
11,350
2,545
22.4
16,299
15
Saurel
Saurel (Fresh, cold-storage)
20
0
-
-
89
16
Saurel
Saurel (salted, in brine)
20
0
-
-
67
17
Pen shell
Pen shell (frozen)
20
8,595
5,073
59
-7,919
18
Pen shell
Pen shell (dried)
20
59
-
-
-59
19
Pen shell
Pen shell(Live/fresh, cold-storage)
20
0
-
-
6,660
20
Sting ray
Sting ray (frozen)
10
41,387
339
0.8
-41,330
*3 items among the 11 total TAC items do not have HS code (Sandfish, Washington clam, Jeju Top-shell)
○ (Items for adjustment tax) Eight items that have weak international competitiveness and may be subjected to market disturbance or disintegration of industrial foundation due to increase in imports.
#
Finalized product
Detailed product
Tariff rate (%)
Amount of imports worldwide (in US $ 1,000)
Amount of imports from China (in US $ 1,000)
Percentage of imports from China (%)
Trade balance per product (in US $ 1,000)
1
Sea-bass
Sea-bass (Live, excluding fries for cultivation)
28
25,533
25,533
100.0
-25,482
2
Sea-bream
Sea-bream (Live, excluding fries for cultivation)
28
34,832
14,069
40.4
-34,831
3
Croaker
Croaker (Live)
28
10,457
10,457
100.0
-10,457
4
Croaker
Croaker (Frozen)
43
12,081
1,198
9.9
-9,400
5
Shrimp
Penaeidea shrimp (Salted, in brine)
38
230
230
100.0
-230
6
Eel
Eel and others (Anguilla (live))
27
2,257
110
4.9
2,489
7
Alaska Pollack
Alaska Pollack (frozen)
25
231,537
67
0.0
-175,345
8
Mackerel pike
Mackerel pike
28
61,790
14
0.0
-52,262
9
Squid
Squid
22
54,872
4,580
8.3
53,948
○ (Items for resource management) fifteen items that require management in order to achieve stabilized development of fishery industry in the littoral sea and to maintain sustainable basis of fishery production.
#
Finalized product
Detailed product
Tariff rate (%)
Amount of imports worldwide (in US $ 1,000)
Amount of imports from China (in US $ 1,000)
Percentage of imports from China (%)
Trade balance per product (in US $ 1,000)
1
Flatfish
10
3,037
32
1.0
-3,030
2
Flatfish
20
21
-
-21
3
Hair tail
10
101,215
61,854
61.1
-97,080
4
Hair tail
20
4,843
39
0.8
-4,787
5
Hair tail
20
0
-
-
760
6
Octopus
20
132,210
106,807
80.8
-131,539
7
Octopus
20
42,702
42,521
99.6
-42,415
8
Cod
Cod (dried)
20
2,059
2,037
98.9
-1,688
9
Cod
Cod (fresh, cold-storage)
20
1,945
1,734
89.1
-1,942
10
Cod
Flatfish (Filet/frozen)
10
47,414
1,732
3.7
-12,105
11
Cod
Flatfish (Filet/cold-storage)
20
66
66
100.0
-65
12
Yellow corbina
Hair tail (frozen)
10
124,703
124,661
100.0
-123562
13
Filefish
Hair tail (fresh, cold-storage)
20
47,337
5,270
11.1
-47,106
14
Filefish
Hair tail (salted, in brine)
10
3,961
3,215
81.2
-3,928
Octopus (frozen)
Octopus (live/fresh, cold-storage)
* Omitted the redundant indication of TAC products
* Sandfish, Washington clam, blue abalone do not have HS code. There is no import from China regarding sharp tooth eel.
Appendix 4 Current status of fishery TRQ in the concluded FTAs
FTA
Product
TRQ method
Tariff rate
Amount of Import Quota (in tons)
Standard amount of import (A)
Amount in the early stage (B)
B/A
Rate of increase
Korea-EFTA (went into force in 1 September 2006)
*Standard amount of import is the average amount during 2002 to 2004.
Frozen mackerel
Allotted designated institution
10%
8,538
500
6%
Fixed
Korea-Asean FTA (went into force in 1 June 2007)
*Standard amount of import is the average amount during 2003 to 2005.
Shrimp, small shrimp (frozen shrimp meat)
Public Auction
20%
10,299
5,000
50%
Fixed
Shrimp, small shrimp (live, fresh, cold-storage)
20%
3,758
300
8%
Cuttlefish (frozen)
10%
2,793
2,000
72%
Shrimp, small shrimp (processed)
20%
2,186
2,000
91%
Korea-EU FTA (went into force in 1 July 2011)
*Standard amount of import is the average amount during 2007 to 2009.
Frozen bastard hailbut
By order of arrival
10%
1,331
800 à 1,727 tons (12th year)
60%
8%
Korea-US FTA (went into force in 15 March 2012)
*Standard amount of import is the average amount during 2003 to 2005.
Frozen bastard hailbut
By order of arrival
10%
3,057
1,530 à 3,303 tons (11th year)
50%
8%
Frozen Alaska Pollack
30%
3,939
4,000à 12,263 tons (14th year)
102%
9%
Frozen croakers
53%
4
1,000à 1,629 tons (11th year)
25,000%
5%
Appendix 5 Current status on Korea-China Trade
□ Current status of trade between China: US $ 228.8 billion (US $ 62.8 billion trade surplus)
(Unit: US $ 100 million)
Classification
2009
2010
2011
2012
2013
Trade Amount Worldwide (Percentage among the worldwide trade)
Export
867
1,168
1,342
1,343
1,458
5,596 (26.1%)
Import
542
716
864
808
830
5,156 (16.0%)
Total Amount of Trade
1,409
1,884
2,206
2,151
2,288
Trade Balance
325
453
478
535
628
□ Current Status of Fishery Products Trade between China: US $ 1.4 billion (US $ 700 million trade deficit)
(Unit: Us $ million)
Classification
2009
2010
2011
2012
2013
Export
Total
565
787
1,189
1,279
1,317
Agricultural products
327
447
625
654
675
Livestock products
18
23
37
131
145
Forest products
74
86
62
122
127
Fishery Products
146
231
465
372
370
Import
Total
3,676
4,323
5,233
5,297
5,740
Agricultural products
1,702
1,946
2,447
2,364
2,747
Livestock products
42
53
60
138
142
Forest products
1,078
1,228
1,476
1,712
1,825
Fishery Products
854
1,096
1,250
1,083
1,026
Trade balance of fishery products
r 708
r865
r785
r711
r656
□ Top 10 Fishery Products on Import and Export to China (Based on the data in 2012)
(Unit: US $ million)
Rank
Export
Import
1
Fish egg
46
Octopus
165
2
Squid
40
Yellow corbina
127
3
Alaska Pollack
34
Hair tail
61
4
Seaweed
31
Other fishes
59
5
Cod
29
Shrimp
56
6
Tuna
23
Shrimp meat
55
7
Bastard halibut
20
Goose fish
48
8
Spanish mackerel
20
Loaches
44
9
Sea-bream
13
Short necked clam
41
10
Other crustacean
10
Crab
34
[Explanatory note from Korea Forest Service]
□ The impact on the forest product by the agreement of Korea-China FTA is limited.
○ Most of forest products in which there is a large amount of imports from China and those under fierce price competition such as plywood and lumber are excluded from concessions and therefore it was decided that tariff rate will not be reduced. Other products with a small amount of imports from China are under partial reduction or elimination after 20 years. Thus, the impact on the forest product by Korea-China FTA is expected to be limited.
○ Originally, it was worried that forest products may face strong price competition and that upon tariff elimination there will be a strong impact on the domestic industry, especially on plywood thicker than 6mm and lumber (Radiata pine).
○ However, the result of negotiation shows that products subjected to competition such as plywood thicker than 6mm and lumber (Radiata pine) are excluded from concession and other products with large amount of import are under partial reduction or elimination in 20 years therefore the impact on the domestic industry will be limited.
○ On the other hand, short-term income forest products such as chestnut and fragrant mushroom lentinus edodes are in the same category with agricultural and fishery products. Therefore essential products are decided to be excluded from concession. Other products are under tariff elimination in 20 years and therefore the impact on the domestic industry is viewed as limited.
Date submitted: January 15, 2015
Reviewed, edited and uploaded: January 21, 2015