한-중 FTA의 양념채소시장에 대한 효과분석: 고추, 마늘, 양파를 중심으로

A Study on the Economic Effects of Korea-China FTA on Vegetable Markets with a Special Emphasis on Red Pepper, Garlic and Onion

As of Oct, 2012, Korea-China FTA has agreed on its 4th negotiation and the sensitive products for both parties are agricultural products and manufacturing, respectively. In Korea, cultivated area for pepper and garlic is constantly reducing but it is increasing for onion. The main purpose of the present study is to analyze the economic effect of pepper, garlic and onion market when the Korea-China FTA is completed at some point of time. The economic effect has analysed based on dried pepper, fresh and frozen garlic and fresh onion for each item of pepper, garlic and onion, respectively. The consumption substitution model (Lee, Yong-Kee, 2006) is used to analyze the present study and small state assumption is applied. For base t ariff , f rozen t ype is 2 7% for p epper, f resh t ype is 5 0% and frozen type is 27% for garlic, fresh type is 135% for onion and we assume the instant elimination of these tariffs. As a result of the analysis, price of domestic pepper is decreased as much as 5.4% and for domestic garlic, in case of elimination of the tariff, the price is decreased as much as 12.8%. For domestic onion, the price is decreased as much as 6.4%. For produce, pepper produce shows 0.9~2.6% of decrease and gross income shows 2.8 ~8.0% of decrease. When the tariff is eliminated for 50%, garlic produce is decreased for 0.5% and gross income is decreased for 13.3%. Lastly, for onion, production is decreased for 2.2% and gross income is decreased for 8.6%.