An Impact of Korea's TPP Participation on Its Agricultural Sector

초록

The Korean agriculture is characterized by small-sized family farming. The FTAs with major trading partners has led to important changes in its agriculture. Particularly Korea’s agricultural sector has a high concerns about the government’s participation in Trans-Pacific Partnership (TPP) which is seeking for a high level of liberalization with creating WTO Plus trade rules. Korea’s agriculture with low international competitiveness might be expected to be significantly affected if Korea joins to the TPP agreement in the near future. This study analyzes the impact of Korea’s joining TPP on agricultural sector with employing the Korea Agricultural Simulation Model (KASMO) which is jointly developed by the Korea Rural Economic Institute (KREI) and the Food and Agricultural Policy Research Institute (FAPRI). The estimation results show that both the Korean fruits and livestock industries are expected to be in large decreases in the production value after TPP participation. Major commodities which are expected to be in damage with TPP are dairy products, grapes, beef, pumpkin, and tangerines.

키워드