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Running head: International Economy Analysis

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INTERNATIONAL ECONOMY ANALYSIS
NAME
UNIVERSITY
9 April 2017

International Economic Analysis

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Korea belongs to the US Free Trade Agreement .Free trade agreement is between two or more
countries where these countries mane an agreement factors affecting trade of goods and services
as well as investment. The agreement is to reduce trade barriers, The countries that makes up this
agreement include: Australia; Bahrain; Chile; Colombia; DR-CAFTA: Costa Rica, Dominican Republic, El
Salvador, Guatemala, Honduras, & Nicaragua; Israel; Jordan; Korea; Morocco; NAFTA: Canada &
Mexico; Oman; Panama; Peru; and Singapore. They are all 2o in number .Korea exports computers,

petrol chemicals, steel ships, wireless telecommunication equipment and semiconductors.
However there are prohibited and restricted exports such as narcotics, pornographic materials and,
counterfeit goods. Korea exporting partners include China (23.2 percent of total exports), US (10.1
percent), Japan (5.8 percent) and, Hong Kong (5.3).Korea imports machinery. oil, steel, transport
equipment, organic chemicals steel and electronics and electronic equipment. The total value of
Korea imports is valued to be US$ 417.9 billion. The main importing partners of Korea include
China, Japan, European Union and USA. (Froman, 2015)
.The trading barriers that are in Korea are such as an Act on the registration and evaluation on
chemicals .This Act stated that manufacturers and chemical substances importers had to adhere to
the annual reporting needs. Information technology equipment electrical safety regulations Act
which required the united stakeholders to streamline procedures that provide safety ce3rtification
level in order to low risks on information technology equipment such as the computers and printers.
This applied to the U.S stakeholders who worked with the Korean Agency for Technology and
Standards and

the Radio Research Agency .This safety regulation by the Korea Agency for

Technology and Standards became effective on 1st July, 2013.This regulation also addressed
expansion of products in favor of the suppliers conformity declaration and labeling requirements
that are for the information that need to be disclosed either manually or inserted.

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The solar panels –Testing Requirements which advocated for certification of the solar panels by
the Korea Management Energy Corporation (KEMCO) before are taken to the market for
governments sponsored projects. The certification standards established by KEMCO prevent
particular films which are thin solar panels from entry of markets in Korea. The film thin solar
panel made from the amorphous silicon and copper Indium Gallium are the only ones which are
allowed to enter the Korean market. Korea country has also put a restriction on organic products
.This restriction was adopted on 1st July, 2014 by the United States and Korea .The two countries
allowed processed organic products to have certification as organic in either of the two countries
without undergoing long and expensive process for certification. Korea has regulations systems
on agricultural biotechnology though it lacks transparency and predictability in approving bio0tech
events that are new. Korea in December 2014 came up with a ban which was addressing poultry
imports from the United State .This ban was as a result of HPAI detection I poultry from Oregon
and Washington. This action was approved by the World Organization for Animal .Maximum
residue limits regulation which Korea indicated that any agrochemical residue which goes beyond
the limits or contain more residues for agrochemicals will not be imported to their country. This
barrier affected the US who exported grains and fruits. Korean increased these limits are higher
than the ones set by the United State. Korea imposed a restriction on beef and beef products from
U.S. It was claimed to have BSE .However in2008 Korea opened markets to US following the
bilateral agreements in 2008.Importation of fresh potatoes from the Idaho states ,Washington and
Oregon. This was influenced by zebra chip presence .Korea has continued to prohibit the imports
of fresh potatoes from pacific west .This is mainly to prevent the spread of the disease.
Korea has the amendment of the Motor vehicle management Act mandating the auto manufacturers
to report the history of vehicle repair purchase .This means that the accounting for damages that

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might occur during the delivery process. However the United States tended to oppose this
regulation as she claimed that it was against the auto importers since the local ones are under the
Pre-delivery Inspection service hence they are not subjected to the reconditioning reports. Hence
this regulation discriminated the auto exporters. In this regulation process they claimed that the
imported vehicles may face harm which would be unpleasing to consumers.
There are importation policies which Korea government has put in place .Tariffs and taxes have
eliminated almost 75% of US agricultural exports .These agricultural produce include corn, soya
beans meant for crushing ,wheat, whey for feeding, cotton, cherries, hides and skins, orange juice,
almonds and grape juice. There are other agricultural produce such as whey for food use, whole
milk powder and skim that have new tariffs under duty free access. In order to cut d...