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LEGAL NOTICE, This document has been prepared for the European Commission however it reflects the views only of the. authors and the Commission cannot be held responsible for any use which may be made of the information. contained therein,European Union 2017, Reproduction is authorised provided the source is acknowledged. Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. TABLE OF CONTENTS,1 INTRODUCTION 12,2 OBJECTIVES AND SCOPE OF THE EVALUATION 13. 2 1 Objectives 13,2 2 Scope 13,3 PROGRESS UPDATE 17. 3 1 Overview of approach 17,3 2 Revising methodological tools 17.
3 3 Stakeholder consultation 17,3 4 Conducting the case studies 18. 3 5 Conducting in depth interviews 18,3 6 Carrying out specific analyses 20. 3 7 Updating the evaluation website 20,3 8 Next steps 21. 4 DESCRIPTION OF THE EU KOREA FTA 22,4 1 Introduction 22. 4 2 Structure and content of the EU Korea FTA 22,4 3 Context of the EU Korea FTA 34.
4 4 The EU Korea Framework Agreement 36, 4 5 Institutional framework of the EU Korea FTA 37. 5 ECONOMIC ANALYSIS 40, 5 1 Evolution of tariffs between the EU and Korea 40. 5 2 Evolution of trade between the EU and Korea 45. 5 3 Evolution of foreign direct investment between the EU and Korea 81. 5 4 Causal Effects of the FTA on Trade partial equilibrium analysis 86. 5 5 General equilibrium effects on trade and macroeconomic outcomes 94. 5 6 Impact of the EU Korea FTA on SMEs 111, 5 7 Impact of the EU Korea FTA on the EU budget 115. 5 8 Impact of the EU Korea FTA on the informal economy 117. 5 9 Impact of the EU Korea FTA on developing and least developed countries 123. 6 ANALYSIS OF NON TARIFF BARRIERS AND FTA IMPLEMENTATION 125. 6 1 Effects of the FTA on the reduction of non tariff barriers 125. 6 2 Regulatory changes undertaken and impacts on trade costs 131. 6 3 Implementation of the customs related provisions 145. 6 4 Implementation of other areas of EU Korea FTA 152. 6 5 Issues which may prevent exploiting the full potential benefits of the FTA 164. 7 SOCIAL ANALYSIS 169,7 1 Impact of the EU Korea FTA on consumers 169. 7 2 Effects of the implementation of the TSD chapter 174. 7 3 Impact of the EU Korea FTA on employment wages and household income 179. 8 HUMAN AND FUNDAMENTAL LABOUR RIGHTS ANALYSIS 192. 8 1 Background approach and scope of the analysis 192. 8 2 Identification of key human rights for assessment screening 195. 8 3 Detailed assessment 200,8 4 Conclusions 225,9 ENVIRONMENTAL ANALYSIS 227.
9 1 Greenhouse gas emissions 228, Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. 9 2 Air pollution 233,9 3 Water resources and water quality 235. 9 4 Biodiversity 236,9 5 Waste management 237,9 6 De forestation in the EU and Korea 238. 9 7 Use of renewable energy 240, 9 8 General equilibrium analysis of CO2 emissions 242. 9 9 Local CO2 emission changes in Europe 243,9 10 Local CO2 emission changes in Korea 246.
9 11 Effects on global CO2 emissions 248,10 CASE STUDIES 251. 10 1 Case study on the automotive sector 251,10 2 Case study on agriculture 266. 10 3 Case study on electronic goods 283, 10 4 Case study on environmental goods and services 295. 10 5 Case study on postal services 306,10 6 Case study on rules of origin 312. 10 7 Case study on the use of tariff preferences 318. 10 8 Case study on the implementation of the institutions of the TSD chapter 332. 11 RESULTS OF THE STAKEHOLDER CONSULTATION 347,12 UPDATED WORKPLAN 348.
ANNEX I OVERVIEW OF THE EU KOREA FTA 352,ANNEX II ADDITIONAL DATA ECONOMIC ANALYSIS 355. ANNEX III ANALYSIS OF REGULATORY CHANGES ON SUBSIDY RELATED ISSUES 410. ANNEX IV ADDITIONAL DATA ON CHAPTER 7 419,ANNEX V ADDITIONAL DATA FOR CASE STUDIES 421. ANNEX VI REFERENCES 439, Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. LIST OF FIGURES, Figure 1 EU tariffs on imports Korea vs MFN countries 42. Figure 2 Korean tariffs on imports EU vs MFN countries 42. Figure 3 European import tariffs per sector MFN vs preferential tariffs 43. Figure 4 Korean import tariffs per sector MFN vs preferential tariffs 44. Figure 5 Preference utilisation rates in Korea and the EU 45. Figure 6 EU Korea trade volume quarterly EUR billion 47. Figure 7 EU exports to Korea quarterly EUR billion 47. Figure 8 EU imports from Korea quarterly EUR billion 48. Figure 9 EU Korea trade balance quarterly EUR billion 49. Figure 10 Exchange rate EUR KRW over time 50, Figure 11 EU exports to Korea denoted in EUR and KRW quarterly 2011q2 100 51.
Figure 12 EU imports from Korea denoted in EUR and KRW quarterly 2011q2 100 51. Figure 13 Share of EU exports to and imports from Korea of total 52. Figure 14 EU exports to different destinations quarterly 2011q2 100 53. Figure 15 EU imports per country of origin quarterly 2011q2 100 54. Figure 16 Composition of EU exports to Korea 55,Figure 17 Composition of EU imports from Korea 56. Figure 18 Fastest growing sectors in absolute terms between 2011 and 2015 57. Figure 19 Annual growth of quantities and prices per EU export sector 58. Figure 20 Annual growth of quantities and prices per EU import sector 59. Figure 21 Number of exported and imported products by the EU 61. Figure 22 Number of traded products between the EU and Japan 62. Figure 23 Growth in number of products exported per sector by EU 62. Figure 24 Growth in number of products imported per sector by EU 63. Figure 25 Growth of goods exports 2010 2015 p a 67. Figure 26 Growth of goods imports 2010 2015 p a 67. Figure 27 Services EU Korea trade volume annually EUR billion 69. Figure 28 Services EU Korea trade balance annually EUR billion 69. Figure 29 Services EU exports to Korea annually EUR billion 70. Figure 30 Services EU imports from Korea annually EUR billion 70. Figure 31 Services EU exports to Korea denoted in EUR and KRW annually 2011 100 71. Figure 32 Services EU imports from Korea denoted in EUR and KRW annually 2011 100 71. Figure 33 Services Share of EU exports to and imports from Korea of total 72. Figure 34 Services share of Korean exports to and imports from the EU of total 73. Figure 35 EU exports to Korea compared with other countries annually 2011 100 74. Figure 36 EU Imports from Korea compared with other countries annually 2011 100 74. Figure 37 Composition of EU exports to Korea 75,Figure 38 Composition of EU imports from Korea 76. Figure 39 Fastest growing sectors in absolute terms between 2011 and 2015 77. Figure 40 Annual growth of service exports between 2010 and 2015 80. Figure 41 Annual growth of service imports between 2010 and 2015 80. Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. Figure 42 Stock of bilateral foreign direct investments annually EUR billion 82. Figure 43 Flows of foreign direct investments annually EUR billion 83. Figure 44 Stock of FDI outflow from the EU to selected countries annually EUR billion 83. Figure 45 Stock of FDI inflow in the EU from selected countries annually EUR billion 84. Figure 46 European FDI in Korea on sectoral level 2014 EUR million 85. Figure 47 Causal trade creation effects of the EU Korea FTA 2011 to 2014 89. Figure 48 Stylised effects of the EU Korea FTA over time 98. Figure 49 Change in real GDP for EU Member States 99. Figure 50 Change in openness and change in income due to the EU Korea FTA 103. Figure 51 Sum of sectoral value added effects in EUR million EU28 and Korea 105. Figure 52 Change of EU exports to Korea 107, Figure 53 Change of EU Member State imports from Korea 107. Figure 54 Tariff income from bilateral trade in the EU and Korea 116. Figure 55 Share of self employed workers in total employment Korea 119. Figure 56 Share of workers with temporary contracts in total dependent employment 120. Figure 57 Employment protection strictness of regulation of dismissals over time 121. Figure 58 Estimated share of the informal economy in total economic activity 122. Figure 59 Corruption Perception Index 2011 and 2015 123. Figure 60 Non tariff barriers under the EU Korea FTA 129. Figure 61 Specific non tariff barriers affecting EU Korea trade NTBs in Korea 129. Figure 62 NTBs affecting EU Korea trade in case study sectors 130. Figure 63 Regulatory changes made to implement the EU Korea FTA 138. Figure 64 Administrative burdens compliance costs associated with EU Korea trade 139. Figure 65 Documents to export number 140,Figure 66 Documents to import number 141. Figure 67 Time to export days 142,Figure 68 Time to import days 142.
Figure 69 Costs to export in 100 USD per container 143. Figure 70 Cost to import in 100 USD per container 144. Figure 71 Problems concerning competition in Korea 153. Figure 72 PMR indicators for Korea 2008 and 2013 155. Figure 73 Foreign procurement in Korea by origin and EUR million 157. Figure 74 Differential treatment of foreign suppliers in Korea 2008 and 2013 158. Figure 75 Problems concerning public procurement in Korea 158. Figure 76 Protection of IPR in Korea 2006 2014 160. Figure 77 OECD FTI governance and information 165, Figure 78 OECD TFI rulings procedures and fees 166. Figure 79 OECD TFI formalities 167,Figure 80 OECD TFI border agency cooperation 167. Figure 81 Evolution of RAPEX notifications by country of origin 2006 2016 170. Figure 82 Evolution of RASFF notifications by country of origin 2007 2015 171. Figure 83 Unemployment rate in selected countries 180. Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. Figure 84 Unemployment rates by sex in the EU and Korea 181. Figure 85 Labour force participation rate in selected countries 182. Figure 86 Labour force participation rate in the EU and Korea by sex 182. Figure 87 Labour share over time in selected countries 183. Figure 88 Total civilian employment in selected countries 2011 100 187. Figure 89 Market income inequality in selected countries 188. Figure 90 Disposable income inequality in selected countries 189. Figure 91 Absolute tax induced inequality reduction in selected countries 190. Figure 92 Relative tax induced inequality reduction in selected countries 191. Figure 93 Gender employment gap in Korea USA and OECD 2006 2015 203. Figure 94 Share of non regular employees among women and among total employed 204. Figure 95 Trade union density rate in Korea Japan USA and EU28 2000 2012 207. Figure 96 Collective bargaining coverage rate in Korea Japan USA and EU28 2000 2012 208. Figure 97 Share of non regular employees in Korea Japan and EU28 2006 2015 217. Figure 98 Average annual working hours in Korea Japan USA and the OECD 2009 2015 219. Figure 99 Proportion of workers working on average 49 or more hours per week 220. Figure 100 Monthly indexed food price inflation 223. Figure 101 Development of CO2 emissions tonnes per capita 229. Figure 102 Development of CO2 emissions in the top 3 emitting sectors in the EU 230. Figure 103 Development of sectoral CO2 emissions in the EU in thousand tonnes of CO2 231. Figure 104 Development of GHG emissions tonnes per capita 232. Figure 105 Development Korean GHG and CO2 emissions 232. Figure 106 Development of other emissions in Korea233. Figure 107 Mean annual exposure to fine particulates in micrograms PM2 5 m3 234. Figure 108 Water productivity GDP m3 freshwater withdrawal 236. Figure 109 Threatened species as percentage of known species in 2015 237. Figure 110 Municipal waste in kg per capita 238,Figure 111 Net forest increase million m3 239. Figure 112 Forest use intensity 240, Figure 113 Evolution of renewable energy share in selected countries 241. Figure 114 Development of total renewable energy supply index with basis year 2010 242. Figure 115 Change in CO2 emissions from domestic production 244. Figure 116 Tariffs on vehicles trade weighted in 253. Figure 117 Exports and imports of vehicles 254, Figure 118 Top 10 EU automotive import products from Korea sector concentration 255.
Figure 119 Top 10 EU automotive export products to Korea sector concentration 255. Figure 120 Share of Korean automotive imports 259, Figure 121 RCA index EU28 motor vehicles manufacturing 2007 2013 260. Figure 122 Tariffs on agrifood products trade weighted in 268. Figure 123 Agrifood trade EU exports to and imports from Korea 2006 2015 269. Figure 124 Top 10 EU agrifood import products from Korea sector concentration 270. Figure 125 Top 10 EU agrifood export products to Korea sector concentration 271. Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. Figure 126 Share of Korean agrifood good imports per country of origin 2006 2015 273. Figure 127 Monthly Polish pork exports to Korea 2006 2015 275. Figure 128 Tariffs on electronic products trade weighted in 285. Figure 129 EU exports to and imports of electronics from Korea 2006 2015 286. Figure 130 Top 10 EU electronics import products from Korea sector concentration 287. Figure 131 Top 10 EU electronics export products to Korea sector concentration 288. Figure 132 Share of Korean electronics imports 2006 2015 291. Figure 133 RCA index EU28 291, Figure 134 Tariffs on environmental goods trade weighted in 298. Figure 135 EU exports to and imports of environmental goods from Korea 2006 2015 298. Figure 136 Top 10 EU environmental goods import products from Korea sector concentration 299. Figure 137 Top 10 EU environmental goods export products to Korea sector concentration 300. Figure 138 EU exports and imports of water collection treatment and supply services 303. Figure 139 EU exports and imports of sewerage and waste management services 303. Figure 140 Share of Korean environmental goods imports 2006 2015 305. Figure 141 EU exports to and imports of postal services from Korea 2006 2014 309. Figure 142 Share of Korean postal courier service imports 2006 2014 311. Figure 143 Table of contents of the report on the stakeholder consultation 347. Figure 144 Share of Korean exports to and imports from the EU of total 356. Figure 145 Diff in diff approach Korean perspective trade in goods 356. Figure 146 Sectoral EU trade in goods in comparison to selected countries 357. Figure 147 Sectoral Korean trade in goods in comparison to selected countries 360. Figure 148 Diff in diff approach Korean perspective trade in services 377. Figure 149 Sectoral EU service trade in comparison to selected countries 378. Figure 150 Sectoral Korean service trade in comparison to selected countries 380. Figure 151 Public and private health expenditures in selected countries 420. Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. LIST OF TABLES, Table 1 Overview of tasks for the evaluation of the implementation of the EU Korea FTA 14. Table 2 Stakeholder organisations interviewed 19, Table 3 Tariff schedule of Korea for selected sectors 24. Table 4 Overview of the EU Korea FTA and its novelty aspects 31. Table 5 Overview of Korea s bilateral trade and investment agreements 35. Table 6 Tariffs on the agriculture and food sector trade weighted 44. Table 7 Annual growth of quantities prices of Mineral Fuels Oils and Ships and Aeronautic 59. Table 8 Imports of goods from Korea at country level 65. Table 9 Exports of goods to Korea at country level 66. Table 10 EU exports of services to Korea at country level 78. Table 11 EU imports of services from Korea at country level 79. Table 12 Causal trade creation effects of the EU Korea FTA 2011 to 2014 sectoral trade 90. Table 13 Decomposition of tariff and NTB reduction status quo scenario 97. Table 14 Macroeconomic effects for EU Member States and Korea 100. Table 15 Effects on aggregate income wage income in EU MS and Korea 102. Table 16 Sum of sectoral value added effects EUR million EU28 and Korea 106. Table 17 Change of EU Member States exports to and imports from Korea 108. Table 18 Change in Korean exports to and imports from the EU per sector EUR million 109. Table 19 Change in Korean exports to and imports from the EU 110. Table 20 Trade diversion effects in Korea EU and third countries 110. Table 21 Characteristics of firm level exports of Belgium to Korea 113. Table 22 Characteristics of firm level exports of Spain to Korea 114. Table 23 Impact on developing countries macroeconomic perspective 123. Table 24 Impact on developing countries trade with Korea 124. Table 25 Impact on developing countries trade with EU28 124. Table 26 Sectoral NTB reduction for EU and Korean exports 127. Table 27 Amendments to Korean legislation and administrative rules 132. Table 28 Amendments to trade related legislation in Korea since 2012 137. Table 29 EU and Korean PURs under the EU Korea FTA 2012 2015 147. Table 30 EU and Korean PURs by sector July 2014 to June 2015 148. Table 31 PURs by EU Member State July 2014 June 2015 149. Table 32 Meetings of institutions established under the EU Korea FTA 162. Table 33 Sectoral price changes in the EU and Korea 173. Table 34 The effects on average wages based on CGE results 184. Table 35 Employment effects per sector for EU MS and Korea 186. Table 36 Indicators of rights selected for detailed assessment 194. Table 37 Screening of human rights that are potentially affected by the EU Korea FTA 196. Table 38 Freedom of association cases brought to the ILO since 1992 212. Table 39 Price changes in agri food products in Korea due to the EU Korea FTA 224. Table 40 Summary of assessment of FTA impacts on human rights in Korea 226. Table 41 Changes in European CO2 emissions by sector 246. Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. Table 42 Changes in Korean CO2 emissions by sector 248. Table 43 Changes in CO2 emissions by world region 249. Table 44 Changes in global CO2 emissions by sector 250. Table 45 Numbers and growth rates of top 10 EU import goods from Korea 256. Table 46 Numbers and growth rates of top 10 export goods to Korea 257. Table 47 Decomposition of tariff and NTB reductions in trade costs 260. Table 48 Sectoral growth in value added 262, Table 49 Employment effects in the EU and Korean automotive sectors 263.
Table 50 Sectoral growth in CO2 emissions automotive sector 265. Table 51 Numbers and growth rates of top 10 EU agrifood imports from Korea 271. Table 52 Numbers and growth rates of top 10 EU agrifood exports to Korea 272. Table 53 Decomposition of tariff and NTB cost reduction in agrifood sectors 274. Table 54 Korean TRQs for EU agrifood exports under the EU Korea FTA 278. Table 55 Utilisation rates of TRQs 2012 2015 279,Table 56 Sectoral growth in value added 280. Table 57 Employment effects in the EU and Korean agriculture processed food sectors 281. Table 58 Sectoral growth in CO2 emissions agriculture and processed food sectors 282. Table 59 Numbers and growth rates of top 3 EU electronics imports from Korea 289. Table 60 Numbers and growth rates of top 3 EU electronics exports to Korea 290. Table 61 Decomposition of Tariff and NTB cost reduction for electronics 292. Table 62 Sectoral growth in value added 293, Table 63 Employment effects in the EU and Korean electronics sectors 294. Table 64 Sectoral growth in CO2 emissions 295, Table 65 Numbers and growth rates of top 10 EU environmental goods imports from Korea 301. Table 66 Numbers and growth rates of top 10 EU environmental goods exports to Korea 302. Table 67 FTA committee discussions of postal and courier services 308. Table 68 STRI for courier services in the EU and Korea 2014 2016 310. Table 69 Protocol on RoO key articles 313, Table 70 EU and Korean PURs under the EU Korea FTA 2012 2015 319. Table 71 EU and Korean PURs by sector July 2014 to June 2015 320. Table 72 Highest and lowest PURs by EU Member State July 2014 June 2015 322. Table 73 EU PURs and applied Korean MFN tariffs by sector 2015 325. Table 74 Information required to apply for approved exporter status across MS 327. Table 75 Meetings of the CTSD 334,Table 76 Co chairs of CTSD meetings 335.
Table 77 Key topics discussed at CTSD meetings 336. Table 78 Meetings of the EU DAG 337,Table 79 Meetings of the Korean DAG 338. Table 80 Members of the EU and Korean DAGs 339,Table 81 Meetings of the CSF 340. Table 82 Key topics discussed at the CSF meetings 341. Table 83 Updated work plan 349, Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. Table 84 Overview of the EU Korea FTA 353, Table 85 Bottom 50 EU export goods lagging behind 363. Table 86 Bottom 50 EU import goods lagging behind 369. Table 87 Most important services 2014 financial and business services 382. Table 88 Most important services 2014 wholesale retail and construction 383. Table 89 Most important services 2014 transport and travel 384. Table 90 Estimates of the aggregate trade effects of the EU Korea FTA Part I 387. Table 91 Causal trade creation effects of the EU Korea FTA 2011 to 2014 sectoral trade 388. Table 92 Estimates of the aggregate trade effects of the EU Korea FTA Part II 390. Table 93 Sectoral estimates of the effects of the EU Korea FTA WIOD 392. Table 94 Sectoral estimates of the effects of the EU Korea FTA WIOD 393. Table 95 Sectoral estimates of the effects of the EU Korea FTA WIOD 394. Table 96 Sectoral estimates of the effects of the EU Korea FTA WIOD 395. Table 97 Sectoral estimates of the effects of the EU Korea FTA WIOD 396. Table 98 Sectoral estimates of the effects of the EU Korea FTA WIOD 397. Table 99 Sectoral estimates of the effects of the EU Korea FTA WIOD 398. Table 100 Sectoral estimates of the effects of the EU Korea FTA WIOD 399. Table 101 Sectoral estimates of the effects of the EU Korea FTA GTAP 400. Table 102 Sectoral estimates of the effects of the EU Korea FTA GTAP 401. Table 103 Sectoral estimates of the effects of the EU Korea FTA GTAP 402. Table 104 Sectoral estimates of the effects of the EU Korea FTA GTAP 403. Table 105 GTAP sector description 404, Table 106 WIOD classification and concordance with GTAP 406.
Table 107 Sectoral estimates of the effects of the EU Korea FTA GTAP 408. Table 108 Industrial policy ministries in Korea 415. Table 109 Overview of specific non tariff barriers affecting EU automotive exports to Korea 422. Table 110 Key provisions of articles of the Protocol on RoO 424. Table 111 EU Member State PURs by sector July 2014 June 2015 427. Table 112 Key articles of Chapter 13 of the EU Korea FTA 429. Table 113 Excerpts from published joint statements of CTSD meetings 2012 2015 431. Table 114 Excerpts from conclusions of CSF meetings 2012 2015 435. Table 115 References 440, Evaluation of the Implementation of the Free Trade Agreement between the EU and its. Member States and the Republic of Korea Interim Technical Report. 1 Introduction, The Directorate General for Trade DG TRADE of the European Commission has. commissioned an evaluation on the implementation of the Free Trade Agreement FTA. between the EU and its Member States and the Republic of Korea to Civic Consulting and. the Ifo Institute This report is the second deliverable of the evaluation. The EU Korea FTA was provisionally applied on 1 July 2011 and formally entered into. force on 13 December 2015 It is the first of a new generation of FTAs characterised by. its comprehensive nature and high level of ambition and is the first FTA concluded by. the EU with an Asian country, At present most provisions of the FTA have been applied As highlighted in the Terms of. Reference TOR of this project it is important to conduct an interim evaluation of the. implementation of the EU Korea FTA as the lessons learned could help improve the. design of other EU FTAs that are currently being negotiated as well as inform the. implementation of EU FTAs that have recently been concluded. In light of the above and as outlined in the TOR this evaluation examines. The effectiveness and efficiency of the EU Korea FTA in view of achieving its. objectives, The relevance of the EU Korea FTA regarding current trade issues faced by both. The coherence of the EU Korea FTA with the EU Korea Framework Agreement and. with the objectives of EU Korea trade policy and, The impact of the implementation of the EU Korea FTA on sustainable.
development in its economic social and environmental dimensions as well as on. human rights, This interim technical report is the evaluation s second deliverable Its main purpose is to. present the work undertaken in the context of the stakeholder consultations case. studies and specific analyses tasks 6 7 and 8 of the TOR respectively and the. preliminary findings of this work The interim report consists of two parts. Part 1 of the report synthesis report is structured as follows. Section 2 presents the objectives and scope of the evaluation. Section 3 describes the work performed thus far, Section 4 provides a description of the EU Korea FTA. Section 5 presents the results of the economic analysis. Section 6 presents an analysis of non tariff measures and FTA implementation. Section 7 presents the results of the social analysis. Section 8 presents the results of the human and fundamental labour rights. Section 9 presents the results of the environmental analysis. Section 10 presents the case studies, Section 11 provides a brief overview of the stakeholder consultation and. Section 12 presents an updated work plan, Part 2 of the report provides the results of the open public consultation and the. complementary surveys conducted, Evaluation of the Implementation of the Free Trade Agreement between the EU and its.
Member States and the Republic of Korea Interim Technical Report. 2 Objectives and scope of the evaluation, This section outlines the objectives and scope of the evaluation It then describes the. approach of the evaluation and presents the tasks and subtasks that will be completed. as stated in the TOR,2 1 Objectives, According to the TOR the purpose of this project is to provide an interim evaluation of. the implementation of the EU Korea FTA which will form the basis of a Staff Working. Document of the Commission In particular the evaluation examines the effectiveness. and efficiency of the EU Korea FTA in view of achieving its objectives the relevance of. the EU Korea FTA regarding current trade issues faced by the EU and Korea and the. coherence of the EU Korea FTA with the EU Korea Framework Agreement and with the. objectives of the EU trade policy, In addition the evaluation aims to analyse the impact of the implementation of the EU. Korea FTA on sustainable development in its economic social and environmental. dimensions as well as on human rights The evaluation will also provide an in depth ex. post analysis of the effectiveness of the EU Korea FTA in line with the European. Commission s new trade strategy Trade for All, The evaluation covers all areas of the EU Korea FTA except those which have not yet. been applied pending the final conclusion of the FTA i e certain provisions of the. Protocol on Cultural Cooperation and the criminal enforcement provisions with respect to. the protection of intellectual property rights IPR. 2 2 1 Geographical coverage and time period, The evaluation covers the impact of the EU Korea FTA in the EU and to a certain extent.
in Korea with the main focus being on the EU and its Member States A separate study. being commissioned by the Delegation of the European Union to South Korea focuses on. the impact of the EU Korea FTA in Korea, The evaluation covers the period from the date of the start of the provisional application. of the EU Korea FTA 1 July 2011 until the date of the latest available data In order to. capture the impact of the implementation of the FTA the evaluation also examines data. going back a minimum of five years prior to the implementation of the FTA i e data. from at least 1 July 2006,2 2 2 Approach and tasks. The TOR emphasises that the evaluation shall provide well supported assessments based. on objective analysis and consequent conclusions and recommendations To this end. sound quantitative and qualitative analyses should be conducted with use of the most. up to date modelling techniques indicators and databases Case studies and stakeholder. consultations should also be carried out, The TOR defines 10 main tasks several of which consist of multiple sub tasks In total. there are 37 tasks including sub tasks and evaluation items structured into the. inception phase 5 tasks and implementation phase 5 tasks with a total of 27 sub. tasks and evaluation items As of the date of submission of this report tasks 1 8 have. been undertaken All tasks are described in more detail in the table below. Evaluation of the Implementation of the Free Trade Agreement between the EU and its Member States and the Republic of Korea. Interim Technical Report, Table 1 Overview of tasks for the evaluation of the implementation of the EU Korea FTA. Phase Task Description Sub tasks details, Inception 1 Comment on and revise if necessary For the intervention logic a reference to the roadmap was provided Evaluation and fitness check.
the intervention logic FC roadmap dated September 2015. 2 Define and develop the evaluation Identify information sources. tools Establish a list of relevant indicators, Define the scope the assumptions and the methodology for modelling simulations. Establish a consultation strategy and develop consultation tools. Propose a methodology for the conduct of the case studies. Outline the main risks challenges to the project and propose concrete ways to address them. 3 Review existing studies and reports Summarise the results of reports and studies regarding trade between the EU and Korea. Provide information on methods and data used, 4 Provide a concise but comprehensive Also provide. description of the EU Korea FTA Context in which it operates. Institutional structure, Implementation and its interaction with other instruments including the EU Korea Framework. Agreement and other trade agreements of the EU and Korea or other policies. 5 Create a website dedicated to the Home page with summary on the state of play of the evaluation process and all evaluation related. evaluation information including,Link to the Roadmap. Information on stakeholder consultations including the consultation strategy. Planned dates of various consultation activities the contributions by the stakeholders to. different consultations, Summary minutes speeches or presentations from stakeholder events.
Final versions of all reports produced by the evaluation. Implementation 6 Stakeholder consultations The consultation must include. 12 week online public consultation,Targeted interviews roundtables workshops etc. Representative survey on the impact of the EU Korea FTA on SMEs. Representative survey on the impact of the EU Korea FTA on consumers. Evaluation of the Implementation of the Free Trade Agreement between the EU and its Member States and the Republic of Korea. Interim Technical Report,Phase Task Description Sub tasks details. 7 Conduct case studies 8 case studies to capture the impact of the EU Korea FTA on sustainable development in its. economic social and environmental dimensions as well as on human rights One or several of the. case studies shall in particular contribute to the analysis of the impact on employment in the EU. and its Member States EU SMEs EU markets functioning and sectoral competitiveness and EU. 8 Carry out specific analyses that shall 8 1 Analyse the evolution of trade in goods between the EU and Korea. be integrated into the replies to the 8 2 Analyse econometrically the relationship between the implementation of the EU Korea FTA. evaluation questions and the development of bilateral and overall trade of the EU and Korea. 8 3 Analyse the evolution of trade in services and FDI between the EU and Korea. 8 4 Identify the non tariff measures affecting EU Korea trade. 8 5 Analyse the effects if possible in economic terms too of the implementation of the. customs related provisions, 8 6 Analyse the implementation of other areas of the EU Korea FTA. 8 7 Identify issues in areas of the EU Korea FTA which may prevent exploiting the full. potential benefits of the FTA, 8 8 Identify regulatory changes undertaken by the EU and Korea due to the implementation of. the FTA assess elements of regulatory convergence and analyse the impact on regulatory costs. on administrations and businesses, 8 9 Analyse the impact of the EU Korea FTA on SMEs.
8 10 Analyse the impact of the EU Korea FTA on consumers. 8 11 Analyse the impact of the EU Korea FTA on the EU budget. 8 12 Analyse the effect of the implementation of the EU Korea FTA on sustainable development. in its economic social and environmental dimensions with sub tasks a effects of the. implementation of the trade and sustainable development chapter b impact on employment. wages and household income c environmental impacts. 8 13 Examine the impact of the EU Korea FTA on human rights. 8 14 Consider the significance of the informal economy and if it is considerable distinguish the. FTA s impacts in the formal economy from those occurring in the informal economy. 8 15 Analyse the impact of the EU Korea FTA on developing countries and Least Developed. 9 Reply to the evaluation questions Effectiveness, EQ 1 To what extent have the objectives as laid down in Article 1 1 2 of the EU Korea FTA been.


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