A Study on the Differences in Strictness of Product-Specific Rules of Origin (PSR) under the Korea-China FTA

Purpose : The purpose of this paper is to quantitatively analyze the strictness of Product-Specific Rules of Origin (PSR) between Korea and China under the Korea-China Free Trade Agreement (FTA), using the Restrictiveness Index (RI) proposed by Estevadeordal (2000), and to compare the differences in PSR strictness between the two countries. Research design, data and methodology : This paper utilizes the PSR data from the Korea-China FTA and quantitatively measures the strictness of PSR using the Restrictiveness Index (RI) proposed by Estevadeordal (2000), focusing on the items where PSR is actually applied. Results : According to the results, Korea generally faces stricter PSR than China, with significant differences observed in the processed agricultural, textile, and metal products sectors. These differences may create trade imbalances and act as barriers to effectively utilizing the FTA. Conclusions : This paper highlights the need for policy adjustments to ensure balanced application of PSR between Korea and China. It suggests that applying the principle of reciprocity in future FTA negotiations can improve the practical utilization of the agreement by enhancing fairness in PSR enforcement.