I Korea s Trade with Chile II Effects of Korea-Chile FTA III FTA Beneficiary i Items IV FTA Utilization V Investment & Promising Trade Items
01
6.000 (US$ million) 4.500 4.810 3.000 1.500 2.083 0 (1.500) (3.000) Source: KITA.net (K-stat) -2.727
(US$ million, %) Product Export Amount Avg. annual grw rate ( 04-14) Ratio Product Import Amount Avg annual grw rate ( 04-14) Ratio Motor cars and other motor vehicles 873 20.1 41.9 Copper ore 1,395 18.3 29.0 Motor vehicles for the transport of Goods 164 16.7 7.9 Polymers of ethylene 102 10.4 4.9 Telephone sets, including telephones for cellular networks Parts and accessories of the motor vehicles Petroleum oils and oils obtained fro m bituminous minerals New pneumatic tyres, of rubber 38 13.7 1.8 Electric accumulators, including separators therefor Portland cement, aluminous cement, slag cement, supersulphate cement Refined copper and copper alloys, unwrought. Unrefined copper, copper anodes for electrolytic refining 1,359 9.3 28.3 391 33.5 8.1 63 43.9 3.0 Chemical wood pulp, soda, sulphate 255 10.9 5.3 62 11.3 3.0 Molybdenum ore 189 30.3 3.9 39-6.5 1.9 Grapes, fresh or dried 152 24.5 3.2 34 19.6 1.6 Wood sawn or chipped lengthwise, sliced or peeled Waste and scrap of precious metal or of metals clad with precious metal 123 27.1 2.6 106 21.4 2.2 32 *34.0 1.5 Meat of swine, fresh, chilled or frozen 93 5.5 1.9 Polymers of propylene 24 28.6 1.2 Zinc ore 81 20.4 1.7 Total 2,083 13.5 100 Total 4,810 14.8 100 Source: KITA.net (K-stat) * With regards to the cement(hs code 2523), the average annual growth rate was calculated from 2005 to 2014 since there s no export record in 2004.
02
EFTA Canada EU USA China Turkey SIECA, KOR-CHN-JAP ASEAN India RCEP Australia Colombia Ecuador Peru Chile New Zealand El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, Panama
1,40 1,20 1,00 0,80 0,60 0,40 020 0,20-0,91 0,59 Korea-Chile FTA Import Market Share by Countries in Korea Brazil Chile Mexico Peru Colombia Argentina 0,98 0,96 086 0,86 0,87 1,23 0,87 0,24 0,26 0,19 0,19 0,18 0,18 013 0,14 0,11 0,13 0,10 0,04 0,05 0,05 0,07 1,17 0,78 1,01 1,16 0,95 0,96 1,11 0,99 1,21 1,17 (unit : % share) 1,08 0,93 0,93 0,90 0,90 0,92 062 0,62 0,50 0,44 0,45 0,36 0,37 0,38 0,28 0,28 0,27 0,24 0,20 0,21 0,21 0,24 0,19 0,20 0,23 0,03 0,03 0,04 0,10 0,07 0,08 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source : Global Trade Atlas 0,04 0,27 0,10
25,0 20,0 15,0 14,5 Korea-Chile US-Chile FTA 15,1 Import Market Share by Countries in Chile China-Chile FTA 15,8 16,0 17,0 19,4 18,7 17,6 2011 Japan earthquake 21,0 15,7 16,11 22,0 17,7 (unit : % share) 20,8 20,4 13,3 10,0 11,4 12,0 10,0 8,3 8,5 5,0 7,3 7,2 64 6,4 5,6 5,6 4,7 3,0 3,1 3,6 3,9 3,5 3,6 3,3 0,0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source : Global Trade Atlas 19,3 20,0
(%) 80 Import Market Share of Chilean Products in Korea 74,1 2003 2014 64,5 60 54,9 52,1 54,1 40 38,4 20 25,8 20,7 21,2 19,2 0 Copper ore Refined copper 0,0 Unrefined copper 8,3 Chemical wood pulp Molybdenum ore 4,3 5,7 3,4 0,1 Wood sawn Zinc ore Copper wire Source: KITA.net (K-stat)
(Unit) 1600 1400 Number of Trade Items between Korea-Chile No. of export items No. of import items 1372 1304 1255 1471 1507 1562 1200 1000 938 985 1066 1035 1094 800 600 400 200 168 158 198 207 211 256 333 324 370 376 386 0 03 04 05 06 07 08 09 10 11 12 13 Source: KITA.net (K-stat)
The No. of Korean Export Companies to Chile (Unit) 2200 No. of exporting companies 1958 1986 2096 2000 No. of newly exporting companies 1800 1656 1600 1517 1400 1200 1109 1000 733 810 888 901 879 800 718 577 659 568 629 600 352 400 288 267 232 197 200 0 0 03 04 05 06 07 08 09 10 11 12 13 800 600 400 200 0 The No. of Korean Export Companies to Chile by Size 181 2003 2013 697 327 750 144 499 51 150 Source: KITA.net (K-stat)
03
Item : Passenger cars - HS 8703 Size : 3.2 bill dollar Average annual growth rate : 16.9% (2004-2014) - Tariff Rate: 0%(Since Apr. 2004, Liberalization at entry into force) - FTA with other countries: EU(Feb. 2003), USA(Jan. 2004), Japan(Sep. 2007) Market Share 2003 2014 (unit : %share) 16.1% 28.9% 29.5% 14.8% 28.9% 5.7% 11.4% 2.6% 9.0% 40,0 30,0 20,0 10,0 0,0 0,0 10,0 20,0 30,0 Source: Global Trade Atlas
Item : Cement clinkers - HS 252310 Size : 62.66 mill dollar Average annual growth rate : 29.1% (2004-2014) - Tariff Rate : 0%(since Apr. 2008) Chilean Cement Clinker Import Market (unit : mill USD) Market Share (unit : %share) 42,2 76,9 71,1 60,9 62,6 (Total) 57,9 (Chile) 92,5 4,9 12,1 21,4 17,7 28,9 32,1 37,1 Average annual growth rate: 47.6% 0 14,4 32,5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2003 2004 2009 2014 Source: Global Trade Atlas
Item : Wine HS 2204 Size : 182.22 mill dollar Average annual growth rate : 14.8% (2004-2014) - Tariff rate: 0% Chile jumped to the 2 nd importing source of Korea since 2004. - Chile was 5 th importing source before Korea-Chile FTA. - Preemption effect is shown compared to EU countries and the US. Market Share (unit : %) Rank Country 2003 2004 2011 2012 2013 2014 1 France 49.5 45.4 32.7 31.6 30.9 30.5 2 Chile 6.5 13.8 20.7 20.7 21.2 20.8 3 Italy 9.1 8.1 16.7 16.7 16.6 16.7 4 US 15.7 14.0 11.7 11.7 11.5 11.6 5 Spain 46 4.6 40 4.0 68 6.8 68 6.8 80 8.0 76 7.6 6 Australia 7.1 7.0 5.6 5.6 4.3 4.3 Source: KITA.net (K-stat)
Item : Shelled Walnut- HS 080232 Size : 147.3 mill dollar Average annual growth rate : 33.7% (2004-2014) - Import from Chile started from 2012 FTA tariff reduction schedule(%) 2010 2011 2012 2013 2014 2015 Chile 0 0 0 0 0 0 US 30 30 25 20 15 10 MFN 30 30 30 30 30 30 Korean Shelled walnut Import Market Size 0,2 (unit : mil. USD) 147,3 (Total) 02 0,2 112,6 117,4 0,1 Market Share US Chile Others (unit : % share) 0,2 18,0 0,1 15,11 13,33 (Chile) 26,5 97,0 81,8 0,0 2012 2013 2014 2003 2014 Source: KITA.net (K-stat)
Item : Frozen Salmon(Atlantic salmon and Danube salmon) HS 030313 Size : 71.9 mil. dollar Chile started mass cultivation from 2003 and increased export. Tariff rate of Chilean frozen salmon is 0%. - Korea-Chile FTA & Korea-EFTA FTA took effect respectively since Apr. 2004 & Sep. 2006. - Chile gained preemption effect. Korean Frozen Salmon Import from Chile Market Share in Korea 80 (unit : mill USD) Chile Norway (unit : % share) 60 40 25,5 39,9 52,8 (Chile) 48,5 51,5 32,7 67,3 26,5 73,5 20 0 2012 2013 2014 Source: KITA.net (K-stat) 2012 2013 2014
04
Chile EFTA ASEAN India EU Peru US Turkey 100,0 80,0 60,0 80,5 95,0 85,3 76,2 72,7 56,3 97,6 89,2 72,6 68,7 67,4 65,764,2 40,0 31,3 41,0 20,0 76 7,6 0,0 Source: Korea Customs Service (Dec. 2014) Korea Chile Chile Korea
Source: Korea Customs Service (Dec. 2014)
05
Cumulated Korean Investment to Chile amounted $84.1 million by 2003 has shown five fold increase to $414.7 million by the end of 2014. - Cumulated investment after Korea-Chile FTA is $330.6 mil. - Cumulated Investment in mining industry is the largest and its amount is $248.4 mil. (unit : mill. USD) 03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Subtotal Total No. of Acceptance Accepted Amount 3 3 5 9 12 4 7 4 12 16 15 13 100 160 15.3 1.8 3.3 4.9 30.3 2.7 6.1 39.9 146.0 36.9 14.8 43.9 330.6 414.7 Cumulated Chilean investment to Korea by the end of 2014 is $9.1 mil. - Cumulated Investment in distribution industry is the largest and its amounts is $7.5 mil. No. of Acceptance Accepted Amount (unit : mil.l USD) 03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Subtotal Total 0 1 2 1 0 0 4 2 2 0 0 1 13 13 0.0 0.0 7.3 0.2 0.0 0.0 1.1 0.1 0.1 0.0 0.0 0.2 9.1 9.1 Note: Subtotal(2004~2014), Total(~2014) Source: Ministry of Trade, Industry and Energy
Articles of iron or steel : 1,980 mill. USD (2014), 12.5% (2012-2014) Other machines and apparatus : 1,813 mill. USD (2014), 10.5% (2012-2014) Coniferous : 513 mill. USD (2014), 15.2% (2012-2014) Medical instruments : 173 mill. USD (2014), 13.0% (2012-2014) Structures and parts of iron or steel : 166 mill. USD (2014), 23.1% (2012-2014) Flat-rolled ll products of iron: 131 mill. USD (2014), 18.2% (2012-2014) Electric Lamps : 80 mill. USD (2014), 13.0% (2012-2014)