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  • KITA Held '2019 Trade Environment Outlook and Countermeasure Strategy Seminar'
    2019-01-02 hit 897

    KITA Held '2019 Trade Environment Outlook and Countermeasure Strategy Seminar'

     

    - Trade tension is expected to continue Need to prepare for short to long-term strategies -

     

    The Korea International Trade Association (Chairman, Kim Young-joo) held '2019 Trade Environment Outlook and Countermeasure Strategy Seminar' at the Trade Tower in Samseong-dong on December 13.

      

    In this seminar, next years major trade issues such as the global trade environment outlook for 2019, the implications of the US-Canada-Mexico agreement (USMCA), forecasts for major industries such as steel, automobiles, electronics and IT, and the direction of the government's trade policy and the countermeasure strategies of Korean companies were discussed.

     

    Vice Chairman Han Jin-hyun of the Korea International Trade Association said in his opening speech, "The achievement of 600 billion dollars in exports this year is based on the sweat and efforts that Korean corporations made under the movement of trade protectionism in the world. He stressed, "The trade environment will not be favorable next year. However, the Korea International Trade Association will actively play the roles as a navigator of trade and a bridge between the government and business in order to overcome the difficulties."

      

    Gang, Gam-chan, general manager of the trade policy department of the Ministry of Trade, Industry and Energy, said, "The government will actively respond to overcome trade protectionism and discussion on new trade order, while strengthening the foundation to advance into overseas markets by expanding the free trade agreement (FTA) networks." He added, "We will actively support companies to expand their export markets with the New Southern and Northern Policies and to diversify their export portfolios to promising new industries and consumer goods."

      

    Professor Ahn Duk-geun of the Graduate School of International Studies at Seoul National University said, "It is likely that the US-China trade conflict will continue in 2019, and the uncertainties over trade negotiations of major countries are growing. Therefore, Korean industries flexible responses are required.  

      

    Professor Choi Byung-il of Ewha Womans University's International Graduate School made a presentation on the USMCA, said, USMCA, the newly revised North American Free Trade Agreement (NAFTA), is a US-led management trade agreement that puts pressure on its partners abusing its power. The professor expressed the concern by stating, "The exchange rate clause, which has been included in the agreement for the first time in the history of trade agreements, and the clause for thorough checks against China mean that the trade tension from in the United States is serious.

      

    Park Chun-il, the head of KITA's Center for Trade Studies and Cooperation, said, "In order to minimize the damage caused by the measures of trade protectionism in the short term, Korean companies must reflect the conditions for risk sharing when signing a contract and manage the relations with the buyers more thoroughly than usual. He stressed, "In the mid-to long-term perspective, Korean companies need to diversify their export markets considering that the uncertain trade environment, such as US-China conflict, will continue, and exert efforts to expand internal workforce and enhance the employees professionalism to respond to the trade within the organization.

      

      

     

    Lee Yoon Hee, Vice President of POSRI, said, "There is a possibility that the export volume of Korean steel will drop sharply to 30 million tons or less next year depending on the scope and intensity of US sanctions against China. She added, It is necessary to work on the long-term plans as well as contingency plans, to be prepared for the world economic recession due to the US-China trade war.

     

    Kim Tae-nyun, director of the Korea Automobile Manufacturers Association, said, Global auto demand is forecast to grow only 1.2 percent owing to the delayed global economic recovery. Moreover, the external environment does not seem to be favorable due to the possibility of imposing tariffs under the section 232 in the United States and the political and economic uncertainties and exchange rate fluctuations in developing countries, stricter import restrictions in major countries, and Brexit. He advised In order to increase the exports of automobiles, it is required to sign new free trade agreements with the UK, the Middle East and Africa, and have strategic partnership with global automobile industries for the future automotive industry and expand investment.

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