Figure 4: Impact of China’s Accession on Leading Korean Export Industries

Sector	Actions by China Upon Accession	Probable Impact on Korea
Agriculture	–Reduce Import Restrictions by 24%	–Increase in Trade Volume –Increase in Disputes over SPS Standards
Textiles and Apparel	–Reduce Tariffs –Phase-out Export/Import Quotas and Non-tariff Trade Barriers by 2005 –Full Market Access by 2020	–Limited Impact –Increase Exports in Chemical Yarn Fiber –Increase China’s International Market Share and Korea’s Share in the United States
Petrochemicals	–Reduce Tariffs to Between 5-8% by 2005	–Increase in Exports of Ethylene, High and Low Density Polyethylene to China
Electronics	–Reduce Tariffs to 15%	–Increase in Multinational Corporations –Increase in Exports of Televisions, DVDs and LCDs
Telecommunications	–Increase Market Access	–Increase in Exports to China
Steel	–Reduce Tariffs to 8.07% –Reduce Import Quotas and Investment Restrictions	–Increase in Exports in Hot and Cold-Rolled Steel Products
Automobiles	–Reduce General Automotive Tariffs to 25% –Reduce Tariffs on Parts to 10% – Reduction in Non-Tariff Trade Barriers (i.e. tax system)	–Increase in Exports of Passenger-sized Cars, Motorcycles, and Parts –Increase in Global Competition

Sources: Kim Icksoo , China’s Accession into the WTO and its Multifaceted Impact on East Asia and the Korean Economy, (Seoul: KIEP, 1999) 181-218. Chun JaeWook and Park Sangsoo, “The Impact of China’s Market Enlargement on the Korean Economy” KIEP World Economy 12 (1999) 48-60.