[Asia Exclusive] Shin Seung-gwan, Director of the Institute for International Trade and Commerce, Issues 3 Warnings to Korean Companies

[Asia Economy Reporter Park Soyeon] Shin Seung-kwan, President of the Korea International Trade Association's International Trade and Commerce Research Institute, advised that Korean companies should actively prepare for the 'three major risks' including the novel coronavirus infection (COVID-19), protectionism, the U.S. presidential election, digital trade, and Brexit.

President Shin stated, "With the upcoming U.S. presidential election this year, there is a high possibility that trade issues will be politically utilized," and predicted that disputes surrounding the implementation of the U.S.-China Phase One agreement and trade agreements between the United States and the European Union (EU) will come to the forefront.

In particular, he expected that President Donald Trump would focus on implementing the U.S.-China Phase One trade agreement before the election and, if re-elected, would initiate Phase Two negotiations aimed at improving China's economic structure, including state-owned enterprises and subsidies.

He warned, "We must closely monitor the possibility that the U.S. will take issues such as state-owned enterprises and subsidies, which are part of the World Trade Organization (WTO) reform agenda, as negotiation topics with China or the European Union (EU) and lead the establishment of international trade norms that reflect U.S. interests in the future."

Regarding digital trade, he pointed out, "Although the institutional foundation for utilizing data has been established through the amendment of the 'Data 3 Laws,' there is no unified international trade norm governing digital trade, so legal uncertainties surrounding our IT industry persist."

President Shin further advised, "When our government participates in international discussions on digital trade norms, it should actively reflect the opinions of our industry and take a leading role to create balanced international norms that promote digital trade while protecting personal information."

Meanwhile, concerning Brexit, although the Korea-UK Free Trade Agreement (FTA) has been concluded to provide a minimum legal framework to avoid confusion, detailed practical issues have yet to be resolved. These include detailed procedures related to Authorized Economic Operators, rules of origin, the principle of direct transport, and certification.

President Shin advised companies to pay attention to these aspects. He also said, "Since a no-deal Brexit may occur, it is necessary to quickly assess the impact on companies due to changes in tariffs, customs clearance, and certification systems," and added, "Companies should prepare in advance for confusion caused by customs clearance delays."

This content was produced with the assistance of AI translation services.