Gyeonggi FTA 'Support for SMEs' Overseas Market Development'... Effectiveness of FTA Utilization

97% of Surveyed Companies 'Satisfied'... Province to Address 'Carbon Neutrality' Trade Issues Next Year

2021 Gyeonggi-do FTA Trade Promotion Team (ASEAN) Operation [Gyeonggi-do]

[Asia Economy Reporter Ra Young-cheol] Gyeonggi Province's 'FTA Utilization Support Project' has been shown to help small and medium-sized enterprises (SMEs) in Gyeonggi Province explore overseas markets amid the challenging trade environment caused by COVID-19.

According to the results of the '2021 Second Half FTA Support Project Satisfaction and FTA Utilization Rate Survey' announced by Gyeonggi Province on the 22nd, about 97% of the 593 respondent companies answered that they were 'satisfied.'

Among the six support projects, 100% of the respondent companies expressed satisfaction with ▲1:1 FTA consulting through company visits ▲pre-verification consulting of origin ▲FTA non-utilization consulting ▲comprehensive academy projects.

The number of companies participating in the '1:1 FTA consulting through company visits' increased by 20% to 751 companies compared to 621 companies last year. Among them, 47.8% were analyzed to have received focused support effects in the electrical/electronics and machinery industries.

Among the respondent companies, 64.3% utilized FTAs, an increase of 7.8% from 56.5% in the first half of this year, with the Korea-ASEAN agreement (31.4%) being the most frequently used.

The most anticipated FTA agreement was the 'Regional Comprehensive Economic Partnership (RCEP),' scheduled to take effect in February next year, with a response rate of 27.7%.

Since it is expected to include Korea, 10 ASEAN countries, Australia, New Zealand, Japan, and China, expectations are high.

Meanwhile, the Gyeonggi FTA Center has been supporting 'RCEP Authorized Exporter Acquisition Consulting' since the 9th.

Starting next year, an educational program on the 'carbon border tax,' currently being discussed in major export countries such as the U.S. and the EU, will be newly established to support SMEs in establishing export and management strategies.

Ryu Gwang-yeol, Director of the Gyeonggi Province Economic Office, said, "Next year, as the economy, which was stagnant due to the COVID-19 crisis, is expected to gradually recover, we will support more companies to utilize FTAs and develop various support projects to quickly respond to changes in the international trade environment such as ESG and carbon neutrality."

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