Implications of the South Korea-U.S. Free Trade Agreement on South Korean Dairy Product Imports.

This study empirically estimates the South Korean short-run and long-run import demand parameters for source-based dairy products and assess the impacts of the KORUS FTA on dairy product trade. These estimates were derived using a Central Bureau of Statistics (CBS) demand system. The impact of the tariff reductions associated with the free trade agreement was calculated. Based on the results, it appears that the free trade agreements open up the South Korean dairy product markets primarily by reducing prices which in turn increases competition among possible suppliers and results in an overall expansion of dairy product imports