Strategies for Korea-GCC FTA to Magnify Overseas Construction

Kim, Myeong-soo; 도태호; Junsok Yang

doi:10.15793/kspr.2011.70..001

In this study, we try to formulate a FTA negotiation strategy for the Korea-GCC FTA, to open up the GCC construction market to Korean construction companies. We look at what Korean negotiators should include in the Korea-GCC FTA provisions, based on the analyzed problems and the results of the Singapore-GCC FTA and the EFTA-GCC FTA negotiations. We conclude that firstiy provisions to guarantee transparency of the procurement process must be included, and the rights of Korean companies to question and request reviews of the procurement process must be guaranteed. Provisions which prohibit any requirements in the bidding requirements not directly related to fulfilling the conditions of the construction projects should be included in order to eliminate or reduce the requirements for foreign construction firms to hire local sponsors or agents. Offset requirements should also be restricted through the FTA. If such provisions are not possible, the negotiators should insist on an ombudsman system to mediate problems between Korean firms and local agents or sponsors. Also, GCC allows price preferences of 5~10% for suppliers from GCC countries. Korean negotiators should follow the lead of the Singapore-GCC FTA, and negotiate a matching price preference for Korean firms.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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