[Indiscriminate TRQ·Quota Tariff] Indiscriminately applied to sensitive items such as onions and garlic… Only targeting farmers
Starting in 2022, a ‘tariff quota (TRQ) warning’ has been issued to farmers. This is because the TRQ volume of sensitive items such as onions and garlic has stretched like a rubber band. TRQ is a system that applies low tariffs to a certain amount of 63 items stipulated by the World Trade Organization (WTO) and Free Trade Agreements (FTAs).
The initial purpose of the introduction of the WTO, when it was launched, was to focus on protecting farmers. The TRQ volume was set in advance in anticipation of damage to domestic agriculture due to imported agricultural products, and any volume exceeding this volume was managed by imposing high tariffs. The regulation that items with high domestic self-sufficiency should be bid on while avoiding major export periods is evidence of this.
Now, 30 years after the launch of the WTO, TRQ is being haphazardly mobilized for the import of so-called ‘sensitive items’ with active domestic production. The basic TRQ volume for onions is 26,450 tons, but in 2023, it increased by 340% to 90,000 tons. Onions are subject to a 135% tariff in principle, but a 50% low tariff is imposed when TRQ is applied. If you import more than the amount set by the WTO, you must impose a higher tariff, but you can additionally allocate goods and quantities by the Ministry of Strategy and Finance Ordinance.
‘Quota tariffs’ have also become a system that threatens farmers like TRQs. Quota tariffs were mainly applied to raw grains, urea, and pesticide raw materials until 2010 to reduce the burden of agricultural management costs. However, they became a target of farmers’ caution due to the ‘gold cabbage’ controversy that broke out in 2010. The government imported cabbage at a low tariff using quota tariffs under the pretext of price stabilization.
The number of agricultural and food products subject to quota tariffs increased from 35 in 2022 to 67 as of the first half of 2024. In 2024, cabbage, carrots, cabbage, and grapes, which had not been subject to quota tariffs for the past 10 years, were included in the target items.
The situation where ‘TRQ’ and ‘quota tariffs’ are imposed simultaneously is also frequent. The number of such items increased from 10 in 2021 to 15 last year.
According to data obtained by this newspaper from Democratic Party of Korea member Ahn Ho-young (Jeonbuk Wanju, Jinan, Muju) and member Im Mi-ae (proportional representation), simultaneous application is applied to onions, fruits, etc.