Go to contents

Prices of certain US, EU products unchanged despite FTAs

Prices of certain US, EU products unchanged despite FTAs

Posted April. 06, 2012 06:09,   

한국어

Prices of certain imports from Europe and the U.S. have remained the same despite tariff cuts from free trade agreements with both economic blocs, the Fair Trade Commission in Seoul said Thursday.

With American and EU companies raising export prices or domestic importers raking in profits from tariff cuts as distribution margins, Korean consumers are not fully benefitting from the accords.

The commission said it surveyed price trends of nine U.S. and nine European goods sold at Shinsegae Department Store and Kim`s Club in Seoul’s Gangnam district, and found that 11 of them saw no price fall. Commission chief Kim Dong-soo also joined the inspection team.

The prices of six European products such as Braun electric toothbrushes, Tefal irons and Fissler fry pans, whose tariffs were 8 percent, never changed though they are non-tariff items. The price of Phillips shavers fell 3-5 percent but the cut failed to match tariff reduction.

The situation is the same for alcoholic beverages and juice. The prices of the European whiskey brand Ballantine`s 17 Year Old and the American beer Miller have stayed the same, though the tariff for the whiskey fell 5 percentage points and that of Miller dropped 4.3 percentage points.

Grape and orange juice made by Welch`s of the U.S. sold at the same price before the free trade deals took effect despite not being subject to tariffs. Before the agreement with the U.S. took effect, their tariffs were 45 to 54 percent.

Nongshim, the importer of Welch`s juice, cut its factory prices 8 percent the same day after the announcement by the anti-trust watchdog.

Certain foods also saw their prices fell more sharply than tariff cuts. Tariffs on American oranges dropped 20 percentage points and their prices fell 25 percent.



weappon@donga.com constant25@donga.com