과수분야 소득보전직불·폐업지원사업

Abstract

The purpose of this study is present specific executional measures in order to logically process the decoupled income support and business closing support programs extended or resumed in line with ratification of the U.S.-Korea FTA. Under this study, we conducted surveys, interviews, advisory council meetings and conferences with specialists in pomiculture, and examined reasonability, validity and problems of the programs. Although the pest and disease control procedure for imported fruit from the U.S. is likely to prevent fruit imports from drastically escalating, some domestic products may experience unstable supply/demand balance if the trade conditions change faster than expected. Thus, we need to establish flexible countermeasures in advance. Currently, under the WTO/DDA regulations, the decoupled income support program falls into the Aggregate Measurement of Support (AMS) of the Amber Box, and the business closing support program into the structural adjustment assistance provided through investment aids of the Green Box. However, the Korean government is presently negotiating with DDA the programs to be allowed as the Green Box subsidies. In addition, individual farm unit subsidies for pomiculture will be carried out through 2012 or 2013, and be integrated into the farm unit decoupled income support program later in accordance with the Farm Unit Income Safety Net Promotion Plan going forward. The decoupled income support and business closing support programs have been revised to offer subsidies afterwards for products actually damaged by boosted imports upon effectuaion of the U.S.-Korea FTA, provided that: 1) the import volume of the supported products from the other FTA party increased beyond the standard import volume; and 2) gross receipts of the current year declined below the previous year. Subsidies from the decoupled income support program have been improved to a gross-receipts basis from a price basis in order to strengthen the program's gist of income insurance. In addition, the import damage insurance rate was raised to 85% from 80% in consideration of the domestic decoupled income support for rice production and the U.S. Trade Adjustment Assistance (TAA). Moreover, subsidies from the business closing support program have been switched to the three-year net profits basis from the three-year net income basis. The decoupled income support program provides payments for 7 years and the business closing support program for 5 years. We estimated required budgets for both programs. We multiplied the cultivation area for each product by the unit subsidy costs for the decoupled income support program to get W61.4bn for outdoor-cultured grapes and W13.9bn for Hallabong oranges. Assuming 3% of the cultivation area is closed for each product, the business closing support program is estimated to require W36.8bn for apples, W16.3bn for outdoor-cultured mandarins, and W24.7bn for outdoor-cultured grapes. Going forward, we must build a foundation to accurately and quickly evaluate statistical data relating to gross receipts, imports, exports, etc. of each product in order to effectively carry out the decoupled income support and business closing support programs. In addition, we need to examine a possibility of utilizing the agricultural monitoring system of Korea Agricultural Outlook & Information Center to predict statistics relating to the support programs. Furthermore, we need to build a broad and reliable database for farm household registration to efficiently execute the decoupled income support program for each farm household. To deliberate upon eligibility for the decoupled income support or business closing support program, the Deliberating Committee on Decoupled Income & Business Closing Support Programs for the U.S.-Korea FTA Pomiculture Sector (tentative title) must be organized and operated with members consisting of professionals from production organizations, academic or research institutes and representatives of relevant agencies. Marketing and press conferences should be locally hosted to clearly explain the programs, execution processes and support standards to managers at local autonomous organizations and relevant agencies, and provide education in order to reduce confusion and rapidly carry out administrative processes. Moreover, farm households suffering from imports under the U.S.-Korea FTA must be simultaneously assisted with technology and management consultation services, tax exemptions and development of alternative products if they close down their pomiculture business and switch to another business or production.