| Title |
Market effects analysis of when lowering the threshold value of construction services under WTO GPA |
| Authors |
Moon, Hyuk ; Kim, Myeong-Soo |
| Keywords |
WTO ; FTA ; GPA ; threshold value |
| Abstract |
Lowering threshold value of construction services is extremely sensitive issue to the small and medium enterprises in construction industry. Because it means opening the construction markets where the small and medium construction companies compete intensely. Nevertheless, it is absent that the analysis on the effect of opening the market lowering threshold value of construction services under Government Procurement Agreements or Free Trade Agreement. This research is to analyze the effects of lowering threshold value of construction service which have been agenda repeatedly in the international agreements such as WTO and FTA. The current threshold value of construction services of Korea under WTO GPA are 5million SDR where the government delivers and 15million SDR where the local government or the public institution deliver. However major parties to an entente such as USA and EU have been demanding to lower threshold value of 15 million SDR where the local government or the public institution deliver to 5million SDR. The analysis figure the effect of this lowering threshold value to be a market reduction by 2trillion Won as '07 fiscal year basis. This market shrinkage will effect to the small and medium construction companies in local considerably. |