I. Macroeconomic Environment and Trade Risk Analysis

In agricultural and food trade, sanitary and phytosanitary measures (SPS), technical barriers to trade (TBT), residue tolerance levels (MRLs), and country of origin labeling determine real competitiveness, rather than tariffs. Climate change, logistics, exchange rates, and the cycle of food safety regulation revisions are key variables. Processed foods are subject to regulations on sugar, oil, and additives, nutritional and allergen labeling, and packaging and recycling.

 

Risk factors

2025-2026 Outlook

Influence (1~5)

Implications

Climate and crop fluctuationsShort-term supply and demand instability of certain items4Multilateral procurement and long-term offtake
Strengthening SPS and MRLRaising the standards for residual and microbial substances5GAP·HACCP·Test Report System
Labeling and Nutrition Facts RegulationsExpanding nutrition and allergen obligations4Pre-review of formula and label is required
TRQ·Seasonal TariffDifferences by item and season3FTA quota and seasonal strategy in parallel
Exchange rates and faresModerate volatility2CIF/FOB redesign and insurance optimization
Ⅱ. FTA Utilization Rate and Corporate Practice Statistics

Raw agricultural products are significantly affected by tariff rate quotas (TRQs) and seasonal tariffs , while processed foods can be eroded by ingredient, additive, and labeling requirements . The country of origin determination standard (PSR) is applied in a mixed manner, with both CTH and RVC depending on the processing process . For small and medium-sized exporters, certification of origin, label translation, and ingredient verification are practical bottlenecks.

Classification (example HS)

FTA applicability (trend)

Major challenges

Management Points

Grain and raw materials (HS10/07/08)TRQ and seasonal tariffs have a significant impactQuarantine, Sanitation, and MRLPre-consultation on GAP and quarantine at production sites
Dairy processing (HS04)Agreement rate effect↑Fat, protein, and lactose regulationsHACCP, Labeling, and Refrigerated Logistics
Fisheries and processed meat (HS16)Determination of origin and composition ratioAllergens/AdditivesPrepare recipe, COA, and process diagram
Processed foods (HS19/20/21)RVC/CTH mixedNutrition, Labeling, and Advertising RegulationsFormula and Label Compliance
III. Matrix of Comparison of Tariffs and Non-Tariffs by Country

In developed markets (the US, EU, and Japan) , SPS/TBT, nutritional labeling, and packaging regulations are more important than tariffs . In emerging markets (ASEAN, the Middle East, and Latin America), MFN, quarantine procedures, and halal/local certification are significant variables.

market

Representative items

Tariff (trend)

When FTA is applied

Non-tariff barriers (example)

Comments

USAProcessed foods and dairy productsLow to medium rateTariff reduction/expansionFDA·Nutrition Facts·FSVPPre-customs clearance and factory registration are required.
EUFruits and vegetables/processed foodsLow to medium ratecut/quarterEFSA·Allergen·Labeling in multiple languagesStrict MRL and additive regulations
japanFisheries and processed foodslow rateWidespread cutsJAS·Label·HygieneThe agreement's effects are felt to be significant.
ASEANGrains and processed foodsMedium rateRCEP/Bilateral ReductionQuarantine, Halal, and Local StandardsLarge deviations in customs clearance procedures

Note: Actual tax rates and requirements may vary depending on HS subheadings, ingredients, season, and quotas. Pre-HTS assessment and label sample approval are recommended.

Ⅳ. ESG·CBAM

While agricultural products are not directly subject to CBAM, regulations on packaging (plastic and aluminum), electricity and water use, and waste disposal will be reflected in costs. Sustainability certifications (organic, animal welfare, MSC/ASC) and plastic reduction and recycling obligations will be expanded.

System/Issue

Core requirements

Influence (1~5)

react

Packaging and Circular EconomyRecycling, r-content, and labels4Lightweighting and conversion to r-resin
Sustainability CertificationOrganic, eco-friendly, animal welfare3Building a Certification Portfolio
Water/Waste ManagementProcess, Cleaning, and Box3WUR·LCA data digitization
Carbon and EnergyIndirect Emissions Management2Improved renewable power and refrigeration efficiency
V. Investment and Supply Chain Transition Scenario

Korea: Premium Processed Foods (Drying, Fermentation, HMR), K-Food Brands, Ready-to-Cook/Ready-to-Heat R&D Hub

US/EU: Localized manufacturing of K-source/vegan, gluten-free, and low-sugar products (optimized labeling and nutritional guidelines)

ASEAN: Raw Material Processing, Preprocessing, Freezing, and Canning Hub + RCEP Accumulation

Middle East: Halal-only lines and high-volume B2B formats

Ⅵ. AI-based 3-month export and import forecasts

Integrates news and policy sentiment (α), global sentiment (β), sector sentiment (λ), and price and logistics variables. Agricultural and food products are subject to short-term fluctuations due to significant seasonality and promotional effects, but there are signs of gradual improvement , particularly in processed foods and premium categories .

variable

Δ(%) or exponent

analysis

ΔExport_now+1.9Processed foods, HMR, and sauces are the driving force
ΔImport_now+1.2Strengthening imports of raw materials, additives, and packaging materials
ΔPrice_now+0.3Stable premium/specialty unit price
ΔSignal_now+0.025Regulatory compliance and positive brand demand
ΔFTAEffect+0.28TRQ, seasonal, and cumulative effects
Forecast_3M+0.45A gradual improvement is expected over the next three months.

Formula (summary): Forecast_3M = 0.5·ΔSignal + 0.3·ΔFTAEffect + 0.2·ΔPrice

VII. Policy Recommendations and System Improvement Roadmap

field

Suggestion

Executor

Expected effect

SPS/MRL supportTest, Quarantine, and Label Pre-Inspection VoucherMinistry of Agriculture, Food and Rural Affairs, Ministry of Food and Drug Safety, KOTRAReduced return and delay costs
FTA+TRQ operationSeasonal/Quarter-Based Distribution/Notification SystemCustoms Service and Trade AssociationIncreased perceived tariff effect
Labeling and Nutrition FactsMultilingual label templates and regulations databaseMinistry of Food and Drug Safety and Korea Export AssociationMitigating customs risks
digital tradeIngredients, SDS, and COA Data Transmission StandardsTrade authoritiesReduced document costs and faster customs clearance
Brand/GIGeographical Indications and K-Brand Joint MarketingLocal governments and export associationsMaintain premium pricing
Ⅷ. Summary of Conclusions

The effectiveness of FTAs ​​in agriculture and food processing is the sum of tariff reduction and SPS/TBT/labeling/TRQ operation .

Forecast_3M: +0.45 — Moderate improvement centered on processing and premiums, with pre-labeling and quarantine compliance driving profitability.

Recommended strategies: ① Pre-confirmation of HS, ingredients, and labels ② TRQ and seasonal strategies ③ GAP/HACCP/COA data lake ④ RCEP accumulation and localization in parallel.