The purpose of this paper is to seek a breakthrough for the Korea-EU FTA negotiation inagriculture which started last year, but has not made much progress yet. The EU has been askingKorea to open its agricultural market to the same extent that was agreed upon in Korea’s free tradeagreement...

South Korea uses a quota and a tariff on beef imports to keep farm prices high. Part of the quota rents are used to support indirect benefits to producers. The welfare costs of these policies are analyzed. Following a suggestion of Hayami, a deficiency payment financed by tariff revenues from...