A Study of North Korean Foreign Trade
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概要
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As the North Korean economy deteriorates, the volume of exports in its foreign trade has been decreasing because of reduced availability of exportable products. The volume of imports, however, has shown some increases in some years since the imports include aid goods from abroad. In recent years, extreme deficits in its balance of trade have continued. China, the main trade partner, exported food and energy products to the North, but the price of energy has been increasing, and the quantities of food exported have severely fluctuated because of China�fs domestic food situation. Although China�fs investments in North Korea continue, they are for development of mineral products, and therefore, not directly contributing to the recovery of North Korean economy in general. The North�fs trade with South Korea includes contractual processing trade but with limited varieties in the items traded. Food products, including aid goods, are imported from the European Union (E.U.) and the United States (U.S.) as well. However, the North�fs refusal to accept WFP aid in 2004 may possibly cause a decrease in the quantity of food imports hereafter. Since North Korea�fs launch of missiles in July 2006, followed by a nuclear test in October 2006, it is highly probable that exports from both China and South Korea, primarily aid goods, will be substantially reduced. Therefore, a continued decreasing trend in its foreign trade will make it much more difficult for North Korea to get back on track to economic recovery
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