WT/REG452/M/1  
 
17 October  2022 
(22-7776) Page: 1/3 
Committee on Regional Trade Agreements  
Hundred and Fourth  Session    
 
 
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND  
THE REPUBLICS OF CENTRAL AMERICA   
(GOODS AND SERVICES)  
NOTE ON THE MEETING OF  22 SEPTEMBER 2022 
Chairm an: Ambassador H.E. Mr. Taeho LEE (Republic of Korea ) 
1.1.  The 10 4th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the 
"Committee") was convened in Airgram WTO/AIR/RTA/ 29/Rev.1  dated 12 September  2022.  
1.2.  Under Agenda Item F.VI of the Session, the CRTA considered the  Free Trade Agreement 
between  the Republic of Korea and the Republics of Central America , goods and services (hereinafter 
"the Agreement"). The Chairman  stated that the factual presentation had been prepared by the 
Secretariat on its own responsibility in full consultation with the Parties, in accordance with 
paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document 
WT/L/671).  
1.3.  The Chairman  recalled  that the Agreement had entered into force on 1 October 2019 for Korea 
with Honduras and Nicaragua; on 1 Novemb er 2019 for Costa Rica and Korea; on 1  January 2020 
for El Salvador and Korea; and finally on 1 March 2021 for Panama and Korea. The Agreement  had 
been notified to the WTO by the Parties on 15 April 2021 under Articles XXIV:7(a) of the GATT  1994 
and V:7 of  the GATS, as establishing a free trade area for trade in goods and services, within the 
meaning of Articles XXIV of GATT 1994 and V of the GATS, respectively (document  WT/REG452/N/1 - 
S/C/N/1054). The text of the Agreement, together with its Annexes, was available on Parties' official 
websites and in the WTO RTAs database.  The factual presentation, document  WT/REG452/1, and 
questions and replies, document WT/REG452/2, ha d been distributed.  
1.4.  The representative of the Republic of Korea  said that the  Agreement  had entered into force for 
Nicaragua and Honduras on 1 October 2019, for Costa Rica on 1 November 2019, for El Salvador on 
1 January 2020, and for Panama on 1 March 2022.  
1.5.  As a comprehensive and high -standard  FTA, the Agreement had provide d for further market 
access by eliminating import duties and liberalizing trade in services.  
1.6.  In the area of goods , nearly all products , over 95% of tariff lines concerning  all the Parties , 
had been  liberalized and at the end of the implementation period, a ll tariffs on industrial goods would  
be eliminated. Agricultural products would  be fully liberalized, except for certain products such as 
rice, over a maximum of twenty years.  
1.7.  Korea's investment in the five Central America n countries had  skyrocketed by 40 2% in 2021 
compar ed to 2018 . In the year prior to  the entry into force  of the Agreement , the investments had 
grown  by 23% . 
1.8.  He stated that the Agreement was a great model of a win-win FTA enhancing the economies 
of the Parties  by further boosting exports  and while encouraging  more investment.  WT/REG452/M/1  
 
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  1.9.  With regard to services and investment, the Agreement had adopted a level of market opening 
for services and investment tha t was higher than  the GATS and it was highly likely that improved  
concessions on services would result in expansion of investment under the Agreement.  
1.10.   In closing, the representative of Korea hoped  that the session would help  further to facilitate 
the WTO 's Transparency Mechanism by enhancing Members ' understanding of the Agreement . He 
expressed his appreciation  to all concerned Members  – especially Canada, Mexico, Brazil, and the 
United States , who had sent their written questions before the session. He also thanked  the five  
Central America n Parties  for their close cooperation in the process of preparing the factual 
presentation on the Agreement .  
1.11.   The representative of Costa Rica speaking on behalf of the Republics of Central America  
thanked the Committee for  the opportunity to present  the Agreement  with Korea and the other 
Central American countries that were Parties to the Agreement. She thanked  the WTO Secretariat 
for the factual presentation and her colleagues from  Korea and Central America for the preparatory 
work for th e discussion.  
1.12.   She stated that such a greements, based on WTO disciplines,  promot ed economic growth and 
market efficiency, and  complement ed multilateral trade liberalization.  Negotiations for th e 
Agreement  had aimed to establish an instrument that would contribute to the Parties'  trade policy 
objectives, advance the ir development strategies and promote sustainable economic growth through 
more job creation opportunities, stronger productive capacities a nd improvement of living standards .  
1.13.   Negotiations had begun  in 2015  and the Agreement  had entered into force in October 2019 
for Honduras and Nicaragua, in November 2019 for Costa Rica, in January 2020 for El Salvador and 
in March 2021 for Panama. The Part ies had notified the Committee on Regional Trade Agreements  
on 15 April 2021. The regulatory framework of th e Agreement  had been  based on the fundamental 
principles of the multilateral trading system, namely, national and most-favoured -nation (MFN) 
treatme nt and transparency.  
1.14.   The Agreement  consist ed of 24 chapters and their respective annexes, and cover ed aspects 
relating to trade in goods as well as trade in services and investment. It also include d provisions on 
rules of origin and related operational pro cedures, customs procedures, sanitary and phytosanitary 
measures, and technical barriers to trade.  
1.15.   On market access, it was important to mention that the Agreement  applie d bilaterally. 
However, preferential tariff treatment had been  agreed for all origina ting products through the 
establishment of 15 staging categories, as well as tariff rate quotas for some products. These 
categories cover ed the immediate elimination of tariffs, staged reductions over periods ranging from 
3 years to 19 years, and exclusion s.  
1.16.   Regarding the trade relationship between the signatory countries of th e Agreement  Central 
American exports to Korea had increased in recent years from almost USD  94 million in 2018, one 
year before the Agreement  had entered into force, to USD  641 million in  2021. The main products 
exported from Central America in 2021 had been  copper ores and concentrates; sugar; unroasted , 
non-decaffeinated coffee; infusion apparatus; and lead ores and concentrates. These top five 
products had accounted for 88% of total goods exported from Central America to Korea. Goods 
imported by Central America from Korea had also grown  during the same  period from USD  791 
million in 2018 to USD  890 million in 2021. The top five Korean products imported by Central 
America account ed for 41% of imports. The y were motor cars and other motor vehicles , principally 
designed for the transport of persons, flat -rolled products of other alloy steel, vehicles for the 
transport of goods and diagnostic reagents.  
1.17.   The Agreement  had brought benefits for the Parties by, for example, stimulating trade 
expansion and diversification through the opportunities it had create d, promoting fully competitive 
conditions, removing barriers to trade reciprocally, facilitating cross -border movement of goods and 
services, increasing investment opportunities in all countries, and establishing a framework for 
bilateral, regional and multi lateral cooperation. It had also served as tool to open up non -traditional 
markets for Central America.  WT/REG452/M/1  
 
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  1.18.   The first meeting of the Free Trade Commission had been  held in September  2021, with a 
view to ensuring the effective administration and implementation  of the Agreement . At that meeting, 
trade developments had been  presented, the accession of a third country had been  discussed and 
two decisions had been  adopted : one on the operating plan of the sub -committees and working 
groups; and the other  on the rule s of procedure of the Joint Committee.  
1.19.   The representative of Costa Rica thanked  the Chairman  for allowing her to present the 
Agreement  between Central  America and Korea, an instrument which, in almost three years since 
its entry into force, had helped to p romote trade opportunities among the Parties . Lastly, she 
thank ed all the delegations that had submitted questions prior to th e meeting and indicated that the 
Central American Parties remained  at the Committee's disposal to answer any questions that 
Member s might have in relation to th e Agreement.  
1.20.   The Chairman  opened the floor for comments by Members.  
1.21.   The representative of the European Union  thanked the Parties for the presentation of the 
Agreement. She had taken due note of the measures in the Agreement and of the willingness of the 
Parties to build an agreement based upon and comple menting the principle s of the multilateral 
trading system. She also thanked the m for the details they had provided on the impact of the 
Agreement on trade between the Parties. She wished them a fruitful implementation of the 
Agreement.  
1.22.   The representative of the United States  thanked the Parties for the transparen cy of their 
notification and for their written responses to questions as well as for their informative presentations. 
The United States in particular commended the Parties for their attention to the issue of labour rights 
in the Agreement  especially  provis ions protecting against the derogation of labour laws. This was a 
critical provision on the protection of labour rights  and an encouragement to the virtuous circle 
between trade and sustainable development. He thanked the Parties for the transparency shown . 
1.23.   The representative of Canada  thanked the Parties for their efforts to bring th e transparency 
process to a fruitful conclusion for their regional trade agreement.  
1.24.   The representative of Japan  thanked the Parties for their comprehensive and informative 
presentations. He also thanked the Secretariat for its efforts in preparing the factual presentations 
and wished the Parties success in the implementation of the Agreement. Japan belie ved that they 
would further strengthen the multilateral trading system.  
1.25.   The Chairman  noted that the consideration of the Free Trade Agreement between the Republic 
of Korea and the Republics of Central America (Costa Rica, El Salvador, Honduras, Nicaragua and 
Panama), Goods and Services,  has allowed the Committee  to clarify a numbe r of questions and 
conclude oral discussion of this RTA in accordance with paragraph 11 of the Transparency 
Mechanism . Any delegations wishing to ask follow -up questions were invited to forward submissions 
in writing to the Secretariat by 29 September 2022  and the Parties were asked to submit replies in 
writing by no later than 13 October 2022. In accordance with paragraph 13 of the Transparency 
Mechanism all written submissions, as well as the minutes of the meeting would be circulated 
promptly, in all WTO  official languages, and made available on the WTO website.   
1.26.   The Committee took note  of the comments made.  
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