WT/REG287/4  
 
19 May 2020 
(20-3729) Page: 1/5 
Committee on Regional Trade Agreements  Original: English  
 
FREE TRADE AGREEMENT BETWEEN THE ASSOCIATION OF S OUTHEAST ASIAN NATIO NS 
(ASEAN) AND THE REPUBLIC OF KOREA  (GOODS)  
QUESTIONS AND REPLIE S 
 The following communication, dated 4 May 2020, is being circulated at the request of the 
delegations of the Republic of Korea, and ASEAN (Brunei Darussalam, Cambodia, Indonesia, 
Lao People's Democratic Republic, Malaysia, Myanmar, Philip pines, Singapore, Thailand, 
and Viet Nam).  
 
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Questions from the delegation of Brazil  
 
Trade environment  
 
1.1.  Are there any plans to renegotiate the FTA in order to broaden its extent? Could there 
be, eventually, provisions on competition and on consumer protection?  
Joint response from the Parties  
 
 No discussions have been made regarding renegotiations. However, the  negotiations for 
further liberalization  were launched in August 2016, and are currently underway.  
 
General provisions  
 
1.2.  Paragraph 3.2 states that "there have been no discussions on non -tariff barriers at 
the meetings of the Implementing Committee". In this regard, has any issue related to 
non-tariff barriers ever been identified by the Parties? If so, how did the Parties address 
the issue, given the fact that the Working Group on TBT and S PS has been inactive for the 
last few years?  
Joint response from the Parties  
 
Issues on non -tariff barriers may also be raised to the AKFTA Implementing Committee.  
 
Liberalization of trade and tariff lines  
 
1.3.  Could the Parties specify the tariff lines and t he total trade subject to tariff -rate 
quotas as well as the tariff elimination and reduction commitments agreed to these lines 
and trade?  
Joint response from the Parties  
 
 The tariff elimination and reduction commitments of TRQs lines can be accessed from this link 
https://asean.org/storage/2012/05/Consolidated -Appendix -to-Annex -1-and-2.zip 
 
 
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  1.4.  Could the Parties confirm that the "Remain dutiable" category includes those tariff 
lines subject to duty -free in -quota rates, but which remain with an out -of-quota duty? 
Regarding trade verified in these tariff lines, is it computed in the "Remain dutiable" as 
well?  
Joint response from the Parties  
 
 Tariff lines and  trade subject to duty -free in -quota rates but which remain with an out -of-
quota duty are included  in the "Remain dutiable " category.  
 
Rules of origin  
 
1.5.  With reference to "Rules 4, 5, 6 or 7" mentioned in paragraph 3.36, are these rules 
the Product Specific Rules for the Chapter?  
Joint response from the Parties  
 
 Rules 4 and 5 refer to the General Rule and  Product Specific Rules, respectively. Rules 6 and 
7 are provisions on Treatment for Certain Goods and Accumulation, respectively.  
 
1.6.  With reference to "Rule 6" mentioned in paragraph 3.37, would it be possible to 
clarify:  
a) What goods are covered by the list agreed between the Parties?  
 
Joint response from the Parties  
 
 The list covers 100 Products (6 digit  code under HS), including textiles, clothing and plastic, 
etc., between Korea and each ASEAN member State. 
 
b) What were the criteria used to classify those goods as originating, taking into 
account that "they have been produced outside the territories of th e Parties"?  
 
Joint response from the Parties  
 
 As an example, the value of non -originating material is required to not exceed 40% of the 
FOB price of the final good, which is stricter than the general criteria.  
 
i. value of non -originating inputs does not exc eed 40% of the FOB value of the goods; 
and  
ii. value of originating materials exported from a Party is not less than 60% of total value 
of materials used in manufacturing the final good. Moreover, the goods after being 
reimported to the exporting Party will n ot undergo any process beyond operations.  
c) Do the Parties consider these criteria technically compatible with other origin 
criteria provided for in the agreement? If so, why?  
 
Joint response from the Parties  
 
 The criteria are compatible with other origin criteria, as it applies to certain products 
(i) covered by the list and, (ii) re -imported from a limited number of qualifying areas.  
 
1.7.  With reference to paragraph 3.39, would it be possible to clarify:  
a) Is the certificate of origin filled in by the ex porter or is it issued by a government 
office and/or its authorized representative? If the second method is adopted, are 
the Parties considering the possibility of adopting only the self -certification 
method?  
 
b) Do all Parties in the agreement adopt the same method? If not, please describe 
each party's method of certification.  WT/REG287/4  
 
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  Joint response from the Parties  
 
 The Certificate of Origin is issued by the government office and/or its authorized 
representatives. All Parties adopt this method. The possibility of adopting self -certification method 
may be considered at the ASEAN -Korea Sub -Committee on Rules of Origin in the future.  
  
1.8.  With reference to the Korea -ASEAN Rules of Origin Committee mentioned in 
paragraph 3.40, would it be possible to clarify:  
a) When has this Committee met?  
 
Joint response from the Parties  
 
 The Sub -committee on tariffs and rules of origin (AKSTROO) has been held once or twice a 
year since the AKFTA took effect . The most recent meeting was held in February 2019.  
 
b) Is this Committee also in charge of reviewing the Product Specific Rules? If it is, 
has any review been carried out since the agreement was signed?  
 
Joint response from the Parties  
 
 The Sub -Committee is responsible for the PSR review, and  has implemented PSR HS 
transformation.  
 
Global safeguards  
 
1.9.  Why there are no WTO -plus provisions regarding global safeguards?  
Joint response from the Parties  
 
 The content of Article 9 of the TIG Agreement (Safeguard Measures) is the outcome of 
negotiations.  
 
1.10.   Why there are no provisions on the exclusion of a Party, within some conditions, 
from global safeguard measures applied by the other Party?  
Joint response from the Parties  
 
 The content of  Article 9 of the TIG Agreement (Safeguard Measures) is the outcomes during 
the negotiations.  
 
Bilateral safeguards  
 
1.11.   Regarding the criteria set forth in paragraph 3.48 for the application of bilateral 
safeguards, could the Parties explain the investigation methodology for the assessment 
of the causal link be tween tariff concessions in the context of the FTA and the surge of 
imports?  
Joint response from the Parties  
 
 The investigation methodology of the AKFTA follows the provisions of the WTO Safeguard 
Agreement.  
 
1.12.   Could the Parties provide an example of an unf oreseen development that could 
cause a surge in preferential imports?  
Joint response from the Parties  
 
 Since the entry into force of the Agreement on 1 June 2007, Parties have not used safeguard 
measures under AKFTA . 
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  1.13.   Is there a definition for the concept of substantiality, in the context of the causation 
of serious injury? How will the Parties determine that a given factor is a substantial cause 
of injury?  
Joint response from the Parties  
 
 According to para graph  6 of Article 9 (Safeguard Measures),  the Parties shall adopt the rules 
for the application of safeguard measures as provided under the WTO Agreement on Safeguards .  
 
1.14.   Why there are no provisions on bilateral agricultural safeguards?  
Joint response from the Parties  
 
 The content of Article 9 of the TIG Agreement (Safeguard Measures) is the outcomes during 
the negotiations.  
 
1.15.   Is it possible for ASEAN to apply and/or to suffer bilateral safeguard measures as 
a block?  
Joint response from the Parties  
 
 It is not possible because under the  agreement ASEAN Member States are treated separately 
as a party, and ASEAN in itself is not a party to the agreement.  
 
1.16.   Why did the Parties choose to establish a duration period for the measure of 3+1 
(three years, that can be extended up to one year)?  
Joint response from the Parties  
 
 The content of Article 9 of the TIG Agreement (Safeguard Measures) is the outcomes during 
the negotiations.  
 
Anti-dumping and countervailing measures  
 
1.17.   Why are there no WTO -plus provisions with regard to  anti-dumping and 
countervailing measures?  
 The content of Article 9 of the TIG Agreement (Safeguard Measures) is the outcomes during 
the negotiations. However, Parties agreed to use WTO AD and CVD to resolve the issues if any.  
 
Questions from the delegation of the United States  
 
1.18.   Paragraph 2.4, Characteristics of the Agreement:  Chapter 1, Article 2(c) of the 
Korea -ASEAN Agreement states, "special and differential treatment is accorded to ASEAN 
members States additional flexibility  is accorded to new ASEAN member States. " 
a. Please define the criteria used to differentiate among ASEAN member States to 
identify those Members eligible for special and differential treatment (S&D).  
Joint response from the Parties  
 
ASEAN Member States who are eligible for special and differential treatment are mentioned in 
the Framework Agreement on Comprehensive Economic Cooperation Among ASEAN and Korea. 
Below is the excerpt from the Agreement that relates to the S&D  
 
RECALLING the decision made at the Ko rea-ASEAN Summit held on 30 November 2004 at 
Vientiane, the Lao People's Democratic Republic, by the Joint Declaration on Comprehensive 
Cooperation Partnership between Korea and ASEAN, to establish a Korea -ASEAN Free Trade Area at 
an earliest stage with sp ecial and differential treatment and additional flexibility for the new ASEAN 
Member Countries of the Kingdom of Cambodia, the Lao People's Democratic Republic, the Union of 
Myanmar and the Socialist Republic of Vietnam;  WT/REG287/4  
 
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  b. Please identify those commitments eligible for S&D.  
Joint response from the Parties  
 
 AMS with S&D and additional flexibility are given longer phase out period for tariff liberalization 
of products under the normal and sensitive tracks.  
 
c. Please identify the ASEAN member States eligible for S&D.  
Joint response from the Parties  
 
 Kingdom of Cambodia, the Lao People's Democratic Republic, Republic of the Union of 
Myanmar and the Socialist Republic of Viet Nam.  
 
1.19.   How does the Agreement define "additional flexibility "? 
Joint response from the Parties  
 
 The provision of flexibility is defined at the Framework Agreement on Comprehensive 
Economic Cooperation among ASEAN and Korea. Below is the excerpt from Article 1.3 (d) of the 
Agreement.  
 
 provision of flexibility to the Parti es in the Korea -ASEAN FTA negotiations to address their 
sensitive areas in the goods, services and investment sectors with such flexibility to be 
negotiated and mutually agreed based on the principle of reciprocity and mutual benefits . 
 
a. Is the "additional flexibility " permanent?  
Joint response from the Parties  
 
The provision of flexibility is negotiated and mutually agreed based on the principle of 
reciprocity and mutual benefits . 
 
1.20.   Paragraph 4.17, Government Procurement : Why did the Parties choose not to 
include a chapter on Government Procurement in this Agreement?  
Joint response from the Parties  
 
 The areas and coverage of the AKFTA were the result of negotiated outcomes during the 
negotiations.  
 
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