WT/REG367/2  
16 September 2016 
(16-4925) Page: 1/9 
Committee on Regional Trade Agreements  Original:  English/Spanish  
 
  FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND NEW ZEALAND  
(GOODS AND SERVICES)  
QUESTIONS AND REPLIES  
 The following communication, dated 7 September  2016, is being circulated at the request of 
the delegations of  the Republic of Korea and New Zeala nd. 
 
_______________  
 
 
Questions from the delegation of the European Union  
 
Provisions on trade in goods  
Sanitary and phytosanitary measures  
 
1.1.  Paragraph 3.35 : According to the Factual Presentation, the Parties affirm their 
existing rights and obligations in  accordance with the WTO Agreement on SPS.  
Could the Parties clarify whether the Agreement contains any WTO + elements in 
the SPS  provisions ? Should it be the case, could the Parties clearly identify the 
relevant  provisions?  
 
 Paragraphs 1,2,3,4 and 5 of A rticle 5.4 : Committee on Sanitary and Phytosanitary Matters  
 
 Paragraph 2 of Article 5.5 : The contact points shall exchange information regarding any 
significant, sustained or recurring pattern of non -compliance with a Party's sanitary and 
phytosanitary me asures…  
 
 Paragraph 3 of Article 5.5 : At the same time as notification is provided to the WTO in 
accordance with paragraph 6(a) of the SPS Agreement, a contact point shall notify provisional 
protection measures taken…  
 
 Paragraph 5 of Article 5.5 : The cont act points shall exchange information on any significant 
food safety issues, or changes in animal or plant life or health status, or any structural changes in 
competent authorities, or legal changes in the sanitary and phytosanitary system of each Party.  
 
Technical barriers to trade  
 
1.2.  According to the Factual Presentation, the Parties affirm their existing rights and 
obligations in accordance with the WTO TBT Agreement.  
a. Could the Parties clarify whether the Agreement contains any WTO + elements 
in the TBT  provisions ? Should it be the case, could the Parties clearly identify 
the relevant provisions?  
 Paragraph 3 of Article 6.5 : The Parties shall encourage cooperation in their participation in 
international standardizing bodies to ensure that international stan dards are trade facilitating and 
do not create unnecessary obstacles to international trade.  
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   Paragraph 2 of Article 6.6 : The Parties shall explain on request the reasons for not accepting 
a technical regulation as equivalent.  
 
 Paragraph 3 of Article 6.6 : The Parties shall give positive consideration to a request to 
negotiate arrangements for achieving equivalence of technical regulations.  
 
 Paragraph 4 of Article 6.6 : The Parties shall explain on request the reasons for not accepting 
a request to negotia te arrangements for achieving equivalence of technical regulations.  
 
 Paragraph 5 of Article 6.6 : The Parties shall strengthen communications and co -ordination, 
where appropriate, in the context of equivalence of technical regulations and related issues in  
international fora.  
 
 Paragraph 3 of Article 6.7 : The Parties shall intensify their exchange of information on 
acceptance mechanisms to facilitate the acceptance of conformity assessment results.  
 
 Paragraph 4 of Article 6.7 : The Parties shall explain on request the reasons for not accepting 
results of a conformity assessment procedure performed in the territory of the other Party.  
 
 Paragraph 6 of Article 6.7 : Each Party shall give positive consideration to a request by the 
other Party to negotiate arrang ements to facilitate acceptance of conformity 
assessment  procedures.  
 
 Paragraph 7 of Article 6.7 : Where a Party declines a request to negotiate arrangements to 
facilitate acceptance of conformity assessment procedures, it shall explain its reasons, on req uest. 
 
 Paragraph 2 of Article 6.9 : At the same time as it notifies WTO members of the proposal, the 
Party shall transmit the notification electronically to the other Party's enquiry point.  
 
 Paragraph 4 of Article 6.9 : Where goods are covered by an annex or an implementing 
arrangement to which Article 6.12 applies and a Party takes a measure to manage an urgent 
problem that it considers those goods may pose to health, safety or the environment, it shall 
notify the other Party immediately, through the conta ct points, of the measure and the reasons for 
the imposition of the measure.  
 
Article 6.11 : On request, a Party shall provide information pursuant to this Chapter in print 
form or electronically within a reasonable period and endeavour to respond within 60  days.  
 
 Paragraph 6 of Article 6.12 : The Parties shall facilitate dialogue on mutual recognition 
agreements or arrangements for conformity assessment, and discuss the feasibility of developing 
mutual recognition agreements or arrangements . The Parties sha ll give due consideration to any 
sector specific proposal made by either Party.  
 
b. Could the Parties provide further information whether – under the Article 6.6 : 
'Equivalence of Technical Regulations of the Agreement' - consideration to the 
acceptance of the  equivalence of each other 's technical regulations has been 
requested ? If so what sectors?  
 Neither New Zealand nor Korea has made a request to date to negotiate an arrangement for 
achieving the equivalence of technical regulations.  
 
c. Could the Parties prov ide further information whether – under Article 6.12 : 
'Annexes and Implementing Arrangements of the Agreement' - progress has 
been made establishing mutual recognition agreements or arrangements for 
conformity assessment, in particular relating to the area s identified i n 
footnote  1 to Article 6.12?  
 The first meeting of the TBT Committee is to take place in September . That meeting will 
provide an opportunity for the Parties to discuss the feasibility of developing mutual recognition 
agreements or arrangemen ts in the areas identified in footnote 1 to Article 6. 12. 
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  Safeguard mechanisms  
 
1.3.  Could the Parties provide further information if any safeguard measure under the 
bilateral agreement has been initiated ? If so what sectors/products?  
 No safeguard measure has  been initiated under this Agreement.  
 
General provisions of the agreement  
 
Government procurement  
 
1.4.  Could the Parties clarify whether the Public Private Partnership type of 
projects/concession are covered under Chapter 13 (Government Procurement) of 
the Agreement?  
 Yes, they are.  
 
Intellectual property rights  
 
1.5.  The Agreement includes geographical indications as part of the definition of 
Intellectual Property Rights (Article 11.1 : Definitions).  
Could the Parties provide further explana tion why the Agreement d oes not further 
address the protection of this IPR (GIs)?  
 
 The IP Chapter contains a number of provisions related to the protection and enforcement of 
IPRs, as well as obligations regarding the exchange of information and cooperation between the 
Parties . By including geographical indications in the definition of IPR under Article 11.1, the Parties 
have ensured these obligations apply in respect of geographical indications.  
 
1.6.  The Agreement covers general issues for enforcement of IPR 
(Article  11.6:  Enforceme nt). 
Could the Parties provide clarification why the Agreement does not contain any 
provisions for border enforcement measures for protection of IPR?  
 
 The Parties considered that their respective border protection measures are sufficient to 
address trade between the two Parties in suspected copyright and trade mark infringing goods.  
 
Labour  
 
1.7.  Reference is done to the setting up of a Labour Committee to, inter alia , establish 
an agreed work programme of cooperative activities as mentioned in the 
Factual  Presentation.  
 The EU would appreciate it if either of the Parties could submit information on how 
the Labour Committee has been in operation . The EU would also be interested in 
receiving a brief outline of the work programme of cooperative activities, if any,  under 
preparation or in place.  
 
 The first meeting of the Labour Committee is planned to take place by or in December  2016. 
Contact points have been established, and planning for the Committee meeting is under way . 
Work programme of cooperative activities  has not been discussed.  
 
Environment  
 
1.8.  Annex 16 -A of the Agreement provides for a framework for further coope ration on 
environmental issues.  WT/REG367/2  
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   Could the Parties clarify what types of concrete cooperation activities are planned ? 
Could the Parties also provid e examples of such cooperation?  
 
 There are currently no cooperation activities planned under the Environment chapter . 
Potential cooperation activities will be discussed at the first meeting of the 
Environment  Committee, which is set to be held within one year of entry into force of the 
Agreement . Annex 16-A of the Agreement provides an indicative list of areas of 
potential  cooperation.  
 
Question from the delegation of Japan  
 
Intellectual property rights  
 
1.9.  What does each of the Parties expect as genetic reso urces, traditional knowledge 
and folklore to be protected by appropriate measures under Article 11.10 of this 
Agreement (in particular, in Korea)?  
 We would like to know any laws and regulations for protecting such GRTKF, if 
either Party has already legisl ated or is planning to legislate such laws or regulations.  
 
 Article 11.10 preserves the policy flexibilities of each Party to develop and implement 
appropriate domestic measures to protect Genetic Resources (GR), Traditional Knowledge (TK) and 
Traditional  Cultural Expression (TCE) . Importantly it does not require either Party to take action to 
protect GR, TK and TCE.  
 
Korea does  not have any  specific  IP laws  for the protection of GRTKF . However, K orean 
Intellectual Property Office  utilizes the digital libr ary of traditional knowledge (Korea Traditional 
Knowledge Portal) in its examination process.  
 
 New Zealand has implemented a number of such measures, including:  
 
 Trade Marks Act 2002:  Provides for the Commissioner of Trade Marks to refuse 
registration of a sign that is, or likely to be, culturally offensive ; and for the Commission 
to establish a Maori advisory committee to provide advice on the whether or not use of 
Mario text and imagery as trademarks might be offensive to Maori.  
 
 Patents Act 2013 : Provides for the Commissioner of Patents to refuse to grant patents 
for inventions that are contrary to public order or morality ; and for the Commissioner to 
establish a Maori advisor committee to provide advice on whether inventions claimed are 
derived from Mao ri TK or from indigenous plants or animals and, if so, whether 
commercial exploitation of the invention is likely to be contrary to Maori values ; and 
 
 Haka Ka Mate Attribution Act 2014:  Provides an acknowledgement of the significance of 
the famous war danc e Ka Mate, used by many sporting teams such as the New Zealand 
All Blacks, as a TCE belonging to Ngati Toa Rangatira, and as an integral part of its 
history, culture, and identity . It also provides a right of attribution, requiring that where 
the haka is u sed in certain circumstances, the authorship of Ka Mate by 
Ngāti  Toa Rangatira chief Te Rauparaha is acknowledged.  
 Additionally, New Zealand  Government has introduced a Bill into Parliament to amend the 
Geographical Indications (Wine and Spirits) Registra tion Act 2006 to provide for the Registrar of 
Geographical Indications to refuse to register an indication where its registration or use as a 
geographical indications is, or likely to be, culturally offensive.  
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  Question from the delegation of Peru  
 
1.10.   Paragra ph 1 of Article 19.14 of the FTA provides that in complying with the 
arbitration panel's ruling, the responding Party shall notify the complaining Party in 
writing before the end of the reasonable period of time of the measures that i t has taken 
to comply with the recommendations . However, the term "reasonable period of time" is 
not defined . How long is the reasonable period of time under the provisions of the FTA?  
 Article 19.13 of the KNZFTA sets out the definition of "a reasonable period of time" and 
provides for where such agreement cannot be reached . Article 19.13.1 provides that:  
 
 "…… Such reasonable period of time shall, whenever possible, be mutually agreed by 
the Parties."  
 
 Article 19.13.2 provides that:  
 
 "Where the Parties are unable to agree on  the reasonable period of time within 45 days of 
the presentation of the final report, either Party may refer the matter to the original arbitration 
panel, in accordance with Article 19.8.8, which shall determine the reasonable period of time 
following con sultation with the Parties."  
 
 Therefore, "a reasonable period of time" is the period of time Korea and New Zealand agree 
is reasonable . Where they cannot agree, the "reasonable period of time" will be the period of time 
determined by the original arbitrat ion panel.  
 
Questions from the delegation of the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu  
 
Provisions on trade in services and investment  
Movement of natural persons (Temporary entry of business persons ) 
 
1.11.   According to Paragraph 4.19, Table 4.1, New Zealand makes commitments on the 
movement of natural persons in the categories of business visitors, intra -corporate 
transferees, installers and servicers, and independent service suppliers, but movement 
of contractual service suppliers is r estricted to independent professionals only, and 
subject to economic needs tests.  
a. Could New Zealand please explain why the category of contractual service 
suppliers is subject to such conditions?  
 New Zealand made no commitments under a category titled "Co ntractual Service Suppliers" 
in the New Zealand -Korea FTA (see Table 4.1). Independent Professionals are a separate category 
of mode 4 service suppliers. As noted by Chinese Taipei, New Zealand has made commitments for 
installers and servicers under the Te mporary Entry of Business Persons chapter in the 
New Zealand -Korea FTA.  
 
b. Could New Zealand please provide more details of the economic needs tests?  
 The nature of the economic needs measure is not prescribed in New Zealand's commitments 
in the New Zealand -Korea FTA. Current New Zealand policy is available at: 
http://www.immigration.govt.nz  
 
1.12.   According to the Secretariat's Note to Table 4.2 (based on Annex 9 -A), Korea may 
refuse to grant temporary entry to a natu ral person who is likely to be involved in any 
labour dispute that is in progress and adversely affect the settlement of such 
labour  dispute.  
a. Could  Korea please describe more clearly how the term "labour dispute" is 
defined in its own domestic laws or regu lations?  
 In accordance with the Article 2 of Trade Union and Labor Relations Adjustment Act, the 
term "labour disputes" means any controversy or difference arising from disagreement between WT/REG367/2  
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  the trade union and employer or employers association (hereinafte r referred to as "parties to 
labour relations") concerning the terms and conditions of employment such as wages, working 
hours, welfare, dismissal, other treatment, etc. In this case, "disagreement" is referred to as 
situations in which no agreement is lik ely to be reached by the Parties even though they 
attempted to reach an agreement.  
 
b. Does Korea provide any pertinent information on this subject online?  
 No, Korea does not.  
 
Audiovisual co -production  
 
1.13.   Korea and New Zealand signed agreements on Co -Producti on in 2008 (Agreement 
between the Government of the Republic of Korea and the Government of New Zealand 
Concerning the Co -Production of Films) and in 2015 (Agreement between New Zealand 
and the Republic of Korea concerning Audio -Visual Co -Production).  
 Could we please have further details of the differences between these 
two Agreements and the respective strategies of the two Parties as far as co -production 
is concerned?  
 
 The 2008 Agreement was a 'film only' agreement, and was superseded by the more 
compre hensive 2015 Agreement, which also includes television co -production. By entering into the 
2015 Audio -Visual Co -production agreement, the Parties are seeking to achieve greater 
cooperation and interaction between their respective screen industries.  
 
Trade in services  
 
1.14.   According to Table 4.3, Appendix II -A and Annex II -58 in the 
Free Trade  Agreement between New Zealand and the Republic of Korea, the 
commitment of New  Zealand is not clear.  
 Sector:     All Sectors  
 
Obligations Concerned:  Market Access (Artic le 8.6)  
 
 Description:    Cross Border Trade in Services  
 
 New Zealand reserves the right to adopt or maintain 
any measure that is not inconsistent with 
New Zealand's obligations under Article XVI of GATS 
as set out in New Zealand's Schedule of 
Specific  Commitments under GATS (GATS/SC/62, 
GATS/SC/62 Suppl. 1, GATS/SC/62/Suppl.2 ).1 
 
 For the purposes of this entry only, New  Zealand's 
Schedule of Specific Commitments is modified as set 
out in Appendix  II-A. 
 
 We would like to know which culturally related se rvices were committed to further 
market access by New Zealand in this FTA (for example, Printing and publishing services 
(CPC 88442), Radio and television transmission services (CPC 7524), Entertainment 
services (CPC 9619), News agency services (CPC 962), digital audio or video services 
etc.), and the level of their commitment?  
 
New Zealand considers that this non -conforming measure, a type of reservation that is 
common to a number of members' FTAs, is clear.  
                                                
1 This means that the stipulation in Articles 8.8 (Non -Conforming Measures) and 10.15 
(Non -Conforming Measures) not to decrease the conformity of the measure as it existed 
immediately before the amendment, does not apply wit h respect to the Market Access entries in 
New Zealand's Schedule to Annex I.  WT/REG367/2  
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 Annex -II 58 is a reservation against the Marke t Access obligation only. The effect of 
Annex  II-58 is set out in Paragraph 4.27. As that Paragraph notes, Market Access commitments in 
the agreement are improved relative to GATS in the sectors listed in Appendix II -A. We note that 
radio and television tr ansmission services (CPC 7524), and digital audio or video services are 
already subject to full sectoral Market Access commitments for Modes 1 -3 in New Zealand's 
GATS  schedule.  
 
 Commitments against the National Treatment obligation have been taken for all  services 
including the services identified in the question, subject to reservations in New Zealand's Schedule 
of Non -Conforming Measures in the New Zealand -Korea FTA. The new/improved level of 
commitment noted in Table 4.3 for some of the identified servi ces reflects this.  
 
Questions from the delegation of Thailand  
 
Rules of origin  
 
1.15.   Paragraph 3.27 : Annex 3 -A contains product specific rules of origin and the 
conditions that need to be fulfilled for products to qualify as originating in case the 
goods are pr ocessed in one or both Parties . While a change in tariff classification, at the 
2, 4, or 6 -digit levels, as indicated in Annex 3 -A, constitutes the main criteria used to 
determine origin in cases of substantial transformation of goods, the regional value 
content (RVC) can be used as an alternative criterion in a number of cases .2 The RVC is 
calculated according to the methods defined under Articles 3.4 (Regional value content) 
and 3.5 (value of materials) . When the RVC is used as an alternative method to 
determine the origin of a good, in most cases, this means that the good must have a RVC 
of not less than 30 % using the Build -up method or not less than 40 % using the 
Build -down method as calculated under Article 3.4 . In some cases, the RVC is not less 
than 3 5% using the Build -down method while in other cases, the RVC is not less than 
40% using the Build -down method . Annex 3 -A also specifies for which tariff lines the 
good must be wholly obtained in the territory of one or both of the Parties3, and for 
which o ne specific manufacturing or processing operation confers origin.4 
 Why does the Agreement stipulate different percentages of Regional Value Content 
(RVC) to confer origin on the basis of its method of calculation ? According to many 
existing Free trade Agr eements, RVC calculation using either Build -up or Build -down 
method would have the same outcome.  
 
 The use of different percentages for the RVC can be seen in New Zealand's Agreement with 
Australia under ANZCERTA, and in many other Agreements international ly. 
 
 In this Agreement, the formula for the build -down method is a subtraction method, that is 
the f.o.b. price of the good immediately prior to export, including all costs in getting the product to 
this point, less those costs of non -originating material s, expressed as a percentage . The build -up 
method is the accumulation of originating material costs (which may be further adjusted in 
accordance with Article 3.5 of the Agreement).  
 
 A margin of difference between the RVC percentage for the build -down and build-up 
approaches is commonly set at between 5 -10% to allow for the automatic inclusion in the 
build-down model of elements such as profit, packaging and invisible overheads that are not 
automatically included in the build -up formula.  
 
                                                
2 This is particularly the case for goods classified under HS Chapters 30 through 32, and 38 
(some chemicals and pharmaceuticals); 40 (some rubbers); 69 (some ceramics products); and 
products classified in HS  Sections 15 through 20 (metal products, machinery, transport and 
precision equipment, arms and ammunition, miscellaneous articles).  
3 This is the case particularly for agricultural goods, and fish products, classified under 
HS Chapters 1, 3 through 10, and 12.  
4 This is the case particularly for goods classified under HS Chapters 50 through 60, and 63 
(textiles); and under HS Chapters 27 (fuels and mineral oil products), and 28 through 38 
(chemical  products).  WT/REG367/2  
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  Other  
Competition  
 
1.16.   Paragraph 5.36 : In Chapter 12 on competition policy, the Parties agree to 
maintain competition laws that proscribe anti -competitive business conduct with the 
objective of promoting economic efficiency and consumer welfare . Article 12.3 
establishes princip les of procedural fairness in the application of competition laws . 
Chapter 12 also provides a framework for the Parties to cooperate, notify and consult on 
competition -related matters (Articles 12.4 through 12.6) . The Parties shall also promote 
cooperation  on matters related to the implementation of competition laws and policy 
(Article 12.7) . In Article 12.9 the Parties affirm their commitment to provide protection 
in their territories from deceptive practices in trade . Cooperation and coordination on 
matte rs related to their consumer protection laws are also addressed under Article 12.9 . 
Each Party shall designate one or more contact point for the purposes of Chapter 12 
(Article 12.8) . The dispute settlement mechanism established by the Agreement is not 
applicable to matters arising under Chapter 12.  
 It is provided that "Chapter 12 provides a framework for the Parties to cooperate, 
notify and consult on competition -related matters . The Parties shall also promote 
cooperation on matters related to the impleme ntation of competition laws and policy", 
Thailand would like to seek for information whether there is any cooperation, 
notification and consultation which the Parties have established under Chapter 12 and 
whether there is any difficulty or problem has aris en therefrom.  
 
 There has been no activity on this item since entry -into-force of the Agreement.  
 
Labour  
 
1.17.   Paragraph 5.37 : In Chapter 15, the Parties affirm their obligations as members of 
the International Labour Organization (ILO) . Each Party shall strive  to adopt 
and maintain in their laws, regulations, policies and practices the principles in the 
1998  ILO Declaration of : freedom of association and effective recognition of the right to 
collective bargaining, the elimination of forced labour, the effective  abolition of 
child  labour and the elimination of discrimination in employment and occupation 
(Article  15.2.1) . The Parties shall respect each other's right to establish their own 
policies and national priorities and to adopt and administer their own labou r laws, 
regulations and practices in accordance with those policies and priorities . However, the 
Parties shall not fail to effectively enforce their labour laws in a manner affecting trade 
or investment between them . They shall also ensure that their labou r laws, regulations, 
policies and practices are not used for trade protectionist purposes . 
Procedural  guarantees shall be given and public awareness promoted, as indicated in 
Article 15.3 . Contact Points are established for labour matters to facilitate 
communication between the Parties (Paragraph 1 of Article 15.4) . The Agreement also 
establishes a Labour Committee to, inter alia , establish an agreed work programme of 
cooperative activities (Paragraph 2 of Article  15). Consultations on labour matter may 
be requested by a Party to arrive at a mutually satisfactory resolution of the matter 
(Article 15.6) . The dispute settlement mechanism established by the Agreement is not 
applicable to matters arising under Chapter 15 . A list of potential areas of cooperation  is 
contained in Article 15.5.  
 What further steps would be taken when the mutually satisfactory resolution 
cannot be achieved as a result of the consultations?  
 
 The Labour Chapter specifies a number of steps for the Parties to take where a matter is 
raised under the Chapter . If, after initial consultations, a Party considers the matter needs further 
discussion, the Party may request that the Labour Committee be convened . The Committee then 
meets to consider the matter and endeavours to agree on its resolu tion. 
 
If the Committee cannot resolve the issue, it would then be referred to the Joint Commission 
established under Chapter 18 of the Agreement . The Joint Commission may consider matters 
raised by any committee established under the Agreement, issue inte rpretations of the provisions WT/REG367/2  
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  of the Agreement, and seek to resolve differences or disputes that may arise regarding the 
interpretation or application of the Agreement (Art. 18.2).  
 
Annex 1  
Indicators of trade liberalization under the agreement  
 
New Zealan d 
 
1.18.   Paragraph 1 : Table A1.1 shows tariff liberalization by New Zealand in relation to 
Korea's imports (by total, agricultural and non -agricultural products) . In 2015, 
New Zealand's average applied MFN rate was 2.3 % overall (2.4 % for non -agricultural 
product s and 1.7 % for agricultural products). 58.3 % of New Zealand's tariff was duty 
free on an MFN basis ; 57.3% of non -agricultural products and 64.8 % of agricultural 
products were duty free . At the time of entry into force of the Agreement (2015), 
Korea's expor ters enjoyed a relative margin of preference of 65.2 % % vis-à-vis the 
prevailing MFN tariff ; 62.5% for non -agricultural goods and 100 % for agricultural 
products . The share of duty free lines applicable to imports from Korea immediately at 
the entry into fo rce of the Agreement was 85.6 % (99.3 % for agricultural products and 
83.4% for non -agricultural products) . During the following years, this share will further 
increase to reach 100 % in 2021, following New Zealand's full implementation of it s 
tariff eliminat ion programme.  
Korea  
 
1.19.   Paragraph 3 : Table A1.3 shows tariff liberalization by Korea by total, agricultural 
and non -agricultural products . In 2015, Korea's average applied MFN rate was 
14.1% overall (6.6 % for non -agricultural products and 59.9 % for agricultu ral products). 
16% of Korea's tariff was duty free on an MFN basis ; 17.7% of non -agricultural products 
and 5.5% of agricultural products were duty free . As a result of the Agreement entering 
into force (2015), New Zealand exporters enjoyed a relative margi n of preference 
of 35.5% vis-à-vis the prevailing MFN tariff ; 80.3% for non -agricultural goods and 5 % 
for agricultural products . Immediately at the entry into force of the Agreement, the 
share of duty free lines for imports from New Zealand was 74.6 % (84.2 % for 
non-agricultural products and 16.5 % for agricultural products) . Ten years after the 
entry into force of the Agreement, in 2025, New Zealand exporters will face zero duties 
on 93.3 % of Korea's tariff (60.5 % for agricultural products and 98.7 % for 
non-agricultural products) . In 2034, when Korea's tariff elimination programme will be 
fully implemented, the share of Korea's tariff that will be duty -free will reach 97.9 % 
(85.2 % for agricultural products and 99.9 % for non -agricultural products).  
 Apart from  the level of development between two countries, what are other 
reasons that support a big difference of the number of years which both countries offer 
for a full implementation of the tariff elimination programme (New Zealand offer 
6-year full implementat ion while Korea offer 19 -year full implementation)?  
 
 During the negotiations, the Parties aimed at a high level of liberalization on the one hand, 
and, at the same time, considered sensitivities of products . The commitments under the FTA are 
the results o f the negotiations.  
 
__________