WORLD TRADE  
ORGANIZATION   
WT/REG296/1/Rev.1 
31 August 2012 
 (12-4701) 
Committee on Regional Trade Agreements  
  
 
     
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement between the 
European Union and the Republic of Korea 
(Goods and Services) 
 
Report by the Secretariat 
 
Revision 
 
 
 
 
This report, prepared for the consideration of the Free Trade Agreement between the 
European Union and the Republic of Korea has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties.  
The report has been drawn up in accordance with the rules and procedures contained 
in the Decision for a Transparency M echanism for Regional Trade Agreements 
(WT/L/671).  
 
Any technical questions arising from this report may be addressed to Jean-Daniel Rey (tel: +41 22 739 52 64).  WT/REG296/1/Rev.1 
Page iii 
 
 
  TABLE OF CONTENTS 
  
Page 
I.  TRADE ENVIRONMENT 1  
A.  OVERVIEW  1 
B.  MERCHANDISE TRADE  1  
C.  TRADE IN SERVICES AND INVESTMENT  4  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 7  
A.  BACKGROUND INFORMATION  7  
B.  STRUCTURE OF THE AGREEMENT  7  
III.  PROVISIONS ON TRADE IN GOODS 8  
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  9  
1.  General provisions 9  
2.  Liberalization of trade and tariff lines 10  
(a)  The EU's liberalization schedule 10  
(b)  Korea's liberalization schedule 11  
3.  Tariff rate quotas 14  
4.  Import restrictions 14  
B.  RULES OF ORIGIN  14  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  16  
D.  REGULATORY PROVISIONS ON TRADE IN GOODS  16  
1.  Standards 16  
(a)  Sanitary and phytosanitary measures 16  
(b)  Technical barriers to trade 17  
2.  Trade remedies 17  
(a)  Safeguard mechanisms 17  
(b)  Anti-dumping and countervailing measures 19  
3.  Customs-related procedures 19  
E.  SECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  19  
1.  Electronics (Annex 2-B) 19  
2.  Motor Vehicles and Parts (Annex 2-C) 20  
3.  Pharmaceutical Products and Me dical Devices (Annex 2-D) 21  
4.  Chemicals (Annex 2-E) 21  
IV.  PROVISIONS ON TRADE IN SERVICES 21  
A.  SCOPE AND DEFINITIONS  21  
B.  DENIAL OF BENEFITS  24  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES  24  
1.  Market access and National Treatment 24  
2.  MFN treatment 25  
3.  Movement of natural persons 26  
D.  LIBERALIZATION COMMITMENTS  27  
1.  The European Union 27  
2.  Korea 28  
E.  SECTOR SPECIFIC COMMITMENTS  29  
F.  REGULATORY PROVISIONS  33  
1.  Recognition 33  
2.  Transparency and confidential information 33  
3.  Domestic Regulation 33  WT/REG296/1/Rev.1 
Page iv  
 
  4.  Subsidies 34  
5.  Safeguards 34  
6.  Governance 34  
V.  GENERAL PROVISIONS OF THE AGREEMENT 34  
A.  TRANSPARENCY  34  
B.  CURRENT PAYMENTS AND CAPITAL MOVEMENTS  35  
C.  EXCEPTIONS  35  
D.  TAXATION  36 
E.  ACCESSION AND WITHDRAWAL  36  
F.  GOVERNMENT PROCUREMENT  36  
G.  INTELLECTUAL PROPERTY RIGHTS  36  
H.  ELECTRONIC COMMERCE  38  
I.  OTHERS  39 
1.  Competition 39  
2.  Trade and Sustaina ble Development 39  
3.  Cultural Co-operation 40  
4.  Establishment 41  
J.  INSTITUTIONAL FRAMEWORK  41  
K.  DISPUTE SETTLEMENT  42  
L.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  46  
ANNEX I 48 
ANNEX II 52  WT/REG296/1/Rev.1 
Page 1 
 
 
   
 
 
Key Facts 
 
Parties to the Agreement:  The European Union, its Member States (Austria;  Belgium;  
Bulgaria;  Cyprus;  Czech Republic;  Denmark;  Estonia;  Finland;  France;  Germany; Greece;  
Hungary;  Ireland;  Italy;  Latvia;  Lithuania;   Luxembourg;  Malta;  Netherlands;  Poland;  
Portugal;  Romania;  Slovak Republic;  Slovenia;   Spain;  Sweden;  United Kingdom);  and the 
Republic of Korea. 
 
Date of Signature:   6 October 2010. 
 
Date of Entry into Force:   1 July 2011. 
 
Date of Notification:   7 July 2011. 
 
Full implementation:   1 July 2031. 
 
 
I. TRADE ENVIRONMENT 
A. OVERVIEW1 
1. The Free Trade Agreement (hereinafter referred to as the Agreement) between the European 
Union (EU) and the Republic of Korea is the EU's 32nd and Korea's 10th RTA.2   
2. In 2010, with a population of over 502 million, the EU's GDP was estimated at 
US$16,222 billion while that of Korea, with a population of 48.8 million was estimated at 
US$1,014 billion.  Both have relatively similar trad e profiles, although of a different scale, and export 
and import mainly manufactured goods; the EU had a c onsiderably lower trade (goods and services) to 
GDP ratio (29.8), averaged over 2008-2010, than that of Korea (105.8), suggesting that the Korean economy is more heavily reliant on international trade. 
B. M
ERCHANDISE TRADE  
3. In 2010, the EU's share in total world exports and imports was 15.1% and 16.5% respectively, 
while Korea's shares were 3.1% for exports and 2. 8% for imports.  With total merchandise exports of 
US$1,788 billion and imports of US$1,991 billion (both in progression after the sharp decline in 2009), 
the EU was the world's largest exporter and importer compared to Korea's ranking at 5th for exports and 
6th for imports (also growing rapidly from 2009, with  global exports and imports of US$466 billion and 
US$425 billion). 
4. In 2010, the EU was Korea's 4th largest source of imports, accounting for 9.1% of its total 
imports.  The EU was Korea's 2nd largest destination for exports, accounting for 11.5% of its total 
exports.3  For the EU, Korea represented 2.6% of its total imports, making Korea the EU's 8th largest 
                                                      
1 Source for this section: WTO Trad e Profiles 2011 (2010 data) Export  figures are calculated f.o.b. and 
import figures are calculated c.i.f.  Ranking in world trade excluding intra-EU trade.  For bilateral trade, the 2010 
figures as reported by the Parties are used. 
2 Agreements in goods and services counted as one an d only agreements in force,  notified to the WTO, 
counted.  The Agreement is the EU's firs t RTA under its "Global Europe" initiative. 
3 In 2010 the five top sources of imports for Korea were: China (16.8%), Japan (15.1%), the US (9.6%), 
the EU (9.1%), and Saudi Arabia (6.3%); the five top export destinations from Korea were: China (25.1%);  the EU 
(11.5%); the US (10.7%); Japan (6%); and Hong Kong, China (5.4%). WT/REG296/1/Rev.1 
Page 2  
 
  source of imports - while it was also the EU's 10
th largest destination for exports, accounting for 2.1% of 
the EU's total exports.4 
5. Developments in global and intra-Party trade are pr esented in Charts I.1 and I.2.  Bilateral trade 
between the EU and Korea steadily progressed between  2003 and 2008 followed by a sharp decline both 
globally and bilaterally;  since 2009 trade has recovere d back to 2008 levels for the EU and higher for 
Korea.  In their bilateral relations, the EU has had,  during the last decade, a constant deficit in its 
merchandise trade with Korea. 
01020304050607080
05001,0001,5002,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011€billion €billionChart I.1 - EU: Merchandise imports from and exports to the world and 
Korea, 2000-2011
Note: Data for 2000-2003 is for EC(15);  2004-2006 is for EC(25);  and 2007-2011 is for EU(27).
Source : Eurostat database.Imports from Korea
Exports to KoreaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
0102030405060708090
050100150200250300350400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010€billion €billionChart I.2 - Korea: Merchandise imports from and exports to the world and 
EU, 2000-2010
Note: Exchange rates used for converting US dollar to Euros were: Euros per US dollar 1.085(2000); 1.118(2001); 1.063(2002); 
0.886(2003); 0.805( 2004); 0.804(2005); 0.797(2006 ); 0.731(2007); 0.683(2008); 0.720(2009); 0.755(2010).
Source : Korean authorities.Imports from EU
Exports to EUTotal imports
Total exportsLeft hand scale: Right hand scale:
 
                                                      
4 In 2010, the five top sources of imports for the EU were: China (18.7%), the US (11.3%), the Russian 
Federation (10.6%), Switzerland (5.5%), and Norway (5.3%);   the five top destinations of exports from the EU 
were:  the US (18%), China (8.4%), Switzerland (7.8 %), the Russian Federation (6 .4%), and Turk ey (4.5%).  WT/REG296/1/Rev.1 
Page 3 
 
 
  6. The commodity structure of trade among the Par ties, as well as with the world in the period 
2008-2010, is shown in Chart I.3 on the basis of Harmonized System (HS) sections.   
Chart I.3
EU and Korea: product composition of merchandise trade, annual average 2008-2010
EU's imports from Korea Korea's imports from EU
Source:  Eurostat and UNSD, Comtrade database.Per cent
Total:  €37 billion Total:  €27 billion
Total:  €1,427 billion Total: €284 billionEU's global imports Korea's global imports 
Minerals
33.2
Machinery 
21.9Plastics 3.4
Base metals 6.0
Vehicles 6.7Plastics 2.7Other
6.7Other 
10.0
Other 
8.5Machinery 40.2
Minerals 28.3 Miscellaneous 2.5
Optical 3.4Vegetables 2.6Vehicles 3.1Precious stones 2.4Other 
7.4
Machinery  25.6Vegetables 1.7
Chemicals  7.7Machinery 46.8
Vehicles 26.0Optical 6.7
Base metals 
11.9Textiles 2.2
Optical 3.4Optical 5.6Plastics 5.1
Prepared foods 2.2
Vehicles 9.5
Chemicals 15.3Base metals 
9.0
Total:  €301 billionKorea's global exports
Vehicles 21.8Other 
4.0
Machinery
34.6 Plastics 6.3Chemicals  5.8
Base metals 
9.0Textiles 3.1
Optical 7.7Minerals 7.6Minerals 3.8
Chemicals 8.1Base metals.6.1Textiles 5.6Plastics 2.6Prepared foods 2.4Textiles 2.0Raw hides 1.7
Total:  €1,252 billionEU's global exports
Optical 4.6Machinery
29.1Other 
9.3
Minerals 6.1Plastics 3.9
Vehicles 13.9Prepared foods 3.4Textiles 2.7
Chemicals 
15.3Base metals 7.2Precious stones 2.5Wood pulp 2.1
 
 WT/REG296/1/Rev.1 
Page 4  
 
  7. Machinery accounted for almost one half of the EU 's imports from Korea ( 46.8%).  This sector 
represented 34.6% of Korea's global exports and 21.9% of the EU's gl obal imports from the world.  The 
EU's second largest import from Korea was vehicles ( 26%), was also Korea's second largest global export 
(21.8%). Machinery and chemicals accounted for over half of Korea's imports from the EU (respectively 
40.2% and 15.3%).  Machinery was the EU's largest global export (29.1%), while it was Korea's second 
largest global import (25.6%).  
C. T
RADE IN SERVICES AND INVESTMENT  
8. In 2010, the EU's share of total commercial servi ces exports was 24.4%, while its share of total 
imports was 21.9%.  Korea's shares represented resp ectively 2.2% and 2.7% of world exports and 
imports.  With total commercial services exports of US$685,211 million, a nd imports of US$590,018 
million, the EU was the world's largest exporter and importer compared to Korea's ranking as 8th largest 
exporter and 7th largest importer (with commercial services exports of US$81,570 million and imports of 
US$92,978 million).  
9. Chart I.4 shows the breakdown of commercial services trade for the EU during the period 
2000-2010 during which it was a net e xporter, with transportation servi ces, travel, and other business 
services particularly contributing to both imports and exports.  
0100200300400500600700800
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2010 is for EU(27).
"World" as "extra-EU".
Source: Eurostat database.Chart I.4
European Union, total co mmercial services trade with world, 2000-2010
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
 
10. Chart I.5 shows how bilateral trade in comme rcial services evolved during the period 2004-2010 
between the EU and Korea, as reported by the EU.  The EU maintained a large positive balance with 
exports to Korea slightly over a third more than it imported from Korea, with transportation services and 
other business services taking the lion's share of both imports and exports.   WT/REG296/1/Rev.1 
Page 5 
 
 
  0123456789
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Note:   Data for 2001-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2009 is for EU(27).
Exports of insurance services were negative in the following years: 2008 (€ -71 million) and 2009 (€ -50 million).
Source: Eurostat database.Chart I.5
European Union, bilateral commercial services trade with Korea, 2001-2010
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
11. Charts I.6 and I.7 show the EU's inward and ou tward foreign investment stock with the world 
(and with Korea) during the period 2000-2010.  The EU is a net investor in the world and in Korea.  During this period there was a steady increase in both outward and inward FDI both globally and 
bilaterally. 
01,0002,0003,0004,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.6
European Union, inward and outward foreign investment stock with world, 2000-2010
€ billion
outward inward
Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2009 is for EU(27).
"World" as "extra-EU".
Source: Eurostat database.  WT/REG296/1/Rev.1 
Page 6  
 
  010203040
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.7
European Union, bilateral outward foreign investment stock with Korea,  2000-2010
€ billion
outward inward
Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2009 is for EU(27).
Source: Eurostat database.  
12. Chart I.8 shows the breakdown of Korea's trade of  commercial services with the world during the 
period 2008-2010.  Korea has a small deficit in its ser vices trade.  Its main exports are transportation 
services while imports are dominated by transportation and other business services.  
01020304050607080
Export Import Export Import Export Import
2008 2009 2010
Note:    Exchange rates used for converting US dollar to Euros were: Euros per US dollar 0.683(2008); 0.720(2009); 0.755(2010).
Source: Korean authorities.Chart I.8
Korea, total commercial services trade with world, 2008-2010
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
13. Chart I.9 shows Korea's inward and outward fore ign investment stock with the word during the 
periods 2000-2010.  While Korea's outward foreign in vestment stocks with the world grew between 2000 
and 2010, its inward foreign investment  stocks decreased sharply during the 2008 crisis to slowly pick up 
in the following years.  WT/REG296/1/Rev.1 
Page 7 
 
 
  04080120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.9
Korea, inward and outward foreign investment stock with world, 2000-2010
€ billion
outward inward
Note: Exchange rates used for converting US dollar to Euros were: Euros per US dollar 1.085(2000); 1.118(2001); 1.063(2002); 
0.886(2003); 0.805( 2004); 0.804(2005); 0.797(2006); 0.731(2007); 0.683(2008); 0.720(2009); 0.755(2010).
Source: UnctadStat database.  
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
14. Negotiations between the EU and Korea were  launched in May 2007 and conducted through 
eight rounds of bilateral negotiations.  The Agre ement was signed on 6 Oct ober 2010 and entered into 
force on 1 July 2011. 
15. The Parties notified the goods and services aspects of the Agreement to the WTO on 7 July 2011, 
in document WT/REG296/N/1–S/C/N/594.  The notifica tion was made pursuant to Article XXIV:7(a) of 
the GATT 1994 for goods, and to Article V:7(a) of GATS for services.  The text of the Agreement, together with its Annexes, is availa ble on the Parties' official websites: 
 Korea :  http://www.fta.go.kr/eu/layout_sub022/sub02_02.asp 
  EU :   http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2011:127:SOM:EN:HTML 
 
B. STRUCTURE OF THE AGREEMENT  
16. The Agreement is composed of a Preamble and fi fteen Chapters.  It is complemented by a 
number of Annexes5, related to specific Chapters of the Ag reement and which include the Parties' 
Schedules related to their liberalization commitments in  goods and in services.  Three Protocols, covering 
Rules of origin, Customs Matters, and Cultural Co-ope ration, complement the text of the Agreement.  
17. On several occasions, the Agreem ent makes references to the Framework Agreement for Trade 
and Co-operation between the EU and Korea , signed at Luxembourg on 28 October 1996 and entered 
into force on 1 April 2001 (or any agreemen t updating, amending or replacing it), and the Agreement 
between the EU and Korea on Co-operation and Mut ual Administrative Assist ance in Customs Matters , 
signed at Brussels on 10 April 1997 and entered into force on 1 May 1997. 
                                                      
5 Some annexes are split into several parts, and Annexes 1, 5, 6, 8, 11, 12, and 15 are intentionally left 
blank. WT/REG296/1/Rev.1 
Page 8  
 
  18. Box II.1 below summarizes the legal frame work established by the Agreement. 
Box II.1: structure of the Agreement 
Chapters, Annexes, and 
Appendixes Title/description 
Preamble  
Chapter 1 Objectives and General Definitions 
Chapter 2 National Treatment and Market Access for Goods 
 Annex 2A: Schedules  
      Appendix 2A-1 (TRQs Korea) 
      Appendix 2A-2 (Entry Price Scheme EU) 
      Annex 2B (Electronics) 
      Annex 2C (Motor Vehicles and Parts) 
      Annex 2D (Pharmaceutical Products and Medical Devices) 
      Annex 2E (Chemicals) 
Chapter 3 Trade Remedies 
 Annex 3: Agricultural Safeguard Measures 
Chapter 4 Technical Barriers to Trade 
 Annex 4: TBT Coordinator 
Chapter 5 Sanitary and Phytosanitary measures 
Chapter 6 Customs and Trade Facilitation 
Chapter 7 Trade in Services, Establishment and Electronic Commerce 
 Annex 7A: Lists of Commitments 
     Annex 7A-1 (EU / Cross-Border Supply of Services) 
      Annex 7A-2 (EU / Establishment) 
      Annex 7A-3 (EU / Key Personnel and Gradua te Trainees and Business Service Sellers) 
      Annex 7A-4 (Korea) 
      Attachment I: Higher Education Services 
      Attachment II: Adult Education Services 
 Annex 7B: MFN Treatment Exemption 
 Annex 7C: List of MFN Exemptions (EU)  
 Annex 7D: The Additional Commitment on Financial Services 
Chapter 8 Payments and Capital Movements 
Chapter 9 Government Procurement 
 Annex 9: BOT Contracts and Public Works Concessions 
Chapter 10 Intellectual Property 
 Annex 10A: Geographical Indications for Agricultural Products and Foodstuffs 
 Annex 10-B: Geographical Indications for Wines, Aromatised Wines and Spirits 
Chapter 11 Competition 
Chapter 12 Transparency 
Chapter 13 Trade and Substantial Development 
  Annex 13: Co-operation on Tr ade and Sustainable Development 
Chapter 14 Dispute Settlement 
 Annex 14A: Mediation Mechanism for Non-Tariff Measures 
 Annex 14B: Rules of procedure for Arbitration 
  Annex 14C: Code of Conduct for Members of Arbitration Panels and Mediators 
Chapter 15 Institutional, General and Final Provisions 
  
  
Protocol: Concerning the definition of ‘originating pr oducts’ and methods of administrative co-operation.  
Protocol: On mutual administrative  assistance in customs matters.  
Protocol: On cultural co-operation.  
 
Source: WTO Secretariat based on the Agreement.  
 
 
III. PROVISIONS ON TRADE IN GOODS 
19. Chapters 2 to 6 of the Agreement, and the Annex es as well as the Protocols on Rule of origin and 
on Customs matters, contain provisions specific to trad e in goods.  In addition, Chapters 1, and 11-15 as 
well as the related Annexes, cont ain provisions of a general application and may therefore also be 
applicable to trade in goods.  WT/REG296/1/Rev.1 
Page 9 
 
 
  A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
20. Each Party gives national treatment to the goods of the other Party in accordance with Article III 
of the GATT 1994.  Article III of the GATT 1994 a nd its interpretative notes are made part of the 
Agreement mutatis mutandis  (Article 2.8).  
21. The Parties agreed to progressively and recipro cally liberalize trade in goods over a transition 
period, which started on 1 July 2011.  They agreed to  do so in accordance with  the Agreement, stating 
that this was in conformity with  GATT Article XXIV (Article 2.1). 
22. The Parties' commitments to grant preferentia l treatment on tariffs apply to products which 
qualify as "originating products" under the Protocol c oncerning the definition of originating products and 
methods of administrative co-operation. 
23. According to Article 2.5, each Party shall elimin ate its customs duties on the originating good of 
the other party in accordance with the national Schedul es in Annex 2-A of the Agreement.  Article 2.3 
excludes from the definition of a "custom duty" (i) char ges equivalent to an internal tax; (ii) a duty 
corresponding to a trade remedy6;  (iii) fees and other charges on imports - which shall not be calculated 
on an ad valorem basis, and shall not represent an in direct protection to domestic goods or a taxation of 
imports for fiscal purposes (Article 2.10);  and (iv) a safeguard measure taking the form of a duty and 
imposed consistently with the WTO agricultural sp ecial safeguard as defined in Article 5 of the 
WTO Agreement on Agriculture. 
24. In case an MFN rate of customs duty is lower than the rate established by Annex 2-A of the 
Agreement, the MFN rate is applied to pr oducts originating in the EU or Korea. 
25. The tariff elimination programme, presented in the following section and supported by Charts 
and Tables, is described in Section B of the Agr eement's Chapter 2.  Annex 2-A of the Agreement 
contains the modalities for the tariff elimination progra mme as well as the Tariff Schedules of the Parties.  
Certain products in Category X are excluded by the Parties from the tariff elimination programme.  
Moreover, the Agreement includes commitments, by  both Parties, on tariff rates quotas (TRQs) 
(Section 4 below). 
26. Acceleration and broadening of the scope of the elimination of customs duties on imports 
between the Parties may take place as a result of c onsultations between the EU and Korea which are 
foreseen to take place three years after the entry into force of the Agreement (2014).  
27. The customs duty elimination programme started on 1 July 2011 when the Agreement entered 
into force, from the base rat es in the respective Schedules.  It will be completed in 20 years (1 July 2031).  
Twenty staging categories have been put into place to  progressively liberalize trade between the Parties.  
For a number of products (certain fruits and vegetables), to which the EU "entry price scheme" applies7, 
originating goods in Korea are subject to preferen tial treatment.  The modaliti es of such treatment are 
contained in Appendix 2-A-2 of the Agreemen t (Annex II of the Factual Presentation).  
                                                      
6 Defined as (i) bilateral safeguard measures; (ii) ag ricultural safeguard measures; (iii) global safeguard 
measures;  (iv) antidumping measures; and (v) countervailing duties. 
7 See the Commission Regulation (EC) No. 1031/2008 of 19 September 2008 (and subsequent acts) and the 
EU’s WTO Schedule CXL. WT/REG296/1/Rev.1 
Page 10  
 
  2. Liberalization of trade and tariff lines  
(a) The EU's liberalization schedule 
28. The EU's applied tariff in 2011 c onsisted of 9,293 lines at the HS eight-digit level (HS 2007).  Of 
these tariff lines, 975 lines carry non ad valorem ra tes, 553 of which are specific rates, 194 compound and 
58 mixed duties.  Table III.1 shows the scheduled duty  elimination in terms of tariff lines and trade, as 
applied by the EU to imports from Korea.  Before the entry into force of the Agreement, 2,316 tariff lines 
(24.9% of the EU's tariff) were already duty-free on a MFN basis, representing 53.8% of the EU's imports 
by value from Korea (during 2008-2010).  Upon entr y into force of the Agreement, an additional 
6,399 lines (68.9% of the EU's tariff) became duty-free fo r imports from Korea.  As a result, 93.8% of the 
EU's tariff was duty free for imports from Korea, corresponding to 87.6% of imports by value from 
Korea.  After ten years of implementation, in 2 021, 9,245 lines (99.4% of the tariff) are to become 
duty-free, amounting to 99.9% of the value of imports  form Korea.  By the end of the implementation 
period (2031), 9,251 tariff lines, corresponding to 99.5%  of the EU's tariff will be duty free for imports 
from Korea, representing 99.9% of the value of its impor ts from Korea.  42 tariff lines (0.5% of the EU's 
tariff) are excluded from any tariff elimination, repr esenting less than 0.1% of imports by value from 
Korea.   
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. European Union 
Duty phase-out period Number 
of lines % of total lines in 
EU's tariff 
schedule Value of EU's imports  
from Korea  
(2008-2010) in million € % of EU's total imports from 
Korea 
2008-2010 
MFN duty free (2011) 2,316 24.9 26,102,617 53.8 
2011 6,399 68.9 16,385,726 33.8 
2012 1 0.0   
2014 280 3.0 4,493,423 9.3 
2016 244 2.6 1,535,500 3.2 
2017 1 0.0   
2020 4 0.0 0.03 0.0 
2025 4 0.0 1 0.0 
2027 1 0.0   
2030 1 0.0 6 0.0 
Remain dutiable 42 0.5 788 0.0 
Total 9,293 100.00 48,518,061 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data provided by the European Union and WTO-IDB. 
 
29. Table III.2 shows the EU's tariff elimination, by HS section.  The 42 lines whose tariffs are not to 
be eliminated are all agricultural products, 41 in  HS Section II (vegetable products) and 1 line in 
Section IV (prepared foods), corres ponding to Chapters 7, 8, 10, 11 and 19.  Chapters 7, 8 and 11 contain 
non ad valorem rates of duty as a result of which it is not possible to calculate the final average 
preferential duties of products in these chapters.  The final average preferential duty applicable to 
Chapters 10 (7.7%) and 19 (7.6%) are the same as  the current applied MFN average applied to these 
products, implying no liberalization for imports from Korea. 
 
    
 
   WT/REG296/1/Rev.1 
Page 11 
 
 
  Table III.2 
European Union: Tariff elimination under the Agreement, by HS section HS Section  
MFN average%  
Total 
No. of 
lines  Number of duty-free lines  
No. of lines 
remaining 
dutiable  
Avg. Final Tariff 
(Dutiable) %  
MFN 
2011 2011 2012 2014 2016 2017 2020 2025 2027 2030 
I 9.0 787 93 455  105 134        
II 5.9 526 123 335 1 4 11 1 4 4 1 1 41 7.7a 
III 6.0 124 21 103           
IV 14.1 813 94 639  27 52      1 7.6 
V 0.8 234 171 62  1         
VI 4.3 1,168 294 866  1 7        
               
VII 4.6 301 60 217  24         
VIII 3.0 147 43 95  9         
IX 2.4 215 99 84  32         
X 0.0 209 209            
XI 8.0 1,169 39 1,124   6        
XII 8.0 109 2 104  3         
XIII 4.0 239 32 200  7         
XIV 0.6 56 45 11           
XV 1.8 980 506 465  9         
XVI 2.3 1,381 304 1,038  22 17        
XVII 4.9 273 30 193  34 16        
XVIII 2.5 328 89 238   1        
XIX 2.2 24 5 19           
XX 2.6 203 50 151  2         
XXI 0.0 7 7            
Total 4.9 9,293 2,316 6,399 1 280 244 1 4 4 1 1 42 7.7 
 
a contain non- ad valorem  duties. 
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 Based on the HS 2007 nomenclature.  
Source :   WTO estimates based on data provided by the European Union. 
 
30. Appendix 2-A-2 of the Agreement also contains  commitments by the EU for products (in 
particular certain fruits and vegetables) for which the EU implements an "entry price scheme" (EPS)8 
(See Annex II below).  For such products the EU commits to remove the ad valorem  customs duty 
applicable in accordance with its co mmitments in the Agreement.  Th e specific duty component for some 
of these products (including cucumber, fresh pears a nd cherries, and unfermented grape juice and must) 
will be eliminated immediately;  others including fresh or chilled vegetables and fruit will be subject to tariff elimination within 2 to 15 years
9 of entry into force of the Agreem ent.  Specific duties on fresh or 
chilled tomatoes, fresh sweet oranges and fresh or drie d monreales and satsumas are to remain in force.  
(b) Korea's liberalization schedule 
31. Korea's applied tariff in 2011 c onsisted of 11,900 lines at the HS  ten-digit level (HS 2007).  Of 
these, 87 lines carry non ad valorem rates (mixed  duties).  Table III.3 shows the scheduled duty 
elimination in terms of tariff lines and trade, as app lied by Korea to imports from the EU.  Before the 
entry into force of the Agreement, 1,960 tariff lines (16.5% of Korea's tariff) were already duty-free on a 
MFN basis, representing 26.4% of Korea's imports by value (during 2008-2010) from the EU.  Upon 
entry into force of the Agreement, an additi onal 7,688 lines (64.7% of the tariff) became duty-free 
resulting in 81.2% of Korea's tariff becoming duty free for imports from the EU, corresponding to 64.7% 
                                                      
8 Reference is made to the EU common customs Tariff provided for in [European] Commission Regulation 
(EC) No. 1031/2009 of 19 September 2008 (and subsequent acts) and EU's WTO Schedule CXL. 
 9 20 years for Fuji-apples. WT/REG296/1/Rev.1 
Page 12  
 
  of imports by value from the EU.  After ten years of  implementation, in 2021, 11,661 lines (98% of the 
tariff) are to become duty-free, amounting to 99.5% of the value of imports form the EU.  By the end of 
implementation (2031), 11,843 tariff lines, corresponding to 99.5% of Korea's tariff will be duty free for 
imports from the EU, representing more than 99.99% of the value of its imports from the EU. 57 tariff lines (0.5% of Korea's tariff) are excluded from tariff elimination, representing 0.03% of imports by value 
from the EU during the period 2008-2010.  The 57 tari ff lines which remain dutiable consist of lines that 
are excluded from the elimination commitments (16 products)
10, and of lines for which tariffs are to be 
reduced to reach the level of the base rate  indicated in the Parties' schedules.   
32. For 25 tariff lines, which are subject to tariff el imination, access to the Agricultural Safeguard 
mechanism is available (Annex 3 of the Agreement).  Moreover, certain tariffs lines (or parts of tariff 
lines), are subject to preferential tariff rate quotas (T RQs) for imports from the EU and are discussed in 
Section 4 below. 
Table III.3 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Korea 
Duty phase-out 
period Number of 
lines % of total lines in Korea's 
tariff schedule Value of Korea's imports from EU  
(2008-2010) in million € % of Korea's total 
imports from EU 
2008-2010 
MFN duty free (2011) 1,960 16.5 6,955.4 26.4 
2011 7,688 64.7 10,099.1 38.3 
2013 3 0.0 0.0 0.0 
2014 670 5.6 5,380.7 20.4 
2016 783 6.6 3,280.4 12.4 
2017 3 0.0 7.4 0.0 
2018 146 1.2 262.8 1.0 
2021 408 3.4 256.5 1.0 
2023 26 0.2 37.6 0.1 
2024 27 0.2 51.0 0.2 
2026 106 0.9 50.1 0.2 
2027 1 0.0 0.3 0.0 
2028 1 0.0   
2029 9 0.1 0.0 0.0 
2031 2 0.0   
Remain dutiable 57 0.5 7.4 0.0 
Total 11,900 100.00 26,388.6 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data pr ovided by Korea and WTO-IDB. 
 
33. Table III.4 and Chart III.1 show Korea's tariff elimination, by HS section and HS Chapter 
respectively.  The majority of lines were liberaliz ed in 2011 upon entry into force of the Agreement, 
followed by further significant liberalization in 2014, 2016 and 2021.  The 57 lines that remain subject to 
duties once implementation is completed are all f ound in sections I, II and IV with final average 
preferential tariffs especially high in Sections I a nd II (122.5% and 228.2%).  Chart III.3 below compares 
average rates of preferential duties on lines rema ining subject to duties and their corresponding MFN 
average rates.  The preferential av erages are the same as the current applied MFN average rates on these 
products and the highest in HS Chapters 12 (454.8% ), 7 (282.4%) and 9 (270%). 
                                                      
10 Excluded products can be found in HS Chapter 19 (3 lines); Chapter 18 (2 lines); Chapter 11 (4 lines); 
and Chapter 10 (6 lines).   WT/REG296/1/Rev.1 
Page 13 
 
 
  Table III.4 
Korea: Tariff elimination under the Agreement, by HS section HS Section 
MFN average%  
Total 
No. of 
lines  Number of duty-free lines  
No. of lines 
remaining 
dutiable  
Avg. Final Tariff 
(Dutiable %  MFN 2011 
2011 
2013 
2014 
2016 
2017 
2018 
2021 
2023 
2024 
2026 
2027 
2028 
2029 
2031 
I 20.9 586 19 115  90 90 1 17 186 5 8 40     15 122.5 
II 98.6 590 26 206 3 21 86 1 15 111 7 18 50  1 8 2 35 228.2 
III 15.4 102  51  5 36  2 4 3     1    
IV 24.2 516 3 130  38 179 1 36 98 7  16 1    7 9.3 
V 3.5 345 49 272  16 8             
VI 7.5 2,310 171 1,940  118 64  3 9 4 1        
VII 6.7 381 10 306  42 22  1           
VIII 7.7 242 28 184  30              
IX 5.7 314 43 18  33 169  51           
X 0.0 291 291                 
XI 9.7 1,303 31 1,267     5           
XII 10.1 100  98  1 1             
XIII 7.8 343 1 283  33 26             
XIV 5.2 118 5 107  3 3             
XV 4.2 1,023 397 574  32 19  1           
XVI 5.7 2,038 557 1,297  139 33  12           
XVII 5.8 333 80 205  17 31             
XVII
I 6.6 593 98 437  41 14  3           
XIX 3.7 87 47 40                
XX 5.4 270 89 168  11 2             
XXI 0.0 15 15                 
Total 12.6 11,900 1,960 7,698 3 670 783 3 146 408 26 27 106 1 1 9 2 57 173.5 
 
Note: For tariff lines subject to TRQs, only the out-of-quota dut y is included in the tariff-re lated calculations; for the calc ulation of 
 averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 Based on the HS 2007 nomenclature. 
 
Source :   WTO estimates based on data provided by Korea. 
 
0100200300400500
03 04 07 08 09 10 11 12 17 18 19Chart III.1
Korea: Average of dutiable rates, by HS Chapter
Average rate of duty (%)  
HS Chapter
Source :  WTO Secretariat estimates based on data provided by Korea.  
 
 WT/REG296/1/Rev.1 
Page 14  
 
  34. Certain tariffs lines (or parts of tariff lines), are s ubject to preferential tariff rate quotas (TRQs) in 
the case of Korea's commitments.  
3. Tariff rate quotas 
35. Article 2.7 of the Agreement specifies that the Parties shall administer and implement 
commitments in accordance with GATT Article XIII and its interpretative notes and with the WTO 
Agreement on Import Licensing Procedures. 
36. Appendix 2-A-1 of Korea's Schedule contains  its commitments on the establishment and 
management of tariff rate quotas (TRQs) .  Korea scheduled TRQs on "flatfish"
11, certain products under 
milk or cream powder less than 1,5% fat and butterm ilk, milk and cream powder over 1.5% fat, and milk 
and cream"12, "food whey"13, "butter and other fats and oils derived from milk"14, certain "cheeses"15, 
"natural honey"16, "oranges"17, "malt and malting barley"18, "prepared dry milk and other"19, "animal 
supplementary feeds"20, and "dextrin".21  The in-quota rate (generally  duty free), the TRQ quantity as 
well as the progressive increase22 in the TRQ quantity, are indicated in Appendix 2-A-1. Once the final 
in-quota quantity is reached this quantity remains unc hanged indefinitely for the following TRQs:  milk 
or cream powder less than 1,5% fat and buttermilk, milk and cream powder over 1.5% fat, and milk and 
cream, natural honey and oranges.  The other TRQs will be eliminated once the final out of quota rate 
reaches zero.  The TRQ quantities for Korea in fav our of EU goods shall not be counted towards the 
in-quota amount of any TRQ provided for such goods in the Harmonised Tariff Schedule of Korea (HSK) 
suggesting that the TRQ commitments are in addition to Korea's WTO TRQs.  
4. Import restrictions 
37. The Parties commit not to maintain or introduce an y import prohibition or r estriction inconsistent 
with GATT Article XI obligations and with any other relevant provision under the WTO Agreement 
(Article 2.9 of the Agreement). 
B. RULES OF ORIGIN  
38. The disciplines applicable to rules of origin are set out in the Protocol concerning the definition 
of "originating products" and met hods of administrative co-operation (hereafter referred to as "the 
Protocol"), which is attached to and forms an integral  part of the Agreement.  The Protocol defines what 
an "originating product" is.  It also provides for pr ocedures applicable in relation with the determination 
of the origin of products benefiting from preferential treatment.  Issues such as "drawback or exemptions 
from customs duties", or "proofs of origin" are addressed in Section B of the Protocol. 
                                                      
 11 HSK 0303.39.0000. 
 12 HSK 0402.10.1010, 0402.10.1090, 0402.10.9000 , 0402.21.1000, 0402.21.9000, 0402.29.0000, 
0402.91.1000, 0402.91.90000, 0402.99.10 000, 0402.99.9000, and 0403.90.1000. 
 13 HSK 0404.10.1010, 0404.10.1090, 0404.10.2110, 0 404.10.2120, 0404.10.2130, 0404.10.2190, and 
0404.10.2900. 
 14 HSK 0405.10.0000, and 0405.90.0000. 
 15 HSK 0406.10.1000, 0406.20.0000, 0406.30.0000, and 0506.90.0000 - including cheddar cheese. 
 16 HSK 0409.00.0000. 
 17 HSK 0805.10.0000. 
 18 HSK 1003.00.1000, and 1107.10.0000. 
 19 HSK 1901.10.1010, and 1901.10.1090. 
 20 HSK 2309.90.2010, 2309.90.2020, 2309.90.2099, and 2309.90.9000. 
 21 HSK 3505.10.4010, 3505.10.4090, 3505.10.5010, and 3505.10.5090. 
 22 For most products benefiting from the preferentia l TRQ scheme, quantities are progressively increased 
during a transition period up to 16 years in certain cases.  WT/REG296/1/Rev.1 
Page 15 
 
 
  39. The following three categories of products bene fit from preferential tariff treatment established 
by the Agreement: 
(a) Products wholly obtained in a Party (Article 4 of the Protocol); 
(b) Products obtained in a Party and which incor porate materials not wholly obtained there 
that have undergone sufficient working or pr ocessing (Article 5 and 6 of the Protocol 
define originating and operations considered to be insufficient working or processing) in 
a Party, for which detailed conditions to fulfil are listed in Annex II or Annex II(a) of the 
Protocol23;  or  
(c) Products obtained in a Party exclusively from materials that qualify as originating as a 
result of the application of the provisions contained in the Protocol. 
40. The product-specific rules in Annex II of the Protocol, establish working or processing necessary 
on non-originating materials for the final good to obt ain originating status.  For most products in 
HS Chapters 1 to 16 origin is conferred in most  cases when manufacturing in which the materials are 
already wholly obtained takes place in a Party.  For some products (coffee or tea, for instance), 
manufacturing implying a change in tariff classification (CTC) of the non-originating materials used may 
also confer origin when carried out in one of th e Parties.  In some instances, the CTC rule is 
complemented by a value-added rule setting a maxi mum ex-works value that non-originating materials 
should not exceed.  The value-added criterion is an altern ative rule for products of the chemical or allied 
industries as well as for plastics; the maximum value for non-originati ng materials is set between 25% 
and 50% of the ex-works price of the product; in a ddition, a specific tolerance of 20% is allowed in 
certain cases.  For textiles and textiles articles, the specific rules are in most cases a specific 
manufacturing operation, with a maximum value of non- originating materials rule used only for a few 
cases.24  The value-added criterion is also generally used as a determining condition for products of 
HS Chapters 84 to 94. 
41. While Annex II of the Protocol sets out the conditi ons required for all products to be considered 
as sufficiently worked or processed wi thin the meaning of Article 2 of the Protocol, Annex II(a) covers 
certain products originating in Korea for which the EU has established special rules of origin applicable  
only for a limited quantity of importe d products. This means that the EU grants preferences to certain 
non-qualifying products (under Annex II of the Prot ocol) that could qualify as originating under the 
special rules of origin in Annex II(a). The prefer ential access is granted acco rding to the commitments, 
for the concerned products, contained in the EU  schedule.  However, preferential access under 
Annex II(a) is limited to annual quotas as detailed in Annex II(a).25  For most concerned products the 
annual quotas do not vary over time (except two products  - certain preparations of surimi, and certain 
cotton yarns - for which the quota is progressively incr eased over the first three years).  There are no time 
limits applicable to this special rules of origin system. 
42. Article 3 of the Protocol recognizes cumulation of origin, thus considering as originating, 
products obtained in the Party but incorporating materi als originating in the other Party (even if working 
or processing conditions defined by the Protocol have not been fulfilled). 
                                                      
23 Non-originating materials not fulfilling the conditions set out in the list in Annex II may however be 
disregarded when their total value does not exceed 10% of the ex-w orks price of the product.  This tolerance does 
not apply to products falling within HS Chapters 50 to 63. 
 24 Moreover, specific additional provisions applicable to textiles are contained in Annex I of the Protocol, 
which contain Introductory notes to the list in Annex II of the Protocol. 
 25 The Korean products covered by Annex II(s) fall unde r the following HS Chapters : ex1604.20 (Certain 
preparation of surimi …);  ex1905.90 (Biscuits); 2402.20 (Cigarettes);  5204, 5205, 5206, 5207 (certain Cotton yarn, …);  5408 (Woven fabrics of man-made filament yarn); and 5508 (Sewing thread of man-made staple 
fibres, …);  5509, 5510, 5511 (certain Yarns …). WT/REG296/1/Rev.1 
Page 16  
 
  43. The disciplines on the determination of origin in  the Protocol also set out rules on accessories, 
spare parts and tools (Article 8) which if part of the product and included in its pri ce are to be regarded as 
one with the product;  sets of goods (Article 9) whic h when composed of originating and non-originating 
products, shall be regarded as originating provided the value of the non-originating products does not 
exceed 15% of the ex-works price of the set;  acc ounting segregation of materials (Article 11), or 
transport of goods from one Party to another including the principle of territoriality and direct transport 
(Articles 12 and 13) which is to be direct but trans-shipment or temporary warehousing in third parties is 
permitted provided that the goods are not released fo r free circulation and do not undergo operations 
other than unloading, reloading or any operation d esigned to preserve them in good condition in the third 
party.  Title V on drawback of or exemption fro m customs duties requires the Parties to exchange 
information on the operation of their duty drawback  and inward processing schemes after one year of 
entry into force of the Agreement and subsequently a nnually.  The Parties will (upon the request of either 
Party) jointly review their drawback and processing sch emes within five years of entry into force of the 
Agreement; at any time following the initiation of th e review the Party may request consultations to 
discuss possible limitations on duty drawback and inwa rd processing schemes for particular products if 
there is evidence of a negative effect on competition for domestic producers of like or directly 
competitive products.  Any disagreement between the Pa rties can be resolved through binding arbitration 
by a Panel in accordance with Chapter 14 on dispute settlement.  Title V discusses requirements for proof 
of origin. 
44. Among the arrangements for administrative co-operati on in Title VI of the Protocol, the Parties 
have agreed to use, when necess ary, the Customs Committee establis hed by the Agreement to address 
disputes which may arise in relation to the verificati on procedures set up by the Agreement.  Title VI of 
the Protocol also contains disciplines on penalties.  Mo reover, the Parties shall take all necessary steps to 
ensure that products traded under cover of a proof of  origin which in the course of transport use a free 
zone situated in their territories, are not substitu ted by other products and do not undergo handling other 
than normal operations designated to prev ent their deterioration (Article 30). 
45. The rules applicable to imports through Ceuta or Melilla are contained in Section C of the 
Protocol. Moreover, Joint Declarations concerning the Principality of Andorra and the Republic of 
San Marino with which the EU has customs unions clar ify the situation of products originating in these 
two separate customs territory. 
46. The WTO Customs Valuation Agreement without the reservations and options provided for in its 
Article 20 and paragraphs 2 thro ugh 4 of Annex III of the WTO Customs Valuation Agreement is 
incorporated into and made part of the Agreement, mutatis mutandis  (Articles 2.12 and 6.12) .  
C. E
XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
47. Article 2.11 of the Agreement prohibits the mainte nance or the institution of any duties, taxes or 
other fees and charges on exports.  The Parties commit not to maintain or introduce any export 
prohibition or restriction inconsistent with GATT Ar ticle XI obligations and with any other relevant 
provision under the WTO Agreement (Article 2.9 of the Agreement). 
D. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and phytosanitary measures 
48. Chapter 5 of the Agreement covers Sanitary an d Phytosanitary Measures (SPS).  It affirms the 
Parties' existing rights and obligations under the WTO SPS Agreement (Article 5.4).  In addition, it 
encourages transparency and excha nge of information on SPS matters with a view to minimizing their  WT/REG296/1/Rev.1 
Page 17 
 
 
  negative trade effects (Article 5. 5), and establishes a framework for enhanced cooperation between the 
Parties on SPS matters in general, on international standards (Article 5.6), and on animal welfare 
(Article 5.9).  Article 5.8 confirms the Parties' adhe rence to the concept of p est- or disease-free areas and 
areas of low pest or disease pr evalence (in accordance with the WTO SPS Agreement) and establishes 
close cooperation on these issues with the objective of bu ilding confidence in each other's' procedures for 
the recognition of such areas, taking into account th e relevant international standards, guidelines or 
recommendations.  
49. A specific mechanism for bilateral co-opera tion is established through a Committee on SPS 
measures (Article 5.10). 
50. The Chapter is not subject to dispute settlemen t procedures under the Agreement (Article 5.11).  
(b) Technical barriers to trade 
51. Chapter 4 of the Agreement covers technical barri ers to trade (TBT).  It affirms the Parties' 
existing rights and obligations under the WTO TBT Agre ement (Article 4.1), which is incorporated into 
and made part of the Agreement, mutatis mutandis .  Chapter 4 does not however apply to governmental 
bodies' technical specifications for their production or  consumption requirements, or SPS measures.  It 
contains the Parties' undertakings to strengthen co -operation on standards, technical regulations and 
conformity assessment procedures (Article 4.3) and est ablishes a coordination mechanism (Article 4.10).  
The use of good regulatory practices, in the context of  technical regulations (Article 4.4), compliance by 
the Parties' standardizing bodies with the Code of  Good Practice for the Preparation and Adoption of 
Standards, in the context of Standards, and the util ization of the existing mechanisms to facilitate the 
acceptance of the results of conformity assessment pr ocedures conducted in the other Party's territory 
(Article 4.6) are some of the instruments of co- operation and simplification which are underlined by the 
Agreement for TBT-related matters.  
52. The Parties undertake to exchange views on mark et surveillance (Article 4.7), to avoiding 
marking and labelling requirements (Article 4.9) that  are more trade restrictive than necessary to fulfil a 
legitimate objective, as well as conformity assessments fees (Article 4.8) which would unduly penalise 
trade in goods with the other Party. 
2. Trade remedies 
53. Chapter 3 of the Agreement covers Trade Remedies including global safeguard measures, 
agricultural safeguard measures, and antidumping and countervailing duties, but also a specific 
mechanism for bilateral safeguard measures.  
54. A Working Group on Trade Remedy Co-operation is established, inter alia , to oversee the 
implementation of Chapter 3 of the Agreement (Article 3.16). 
(a) Safeguard mechanisms 
(i) Global safeguards 
55. The Agreement affirms the Par ties' existing rights and obliga tions under GATT Article XIX and 
the WTO Agreement on Safeguards (Article 3.7) and for esees ad-hoc notifications if the other Party has a 
substantial interest.  It clarifies that, for the purpose of Article 3.7, it is considered that a Party has a 
substantial interest when it is among the five larg est suppliers of the impor ted goods during the most 
recent three year period measured in either absolute  volume or value.  Global and bilateral safeguards 
(see below) may not be applied with resp ect to the same good at the same time. WT/REG296/1/Rev.1 
Page 18  
 
  (ii) Bilateral safeguards 
56. A bilateral safeguard clause allows either Party to reintroduce temporarily the tariffs applied to 
WTO Members in case of an absolute or relative increase of import s, resulting from the reduction or the 
elimination of a customs duty under the Agreemen t, causes or threatens to cause serious injury
26 to a 
domestic industry producing like or directly competi tive goods (Article 3.1).  Th e bilateral safeguard can 
take the form of a suspension of further reductions in  the rate of customs duty for the goods in question.  
It can also consist of an increase in the rate of  customs duty on the good to a level which does not exceed 
the lesser of the MFN applied rate or the base rate  as specified in Annex 2-A of the Agreement.  
57. Article 3.2 of the Agreement contains cond itions and limitations, such as for example the 
requirement to conduct an inves tigation consistent with the procedures set by the WTO Agreement on 
Safeguards.  A bilateral safeguard, in principle not  exceeding two years, is a temporary measure.  The 
mechanism should not go beyond the expiration of the transition period27 (Article 3.2).  The imposition of 
provisional measures is provided for in critical circum stances (Article 3.3). Compensation is foreseen, in 
principle defined through consultations; in case of th e application by a Party of a bilateral safeguard 
measure (Article 3.4). 
(iii) Agricultural safeguards 
58. The Agreement establishes a speci al safeguard mechanism for imports of some agricultural 
products by Korea from the EU as listed in Annex 3.  The safeguard, in the form of a higher import duty, 
may be taken if the aggregate volume of imports of the good in any year exceeds a trigger level as set out in the Party's Schedule in Annex 3 of the Agreement.   Products covered by the mechanism (24 lines at the 
HS 10 digit level) include beef, pork, apples, malt  and malting barley, potato starch, ginseng, sugar, 
alcohol and dextrin.
28  Agricultural safeguards may only be used  during a transition period (up to 25 years 
in one case) as specified, along with the trigger leve l for applying the measure, and the maximum duty 
that may be applied each year for the selected goods in Annex 3.  The safeguard duty may not exceed the 
prevailing MFN applied rate to ensure that the import from the EU is not treated less advantageously than 
provided by MFN treatment.  
59. An agricultural safeguard may not be applied on the same good at the same time as a bilateral 
safeguard (see above), a global safe guard (see above), or a special safeguard applied under Article 5 of 
the WTO Agreement on Agriculture. 
60. The Agreement also contains some provisions to ensure transparency between the Parties and to 
avoid that agricultural safeguards interfere  with the Parties' TRQ commitments.  
(iv) Balance of Payments measures 
61. In addition to disciplines on trade remedies in Ch apter 3 of the Agreement, Article 15.8 confirms 
the possibility for the Parties to take WTO compa tible balance of payments (BOP) measures where a 
Party has serious BOP and external financial difficult ies in relation to trade in goods, and establishes a 
consultation mechanism to address the matter. 
                                                      
26 The definition of "serious injury and threat of serious injury" is the same as that used in the 
WTO Agreement on Safeguards (Article 3.5). 
 27 "Transition period" means a period of 10 years from the date of completion of tariff reduction or 
elimination, as the case may be  for each good (Article 3.5). 
28 HSK 0201100000, 0201200000, 0201300000, 0202100000, 0202200000, 0202300000, 0203191000, 
0203199000, 0808100000, 1003001000, 1107100000, 11081130000, 1211202220, 1211202220, 1211202290, 1302191210, 1302191220, 1302191290, 1701990000, 2207109010, 3505104010, 3505104090, 3505105010, and 
3505105090.  WT/REG296/1/Rev.1 
Page 19 
 
 
  (b) Anti-dumping and countervailing measures 
62. The Agreement affirms the Parties' existing ri ghts and obligations under GATT Article VI, and 
the Agreements on Antidumping, and Subsidies and C ountervailing measures (SCM) (Article 3.8).  It 
underlines the need to ensure transp arency and sets deadlines for the notification of the receipt of an 
application and foresees the Parties' consideration of  the public interests before imposing antidumping or 
countervailing duties.  It contains provisions on the reapplication of antidumping measures (Article 3.11) 
and on cumulative assessment (Article 3.12).  The Agreement confirms the de minimis  standard defined 
by the WTO Agreement on antidumping but imposes a "lesser duty rule" (Article 3.14).  
63. Any matters relating to antidumping and countervailing measures are not subject to the 
Agreement's specific dispute settleme nt mechanism (Article 3.15).  
3. Customs-related procedures 
64. The WTO Customs Valuation Agreement without the reservations and options provided for in its 
Article 20 and paragraphs 2 thro ugh 4 of Annex III of the WTO Customs Valuation Agreement is 
incorporated into and made part of the Agreement, mutatis mutandis  (Articles 2.12 and 6.12) .  
65. Chapter 6 of the Agreement also covers customs and trade facilitation.  To facilitate trade and 
promote customs co-operation on a bilateral and multilate ral basis, the Parties agree to cooperate and to 
adopt and apply their import, export and transit requ irements and procedures for goods on the basis of a 
number of objectives and principles listed in Article 6.1.   
66. The Agreement provides for a number of trade fa cilitation-related benchmar ks for the application 
of customs and border related procedures, through disciplines on the Release of goods (Article 6.2), 
Simplified customs procedure (Article 6.3), Risk mana gement (Article 6.4), Transparency (Article 6.5), 
Advance rulings (Article 6.6), Appeal procedures (A rticle 6.7), Confidentialit y (Article 6.8), Fees and 
charges (Article 6.9), and Post-clearance audit (Ar ticle 6.11).  The Parties also renounce the use of 
pre-shipment inspection (Article 6.10). 
67. Cooperation between the Parties in customs and cu stoms-related matters is reinforced through 
various provisions including the harmonization of documentation and data elements used in trade 
according to international standards, exchanging cu stoms personnel, intensifying cooperation between 
their customs laboratories and working towards th e harmonization of customs laboratories methods, 
developing joined training programmes on customs -related issues, to promote strong and efficient 
intellectual property rights enforcement by customs au thorities, and working together to reinforce the 
customs related aspects for securing the logistics ch ain of international trade.  Besides customs 
cooperation (Article 6.13), the Agre ement contains provisions on mutual administrative assistance in 
customs matters (Article 6.14), and requires the Parti es to exchange lists of designated contact points for 
mattes arising under Chapter 6 (Article 6.15).  
68. Finally, a Customs Committee is established to en sure the proper functioning of Chapter 6 of the 
Agreement. 
E. SECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  
1. Electronics29 (Annex 2-B) 
69. Annex 2B of the Agreement highlights the role of the International Organization for Standards 
(ISO), the Electrotechnical Commission (IEC), and the International Telecommunications Union (ITU) as 
                                                      
29 As defined in Appendix 2B-1. WT/REG296/1/Rev.1 
Page 20  
 
  the relevant international standard-setting bodies fo r electromagnetic compatibility (EMC) and safety of 
covered products.  It also restricts the Parties c hoice of conformity assessment procedures to suppliers' 
declaration of conformity, which is described in Artic le 3 of Annex 2-B of the Agreement.  As a result, 
third party testing or certification for EMC or safety of covered products shall be eliminated except for 
the cases covered by the provisions on exceptions and emergency measures (Artic le 6 of Annex 2-B).  
While the EU will implement the conformity assessmen t procedures immediately, Korea may, for three 
years (until 2014), continue to require third-party certification.  In those cases, however, Korea will 
recognize EU certificates and test results.  More over, no later than 2016, Korea shall introduce a 
supplier's declaration of conformity without requi ring the intervention of any conformity assessment 
body or testing of the product by recognized testi ng laboratories.  However, for products listed in 
Appendix 3-B-3, Korea will still have the possibility to  continue to request a third party certification 
regime if it can show on a product specific basis that allowing supplier's declaration of conformity would 
create risks for human health and safety.  The Parti es will also strengthen their co-operation in regulatory 
issues related to the electronics sector. 
2. Motor Vehicles and Parts (Annex 2-C) 
70. Annex 2-C of the Agreement contains a numbe r of provisions addressing non-tariff measures 
(NTMs) applicable to motor vehicles.  The Parti es commit to cooperate for more regulatory convergence 
using in particular the World Forum for Harmoniza tion of Vehicle Regulations (WP29), within the 
framework of the United Nations Economic Commission for Europe (UN/ECE), which is recognized as 
the relevant international standard setting body for the products covered by Annex 2-C.
30  They commit 
to allow into their markets motor vehicles and parts originating in the other Party which satisfy certain 
technical regulations in force in the other Party corresponding to the relevant UN/ECE Regulations.  
Equivalence is recognized by the EU for 74 different areas of technical regulations31 for which the 
UN/ECE Regulations exist.32  The same approach ensures that  Korea accepts product compliance in 
51 different areas of technical regulations for which UN/ECE Regulations under the 1958 Agreement 
exist.  A review of these requirements, to enhanc e the acceptance of products on the basis of their 
compliance with UN/ECE Regulations, is foreseen every three years.  The Parti es have also agreed to 
proceed, within five years of the entry into force of the Agreement, with the harmonization of a number 
of other regulations in Table 2 of Appendices 2-C-2 a nd 2-C-3.  Commitments are made by the Parties to 
regularly consolidate the results of an agreed regul atory convergence process every three years (Article 4 
of Annex 2-C), including to refrain from introducing new technical regulations diverging from UN/ECE 
Regulations.  
71. With respect to internal taxes and emission regulations on motor vehicles and parts, MFN 
treatment is granted to products originating in the ot her Party in relation with like products originating in 
any non-party, including as provided in any free trad e agreement with such non-party (Article 5 of 
Annex 2-C). 
72. Unless it can demonstrate, based on scientific or t echnical information, that a new technology or 
new features of motor vehicles create a risk for human  health, safety or the environment, neither Party 
shall prevent or unduly delay the placing on its market  of a new product (Article 6 of Annex 2-C).  The 
Parties nevertheless retain the right to adopt measu res necessary for road safety, the protection of the 
                                                      
 30 Appendix 2-C-1 defines the products that are subject to the disciplines of Annex 2-C. 
31 Appendix 2-C-2 Table 1 of Annex 2C lists subjects, UN/ECE requirements, and corresponding 
EU technical regulations. In addition, a list of subjects,  UN/ECE or EU requirements, and corresponding Korean 
technical regulations is contained in Appendix 2-C-3 Table 1 of Annex 2-C of the Agreement.  In addition, the EU 
on-board diagnostic (OBD) devises are also recognized as equivalent to Korean standards. 
 32 Agreement concerning th e adoption of uniform technical prescrip tions for wheeled ve hicles, equipment 
and parts which can be fitted and/or be used on wheeled vehicles and the conditions for reciprocal recognition of 
approvals granted on the basis of these prescriptions.  WT/REG296/1/Rev.1 
Page 21 
 
 
  environment or public health and the prevention of  deceptive practices, provided such measures are based 
on substantiated scientific or technical information (Article 7 of Annex 2-C). 
73. An accelerated dispute settlement  mechanism is established to  ensure compliance with the 
specific rules applicable to the motor vehicle sector (A rticle 10 of Annex 2-C).  Moreover, monitoring of 
the implementation of commitments is undertaken through a Working Group on Motor Vehicle and Parts 
(Article 9 of Annex 2-C). 
3. Pharmaceutical Products and Medical Devices (Annex 2-D) 
74. Annex 2-D of the Agreement contains, inter alia , the Parties' commitment to promote the 
development of and facilitate access to high-quality patented and generic pharmaceutical products and 
medical devices.  It includes provisions on increased tran sparency by the Parties (Article 3 of Annex 2-D) 
as well as a commitment to prohibit improper indu cements by manufacturers and suppliers of 
pharmaceutical products or medical devices to health care professionals or institutions for the listing, 
purchasing or prescribing of pharmaceutical products and medical devices eligible for reimbursement 
under health care programmes (Article  4 of Annex 2-D).  It also foresees regulatory co-operation 
(Article 5 of Annex 2-D).  The agreed disciplines unde rline the necessity to en sure fair, transparent, 
reasonable, and non-discriminatory procedures, rules,  criteria, and implementing guidelines applying to 
measures related to listing, pricing and/or reimbursement for pharmaceu tical products or medical devices 
(Article 2 of Annex 2-D).  A Working Group established by the Agreement will monitor the 
implementation of Annex 2-D. 
4. Chemicals (Annex 2-E) 
75. Annex 2-E of the Agreement reaffirms the Par ties rights and obligations under the WTO TBT 
Agreement, and underlines the importance of tran sparency and due process when regulating and 
operating chemical management regimes.  It also co mmits the Parties to applying, whenever possible, 
best practices with respect to the adoption and implementation of legislation, risk assessment and 
registration, authorization, notification and treat ment of confidential business information, and to 
cooperating in the area of Good Laboratory Practices a nd Test Guidelines.  With a view to promoting 
co-operation, a Working Group on Chemicals is established by the Agreement.  
IV. PROVISIONS ON TRADE IN SERVICES 
A. SCOPE AND DEFINITIONS  
76. Chapters 7 and 8 of the Agreement and their Annex es, contain provisions specific to the Parties' 
measures33 affecting in particular, but not only, trade in services. 
77. Chapter 7 covers trade in services, establishment and electronic commerce.  It is divided into 
seven Sections.   
(a) Section A contains General provisions and Section B covers Cross-border supply of 
services. Cross-border supply of services is defined as the supply of a service (i) from the territory of a Party into the territory of th e other Party (GATS mode 1), and (ii) in the 
territory of a Party to the service consumer  of the other Party (GATS mode 2).  In 
                                                      
33 "Measures" means any measure by a Party, whether in  the form of law, regulation, rule, procedure, 
decision, administrative action or any other form.  "Measures" may be taken by central, regional or local 
governments and authorities of the Parties to the Agreem ent, and non-governmental bodies in the exercise of 
powers delegated by central, regional or local governments or authorities of the Parties to the Agreement. 
(Article 7.2 of the Agreement). WT/REG296/1/Rev.1 
Page 22  
 
  addition, "measures affecting the cross-borde r supply of services" include measures 
affecting (a) the production, distribution, marketing, sale and delivery of a service; (b) the purchase, payment or use of a service;  and (c) the access to and use of networks or services which are required by the Parties to be offered to the public generally.  Moreover, "measures affecting the cross-border supply of services" also include 
measures affecting the presence in a Party's territory of a service supplier of the other 
Party, and thus may cover also measures related to the establishment of commercial 
presence (mode 3) and/or temporary presence of natural persons (mode 4).
34  A s  a  
consequence, it appears that certain measures may, at least theoretically, be covered by 
disciplines in Sections B, C and/or D (Establishment, and Temporary Presence of natural 
persons).  The Parties clarified that, as a condition for the cross-border supply of a 
service (modes 1 and 2), a Party may require a service supplier of the other Party to establish or maintain a representative office or an y form of enterprise, or to be resident, 
in its territory ("local presence requirements").  The purpose of subparagraph (d) of paragraph 2 of Article 7.4 was to ensure that existing local presence requirements would 
be regarded as measures affecting the cross border supply of services.   
(b) Section B of Chapter 7 excludes a number of services from mode 1-related disciplines.  
In particular, measures that the Parties may take and which affect cross-border supply of 
the following services are not governed by the Agreement:  (i) audio-visual services
35; 
(ii) national maritime cabotage; and (iii) dom estic and international air transport services 
(whether scheduled or not) and certain services directly related to the exercise of traffic 
rights.36  Section C is devoted to Establis hment, which means the constitution, 
acquisition (including capital participation) or  maintenance of a juridical person or the 
creation or maintenance of a branch37 or representative office within the territory of the 
EU or of Korea for the purpose of performing an economic activity.38 Under the 
Agreement, a "natural person of a Party" is defined as a national of  Korea or one of the 
EU Member States.  For a "juridical person39 of a Party" setting up in accordance with 
the laws of one of the EU Member States or of Korea is required.  Moreover, an office, has to be registered in a Party or centr al administration (head office where ultimate 
                                                      
34 See letter (d) of paragraph 2 of Article 7.4 of the Agreement (Cross-border supply of services; scope and 
definitions). 
35 According to footnote 8 of the Agreement, "the exclusion of audio-visual services from the scope of 
[Section B] is without prejudice to the right and obligations derived from the Protocol on Cultural Co-operation 
[Attached to the Agreement]". 
36 Aircraft repair and maintenance services, the se lling and marketing of air transport services, CRS 
services, and other services auxiliary to air transport serv ices - such as ground handling services, rental service of 
aircraft with crew and airport manageme nt services, are however subject to the disciplines contained in Section B of 
Chapter 7 of th e Agreement. 
37 In the Agreement, "branch" of a juridical person means "a place of business not having legal personality 
which has the appearance of permanency, such as the extension of a parent body, has a management and is 
materially equipped to negotiate business with third parties so that the latter, although knowing that there will, if 
necessary, be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension" (Article 7.9 
letter (e)). 
38 "Economic activity" includes any activities of an economic nature except activities carried out in the 
exercise of governmental authority, i.e. activities carried out neither on a commercial basis nor in competition with 
one or more economic operators - similar to the description in the GATS. 
39 A "juridical person" is: (i) owned by persons of the EU  or Korea if more than 50% of the equity interest 
in it is beneficially owned by persons of the EU or of Korea respectively;  (ii) controlled by persons of the EU or of 
Korea if such persons have the power to name a majority of its directors or otherwise to legally direct its actions; 
affiliated with another person when it controls, or it controlled by, that other person, or when it and the other person are both controlled by the same person.  Sp ecial derogations are applicable to some shipping companies  established 
outside the EU or Korea.  WT/REG296/1/Rev.1 
Page 23 
 
 
  decision-making takes place), or the principa l place of business must be located in the 
EU territory40 or in Korea.  Engaging in substa ntive business operation in a Party's 
territory also constitutes a pre-requisite for a juridical person to become a beneficiary of 
the Agreement.  In the case of Establishment,  a juridical person may also be recognized 
if owned or controlled by na tural persons of the EU or of Korea respectively.    
(c) Section C therefore covers services provided through mode 3 (commercial presence).  It 
also covers activities of investors, when ju ridical persons are established or when the 
economic activity is not performed directly by  a juridical person but through other forms 
of establishment such as a branch or a represen tative office.  The disciplines are therefore 
not limited to the constitution, acquisition or ma intenance of a juridical person in trade in 
services but also cover legal persons involved  in trade in goods-related activities.   
(d) While the first mode of provision of services (cross-border trade in services) and to a 
certain extent mode 2 (consumption abroad) are covered by Section B, and while some 
specific disciplines related to mode 3 (commercial presence) are contained in Section C - on establishment -, mode 4 - related disci plines (temporary presence of persons) are 
concentrated in Section D (on Temporary pr esence of natural persons for business).   
(e) Section E contains constitutive elements of the regulatory framework. Measures taken by 
the Parties, and which may affect natural persons seeking access to the employment market of a Party, as well as measures regarding citizenship, residence or employment on a permanent basis, are specifically exclude d from the coverage of the Agreement.  
Moreover, measures
41 to regulate the entry of natural persons into, or their temporary 
stay in one of the territory of one of the Parties, are also explicitly reserved.  
Furthermore, the EU and Korea retain th e right to regulate and to introduce new 
regulations to meet legitimate policy objectives.42   
(f) In addition to provisions specifically related to trade in services and to establishment, 
Section F covers Electronic Commerce.43 
(g) Section G contains disciplines applicable to exceptional measures.44 
78. Chapter 8 refers to Payments a nd Capital Movements, thus partly  touching on matters on trade in 
services.  
79. In addition, Chapters 1, and 11-15 of the Agre ement, as well as the related Annexes, contains 
provisions of general application which may al so be applicable to trade in services.  
                                                      
40 The "EU Territory" is defined as a territory to which the Treaty establishing the European Community 
(TEC), as amended and the Treaty on the Functioning of the EU (TFU) apply. 
41 Including measures necessary to protect the integrity of, and to ensure the orderly movement of natural 
persons across Parties' borders. 
42 See Article 7.1, paragraph 4.  What may constitute a "legitimate policy objective" is not detailed further 
in the Agreement.  According to Parties, Examples of "legitimate policy objectives" may include, but are not limited to, objectives to protect the environmen t, to ensure public security etc. 
43 See Title V, section H below.  According to foot note 42 of the Agreement, the inclusion of the 
provisions on electronic commerce in Chapter 7 is made without prejudice to Korea's position on whether deliveries 
by electronic means should be categori zed as trade in se rvices or goods. 
44 See Title V, section C below. WT/REG296/1/Rev.1 
Page 24  
 
  B. D
ENIAL OF BENEFITS  
80. The Agreement does not contain a legal provision addressing specifically "denial of benefits". 
Nevertheless, a Party may deny the benefits of Ch apter 7 of the Agreement to a juridical person, 
registered in the EU or in Korea, if it does not "engage in subs tantive business operation"45 as in 
Article V.6 of the GATS. 
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
81. The Parties reaffirm their respective rights a nd obligations under the WTO Agreement, in 
particular the GATS. 
82. To supervise and assess the implementation of Chapte r 7 and to consider all related matters, the 
Agreement establishes a Committee on Trade in Se rvices, Establishment and Electronic Commerce 
(Article 7.3). 
1. Market access and National Treatment 
83. In relation with the Cross-border supply of  services and establishment, Market Access 
commitments are contained in Annex 7-A of the Agre ement.  Annex 7-A takes the form of positive lists 
of specific commitments, comparable to the approach used in the GATS.  For sectors and/or sub-sectors 
for which specific commitments are made in relation with the cross-border supply of services, limitations 
are placed on (a) the number of service suppliers, (b) the total value of service transactions or assets in 
the form of numerical quotas or the requirement of an  economic needs test, and/or (c) the total number of 
service operations or on the total quantity of service out put (Article 7.5).  For sectors and/or sub-sectors 
for which specific commitments are made in relati on with establishment, limitations are expressed as 
(a) limitation on the number of establishments, (b) limita tions on the total value of  transactions or assets 
in the form of numerical quotas or the requirement of  an economic need test, (c) limitations on the total 
number of operations or on the total quantity of out put, (d) limitations on the participation of foreign 
capital in terms of maximum percentage limit on forei gn shareholdings or the total value of individual or 
aggregate foreign investment, (e) measures which restrict  or require specific types of legal entity or joint 
ventures through which an investor of the other party may perform an economic activity, and 
(f) limitations on the total number of natural persons, other than key personnel (see Section below) and 
graduate trainees, that may be employed in a particular sector or that an investor may employ and who are necessary for, and directly related to, the pe rformance of the economic activity in the form of 
numerical quotas or subject to an economic needs test (Article 7.11). 
84. National Treatment is granted by a Party to services and service providers as well as to 
establishments and investors of the other Party for the sectors where market access commitments are 
inscribed in Annex 7-A (Articles 7.6 and 7.12).  Na tional Treatment may however be granted subject to 
conditions and qualificati ons set out in Annex 7-A.
46  Neither Party may adopt new, or more, 
discriminatory measures with regard to services or serv ice suppliers or to establishments and investors of 
the other Party as compared to those listed in Annex 7-A (Articles 7.7 and 7.13).  For the EU, Market 
                                                      
45 According to footnote 6 in Chapter 7 of the Agreement, "the EU Party understands the concept of 
"effective and continuous link" with the economy of a Memb er States of the EU enshri ned in Article 48 [of the 
TEC] as equivalent to the concept of "substantive business operations" provided for in paragraph 6 of Article V of 
the GATS.  Accordingly, for a juridi cal person set up in accordance with the laws of Korea and having only its 
registered office or central administration in the territory of Korea, the EU Party shall only extend the benefits of 
[the] Agreement if that juridical person possesses an ef fective and continuous link w ith the economy of Korea". 
46 National Treatment may be granted through identical treatment or through treatment formally different.  
In the case of formally different treatment, such treatment would be considered less favourable if it modifies the conditions of competition in favour of services or service suppliers of a Party compared to like services or service 
supplier of the other Party.  WT/REG296/1/Rev.1 
Page 25 
 
 
  Access and National Treatment specific commitments related to cross-border supply of services are 
contained in Annex 7-A-1, and for cross-borde r supply of services and in Annex 7-A-2, for 
establishment.  For Korea, Annex 7-A-4, which cont ains Korea's specific commitments in relation with 
Market Access and National Treatment, refers to cross-border supply of services, establishment, and 
temporary movement of natural persons. 
2. MFN treatment  
85. As of the entry into force of the Agreement, th e Parties agree to grant MFN treatment to services 
and service providers (with respect to measures cove red by Section B on cross-border supply) and to 
establishments and investors (with respect to me asures covered by Section C on establishment). 
86. MFN treatment may nevertheless not be granted in a number of circumstances.  For instance, 
MFN treatment is only granted in relation with other preferential treatment which may be granted through 
economic integration agreements signed after the en try into force of the Agreement.  Moreover, 
preferential treatment resulting from regional economic in tegration granted by either Party to services and 
service suppliers of a third party shall be excluded from the application of the MFN treatment clause if the preferential treatment is granted under sectoral  or horizontal commitments for which the regional 
economic integration agreement stipulates a significantl y higher level of obligations than that undertaken 
in the context of Section B of the Agreement.  Annex 7-B of the Agreement clarifies that regional 
economic integration agreement of a "significantly hi gher level", must create an internal market in 
services and establishment.
47   
87. Measures providing for the recognition of qualif ications, licences or prudential measures in 
accordance with Article VI of GATS (on Domestic  Regulations) or the GATS Annex on Financial 
Services may also be exempted from the application of the MFN treatment.  
88. A similar exemption is in force for any internati onal agreement or arrangeme nt relating wholly or 
mainly to taxation that the EU, one of its member states, or Korea may be party to. 
89. Finally, a number of MFN exemptions have b een listed by the Parties in Annex 7-C of the 
Agreement:  
(a) The EU lists 43 exemptions; 35 of them bei ng specific to the regimes of individual EU 
Member States.  While eight exceptions are applicable to all sectors, including one to "protect differential treatment deriving from ratchet clauses" (as in Annex 7-C), the remainder refer to transport (23), business services (6), health related and social services (3), recreational, cultural and sporting servi ces (2), and tourism and travel related 
services (1).   
(b) Korea has 14 exemptions.  While two are applicable to all sectors (including one 
reserving Korea's right to adopt or maintain any preferential treatment granted to countries under any international agreement, signed after July 2011, involving fisheries 
or maritime matters, including salvage), the remainder are in transport (6), social services (2), communication services (1), education services (1), and recreational, cultural, and 
sporting services (1).  One exception refers to disadvantaged groups. 
                                                      
47 An "internal market on services and establishment" m eans an area without internal frontiers in which the 
free movement of services, capital and persons is ensured.  According to the Agreement (footnote 1 to Annex 7-B) "the European Economic Area (EEA) is the only internal ma rket with third countries of the European Union at the 
time of signature of the Agreement. WT/REG296/1/Rev.1 
Page 26  
 
  3. Movement of natural persons 
90. Section C of Chapter 7 covers Temporary presence of  natural persons for business.  It applies to 
measures by the Parties concerning the entry, and temporary stay, in their territories of key personnel
48, 
graduate trainees, business services sellers, contractua l service suppliers and independent professionals.49  
91. Article 7.18 establishes that for every sector liberalized in accordance with Section C 
(on establishment) and subject to an y reservation listed in Annex 7-A, each  Party shall allow investors of 
the other Party to transfer to their establishment natu ral persons of that other Party, provided that such 
employees are key personnel or graduate trainees, as well as  business service sellers.  The Parties shall 
also adopt a decision on commitments concerning the access of contractual service supplier and independent professionals of a Party to the territory of  the other Party; this should take place no later than 
two years after the conclusion of negotiations on Artic le XIX of the GATS and the Doha Declaration.  
92. The measures which a Party shall not maintain or  adopt are defined as limitations on the total 
number of natural persons that an investor may transfer  as key personnel or gradua te trainees in a specific 
sector in the form of numerical quotas or an econom ic needs test requirement and as discriminatory 
limitations.  Unless otherwise provided in Annex 7-A,  neither Party may require that an establishment 
appoints to senior management positions natural persons  of any particular nationality or having residency 
in its territory. 
93. The periods indicated for the temporary entry a nd stay for different categories of personnel are 
given in Table IV.1.  
Table IV.1 
Temporary entry and stay per Category of personnel 
Category of personnel Period of temporary entry and stay 
Intra-corporate transferees  Up to three years 
Business visitors  90 days in any 12 month period 
Graduate trainees  One year 
Business service sellers  Up to 90 days in any 12 month period 
 
94. Annex 7-A-3 contains the EU's list of reservati ons related to its commitments regarding key 
personnel and graduate trainees (Artic le 7.18).  It indicates the economic  activities liberalized pursuant to 
Articles 7.7 (cross-border supply of services) and 7. 13 (establishment) for which limitations on key 
personnel, graduate trai nees apply and specify such limitations.  
95. For Korea, Annex 7-A-4, which contains its specific commitments on market access and national 
treatment, not only refers to the temporary movement  of natural persons, but also covers cross-border 
supply of services as well as establishment. 
                                                      
48 In the Agreement, "Key personnel"  means "natural persons employed wi thin a juridical person of a party 
other than a non-profit organization and who are responsible for the setting up or the proper control, administration 
and operation of an establishment.  Key personnel co mprise business visitors responsible for setting up an 
establishment and intra- corporate transferees. 
49 Chapter 7 of the Agreement does no t apply to measures affecting natural persons seeking access to the 
employment market of a Party, nor to measures regarding citizenship, residence or employment on a permanent 
basis (Article 7.1.5 of the Agreement).  WT/REG296/1/Rev.1 
Page 27 
 
 
  D. LIBERALIZATION COMMITMENTS  
96. The sectors liberalized by each Party are listed in  Annex 7-A of the Agreement, which also 
contains the limitations and conditions  applicable in connection with th e Parties' commitments.  Neither 
Party may adopt new, or more, discriminatory measures with regard to services or service suppliers of the 
other Party as compared to those listed in Annex 7-A (Article 7.7). 
97. The EU's list of commitments is divided into  commitments on Cross-Border Supply (Annex 7-
A-1), commitments on Establishment (Annex 7-A-2), and reservations related to Temporary Presence of 
natural persons for business (Annex 7-A-3).  Koreas Schedules of commitments in Service Sectors are 
covered in Annex 7-A-4-A a nd commitments in Establishment in Annex 7-A-4-B.  
1. The European Union 
98. In its GATS schedule, the EU has made co mmitments in 115 out of 155 services sectors.50  It has 
scheduled extensive commitments in a number of sector s, subject to limitations by certain individual EU 
Member States.  The EU did not make commitments, inter alia , in certain professional services related to 
medical and paramedical sub-sectors, postal and a udio-visual services and a number of activities in 
transport services.  It scheduled certain MFN exemp tions essentially in audio-visual services, transport 
services, and publishing.51  The EU also maintains a horizontal "public utilities carve-out" in the GATS, 
while under the Agreement "activities that in the territory of either Party are connected, even 
occasionally, with the exercise of official authority" are excluded from its scope (Article 62.2).  Moreover 
individual EU Member States maintain a number of  horizontal reservations concerning conditions for 
commercial presence (mode 3) in the EU GATS schedule,  particularly with regard to the composition of 
the board of directors or permitted type of legal en tity.  In all EU Member States except Hungary and 
Poland, eligibility for subsidies from the EU may be limited to juridical persons established within the 
territory of an EU Member State or a particular geographical sub-division thereof.  Subsidies for research and development are unbound.  With regard to investment , horizontal limitations are listed by about half 
of the EU Member States in the GATS services schedule and a number have scheduled reservations on real estate purchases. 
99. In the Agreement (Annexes 7-A-1, 7-A-2 and 7- A-3), the EU's commitments cover, at least 
partly, a large range of services sectors.  Several specific commitments are also made in relation with 
energy services as well as on other services not included elsewhere.  There are however no commitments on audio-visual services, pipeline transport, and ai r transport services.  The EU's commitments do not 
include measures relating to qualification requirements and procedures, technical standards and licensing 
requirements and procedures when they do not cons titute a market access or a national treatment 
limitation (within the meaning of Articles 7.5, 7.6, 7.11, 7.12, 7.18, and 7.19 of the Agreement).  Those 
measures (e.g. need to obtain a licence, universal  service obligations, need to obtain recognition of 
qualifications in regulated sectors and need to pass sp ecific, including language, examinations), even if 
not listed, apply in any case to services and service suppliers of Korea.  Moreover, the EU commitments 
are without prejudice to the feasibility of the cross-bord er supply of service provided in Article 7.4.3(i) of 
the Agreement in certain sectors and sub-sectors a nd without prejudice to the existence of public 
monopolies and exclusive rights as described in the lis t of commitments on estab lishment (Annex 7-A-2).  
Furthermore, the EU's commitments do not include measures concerning subsidies granted by the EU.  
                                                      
50 The GATS schedule for EU-25 was certified on 18 December 2006 (S/L/286) and is contained in 
document S/C/W/273, and Add.1 and Suppl.1.  For ease of reference, comparisons made between the EU's commitments under the Agreement and its GATS schedule are based on the EU(25) GATS schedule.  This 
consolidated schedule has not yet entered into force because the ratification process has not been completed in a 
number of EU Member States.  The GATS EU-27 schedule has not yet been certified.   
51 Based on the EU(12) list of MFN exemptions.  MFN exemptions have also been scheduled by the 
17 countries which acceded to the EU since 1995. WT/REG296/1/Rev.1 
Page 28  
 
  Finally, the rights and obligations arising from the lis ts have no self-executing effect and thus confer no 
rights directly to natural or juridical persons.  As far as the temporary presence of key personnel and 
graduate trainee and business service sellers is con cerned, the EU's commitments do not apply in cases 
where the intent or effect of their temporary presence is  to interfere with, or otherwise affect the outcome 
of, any labour / management dispute or negotiation.  The EU's legal requirements regarding stay, work 
and social security measures continue to apply, incl uding regulations concerning period of stay, minimum 
wages as well as collective wage agreements event if not listed. 
100. Under the Agreement, the EU maintains horizonta l limitations with regard to real estate (for 
modes 1, 2, and 3).  Moreover, in relation with est ablishment, horizontal limitations are introduced for 
public utilities, types of establishment, investment, a nd geographical zones.  Furthermore, for mode 4, 
horizontal limitations are registered in relation with  economic needs tests, the scope of intra-corporate 
transferees, graduate trainee, managing directors and auditors, as well as in relation with recognition 
processes. 
2. Korea 
101. In its GATS Schedule, Korea has made commitment s in 98 of 155 services sectors.  It scheduled 
extensive commitments in a number of sectors, subj ect to certain limitations.  It has no commitments, 
inter alia , for certain professional services related to me dical and paramedical sub-sectors, postal and 
audio-visual services as well as in educational services, health related and social services, recreational, cultural, and sporting services, and a number of activiti es in the sector of transport services.  Korea has 
scheduled one MFN exemption for Computerized Reservation Systems (CRS).  In its horizontal GATS commitments, Korea also maintains market access limitations on commercial presence ( inter alia , 
acquisition of outstanding stocks of existing domestic  companies by natural persons or juridical persons 
of another member), and national treatment limita tions on the amount of foreign direct investment 
permitted and on the acquisition of land.  Horizontal limitations are also registered in relation with 
mode 4. 
102. The list of commitments made by Korea in th e Agreement (Annexes 7-A-1, 7-A-2 and 7-A-3) 
covers, at least partly, most sectors.  There ar e however no specific commitments in sectors such as 
audio-visual services, most construction and relate d engineering services, health related and social 
services, internal waterways transport, space transport,  and rail transport services.  As for the EU, it does 
not include measures relating to qualification requi rements and procedures, technical standards and 
licensing requirements and procedures when they do not constitute a market access or a national 
treatment limitation.  Non-discrimination requireme nts as regards the types of legal form of an 
establishment are also not listed in Korea's schedul e of commitments and nor are measures concerning 
subsidies it may grant.  Rights and obligations arising from Korea's commitments also have no 
self-executing effect and thus confer no rights directly to  natural or juridical persons.  In relation with the 
temporary presence of key personnel, graduate trai nee and business service sellers in economic activities 
which are not liberalized pursuant to Articles 7.7 and 7.13, Korea does not u ndertake any commitments 
under Articles 7.18 and 7.19.  Moreover, when tempor ary presence is liberalized pursuant to Articles 7.7 
and 7.13, the liberalization does not apply in cases where the intent or effect of the temporary presence is 
to interfere with, or otherwise affect the outcome of , any labour / management dispute or negotiation.  
Korea also retains the right to take measures affec ting natural persons seeking access to its employment 
market and measures regarding citizenship, residence or reemployment on a permanent basis.  In that 
context, the immigration and labour laws of Korea must be observed.  
103. Under the Agreement, Korea has qualified horizontal  limitations with regard to acquisition of 
outstanding stocks of existing domestic companies, acquisition of arms, acquisition of land in certain 
situation, activities related to state-owned electroni c information system, and rights or preferences 
granted to socially or economically disadvantaged groups.  WT/REG296/1/Rev.1 
Page 29 
 
 
  E. S ECTOR SPECIFIC COMMITMENTS  
104. The specific commitments by the Parties in  the Agreement are based on their GATS 
commitments, although in certain cases their GATS schedules are not incorporated into the list of 
services commitments in the Agreement (Annex 7-A).  For certain sectors (and sub-sectors) coverage is 
enlarged, while, for a number of sectors (sub-sectors)  already covered, new commitments are made or 
certain GATS-limitations are withdrawn.   
105. Tables IV.2 and IV.3 below summarize the Par ties' specific commitments, by main sectors and 
subsectors, under Annex 7 of the Agreement and co mpares them with their GATS schedules.  Mode 4 
commitments are excluded.  The Tables are based on the services sectoral classification list.52  
Improvements in existing GATS commitments are either  a reduction of the limitations applicable to 
market access and/or national treatment, a relaxation of  the form of establishment under mode 3, further 
sub-sectors in which commitments are made, and/or additional commitments.  In the case of the EU, individual Member States have listed a number of country-specific limitations for a number of sectors / 
subsectors.  In addition, at present, there is as yet no certified EU27 List of Specific Commitments, 
consolidated to take into account the latest EU enlargement.  Moreove r, horizontal limitations registered 
in Annex 7 of the Agreement are not captured by the following Tables.   
Table IV.2 
EU: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  √ Improved 
C. Research and development √ Improved 
D. Real estate √ Similar 
E. Rental/Leasing services without operators √ Similar 
F. Other √ Improved 
2. COMMUNICATION SERVICES   
A. Postal - New 
B. Courier - - 
C. Telecommunication  √ Improved 
D. Audiovisual - - 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Improved 
4. DISTRIBUTION SERVICES √ Improved 
5. EDUCATION SERVICES √ Improved 
6. ENVIRONMENTAL SERVICES √ Improved 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Improved 
B. Banking and other financial services √ Improved 
8. HEALTH RELATED AND SOCIAL SERVICES √ Improved 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Improved 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides √ Improved 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES √ Improved 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
B. Internal waterways √ Improved 
C. Air  √ Improved 
D. Space - - 
Table IV.2 (Cont'd) 
 
 
  
 
  
                                                      
52 MTN.GNS/W/120. WT/REG296/1/Rev.1 
Page 30  
 
  Sectors GATS FTA 
E. Rail  √ Improved 
F. Road √ Improved 
G. Pipeline - New 
H. Services auxiliary to all modes of transport √ Improved 
I. Other √ Similar 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE √ Similar 
Note: 
√: Commitments in the GATS schedule (Full or partial). 
-: No commitments. 
New: New commitments made under the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. 
Similar: Similar commitments made under the Agreement as those under the GATS (though with minor improvements). 
 
Source :  Draft Consolidated GATS Schedule of Specific Comm itments (S/C/W/273/Suppl.1),  communicated by the EU 
(in 2006), which does not cover the result of the 2007 EU enlargement, and Annex 7 under the Agreement.  The 
comparison only concerns modes 1-3, market access and na tional treatment, and additional commitments; it does not 
concern the issues of mode 4. 
 
Table IV.3 
Korea:  comparison between the GATS and the Agreement specifi c commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  √ Similar 
C. Research and development √ Improved 
D. Real estate - New 
E. Rental/Leasing services without operators √ Improved 
F. Other √ Improved 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - New 
C. Telecommunication  √ Improved 
D. Audiovisual √ - 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Improved 
4. DISTRIBUTION SERVICES √ Improved 
5. EDUCATION SERVICES - New 
6. ENVIRONMENTAL SERVICES √ Improved 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Improved 
B. Banking and other financial services √ Improved 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Similar 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides √ Improved 
D. Other - - 
10. RECREATIONAL, CU LTURAL AND SPORTING SERVICES - New 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
B. Internal waterways - - 
C. Air  √ Improved 
D. Space - - 
E. Rail  - - 
F. Road √ Improved 
Table IV.3 (Cont'd) 
 
 
  
 
  
 
  
 
  WT/REG296/1/Rev.1 
Page 31 
 
 
  Sectors GATS FTA 
G. Pipeline - New 
H. Services auxiliary to all modes of transport √ Similar 
I. Other √ Improved 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New 
 
Note: 
√: Commitments in the GATS schedule (Full or partial). 
-: No commitments. 
New: New commitments made under the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. 
Similar: Similar commitments made under the Agreement as those under the GATS (though with minor improvements). 
 
Source :  Korea's Schedule of Specific Co mmitments under the GATS (GATS/SC/4 8 and Subsequent supplements and 
revisions) and Annex 7 under the Agreement.  The comparis on only concerns modes 1-3, market access and national 
treatment, and additional commitments; it does not concern the issues of mode 4. 
 
106. The rest of this section attempts to capture th e main changes and improvements in the schedules 
of specific commitments attached to the Agreement compared with the Parties' GATS commitments.   
107. For business services, under the Agreement, the EU builds on its GATS commitments and 
enlarges the scope to cover also, inter alia , home country law for some legal services (as long as the 
lawyer is qualified to practice).  A number of i ndividual EU Member States ' limitations have been 
withdrawn in accounting services, integrated engineering services, urban planning and landscape 
architecture as well as for medical services, pharmaceu tical retail sales of drugs, scientific consulting, 
computer services, real estate services, rental of certain transport equipment, market research, 
management consulting, technical testing and analys is, advisory and consulting services for agriculture, 
fishing and manufacturing.  Nevertheless certain horiz ontal limitations remain applicable, for instance for 
real estate.  Korea undertakes commitments in certain sub-sectors not listed in its GATS schedule (such as legal services, veterinary services, certain R&D ser vices, real estate services, services incidental to 
manufacturing and to energy distribution, placement  services, and certain investigation and security 
services).  
108. In communication services the EU opens partly , and subject to limitations, postal services 
(unbound under GATS) and improves market access  for telecommunication sub-sectors while dropping 
the remaining national treatment lim itations of some EU Member States.  These services do not cover the 
economic activity of the provision of content which requires telecommunications services for its 
transport.  Moreover, in the case of satellite broad cast transmission services, the service providers may be 
subject to the obligations to safeguard general inte rest objectives related to the conveyance of content 
through their network in line with the EU's regul atory framework for electronic communications.  The 
EU undertakes no commitments in audio-visual services.   In the case of Korea, which does not have 
significant commitments in the GATS, improvements are made with increased coverage, notably, for 
courier services and a number of sub-sectors related to  the electronic transmission of data (particularly 
through internet access services). Moreover, subject to the public interest test, the threshold on 
investment by EU nationals in Korean suppliers  through juridical person organized under Korea 
law("deemed foreign person
53") for facilities-based public teleco mmunications services (except KT and 
SK Telecom) would be increased within two years from the entry into force of the Agreement.  In 
audio-visual services, Korea's specific commitmen ts in the Agreement, for which it has some 
commitments in the GATS, mirror those of the EU. 
                                                      
53 Footnote 18 of the Annex 7A-4greement qualifies "deemed foreign person" as "a juridical person 
organised under Korean law in which a foreign government or a foreign person (including a "specially related 
person" under relevant Korean law) is the largest shareholde r and holds 15% or more of that juridical person's total 
voting shares, but does not include a ju ridical person that holds less than 1% of the total voting shares of a 
facilities-based supplier of public telecommunications services." WT/REG296/1/Rev.1 
Page 32  
 
  109. In construction services the EU improves its GATS commitments by withdrawing limitations on 
market access and national treatment for modes 1 a nd 2 and by facilitating establishment for the other 
Party’s service providers.  It also drops a number of  limitations by EU Member States, including for 
mode 3.  Korea fully liberalizes market access and nati onal treatment for this sector when it is technically 
feasible.   
110. Improvements are made by both the EU and Kor ea in distribution services in particular in 
relation to the establishment of the other Party’s se rvice providers.  In particular, all EU individual 
Member States' limitations on mode 3 in the GATS, are lifted for Korean service providers, while, for Korea, the prohibition on commercial presence in department stores and shopping centres (under GATS) 
is dropped for EU service providers.   
111. The EU's commitments in educational services, as  in the GATS, are limited to privately funded 
services and are built on its GATS commitments.  A number of limitations in the GATS by a number of individual EU Member States are however removed by the Agreement.  Korea, which had not bound this 
sector in the GATS, conditionally opens its market, with some limitations on national treatment for 
certain higher and adult education services.       
112. Both Parties' commitments under the Agreemen t are largely based on their respective GATS 
commitments with regard to environmental services.  Like for many other sectors, a number of individual EU Member State limitations are dropped for modes 2 and 3.  Korea grants additional market access and 
national treatment benefits for sewage services, refuse disposal, and other services.  In relation with waste 
water disposal, Korean commitments under the Agreement differ from those in the GATS. 
113. Both Parties have largely based their commitmen ts in financial services on their existing GATS 
lists, with extended market access and national tr eatment commitments, though subject to specific 
limitations in the schedules, including in the headnot es corresponding to this sector.  For both insurance 
services and banking services, a number of individual EU Member States' limitations in the GATS, are removed or reduced essentially for modes 2 and 3.  In banking services, Korea introduced a number of 
national treatment limitations in connection with commercial presence. 
114. Relatively few changes are made on health relate d and social services.  Nevertheless, the EU 
improves its modes 2 and 3 commitments essentially by  removing limitations by a number of individual 
EU Member States.  Korea undertakes no commitmen ts in this sector, as already the case under GATS. 
115. With regard to tourism and travel related servi ces, the EU improves market access for Korean 
tourist guide service providers and drops a number of  individual EU Member States' limitations in 
relation with hotels and restaurants, travel agencies, and tourist guides services, essentially for 
commercial presence.  Korea improves on its GATS commitments notably for travel agencies, tour 
operators and tourist guide services. 
116. Compared to its GATS commitments, the EU impr oves its commitments in recreational, cultural 
and sporting services, by reducing the number of limita tions (in particular by individual EU Member 
States), while Korea, which had not bound the sector under the GATS, opens its market to EU services 
suppliers, partly for entertainment services and news  agency services and more broadly for recreation 
park services. 
117. Through the Agreement the EU undertakes a number  of commitments in some transport services 
subsectors or for certain activities, for which it ha s no GATS commitments.  This is the case, with 
limitations related to a number of EU Member States, in sub-sectors such as certain maritime transport, internal waterways transport, rail transport servi ces, supporting services for road transport, pipeline 
transport as well as some services auxiliary to all mode s of transport.  On its side, Korea undertakes 
commitments in certain sub-sectors, currently un committed under the GATS, such as certain maritime  WT/REG296/1/Rev.1 
Page 33 
 
 
  services, air transport services, road transport ser vices, pipeline transport, as well as certain other 
transport services not listed in the previous categor ies.  Establishment of commercial presence also 
remains unbound for a number of services in which there are existing commitments under the GATS. 
118. As it is the case under the GATS, the EU has undertaken commitments in certain sub-sectors 
listed under other services not included elsewhere.  This  is the case for example for some energy services, 
for some beauty-related services (hairdressing, cosm etic treatment, Spa services, etc.), and for some 
telecommunications connection services though often lim ited to mode 2 or, when covering modes 1, 3, 
and sometimes 4, accompanied by some limitations.  Korea has both market access and national treatment commitments in hairdressing and other beauty services provided through modes 1 or 2. 
F. R
EGULATORY PROVISIONS  
119. Regulatory provisions on services are contained in Section E of Chapter 7 including provisions of 
general application and sector specific provisions relating to computer services, postal and courier 
services, telecommunications services, financial services and international maritime transport services which are described briefly above.  
1. Recognition 
120. The Agreement does not contain general binding provisions on recognition of qualifications 
and/or professional experience.  It nevertheless requ ests the Parties to encourage their relevant national 
representative professional bodies to jointly deve lop and provide recommendations on mutual 
recognition.  It also establishes a mechanism th rough which the Trade Committee established by the 
Agreement will review such a recomme ndation with a view to determini ng whether it is consistent with 
the Agreement.  If found to be consistent with  the Agreement and there is a sufficient level of 
correspondence between the Parties' relevant regulations, the Parties shall negotiate an agreement on 
mutual recognition (MRA) of requirements, qualificati ons, licences and other regulations (Article 7.21).  
The Agreement also establishes a Working Group on MRA to consider mutual recognition-related 
matters and act as a contact point for issues relating to  mutual recognition raised by relevant professional 
bodies in either Party. 
2. Transparency and confidential information 
121. Article 7.22 calls for transparency to be exerci sed by the Parties as part of the mechanisms 
established under Chapter 12 of the Agreement (see belo w), on transparency.  Nothing in the Agreement 
requires the Parties to provide confidential inform ation, the disclosure of which would impede law 
enforcement, or otherwise be contrary to the pub lic interests, or which would prejudice legitimate 
commercial interests of particular enterprises, public or private.  
122. The Article also requires the Parties to make pub licly available all requirements for completing 
applications for the supply of a service and on request by the applicant, provide the applicant with details 
of the status of the application.  The Party's regul atory authority is required to make an administrative 
decision on a completed application of an investor or a cross-border service supplier of the other Party relating to the supply of a service within 120 days.  The decision shall be notified to the applicant.  Any 
delay beyond 120 days must also be notified to the applicant. 
3. Domestic Regulation 
123. Article 7.23 contains general provisions on domestic regulation.  It borrows language from 
paragraphs 2(a) and 3 of the GATS.  It also calls for the Parties to endeavour to ensure, as appropriate for 
individual sectors, that qualification requirements and procedures, technical standards and licensing 
requirements, which shall not constitute unnecessary barriers to trade in services, (a) are based on WT/REG296/1/Rev.1 
Page 34  
 
  objective and transparent criteria, such as, inter alia , competence and the ability to supply the service; 
and (b) in the case of licensing procedures, are not in themselves a restriction on the supply of the 
services.  
124. The Parties will review the results of the nego tiations on disciplines on qualifications, technical 
standards and licensing requirements by WTO Members under GATS Article VI:4, with a view to 
incorporating them into the Agreement. 
4. Subsidies 
125. The Agreement specifically indicat es that the disciplines of Chapter 7 on trade in services, on 
establishment (as well as on electronic commerce) do not  apply to subsidies or grants provided by a 
Party, including government-supported loans, guarantees and insurance. 
5. Safeguards 
126. Chapter 7 does not contain general provisions on safeguards.  However, certain sector-specific 
rules contain elements of disciplines which may be considered as possibilities le ft to Parties to take 
safeguard-like measures.  Moreover, Chapter 8 ( on Payments and Capital Movements) contains a 
provision on safeguard measures with regard  to capital movements (Article 8.4).  
127. In addition, Article 15.8 addresses situations where a Party is in serious balance-of-payment 
(BOP) and external financial difficulties in relation to  trade in services and allows the Parties to take 
WTO compatible BOP measures and establishes a cons ultation mechanism to address the matter.  This 
provision also applies to restrictive measur es established with regard to establishment. 
6. Governance 
128. The Agreement contains some disciplines on Gove rnance essentially of a best endeavour nature 
whereby the Parties shall, to the extent practicable , ensure that internationally agreed standards for 
regulation and supervision in the financial services sector and for the fight against tax evasion and 
avoidance are implemented and applied in their respective territories (Article 7.24).
54 
V. GENERAL PROVISIONS OF THE AGREEMENT 
129. Chapters 2 to 6 of the Agreement and their annexes as well as th e Protocol on cultural 
cooperation contain general pr ovisions or provisions on specific topics such as intellectual property rights 
(Chapter 10).  
A. TRANSPARENCY  
130. Chapter 12 of the Agreement contains Transparency  provisions.  It provides for the publication of 
measures of general application that may have an  impact on any matter covered by the Agreement 
(Article 12.3), for the maintenance or establishmen t by the Parties of appropriate mechanisms, in 
particular through enquiry and focal points, for res ponding to enquiries regardi ng measures of general 
                                                      
54 These include:  (i) the Core Pr inciple for Effective Banking Supervision of the Basel Committee on 
Banking Supervision;  (ii) the Insurance Core Principles and Methodology, approved in Singapore on 3 October 
2003 of the International Association of Insurance Supervis ors;  (iii) the Objectives and Principles of Securities 
Regulation of the international organisation of Securities Commissions;  (iv) the Agreement on Exchange of 
Information on Tax Matters of the Organization for Economic Co-operation and Development (OECD);  (v) the 
Statement on Transparency and Exchange of information for Tax Purposes of the G-20; and (vi) the Forty Recommendations on Money Laundering and Nine Special Recommendations on Terrorist Financing of the 
Financial Action Task Force.  WT/REG296/1/Rev.1 
Page 35 
 
 
  application having an impact on matte rs covered by the Agreement (Ar ticle 12.4), and for administrative 
proceedings allowing for a consistent, impartial, an d reasonable administration of measures of general 
application having an impact on matters covered by th e Agreement (Article 12.5).  Moreover, the Parties 
shall establish or maintain judicial, quasi-judicial or administrative tribunals or procedures for the purposes of the prompt review
55 and, where warranted, correction of administrative action relating to 
matters covered by the Agreement (Article 12.6).  Furt hermore, the Parties shall co-operate in promoting 
regulatory quality and performance and to ensu re good administrative behaviour (Article 12.7). 
Transparency standards used by the Parties shal l ensure non-discriminati on between nationals and 
persons from the other Party (Article 12.8). 
B. CURRENT PAYMENTS AND CAPITAL MOVEMENTS  
131. Chapter 8 of the Agreement contains discip lines on Payments and Capital Movements.  
132. On current payments, the Parties undertake to impose no restrictions on, and to allow, all 
payments and transfers on the current account of balan ce of payments between residents of the Parties to 
be made in freely convertible currency56 (Article 8.1).  
133. On capital movements, the Parties undertake to impose no restrictions on the free movement of 
capital relating to direct investments made in accordan ce with the laws of the host country, to investments 
and other transactions liberalized in accordance with Chapter 7 and to the liqui dation and repatriation of 
related capital and generated profit.  Moreover, the Parties shall ensure the free movement of certain 
categories of capital by investors of the other Party.57  Article 8.2 also contains a stand-still commitment 
concerning any new restrictions on the movement of capital between residents of the Parties or decision 
which would make the existing arrangements more rest rictive.  Consultations are foreseen between the 
Parties if necessary to further facilitate  the movement of capital between them. 
134. Measures necessary, inter alia , to protect public security and pub lic morals, to maintain public 
order, or to secure compliance with certain laws or  regulations which are not inconsistent with the 
provisions of Chapter 8 may be taken by the Partie s, provided they are not applied in a manner which 
would constitute a means of arbitrary or unjus tifiable discrimination between countries where like 
conditions prevail, or a disguised restri ction on capital movements (Article 8.3). 
135. Safeguard measures with regard to capital move ments are regulated by Article 8.4.  Such 
measures, when they are strictly necessary, may be taken by the Parties concerned for a period not exceeding six months, with a possible cond itional extension for another six months. 
C. E
XCEPTIONS  
136. General exceptions are maintained by incorpor ating into the Agreement mutatis mutandis 
Article XX of the GATT 1994 for trade in goods (Article 2.15).  For trade in services58, Article 7.50 of 
the Agreement builds on Article XIV of the GATS while  also covering equitable or effective imposition 
or collection of direct taxes.  For Payment a nd Capital Movement, as indicated above, Article 8.3 
proceeds similarly. 
137. Security exceptions are also included in the Agreement through Article  15.9, which borrows 
language from Article XXI of GATT, Article XIV bis of GATS, and Article 73 of TRIPS.  
                                                      
55 A possibility for appeal is also foreseen by the Agreement. 
56 In accordance with the Articles of the Agreement of the IMF: 
57 Free movement of capital covers: (i) credits related to commercial transactions including the provision of 
services in which a resident of a Party is participating; ( ii) financial loans and credits; or  (iii) capital participation in 
a juridical person with no intention of establishing or maintaining lasting economic links. 
58 Also covering the Agreement's provisions on establishment and on  electronic commerce. WT/REG296/1/Rev.1 
Page 36  
 
  D. T
AXATION  
138. The Agreement only applies to taxation measures in sofar as their application is necessary to give 
effect to the provisions of the Agreement.  Nothing in the Agreement affects the rights and obligations of 
either Party under any tax convention between Korea and EU Member States.  In the event of any 
inconsistency between the Agreement and any such convention, that convention prevails to the extent of 
the inconsistency.  Nothing in the Agreement shall be construed to prevent the adoption or enforcement 
of any measure aimed at preventing the avoidance or  evasion of taxes pursuant to the tax provisions of 
agreement to avoid double taxation or  other tax arrangements or domestic fiscal legislation (Article 15.7). 
E. ACCESSION AND WITHDRAWAL  
139. The Agreement has no provision for accession by third parties.  
140. While the Agreement shall be valid indefinitely, it foresees that a Party may notify in writing the 
other Party of its intention to denounce it.  In such  a case, the denunciation takes effect six months after 
the notification (Article 15.11). 
F. GOVERNMENT PROCUREMENT  
141. The EU and Korea are both Parties to the plurilateral WTO Agreement on Government 
Procurement (GPA).  The Agreement reaffirms, in Ch apter 9, the Parties' rights and obligations under the 
GPA.  For all procurement covered by Chapter 9, th e Parties agree to apply the provisionally agreed 
revised GPA text59, with the exceptions of provisions contai ned in Article IV - subparagraph 1b and 
paragraph 2 -, Article V, Article V III:2, Article XXI, and Article XXII of the revised GPA.  As compared 
with the coverage of the GPA, the Agreement expands procurement opport unities to build-operate-
transfer contracts (BOT contracts) and public works concessions, which are defined in Annex 9 of the 
Agreement.  Thresholds for procurement are iden tical to the commitments undertaken in the GPA, 
including its amendments and replacements.  Annex 9 specifies which are the entities in each Party which 
will be subject to the expanded coverage commitment s and the thresholds to be applied (i.e. 15 million 
SDRs).  
142. Article 9.3 establishes a Working Group on G overnment Procurement to address any matter 
related to the operation of Chapter 9 of the Agreement. 
G. INTELLECTUAL PROPERTY RIGHTS  
143. Chapter 10 of the Agreement covers disciplines on intellectual property.  
144. The Parties reiterate their readiness to effectiv ely implement the international treaties dealing 
with intellectual property to which they are party, in cluding the WTO TRIPS Agreement.  In that context, 
Chapter 10 complements and specifies the rights an d obligations between the Parties under the TRIPS 
Agreement. 
145. They agree to exchange views and informati on on their practices and policies affecting the 
transfer of technology and to prevent or control li censing practices or other conditions which may affect 
technology transfer or constitute abuses of intellect ual property rights by right holders (Article 10.3). 
146. On the exhaustion of intellectual property rights, the Parties preserve their freedom to establish 
their own regime (Article 10.4). 
                                                      
59 The text of the revised GPA is contained in WTO document GPA/113 dated 2 April 2012.  WT/REG296/1/Rev.1 
Page 37 
 
 
  147. In relation with Copyrights and related rights (Articles 10.41-10.69), the Parties expand their 
TRIPS commitment by agreeing to comply with the Rome Convention60 (Articles 1-22), the Bern 
Convention61 (Articles 1-18), the WCT62 (Articles 1-14), and the WPPT63 (Articles 1-23), which they are 
now all Parties to.  The duration of authors' rights is  fixed at "no less than the life of the author and 
70 years after the author's death" (Article 10.6) and the right of broadcasting organizations not less than 
50 years after the first transmission of a broadcast (Article 10.7); Korea has two years from the entry into 
force of the Agreement (until 1 July 2013) in whic h to implement these provisions.  Co-operation on 
collective management of rights is sought and broa dcasting and communication to the public as well as 
artists' resale rights in works of art are also regulat ed by the Agreement.  Th e Agreement also foresees 
that the Parties shall provide adequate legal pr otection against the circumvention of effective 
technological measures (Article 10.12) and that they al so shall provide adequate legal protection against 
persons removing or altering any elect ronic rights management information64 (Article 10.13). 
148. In relation with Trademarks (Articles 10.15-10- 17), while TRIPS obligations are confirmed by 
the Parties, they also agree to comp ly with the Trademark Law Treaty (1994)  and make reasonable efforts 
to comply with the Singapore Treaty on the Law of Trademarks (2006).  They shall provide for a system 
of registration of trademarks in which the reasons for a refusal to register shall be communicated in 
writing, with an opportunity for the applicant to cont est such a decision.  Inte rested parties may also 
oppose trademark applications.  Moreover, a public ly available electronic database of trademark 
applications and trademark registrations shall be provided (Article 10.15).  Limited exceptions to the 
rights conferred by a trademark may also be provided by the Parties (Article 10.17). 
149. For Geographical Indications (GIs)(Article s 10.18-10.26), while TRIPS obligations are 
confirmed by the Parties, they also agree on a number of elements for the registration and control of GIs 
contained in the Agricultural Products Quality Contro l Act of Korea and in the EU's Council Regulations 
(EC) No 1234/2007 and (EC) No 510/2006. These are: (i) a register listing GIs protected in the Parties; (ii) an administrative process verifying that GIs iden tify a good as originating in a territory, regional or 
locality of the EU or Korea, where a given quality,  reputation or other characteristic of the good is 
essentially attributable to its geographical origin; ( iii) a requirement that a registered name shall 
correspond to a specific product or products for wh ich a product specification is laid down which may 
only be amended by due administrative process; (iv) c ontrol provisions applying to production; (v) legal 
provisions that a registered name may be used by  any operator marketing the agricultural product or 
foodstuff conforming to the corresponding specification; and (vi) an objection procedure that allows the 
legitimate interests of prior users of names, whethe r those names are protected as a form of intellectual 
property or not, to be taken into account (Article 10.18).  Each Party moreover commit to protect the GIs 
of the other Party listed in Annex 10A of the Agr eement.  The products liste d in Annex 10A and which 
originate either from individual EU Members or from Korea are to be protected.
65  The Parties also 
                                                      
60 International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting 
Organisations (1961). 
61 Berne Convention for the Protection of Literary and Artistic Works (1971). 
62 World Intellectual Property Organization Copyright Treaty (1996). 
63 World Intellectual Property Organization Performances and Phonograms Treaty (1996). 
64 "Rights management information" means any information provided by right holders which identified the 
work or other subject matter referred to in the Agreement, the author or any other right holder, or information about the terms and conditions of use of the work or other subj ect matter, and any numbers or codes that represent such 
information. 
65 They include ham, horseradish roots, beer, hops, cheese, dried cooked plums, oyster, duck fatty liver, 
olive oil, lavender essential oil, olives, gum, salami, sau ce (seasoning), pork meat - in cluding sausages -, citrus, 
nougat, confectionary, and saffron from the EU.  The Korean products covered by Annex 10A include green tea, 
black raspberry wine, garlic, red pepper and powder, gochujang, oriental melon, Chinese cabbage, rice, citron, waxy corn, mugwort, beef, pork, red, white, fresh or taekuk ginseng, red, white or taekuk ginseng products, apple, milk 
vetch root, onion, white lotus tea, black raspberry, aprico t, angelica gigas nakai root, sweet potato, fig, watermelon, WT/REG296/1/Rev.1 
Page 38  
 
  agreed to recognize GIs for wines, aromatised wine and spirits listed in Annex 10-B and to protect them 
in accordance with their respective relevant laws (A rticle 10.19).  The Agreement also contains related 
disciplines on the right of use of protected names (Art icle 10.20), the scope of protection (Article 10.21), 
the enforcement of protection (Article 10.22), and th e relationship with tradem arks (Article 10.23).  
150. Article 10.25 establishes a Working Group on GIs to  intensify co-operation and dialogue.  As a 
result, new GIs to be protected may also be added to Annexes 10A and10B. 
151. In relation with designs (Articles 10.27-10.32), th e TRIPS obligations are confirmed, and in some 
cases expanded, by the Parties.  They agree to prov ide protection for independen tly created designs that 
are new, original and have individual character.  The protection conferred by the Agreement to registered 
designs is exclusive up to at least 15 years (compared to 10 years in the TRIPS Agreement) 
(Article 10.30).  Protection, for at least three years, is  also to be conferred to unregistered appearance of a 
product in certain cases (Article 10.29).  The Agreemen t also contains designs-related disciplines on the 
provision of limited exceptions (Article 10.31), a nd the relationship with copyright (Article 10.32).  
152. For Patents (Articles 10.33-10.38), while TRIPS obligations are confirmed by the Parties, they 
agree to comply with the Patent Law Treaty (2000) (Article 1 through 16).  They also recognise the 
importance of the Declaration on the TRIPS Agreement and Public Health
66, which may be relied upon to 
interpret and implement the rights and obliga tions of the Parties under the Agreement. 
153. The Agreement requires that the Parties provide, at the request of the patent owner, an extension 
of patent protection (at least 10 years according to  the TRIPS obligations) to compensate the patent 
owner for the reduction in the effective patent life as a result of the first authorization to place the product 
on the Parties' respective markets.  This extension may not exceed five years67 (Article 10.35).  Specific 
protection is provided for data submitted to obtain marke ting authorization.  In the case of data related to 
pharmaceutical products the period of pr otection should be at least five years starting from the date of the 
first marketing authorization obtained in the territory  of the respective Party (Article 10.36), while for 
data related to plant protection pr oducts, the period should be at least 10 years starting from the date of 
the first marketing authorization in the respective Parties (Article 10.37). 
154. The Parties reaffirm their TRIPS commitments and in particular Part III on enforcement.  They 
also agree to ensure that a number of comple mentary measures, procedures and remedies in the 
Agreement are available under their legislation so as to permit effective action against any act of 
infringement of IPRs covered by the Agreement.  Th e Agreement clarifies, in Article 10.42, the persons 
entitled to seek application of the measures, procedures and remedies referred to in the relevant part of 
the Agreement (Section C of Chapter 10) as we ll as in Part III of the TRIPS Agreement. 
155. The Agreement provides disciplines on (i) civil measures, procedures and remedies 
(Articles 10.43-10.53), (ii) criminal enforcement (A rticles 10.54-10.61), and (iii) liability of online 
service providers (Articles 10.62-10.66).  Finally, it also offers a framework for enforcement through 
border measures (Article 10.67), and encourages th e Parties to develop codes of conduct aimed at 
contributing towards the enforcement of IPRs (Article  10.68) and to cooperate with a view to supporting 
enforcement-related commitments and obligations (Article 10.69). 
H. ELECTRONIC COMMERCE  
156. Chapter 7, Section F of the Agreement covers Electronic Commerce. 
                                                                                                                                                                           
barley, pine-mushroom, oak-mushroom, persimmon dried, chestnut, aruncus dioicus, golden rod, fern, aster, jujube 
(date), boxthorn, corni fructus, and sap. 
66 Decision adopted on 14 November 2001 by the Ministerial Conference of the WTO. 
67 This is without prejudice to a possible extension for paediatric use, if provided for by the Parties.  WT/REG296/1/Rev.1 
Page 39 
 
 
  157. In Article 7.48 of the Agreement, the Parties agree to promote the development of electronic 
commerce between them, in particular by cooperatin g on the issues raised by electronic commerce under 
Chapter 7.  They further agree that the developmen t of electronic commerce must be fully compatible 
with the international standards of data protection, in  order to ensure the confidence of users of electronic 
commerce.  Finally, the Parties agree not to impo se customs duties on deliveries by electronic means and 
to maintain a dialogue on regulatory issues raised by electronic commerce.  
I. OTHERS  
1. Competition 
158. Chapter 11 of the Agreement on competition makes re ferences, inter alia, to Public enterprises 
and enterprises entrusted with special rights or ex clusive rights (Article 11.4) and State monopolies 
(Article 11.5).  The Parties agree to maintain co mprehensive competition laws which effectively address 
restrictive agreements, concerted practices and abu se of dominance by one or more enterprises, and 
which provide effective control of concentrations  between enterprises (Article 11.1).  Co-operation 
between the authorities responsible for the implemen tation of competition laws , as well as consultation 
on competition-related matters, are also  underlined (Article 11.6, 11.7).  
159. Chapter 11 extends application of competition la ws and related principles to state-controlled 
enterprises68 (Article 11.4) and requires that State monopo lies of a commercial character should not result 
in discriminatory practices (Article 11.5).  It al so establishes mechanisms to ensure transparency, 
monitoring and review of competition-related matters.    
160. However, competition-related matters except for disciplines defined for subsidies, are excluded 
from the Agreement's dispute settleme nt mechanism (Article 11.8).   
161. Furthermore, the Parties agree to use their best endeavours to remedy or remove through the 
application of their respective competition laws or  otherwise, distortions to competition caused by 
subsidies in so far as they affect international trade (Chapter 11.9).69  Article 11.10 of the Agreement 
identifies two types of prohibited subsidies70, insofar as they adversely affect international trade of the 
Parties (both exports and imports).71  These subsidies-related discip lines are without prejudice to the 
rights of a Party in accordance with the relevant provisions of the WTO Agreements to apply trade 
remedies or to take dispute settleme nt or other appropriate action agai nst a subsidy granted by the other 
Party (Article 11.13).   
2. Trade and Sustainable Development 
162. Chapter 13 of the Agreement includes commitments  by the Parties on as well as a framework for 
cooperation on trade and sustainable development.  The Chapter recalls Agenda 21 on Environment and 
Development (1992), the Johannesburg Plan of Impl ementation on Sustainable Development (2002) and 
                                                      
68 State-owned enterprises refer to "Public enterprises and enterprises entrusted with special rights or 
exclusive rights." 
69 "Subsidies" are defined as in the WTO SCM Agreem ent.  Moreover, "specifi city", applicable to 
subsidies, is also defined as in the SCM Agreement.  (A rticle 2 of the WTO SCM Agreement).  The provisions of 
Chapter 11 of the Agreement do not apply to fisheries subsidies, as well as  to subsidies related to products covered 
by Annex 1 of the Agreement on Ag riculture and other subsidies covered by the Agreement on Agriculture. 
70 Subsidies for small and medium-sized enterprises are not subject to the provisions of Article 11.11 of the 
Agreement. 
71 The prohibited subsidies are - (a) those covering unlimited debts or liabilities, and (b) those (such as 
loans and guarantees, cash grants, capital injections, provis ion of assets below market prices or tax exemptions) 
granted to insolvent or ailing enterprises, without a credib le restructuring plan.  Subsidies granted as compensation 
for carrying out public service obligations and to the coal industry are not considered to be prohibited. WT/REG296/1/Rev.1 
Page 40  
 
  the Ministerial Declaration of the UN ECOSOC on Full Employment and Decent Work (2006).  The 
Parties reaffirm their commitment to promoting the de velopment of international trade to contribute to 
the objective of sustainable development.  Chapter 13 applies to measures adopted or maintained by the 
Parties affecting trade-related aspects  of labour and environmental issues.
72  The Parties stress that 
environmental and labour standards should not be used for protectionist purposes.  
163. The Agreement recognizes the Parties' right to regu late and establish levels of environmental and 
labour protection (Article 13.3) and the value of  international co-operation and agreement on 
employment and labour affairs.  The Parties reaffirm  their obligations under the ILO and the principles 
concerning the fundamental rights of work.73  The Agreement also recognises the value of international 
environmental governance and agreements.  The Parties inter alia  reaffirm their commitment to reaching 
the ultimate objective of the UN Framework conventi on on Climate Change and its Kyoto Protocol and 
commit to further co-operation in that area.74  They reconfirm that trade should promote sustainable 
development in all its dimensions (Article 13.6) and commit to upholding levels of protection in the 
application and enforcement of laws, regul ations or standards (Article 13.7).  
164. The Parties commit to reviewing, monitoring and assessing the impact of the implementation of 
the Agreement (Article 13.10), and to cooperating on trade-related aspect s of social and environmental 
policies (Article 13.11).  Annex 13 of  the Agreement contains an indicative list of areas of co-operation 
on trade and sustainable development.  
165. Article 13.12 of the Agreement establishes an institutional mechanism, through the designation 
of contact points, the creation of a Committee on Trade and Sustainable Development, as well as the establishment of Domestic Advisory Group(s) on su stainable development (environment and labour). 
While the Parties agree to set a civil societ y dialogue mechanism (Article 13.13), government 
consultations are also foreseen (Article 13.14).  Mo reover, a panel of experts may also be convened to 
examine matters that may have not been satisfa ctorily addressed through government consultations 
(Article 13.15). 
166. Disputes on Chapter 13-related issues may only  be settled through Gove rnment consultations 
and/or Panels of experts (Articles 13.14 and 13.15).   
3. Cultural Co-operation 
167. A Protocol on cultural co-operation is attached to , and forms part of, the Agreement.  The entry 
into force of the Protocol was subject to Kor ea becoming a Party to the UNESCO Convention on the 
Protection and Promotion of the Diversity of Cult ural Expressions adopted in 2005 which it did on 
1 April 2010.  Without prejudice to the other provisions of the Agreement, the Protocol sets up the 
framework within which the Partie s shall cooperate for facilitating ex changes in cultural activities, goods 
and services, including, inter alia , the audio-visual sector.  The exclusion of audio-visual services from 
the scope of Chapter 7 (Trade in services, Establis hment and Electronic Commerce) is without prejudice 
to the rights and obligations derived fro m the Protocol on cultural cooperation. 
168. Besides the Parties' commitments to foster thei r capacities to determine and develop their cultural 
policies and industries, enhance opportunities to excha nge cultural goods and services, and cooperate to  
develop a common understanding and enhanced inform ation exchange on cultural and audio-visual 
matters through dialogue and good practices in intellectual property rights protection, the Protocol 
                                                      
72 In the context of Articles 13.1.1 and 13.1.2 of the Agreement. 
73 The Agreement mentions the ILO Declaration on Fu ndamental Principles and Rights at Work and its 
Follow-up, adopted by the International Labour Conference at its 86th Session in 1998. 
74 In accordance with the Bali Action Plan - UNFCCC Decision 1/CP.13 adopted by the 13th session of the 
Conference of the Parties to the UN Fr amework Convention on Climate Change.  WT/REG296/1/Rev.1 
Page 41 
 
 
  contains a number of sectoral provisions.  These are re lated to audio-visual works, including audio-visual 
and other co-productions, and tempor ary imports of material and equipment for the purpose of shooting 
audio-visual works; and to the promotion of cultura l sectors other than audio-visual, such as performing 
arts, publications, and protection of cu ltural heritage sites and historic m onuments.  There is also a best 
endeavours commitment to facilitate the entry into and te mporary stay in their territories of certain artists 
and other cultural professionals and practitioners fro m the other Party, who cannot avail themselves of 
commitments under Chapter 7 (Trade in Services, Establishment and Electronic commerce).75  
169. A Committee on Cultural co-operation is established by the Protocol.  This Committee exercises 
all the functions of the Trade Comm ittee as regards the Protocol on cultural co-operation, by derogation 
from the institutional provisions contained in Chapter 15. 
4. Establishment 
170. Though contained in Chapter 7 of the Agreem ent (covering in particular Services), the 
Agreement's disciplines related to "establishment" a pply not only to trade in  services but also to the 
constitution, acquisition or maintenance of judicial person or the creation or maintenance of a branch 
within the territory of a Party for the purpose of perfo rming an economic activity related to trade in goods 
(Section C, Articles 7.9 to 7.16 of the Agreement).  
J. INSTITUTIONAL FRAMEWORK  
171. Chapter 15 of the Agreement covers institu tional arrangements and establishes a Trade 
Committee to ensure the proper operation of the Ag reement and to supervise its implementation and 
application.  It also supervises the work of the specialized committees, working groups and other bodies 
established under the Agreement.  The Committee has the power to take decisions on all matters provided 
by the Agreement except on matter covered by the Protocol on Cultural Cooperation.  The decisions, 
binding on the Parties, shall be taken "by agreement between the Parties." 
172. The Trade Committee reports on its activities to  the Joint Committee established under the 
EU-Korea Framework Agreement to which the Agr eement is legally and in stitutionally linked. 
173. In addition to Committees and Working Gr oups, the Agreement also establishes a 
TBT Coordinator (Article 4.10), and contact points for several Chapters.  It also establishes an 
intellectual property dialogue mechanism (Article 10.69). 
                                                      
75 In that context, the entry into, and temporary stay in territories of the parties, when allowed, shall be for 
a period of up to 90 days in any 12 month period. WT/REG296/1/Rev.1 
Page 42  
 
  174. Chart V.1 below summarizes the Working Bodies established by the Agreement. 
 
 
K. D
ISPUTE SETTLEMENT  
175. One of the roles of the Trade Co mmittee is to seek appropriate ways and methods of forestalling 
problems which might arise in areas covered by the Ag reement, or of resolving disputes that may arise 
regarding its interpretation or appli cation.  This is however without prejudice to the rights conferred to 
Parties in Chapter 14 (Dispute settlement) and in  Annex 14-A (Mediation Mechanism for Non-Tariff 
Measures). 
176. Chapter 14 of the Agreement sets out procedur es on the settlement of disputes between the 
Parties relating to the interpretation and/or ap plication of the Agreement.  Recourse to the 
Agreement-specific dispute settle ment mechanism is without prejudice to any action in the 
WTO framework, including dispute settlement action.   However, once a Party has initiated a dispute 
settlement proceeding, either under Chapter 14 of the Agreement or under the WTO Agreement, it may 
not institute a dispute settlement proceeding regarding the same measure in the other forum until the first 
proceeding has been concluded.  In addition, a Part y shall not seek redress of an obligation which is EU-Korea Framework Agreement 
Joint Committee Chart V.1 
Institutional Framework  
Trade Committee Committee on Cultural Co-
operation 
(Protocol on cultural cooperation) 
Committee on Trade in Goods 
(Art. 2.16) Specialized committees 
Committee on SPS 
(Art. 5.10) 
Customs Committee 
(Art. 6.16) 
Committee on Trade and 
Sustainable Development 
(Article 13.12) Committee on Trade in Services, 
Establishment and Electronic 
Commerce 
(Art. 7.3) 
Committee on Outward Processing 
Zones on the Korean Peninsula 
(Annex IV of the Protocol 
concerning the Definition of 
"Originating Products" and 
Methods of Administrative            
Co-operation) Working Group on Motor Vehicles 
and Parts 
(Art. 9.2 of Annex 2-C) Working Groups 
Working Group on Pharmaceutical 
Products and Medical Devices 
(Art. 5 of Annex 2-D) 
Working Group on chemicals  
(Art. 4 of Annex 2-E) 
Working Group on MRA             
(mutual recognition) - (Services) 
(Art. 7.21.6) 
Working Group on Government 
Procurement 
(Art. 9.3) 
Working Group on Geographical 
Indications 
(Art. 10.25) Working Group on Trade Remedy 
Cooperation  
(Art. 3.16 ) WT/REG296/1/Rev.1 
Page 43 
 
 
  identical under the Agreement and under the WTO Agreement in the two forums.76  Moreover, nothing in 
the Agreement shall preclude a party from implementi ng the suspension of obligations authorized by the 
WTO's Dispute Settlement Body (DSB).  The WTO Ag reement shall not be invoked to preclude a Party 
from suspending obligations under Chapter 14 of the Agreement (Article 14.19). 
177. The dispute settlement mechanism is based on, and largely similar, to the model of the 
WTO Dispute Settlement Understandi ng, though without an appeal st age and with some shortened 
deadlines. 
178. The first step consists of cons ultations between the Parties with a view to resolve a dispute 
(Section B of Chapter 14).  If there is no agreement, th e dispute may go to an arbitration procedure, under  
Section C (Sub-section A) of chapter 14.  An arbitrati on panel is composed of three arbitrators chosen by 
the parties, or in case they are unable to agree, pi cked from a list of 15 individuals established by the 
Trade Committee no later than six months after entr y into force of the Agreement;  such a list was 
established on 23 December 2011.77  The panel receives submissions from the Parties.  A hearing 
(or hearings), in principle open to the public, al so forms part of the proceedings.  Moreover, 
amicus curiae  submissions may also be submitted and considered by the panel.  The Rules of procedure 
for arbitration in Annex 14B indicate, inter alia , that the Party complained ag ainst shall be in charge of 
the logistical administration of dispute settlement  proceedings, in particular the organization of 
hearings.78  Following the issuing of an Interim panel repor t, the Arbitration panel ruling shall be issued, 
in principle, within 120 days (or 60 days in urgent cases) of the date of the establishment of the panel.  
Majority voting and publication of  dissenting opinions are foreseen in cases the panel may not decide by 
consensus.  A ruling of the arbitration panel is bind ing on the Parties and shall not create any rights or 
obligations for natural or le gal persons.  (Article 14.17). 
179. It is up to the Parties to agree on the period of  time necessary to comply with the arbitration 
ruling.  In case of disagreement, the original arbitra tion panel shall determine the length of the reasonable 
period of time for compliance.  Before the end of the reasonable period of time, the Party complained 
against shall notify the complaining Party and the Tr ade Committee of any measure that was taken to 
comply with the panel ruling.  Where there is a disagreement between the Parties on the consistency of 
these measures with the ruling, the orig inal arbitration panel shall rule. 
180. In case of non-compliance by the end of the reasonable period, the Party complained against 
shall, if so requested by th e complaining Party, present an offer for temporary compensation 
(Article 14.11.1).  Agreements on compensations must be notified.  When no agreement can be found, the 
complaining Party is entitled, upon notification, to susp end obligations (Article 14.11.2).  In suspending 
obligations, the complaining Party may choose to incr ease its tariff rates to those applied to other WTO 
Members on a volume of trade to be determined in a way that the volume of trade multiplied by the increase of tariff rates equals the value of the nullifica tion or impairment caused by the violation.  If the 
Party complained against considers that the level of suspension is not equivalent to the nullification or 
impairment caused by the violation, it may requ est the original panel to rule on the matter 
(Article 14.11.4).  
181. A case is closed when both Parties agree that a ppropriate measures have been taken to ensure 
compliance with the panel ruling.  A review of measures taken to comply after the suspension of obligations is conducted by the orig inal panel, upon request by the Party complained against when it 
                                                      
76 Situations where the forum selected fails for procedural or jurisdictional reasons to make findings on the 
claim seeking redress of that obligation are however reserved. 
77 A Code of conduct for members of arbitration panels and mediators is contained in Annex 14C of the 
Agreement.  
78 Unless the Parties agree otherwise, the hearing shall be held in Brussels if the complaining Party is 
Korea and in Seoul if the complaining Party is the EU Party. WT/REG296/1/Rev.1 
Page 44  
 
  considers that it has brought its measures into conform ity and that the suspension of obligations must be 
terminated (Article 14.12). 
182. Disputes on the application of the Agreemen t sectoral Annex on Motor vehicles and parts 
(Annex 2C) or on the clause on Duty Drawback (Title IV of the Protocol concerning the definition of 
"originating products" and methods of administra tive co-operation) follow accelerated procedures. 
183. The Parties may reach a mutually agreed soluti on to a dispute under Chapter 14 at any time.  
They shall then notify the Trade Committee of any solution and, upon such notification, the dispute 
settlement procedure shall be terminated (Article 14.13).  
184. Chart V.2 provides a synopsis of  the dispute settlement process. 
 
 
   WT/REG296/1/Rev.1 
Page 45 
 
 
   
 
 185. The Agreement also contains a Mediation Mechan ism that the Parties may use to address market 
access difficulties related to non-tariff measures (Annex  14-A of the Agreement).  The mechanism is not 
intended to serve as a basis for dispute settlement pr ocedures (and therefore does not seek to review the 
legality of a measure) but rather to facilitate reac hing a mutually agreed solution to non-tariff measures 
adversely affecting trade between the Parties thr ough a comprehensive and expeditious procedure with 
the assistance of a mediator.  It may be used alterna tively to or in parallel w ith the Dispute Settlement 
Mechanism described above. Request for Review 
of compliance measur es (Art.14.10.2) Chart V.2 
Dispute Settlement Mechanism  
(Chapter 14 of the Agreement) 
Request for Consultations (Art.14.3.2) 
Consultations (A rt.14.3.3) 
Request for the establishment of an Arbitration Panel (Art.14.4 ) 
Issuance of Panel ruling (Art.14.7) 
Notification of the time required for compliance (Art.14.9.1) 
Information on the progress of compliance (Art.14.9.4) Request for arbitration 
on the reasonable period (Art.14.9.2) 
Panel ruling 
on the reasonable period (Art.14.9.2) 
Notification of compliance measures (Art.14.10.1) 
Panel ruling 
on compliance measur es (Art.14.10.2) 
Compliance (implementation)Temporary remedies  
(Article 14.11 ) Temporary compensation 
(Art. 14.11.1 )WT/REG296/1/Rev.1 
Page 46  
 
  L. R
ELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
186. According to the Agreement, unless specified ot herwise, previous agreements between the 
Parties are not superseded or terminated by the Agre ement.  The Agreement forms an integral part of 
overall bilateral relations between  the EU and Korea, as governed by the Framework Agreement.79 
187. The Protocol on Mutual Administrative Assistan ce in Customs Matters supersedes the Customs 
Agreement with regard to the provisions concerning mutual administrative assistance. 
188. The Parties consider, and state in Paragraph 4 of Article 15.14 of the Agreement, that "nothing in 
this Agreement requires them to act in a manner  inconsistent with their obligations under the 
WTO Agreement". 
189. The regional trade agreements in force and notifie d by the Parties are listed in Table V.1.   
Table V.1 
European Union and the Rep. of Korea:  Participation in other RTAs (notified and non-notified in force), as of March 2012 
Partner / Agreement Date of entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
EUROPEAN UNION  
Madagascar, Mauritius, Seychelles and  
Zimbabwe * Goods 2012 GATT Art. XXIV 
Montenegro 01.05.10 
01.01.08 Services 
Goods 2010 
2008 GATS Art. V 
GATT Art. XXIV 
Serbia 01.02.10 Goods 2010 GATT Art. XXIV 
Papua New Guinea and Fiji 20.12.09  Goods 2011 GATT Art. XXIV 
Cameroon 01.10.09 Goods 2009 GATT Art. XXIV 
    Albania  01.04.09 
01.12.06 Services 
Goods 2009 
2007 GATS Art. V 
GATT Art. XXIV 
Côte d'Ivoire 01.01.09 Goods 2008 GATT Art. XXIV 
CARIFORUM States 01.11.08 Goods & Servi ces 2008 GATT Art. XXIV & GATS Art. V 
Bosnia and Herzegovina 01.07.08 Goods 2008 GATT Art. XXIV 
    Algeria 01.09.05 Goods 2006 GATT Art. XXIV 
Chile 01.03.05 
01.02.03 Services 
Goods 2005 
2004 GATS Art. V 
GATT Art. XXIV 
Croatia  01.02.05 
01.03.02 Services 
Goods 2009 
2002 GATS Art. V 
GATT Art. XXIV 
Egypt 01.06.04 Goods 2004 GATT Art. XXIV 
FYROM  01.04.04 
01.06.01 Services 
Goods 2009 
2001 GATS Art. V 
GATT Art. XXIV 
Lebanon 01.03.03 Goods 2003 GATT Art. XXIV 
Jordan 01.05.02 Goods 2002 GATT Art. XXIV 
San Marino 01.04.02 Goods 2010 GATT Art. XXIV 
Table V.1 (Cont'd)
                                                      
79 See the Framework Agreement fo r Trade and co-operation between the European Community and its 
Member States, on the one hand, and the Republic of Korea, on the other hand, signed at Luxembourg on 
28 October 1996 (or any agreement updating, amending or replacing it).  WT/REG296/1/Rev.1 
Page 47 
 
 
  Partner / Agreement Date of entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
Mexico 01.10.00 
01.07.00 Services 
Goods 2002 
2000 GATS Art. V 
GATT Art. XXIV 
Israel 01.06.00 Goods 2000 GATT Art. XXIV 
Morocco 01.03.00 Goods 2000 GATT Art. XXIV 
South Africa 01.01.00 Goods 2000 GATT Art. XXIV 
Tunisia 01.03.98 Goods 1999 GATT Art. XXIV 
Palestinian Authority 01.07.97 Goods 1997 GATT Art. XXIV 
Faeroe Islands 01.01.97 Goods 1997 GATT Art. XXIV 
Turkey 01.01.96 Goods 1995 GATT Art. XXIV 
European Economic Area 01.01.94 Services 1996 GATS Art. V 
Andorra 01.07.91 Goods 1998 GATT Art. XXIV 
Syria 01.07.77 Goods 1977 GATT Art. XXIV 
Norway 01.07.73 Goods 1973 GATT Art. XXIV 
Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
Switzerland – Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
Overseas Countries and Territories 01.01.71 Goods 1970 GATT Art. XXIV 
REP. OF KOREA  
United States 15.03.12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V 
Peru 01.08.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
ASEAN 01.01.10 
01.05.09 Goods 
Services 2010 
2010 Enabling Clause & GATT Art. XXIV 
GATS Art. V 
India 01.01.10 Goods & Services 2010 Enabling Clause, GATT Art. XXIV 
& GATS Art. V 
EFTA 01.09.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Singapore 02.03.06 Goods & Services 2006  GATT Art. XXIV & GATS Art. V 
Chile 01.04.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
APTA - Accession of China 01.01.02 Goods 2004 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
APTA 17.06.76 Goods 1976 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
 
* Provisional application of the Agreement by all signatory parties is expected by June 2012. 
 
EFTA: European Free Trade Association 
APTA: Asia Pacific Trade Agreement GSTP: Global System of Trade Preferences 
PTN: Protocol on Trade Negotiations 
 
Source: WTO Secretariat.  WT/REG296/1/Rev.1 
Page 48  
 
  ANNEX I 
 
Indicators of Trade Liberalization under the Agreement 
 
 
The EU Market 
 
1. Annex Table AI.1 provides for a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs app lied to the EU's imports of merchandise from Korea 
and the MFN rates applied by the EU at th e entry into force of the Agreement.  
Table AI.1 
European Union:  Indicators of MFN tariff ra tes and preferential rates for imports from Korea 
Origin 
of goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall (%) On 
dutiab
le (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 4.9 6.7 24.9 8.9 12.4 18.1 4.2 5.7 26.8 
Korea 2011 0.5 9.8 93.8 0.5 12.3 92.1 0.5 9.3 94.2 
 2012 0.4 7.4 93.8 0.5 10.4 92.2 0.4 6.8 94.2 
 2013 0.3 4.8 93.8 0.3 7.1 92.2 0.2 4.3 94.2 
 2014 0.1 5.1 96.8 0.2 5.0 92.6 0.1 5.2 97.9 
 2015 0.1 2.6 96.8 0.1 2.6 92.6 0.1 2.6 97.9 
 2016 0.0 7.7 99.4 0.0 7.7 97.3 0.0 0.0 100.0 
 2017 0.0 7.7 99.4 0.0 7.7 97.4 0.0 0.0 100.0 
 2018 0.0 7.7 99.4 0.0 7.7 97.4 0.0 0.0 100.0 
 2019 0.0 7.7 99.4 0.0 7.7 97.4 0.0 0.0 100.0 
 2020 0.0 7.7 99.5 0.0 7.7 97.6 0.0 0.0 100.0 
 2021 0.0 7.7 99.5 0.0 7.7 97.6 0.0 0.0 100.0 
 2022 0.0 7.7 99.5 0.0 7.7 97.6 0.0 0.0 100.0 
 2023 0.0 7.7 99.5 0.0 7.7 97.6 0.0 0.0 100.0 
 2024 0.0 7.7 99.5 0.0 7.7 97.6 0.0 0.0 100.0 
 2025 0.0 7.7 99.5 0.0 7.7 97.8 0.0 0.0 100.0 
 2026 0.0 7.7 99.5 0.0 7.7 97.8 0.0 0.0 100.0 
 2027 0.0 7.7 99.5 0.0 7.7 97.8 0.0 0.0 100.0 
 2028 0.0 7.7 99.5 0.0 7.7 97.8 0.0 0.0 100.0 
 2029 0.0 7.7 99.5 0.0 7.7 97.8 0.0 0.0 100.0 
 2030 0.0 7.7 99.5 0.0 7.7 97.9 0.0 0.0 100.0 
 
a WTO Definition. 
 Note: For the calculation of  averages, specific dutie s are excluded and the ad valorem  parts of alternate rates are included. 
 
Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by the European Union.   
 
2. The EU's average applied MFN rate in 2009 was 4.9%.  Tariffs on agricultural products at 
8.9% were substantially higher than those for non- agricultural products at 4.2%.  MFN duty-free tariff 
lines accounted for 24.9% of all tariff lines.  As a re sult of the Agreement, at the date of entry into 
force of the Agreement (1 July 2011), Korean exporte rs enjoyed an absolute margin of preference of 
4.4% vis-à-vis  the prevailing MFN tariff; 8.4% for agricultural goods and 3.7% for non-agricultural 
products.  The share of duty free lines applicable to imports from Korea also rose, from 24.9% to 
93.8%.  Following ten years of implementation, 99. 5% of all tariffs are to become duty free for 
imports from Korea, of which 100% for non-agricult ural goods and 97.6% for agricultural products.  
At the end of the implementation period in 2030, Ko rean exporters will face zero duties on 99.5% of 
their exports to the EU; while 100% of non-agricultu ral exports will be duty free, 97.9% of tariffs on 
non-agricultural products will be eliminated.  WT/REG296/1/Rev.1 
Page 49 
 
 
  3. One of the objectives of the Agreement is to increase access oppor tunities for Korean 
merchandise in the EU market.  Annex Table AI.2 gives an indication of additional market access 
resulting from the entry into force of the Agreement for Korea's top 25 global exports.   
Table AI.2 – European Union: Market access opport unities under the agreement for Korea's top 25 exports 
Korea's top export products in 2008-2010  Access Conditions to EU's import markets  
MFN (2011)Duty-free in  
MFN 
average  No. of tariff lines
HS number and description of the product  Share in 
global 
exports Duty-
free Dutiable 2011 2014 2016 
271019 -- Other (certain Petroleum oils) 5.8 2.6 8 17 17   
901380 - Other devices, appliances and instruments 
(certain instruments and apparatus) 5.7 1.6 2 1 1   
890120 - Tankers 4.9 0.9 1 1 1   
851712 -- Telephones for cellular networks or for 
other wireless networks 4.4 0.0 1     
870323 -- Of a cylinder capacity exceeding 1,500 cc 
but not exceeding 3,000 cc 4.0 10.0  3  3  
890190 - Other vessels for the transport of goods and 
other vessels for the transport of both persons 
and goods 3.8 0.9 1 1 1   
854232 -- Memories 3.7 0.0 9     
854231 -- Processors and controllers, whether or not 
combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, 
or other circuits 3.0 0.0 2     
870899 -- Other (certain parts and accessories of 
certain motor vehicles) 2.7 3.7  3 3   
851770 - Parts 2.3 2.2 2 2 2   
890590 - Other 1.6 0.9 1 1 1   
852990 - Other 1.6 2.7 1 5 5   
847330 - Parts and accessories of the machines of 
heading 84.71 1.5 0.0 2     
271011 -- Light oils and preparations 1.2 3.9 2 10 10   
870332 -- (Certain motor cars and motor vehicles) of 
a cylinder capacity exceeding 1,500 cc but 
not exceeding 2,500 cc 0.9 10.0  3  3  
870322 -- (Certain motor cars and motor vehicles) of 
a cylinder capacity exceeding 1,000 cc but 
not exceeding 1,500 cc 0.8 10.0  2   2 
291736 -- Terephthalic acid and its salts 0.7 6.5  1  1  
870324 -- (Certain motor cars and motor vehicles) of 
a cylinder capacity exceeding 3,000 cc 0.7 10.0  2  2  
852851 -- (Certain motor cars and motor vehicles) of 
a kind solely or principally used in an 
automatic data processing system of heading 84.71 0.6 0.0 1     
853400 Printed circuits. 0.6 0.0 3     
390330 - Acrylonitrile-butadiene-styrene (ABS) 
copolymers 0.6 6.5  1  1  
842952 -- Machinery with a 360° revolving 
superstructure 0.5 0.0 2     
854140 - Photosensitive semiconductor devices, 
including photovoltaic cells whether or not 
assembled in modules or made up into panels; light emitting diodes 0.5 0.0 2     
843149 -- Other (Parts of certain machinery) 0.5 0.0 2     
840810 - Marine propulsion engines 0.5 1.4 9 9 9   
 Total of above  53.2  51 62 50 10 2 
 
Source: WTO estimates based on data provided by the Eu ropean Union and UNSD, Comtrade database. 
 
4. Korean top 25 exports accounted for 53.2% of  its global exports in 2008-2010; these 
corresponded to 113 lines.  Before the entry into force of the Agreement, 51 of these lines had duty 
free access to the EU market.  At the entry into for ce of the Agreement, an additional 50 lines became 
duty free; ten additional lines will become duty free in 2014 and two in 2016. After 10 years of implementation (in 2021), none of these tariff lines will remain dutiable.   WT/REG296/1/Rev.1 
Page 50  
 
  Korean Market 
 
5. Annex Table AI.3 provides for a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs a pplied to Korean imports of merchandises from the 
EU and the MFN rates applied by Korea at the entry into force of the Agreement.  
Table AI.3 
Korea:  Indicators of MFN tariff  rates and preferential rates fo r imports from European Union 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 12.6 15.0 16.5 52.5 55.6 5.7 6.5 7.9 18.1 
EU 2011 6.8 36.0 81.2 44.4 76.3 41.8 1.0 8.0 87.2 
 2012 6.1 32.4 81.2 40.7 69.9 41.8 0.8 6.2 87.2 
 2013 5.4 28.7 81.2 37.0 63.8 42.0 0.6 4.3 87.2 
 2014 4.7 35.7 86.8 33.3 59.9 44.4 0.3 4.8 93.3 
 2015 4.1 31.5 86.8 29.7 53.5 44.4 0.2 3.3 93.3 
 2016 3.6 54.4 93.4 26.2 72.8 64.0 0.1 6.0 97.9 
 2017 3.2 48.9 93.4 23.6 65.9 64.2 0.1 4.6 97.9 
 2018 2.8 53.2 94.6 21.0 64.5 67.5 0.1 5.7 98.8 
 2019 2.5 46.7 94.6 18.5 56.9 67.5 0.0 4.1 98.8 
 2020 2.2 40.2 94.6 16.0 49.3 67.5 0.0 2.5 98.8 
 2021 1.8 94.0 98.1 13.5 96.0 85.9 0.0 18.9 99.9 
 2022 1.6 83.0 98.1 11.9 84.7 85.9 0.0 17.8 99.9 
 2023 1.4 81.2 98.3 10.4 82.3 87.4 0.0 24.9 100.0 
 2024 1.2 80.4 98.5 8.9 81.7 89.1 0.0 24.4 100.0 
 2025 1.0 70.2 98.5 7.7 71.2 89.1 0.0 24.0 100.0 
 2026 0.9 150.7 99.4 6.6 156.0 95.8 0.0 31.3 100.0 
 2027 0.9 149.4 99.4 6.5 154.8 95.8 0.0 31.3 100.0 
 2028 0.8 148.6 99.4 6.3 154.0 95.9 0.0 31.3 100.0 
 2029 0.8 167.7 99.5 6.2 175.0 96.5 0.0 31.3 100.0 
 2030 0.8 167.7 99.5 6.2 175.0 96.5 0.0 31.3 100.0 
 2031 0.8 173.5 99.5 6.2 181.4 96.6 0.0 31.3 100.0 
 a WTO Definition. 
 Note: For tariff lines subject to TRQs, only the out-of-quota dut y is included in the tariff-re lated calculations; for the calc ulation of 
averages, specific duties are excluded and the ad valorem  parts of alternate rates are included. 
 
Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Korea. 
 
6. Korea's average applied MFN rate in 2011 was 12.6%.  MFN tariffs on agricultural products 
at 52.5% were substantially higher than those fo r non-agricultural products at 6.5%.  MFN duty-free 
tariff lines accounted for 16.5% of all tariff lines, in  2011.  At the date of entry into force of the 
Agreement (1 July 2011), when Korea started implementation of its tariff commitments under the 
Agreement, EU exporters enjoyed an absolute margin of preference of 5.8% vis-à-vis  the prevailing 
MFN tariff; 11.2% for agricultural goods and 5.5% for non-agricultural products.  The share of duty 
free lines applicable to imports from the EU al so rose from 16.5% to 81.2%, of which 87.2% for 
non-agricultural goods and 41.8% for agricultural produc ts.  Following ten years of implementation, 
this share of duty free lines for EU imports is expected to rise to 94.6%, of which 67.5% for 
agricultural products and 98.8% for non-agriculture.  At the end of implementation in 2031, 99.5% of 
the tariff is expected to be duty free for imports  from the EU, of which 96.6% for agriculture and 
100% for non-agriculture. 
7. Annex Table AI.4 gives an indication of add itional market access in Korea resulting from the 
entry into force of the Agreement for the EU's top 25 global exports.   
  WT/REG296/1/Rev.1 
Page 51 
 
 
  Table AI.4 – Korea:  Market acces s opportunities under the agreement for European Union's top 25 exports 
EU's top export products in 2008-2010  Access Conditions to Korea's import markets  
MFN (2011)Duty-free in  
MFN 
avg. No. of tariff lines
HS number and description of the product  Share in 
global 
exports Duty
-free Dutiable 
2011 
2014 
2016 
2018 
300490 - other (Certain Medicaments) 3.8 8.0  7 5 2   
271019 -- other (Certain Petroleum Oils) 2.5 6.6  41 36  5  
870323 -- (Certain motor cars or motor vehicles) of a 
cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc 2.3 8.0  4   4  
271011 -- light oils and preparations (Certain Petroleum 
Oils) 2.2 3.3 2 4 4    
880240 - aeroplanes and other aircraft, of an unladen 
weight exceeding 15,000 kg 1.8 0.0 4      
870324 -- (Certain motor cars or motor vehicles) of a 
cylinder capacity exceeding 3,000 cc 1.8 8.0  4   4  
841191 -- (certain parts) of turbo-jets or turbo-propellers 0.8 5.5  2 2    
870899 -- other (Certain parts and accessories of certain 
motor vehicles) 0.8 8.0  6 6    
710231 -- (certain diamonds) unworked or simply sawn, 
cleaved or bruted 0.7 1.0  1 1    
870332 -- (Certain motor cars or motor vehicles) of a 
cylinder capacity exceeding 1,500 cc but not 
exceeding 2,500 cc 0.7 8.0  4   4  
851712 -- telephones for cellula r networks or for other 
wireless networks 0.7 0.0 10      
848180 - (certain taps, cocks, valves and similar 
appliances for certain apparatus) other appliances 0.6 8.0  6  2 3 1 
851770 - parts (of telephone sets) 0.5 0.7 21 2 2    
293499 -- other (certain nucleic acids and their salts) 0.5 5.6  5 2  3  
841112 -- (certain turbojets) of a thrust exceeding 25 kn 0.5 6.3  3 3    
854231 -- processors and controllers, whether or not 
combined with memories, converters, logic 
circuits, amplifiers, clock and timing circuits, or other circuits 0.5 0.0 3      
880330 - other parts of aeroplanes or helicopters 0.5 0.0 2      
847989 -- (certain machines) other  0.5 8.0  12 9 2  1 
711319 -- (certain articles of jewellery) of other precious 
metal, whether or not plated or clad with precious 
metal 0.5 8.0  3  1 2  
847330 - parts and accessories of the machines of 
heading 84.71 0.5 0.0 11      
901890 - (certain medical instruments) other instruments 
and appliances 0.5 8.0  9 4 2 2 1 
300210 - antisera and other blood fractions and modified 
immunological products, wh ether or not obtained 
by means of biotechnological processes 0.4 0.0 7      
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude. 0.4 3.0  10 10    
293399 -- other (certain chemical products) 0.4 5.0  3 1 2   
851762 -- machines for the reception, conversion and 
transmission or regeneration of voice, images or 
other data, including switching and routing 
apparatus 0.4 0.0 35      
 Total of above  24.5  95 126 85 11 27 3 
 
Source : WTO estimates based on data provide d by Korea and Eurostat database. 
 
8. The EU's top 25 exports accounted for 24.5% of its global exports in 2008-2010; these 
corresponded to 221 tariff lines.  Before the entry into  force of the Agreement, 95 of these tariff lines 
had duty free access to the Korean market.  At the en try into force of the Agreement, an additional 85 
of these 221 tariff lines became duty free; eleven  additional lines will become duty free in 2014, 
twenty-seven in 2016, and 3 in 20 18.  After 10 years of implementa tion (in 2021), none of these tariff 
lines will remain dutiable.  
  WT/REG296/1/Rev.1 
Page 52 
ANNEX II 
 
Summary of Appendix 2A-2 of the Agreement  
Preferential treatment related to the entry price schem e applied by the EU to certain fruits and vegetable 
 
Table AII.1 
Tariff 
Line CN 
2011 Description 
CN 2011 MFN 
applied 
rate Liberalization Timetable a 
Remarks 
2011 2011 2012 2013 2014 2015 2016 b 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 
07020000  Tomatoes, fresh or chilled 12.00% 9.60%  7.20% 4.80% 2.40% 0.00% Entry price not  reflected in duty rate and maintained  
07070005 - Cucumbers 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%  Entry price eliminated upon entry into force 
07099070 -- Courgettes 10.60% 8.50% 6.40% 4.20% 2.10% 0.00% Entry pr ice component in force but not reflected in duty rate, elim inated 
in year 5 
07099080 -- Globe artichokes 8.60% 6.90% 5.20% 3. 40% 1.70% 0.00% Entry price component in  force but not reflected in duty rate,  eliminated 
in year 10 
08051020 -- Sweet oranges, fresh 13.30% 10.60% 8. 00% 5.30% 2.60% 0.00% Entry price not re flected in duty rate and maintained 
08052010 -- Clementines 13.30% 10.60% 8.00% 5.30% 2.60% 0.00% Entry pr ice component in force but not reflected in duty rate, el iminated 
in year 15 
08052030 -- Monreales and satsumas 13.30% 10.60% 8.00% 5.30% 2.60% 0. 00% Entry price not reflected in duty rate and maintained 
08052050 -- Mandarins and wilkings 13.30% 10.60% 8.00% 5.30% 2.60% 0.00% Entry price com ponent in force but not reflected in du ty rate, eliminated 
in year 15 
08052070 -- Tangerines 13.30% 10.60% 8.00% 5.30% 2. 60% 0.00% Entry price component in force but not reflected in duty rate, eli minated 
in year 15 
08052090 -- Other 13.30% 10.60% 8.00% 5.30% 2.60% 0.00% Entry price component in force bu t not reflected in duty rate, eliminat ed 
in year 15 
08055010 -- Lemons (Citrus limon, Citrus 
limonum) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% En try price component in force but not reflected in duty rate, eliminated 
in year 2 
08061010 -- Table grapes 14.60% 11.70% 8.80% 5.80% 2.90% 0.00% Entry price component in force but not reflected in duty rate, e liminated 
in year 17 
08081080 -- Other 5.30% 4.20% 3.20% 2.10% 1.00% 0.00% Entry price component in force bu t not reflected in duty rate, eliminated  
in year 10 (year 20 for the fuji variety) 
08082050 --- Other 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% Entry price eliminated upon entry into force 
08091000 - Apricots 16.60% 13.30% 10.00% 6.60% 3.30% 0.00% Entry pric e component in force but not reflected in duty rate, elimi nated 
in year 7  
   WT/REG296/1/Rev.1
 Page 53Tariff 
Line CN 
2011 Description 
CN 2011 MFN 
applied 
rate Liberalization Timetable a 
Remarks 
2011 2011 2012 2013 2014 2015 2016 b 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 
08092005 -- Sour cherries (Prunus cer asus) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% En try price eliminated upon entry into force 
08092095 -- Other 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% Entry price eliminated upon entry into force 
08093010 -- Nectarines 14.60% 11.70% 8.80% 5.80% 2.90% 0.00% Entry pr ice component in force but not reflected in duty rate, eli minated 
on year 10 
08093090 -- Other 14.60% 11.70% 8.80% 5.80% 2.90% 0.00% Entry price component in force bu t not reflected in duty rate, eliminat ed 
on year 10 
08094005 -- Plums 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Entry price co mponent in force but not refl ected in duty rate, eliminate d 
on year 10 
20096110 --- Of a value exceeding € 18 per 
100 kg net weight 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Entr y price eliminated upon entry into force 
20096919 ---- Other 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% Entry price eliminated upon entry into force 
20096951 ----- Concentrated 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% Entry price eliminated upon entry into force 
20096959 ----- Other 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% Entry price eliminated upon entry into force 
22043092 ---- Concentrated 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% Entry price eliminated upon entry into force 
22043094 ---- Other 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% Entry price eliminated upon entry into force 
22043096 ---- Concentrated 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% Entry price eliminated upon entry into force 
22043098 ---- Other 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% Entry price eliminated upon entry into force 
 
__________