WT/REG367 /1/Rev.1  
 
 
28 September  2016 
(16-5190) Page: 1/52 
Committee on Regional Trade Agreements   
 
 
  
FACTUAL PRESENTATION  
FREE TRADE  AGREEMENT BETWEEN THE REPUBLIC OF KORE A AND NEW ZEALAND  
(GOODS AND SERVICES ) 
Report by the Secretariat  
Revision  
This report, prepared for the consideration of the Free Trade  Agreement between the 
Republic of Korea  and New Z ealand , has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not  imply official endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and t hus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264) . Any statistical questions arising from this repo rt may be 
addressed to  Thakur Parajuli  (tel: +41 22 739 5473) . 
 
 WT/REG367/1 /Rev.1  
 
- 2 - 
 
   
TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 5 
1.2   Trade in services and investment  ................................ ................................ ..................  7 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ....................  10 
2.1   Background Information  ................................ ................................ .............................. 10 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  11 
3.1   Import duties and charges,  and quantitative restrictions ................................ .................. 11 
3.1.1    General provisions  ................................ ................................ ................................ ...11 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 12 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 12 
3.1.3.1    New Zealand  ................................ ................................ ................................ ........ 12 
3.1.3.2    Korea  ................................ ................................ ................................ .................. 14 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....18 
3.2   Rules of origin  ................................ ................................ ................................ ............ 19 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 20 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 20 
3.4.1    Standards  ................................ ................................ ................................ ............... 20 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......20 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 20 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 21 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .21 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 21 
3.4.2.3    Special agricultural safeguards measures  ................................ ................................ .22 
3.4.2.4    Other Safeguard measures  ................................ ................................ ..................... 22 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .22 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 22 
3.4.5    Customs -related procedures ................................ ................................ ...................... 22 
3.4.6    Other regulations  ................................ ................................ ................................ .....23 
3.4.6.1    Non-tariff measures  ................................ ................................ .............................. 23 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...23 
3.5.1    Agriculture, forestry and fisheries cooperation  ................................ ............................. 23 
4   PROVISIONS ON TRADE IN SERVICES AND INVE STMENT  ................................ .........  23 
4.1   Scope and definitions  ................................ ................................ ................................ ..24 
4.2   Denial of benefits  ................................ ................................ ................................ .......24 
4.3   General provisions on trade in services  ................................ ................................ ......... 24 
4.3.1    Market access  ................................ ................................ ................................ ......... 24 
4.3.2    National treatment and MFN  ................................ ................................ ...................... 24 WT/REG367/1 /Rev.1  
 
- 3 - 
 
  4.3.3    Local presence  ................................ ................................ ................................ ........ 25 
4.3.4    Performance requirements  ................................ ................................ ........................ 25 
4.3.5    Senior Managers and Boards of Directors  ................................ ................................ ....25 
4.3.6    Movement of natural persons (Temporary entry of business persons)  ............................. 25 
4.4   Liberalization commitments  ................................ ................................ ......................... 26 
4.4.1    New Zealand  ................................ ................................ ................................ ........... 27 
4.4.1.1    MFN and horizontal comm itments  ................................ ................................ ........... 27 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 27 
4.4.2    Korea  ................................ ................................ ................................ ..................... 31 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ........... 31 
4.4.2.2    Sector specific commitments  ................................ ................................ .................. 31 
4.4.3    Regulatory provisions  ................................ ................................ ............................... 34 
4.4.4    Domestic regulation  ................................ ................................ ................................ .34 
4.4.5    Recognition  ................................ ................................ ................................ ............. 35 
4.4.6    Subsidi es ................................ ................................ ................................ ................ 35 
4.4.7    Safeguards  ................................ ................................ ................................ ............. 35 
4.4.8    Other  ................................ ................................ ................................ ..................... 35 
4.4.8.1    Investmen t ................................ ................................ ................................ .......... 35 
4.5   Sector specific provisions on trade in services  ................................ ................................ 36 
4.5.1    Education cooperation  ................................ ................................ .............................. 36 
4.5.2    Audiovisual co -production  ................................ ................................ ......................... 36 
4.5.3    Financial services  ................................ ................................ ................................ .....36 
4.5.4    Telecommunication Serv ices ................................ ................................ ..................... 36 
5   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  36 
5.1   Transparency  ................................ ................................ ................................ ............. 36 
5.2   Current payments and capital movements  ................................ ................................ .....37 
5.3   Exceptions  ................................ ................................ ................................ ................. 37 
5.3.1    General exceptions  ................................ ................................ ................................ ..37 
5.3.2    Security exceptions  ................................ ................................ ................................ ..37 
5.3.3    Taxation  ................................ ................................ ................................ ................. 37 
5.4   Accession and Withdrawal ................................ ................................ ............................ 37 
5.5   Institutional framework  ................................ ................................ ............................... 38 
5.6   Dispute settlement  ................................ ................................ ................................ .....39 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 41 
5.8   Government procurement  ................................ ................................ ............................ 42 
5.9   Intellectual property ri ghts ................................ ................................ .......................... 42 
5.10   Other  ................................ ................................ ................................ ...................... 43 
5.10.1    Competition  ................................ ................................ ................................ .......... 43 
5.10.2    Labour  ................................ ................................ ................................ .................. 43 
5.10.3    Environment ................................ ................................ ................................ .......... 44 WT/REG367/1 /Rev.1  
 
- 4 - 
 
  5.10.4    Treaty of Waitangi ................................ ................................ ................................ ..44 
ANNEX 1 ................................ ................................ ................................ ........................  45 
 WT/REG367/1 /Rev.1  
 
- 5 - 
 
   
Key Facts  
 
Parties to the Agreement:  Republic of Korea and  
     New Zealand  
 
Date of Signature:   23 March 2015  
 
Date of Entry into Force:  20 December 2015  
 
Date of Notification:   21 December 2015  
 
Full implementa tion:   1 January 2034  
 
 
1  TRADE ENVIRONMENT1 
1.1.  The Free Trade Agreement between New Zealand  and the Republic of Korea2, (hereinafter 
referred to as "the Agreement") is New Zealand 's 11th free trade agr eement and Korea's 14th free 
trade agreement.  
1.2.  In 2013, wi th a population of 4.5 million, New Zealand 's GDP was estimated at 
US$188 billion, while that of Korea, with a popula tion of 50 million, was US$1,410  billion. 
Averaged over the period 2012 -2014, the Parties' trade (goods and services) to GDP ratio was 
57.4 for New Zealand  and 104.2  for Korea.  
1.1  Merchandise trade  
1.3.  In 2014  New Zealand 's mercha ndise exports amounted to US$42 billion (0.22 % of global 
exports ) and imports amounted to US$43 billion (0.22 % of global imports). In the same year 
Korea's mercha ndise expo rts amounted to US$573 (3.01 % of gl obal exports) and imports 
US$526  billion (2.75 % of global imports). New Zealand  was the world's 41st largest exporter and 
39th largest importer of merchandise, while Korea was the 5th largest exporter and 6th largest 
importer. The structure of the Parties' merchandise exports and imports is different, with 
New Zealand  exporting mainly agricultural products (representing 70 % of its total exports) while 
mainly importing manufactures (71 % of its total imports). Korea's  export s and imports are largely  
manufactures (representing 86 % of its total exports  and 53% of its total imports ).  
1.4.  Developments in global and intra -Party trade are presented in Chart 1.1 (A and B) over the 
period 2000 -2014. New Zealand 's trade surplus with Kore a was consistent until 2009, when the 
trade balance became negative, before going back into surplus in 2010 and 2011; the  deficit has 
since been growing, though New Zealand's statistics show a decline in 2015 . At the global level, 
Korea  experienced a trade  surplus  during the whole period, with the exception of the year 2008.  In 
the case of New Zealand's global trade, Chart 1.1B  shows a trade deficit  for most of the period, 
with a momentary setback for both exports and imports in 2008  and a modest trade surplus 
observed for the years 2010 and 2011 .  
1.5.  Based on 2014  trade data3, Korea was New Zealand 's 7th largest source of imports4 
(representing 4.5% of its total imports) and 6th largest destination for exports5 (representing 3.5% 
of its total exports) , while New Zealand  was both Korea's 33rd largest source of imports6 
                                                
1 Source for this section, unless otherwise indicated: WTO Trade Profiles, September 2015 (2014 data).  
2 In this report we will refer to Korea.  
3 Source: UNSD Comtrade database. The national statistics of the Parties may slightly differ from the, 
also official, sources systematically used in the preparation of factual presentations.  
4 In 2014 , the five top sources of imports for New Zealand  were: the EU(28) (17.4%); China (16.9%); 
Australia (12,2%); the US (11.6%); and Japan (6.7%).  
5 In 2014 , the five top destinations for New Zealand 's exports were: China (20%); Australia (17.5%); 
the EU(28) (9.6%); the US (9.4%); and Japan (5.9%).   
6 In 2014 , the five top sources of imports for Korea were: China (17.1%); the EU(28) (11.9%); Japan 
(10.2%); the US (8.7%); and Saudi Arabia (7%) .   WT/REG367/1 /Rev.1  
 
- 6 - 
 
  (representing 0.3% of its total imports) and export destination7 (representing 0.3% of its total 
exports) . 
Chart 1.1 Korea and New Zealand : Bilateral  and global merchandise trade, 2002 -20148 
00.511.522.533.544.55
051015202530354045
2000 2002 2004 2006 2008 2010 2012 2014B. New Zealand 2000 -2014
(US$ billions)
Imports from Korea (Right Axis)
Export to Korea (Right Axis)
Total Imports
Total Exports
00.511.522.533.544.55
0100200300400500600700
2000 2002 2004 2006 2008 2010 2012 2014A. Korea 2000 -2014 
(US$ billions)
Imports from New Zealand (Right Axis)
Export to New Zealand (Right Axis)
Total Imports
Total Exports
 
Source:  UNSD Comtrade database.  
 
1.6.  The commodity structure of trade between New Zealand  and Korea, and between each Party 
and the wo rld, during the period 2011 -2014, is shown in Chart 1.2, on the basis of Harmonize d 
System (HS) Sections. Mineral products ( 43.8%), vehicles ( 19.3%), and machinery ( 12.5%) 
together accounted for 75.6% of New Zealand 's imports from Korea, while these three sectors 
were also New Zealand 's top three global imports (representing respectivel y 17.1%, 15.4% and 
20.4%  of New Zealand 's global imports). These three categories of products corresponded 
respectively to Korea's 3rd, 2nd, and 1st largest global exports (corresponding together to 64% of 
Korea's global exports).  
1.7.  Wood and articles of woo d (26.3%) ; chemicals (19.3%);  and animal products, including 
meat, edible offal, and dairy products  (19.1%) together accounted for 64.7% of Korea's imports 
from New Zealand, while none of these sectors were among Korea's top three global imports. 
Wood and articles of wood, chemicals and live animals represented respectively 0.6%, 7.5%, and 
1.4% of Korea's global imports (these three categories of products corresponded respectively to 
New Zealand's  3rd, 6th, and 1st largest global exports (corresponding toge ther to 55.5% of New 
Zealand's  global exports).  
                                                
7 In 2014 , the five top destinations for Korea's exports were: China (25.4%); t he US (12.3%); the 
EU(28) (9.1%); Japan (5.6%); and Hong Kong, China (4.8%) .   
8 In the case of Korea, the data is missing in Comtrade for 2002.  WT/REG367/1 /Rev.1  
 
- 7 - 
 
  Chart 1.2 Korea and New Zealand : product composition of merchandise trade, annual 
average (2011 -2014)  
26
19
1911765222Korea imports from New Zealand (%)
38
23984333227Korea's Global Imports (%)
34
2010977734Korea's Global Exports (%)
44
19127632224New Zealand's imports from Korea (%)
20
17
159755433326New Zealand's Global Imports (%)
43
976554432228New Zealand's Global Exports (%)Total: US$ 1.4 billion Total: US$ 520.2 billion
Total: US$ 40.1 billion Total: US$ 39.5 billionTotal:  US$ 560.2 billion
Total: US$ 1.7 billion
 
Source:  UNSD Comtrade database.  
 
1.2  Trade in services and in vestment  
1.8.  In 2014 , New Zealand 's shares of total commercial servic es exports and imports were 0.29% 
and 0.27 % respective ly, while Korea's share was 2.14% of world exports and 2.38 % of world 
imports of services. With total comm ercial services exports of US$1 4 billion, and imports of 
US$13  billion, New Zealand  was the world's 29th largest exporter and 38th largest importer of 
commercial services. Korea was the 9th largest exporter (US$106  billion ) and the 8th largest 
importer (US $526 billion ). 
1.9.  Charts 1.3 and 1 .4 below show global trade in commercial services for New Zealand  and 
Korea (based on the period 2005 -2014). For Korea , the available sets of data show an overall 
deficit in trade in commercial services with the world, while, for New Zealand, exports of se rvices 
to the world are systematically greater than its global imports during the period 2005 -2014. In the 
case of New Zealand , Travel, transport and other business services represent the three mainly 
traded services, in terms of both exports and imports. While this is also the case for Korea to a 
large extent , exports of construction services also represent an important proportion of its overall 
global exports.  WT/REG367/1 /Rev.1  
 
- 8 - 
 
  Chart 1.3 New Zealand : Trade in commercial services with the world, 2005 -2014  
0.02.04.06.08.010.012.014.0
2005 2007 2009 2011 2013A. New Zealand imports from world
2005 -2014
(US$ Billion)
Personal, cultural, and recreational services Other business services
Telecommunications, computer, and information services Charges for the use of intellectual property n.i.e.
Financial services Insurance and pension services
Construction Travel
Transport Manufacturing services on physical inputs owned by others0.02.04.06.08.010.012.014.016.0
2005 2007 2009 2011 2013B. New Zealand exports to world
2005 -2014
(US$ Billion)
020406080100120140
2012 2013 2014C. New Zealand's import from Korea 
2012 -2014
(US$ Million)
0100200300400500
2012 2013 2014D. New Zealand's Export to Korea
2012 -2014
(US$ Million)
Personal, cultural, and recreational services
 
Source:  WTO Statistics database and data provided by New Zealand based on BMP6.  
Note:  
- No data recorded under Manufacturing services on physical inputs owned by others.  
- No imports/Export from/to Korea or data not available on Maintenance and repair  services not included 
elsewhere (n.i.e.); Construction services; Financial services; Charges for the use of intellectual property n.i.e. 
(2012 -2014) . 
- Data not available for Import from Korea on Other business services (2012, 2013) . 
- Data not available for Export to Korea Personal cultural and recreational services (2014) . WT/REG367/1 /Rev.1  
 
- 9 - 
 
  Chart 1.4 Korea: Trade in commercia l services with the world, 2005 -2014  
0.050.0100.0150.0
2005 2007 2009 2011 2013A. Korea imports from world
2005 -2014
(US$ Billion)
Personal, cultural, and recreational services Other business services
Telecommunications, computer, and information services Charges for the use of intellectual property n.i.e.
Financial services Insurance and pension services
Construction Travel
Transport Maintenance and repair services n.i.e.
Manufacturing services on physical inputs owned by others0.020.040.060.080.0100.0120.0
2005 2007 2009 2011 2013B. Korea exports to world
2005 -2014
(US$ Billion)
 
Source:  WTO Statistics database based on BMP6 . 
 
1.10.   Charts 1.5 and 1.6 below depict each Party's  foreign direct investment stocks and flows with 
the world. According to UNCTAD's data, New Zealand  was a net recipient of FDI for the period 
considered , with the exception of the year 2003 , while, according to its own data, New Zealand 
indicates to have b een a  net provider of FDI globally for the years 2002, 2004, and 2008 . On its 
side, Korea was also a net recipient of FDI until 2006, when it became a net investor . While New 
Zealand ma intained and increased it FDI stock with the world during over the peri od, Korea's 
stocks evolved from negative to positive during the 2008 -2009 financial crises. Since that period, 
Korea's FDI outward stocks outnumber  FDI inward stocks.  
Chart 1.5 New Zealand : FDI stock and flow with world, 2000 -2014  
0102030405060708090
2000 2002 2004 2006 2008 2010 2012 2014New Zealand FDI stock with world
2000 -2014
(US$ Billion ) 
Outward Inward
-4-3-2-1012345
2000 2002 2004 2006 2008 2010 2012 2014New Zealand FDI flow with world
2000 -2014
(US$ Billion) 
Outward Inward
 
Sourc e: UNCTAD.  WT/REG367/1 /Rev.1  
 
- 10 - 
 
  Chart 1.6 Korea: FDI stock and flow with world, 2000 -2014   
050100150200250300
2000 2002 2004 2006 2008 2010 2012 2014Korea FDI stock with world
2000 -2014
(US$ Billion ) 
Outward Inward
05101520253035
2000 2002 2004 2006 2008 2010 2012 2014Korea FDI flow with world
2000 -2014
(US$ Billion) 
Outward Inward
 
Source:  UNCTAD . 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement was signed on 23 March 2015  and notified on 21 December 2015  under 
Article XXIV:7(a) of GATT 1994 and Article V:7(a) of GATS (see document WT/ REG367/N/ 1 - 
S/C/N/ 855). It entered into force on 20 December  2015. The text of the Agreement, together with 
its annexes, is available on the Parties' official websites:  
New Zealand : https://mfat.govt.nz/en/trade/free -trade-agreements/free -trade -agreements -
in-force/nz -korea -free-trade -agreement/text -of-the-new-zealand -korea -fta-
agreement/  
 
Korea :   http://www.fta.go.kr/main/situation/kfta/lov5/nz/2/  
 
2.2.  The Agreement is composed of 21  Chapters. Box 2.1 bel ow summarizes the structure of the 
Agreement. A number of Annexes, including the Partie s' tariff elimination schedules, their lists of 
services and investment non -conforming measures and their schedules of specific commitments on 
temporary entry of busines s persons also form part of the Agreement. The Agreement includes an 
agreement between the Parties on audiovisual co -production  (Annex III to the Agreement) .  WT/REG367/1 /Rev.1  
 
- 11 - 
 
  Box 2.1 Structure of the Agreement  
Titles, Chapters 
(including 
Annexes) and 
Protocols  Title/descr iption  
Preamble   
Chapter 1  Initial provisions and definition  
Chapter 2  Market access for t rade in goods  
Chapter 3  Rules of origin and origin procedures  
Chapter 4  Customs procedures  and trade facilitation  
Chapter 5  Sanitary  and Phytosanitary measures  
Chapter 6  Technical barriers to trade  
Chapter 7  Trade remedies  
Chapter 8  Cross -border trade in services  
Chapter 9  Temporary entry of business persons  
Chapter 10  Investment  
Chapter 11  Intellectual property rights  
Chapter 12  Competition and consumer p olicy 
Chapter 13  Government procurement  
Chapter 14  Agriculture, forestry and fisheries cooperation  
Chapter 15  Labour  
Chapter 16  Environment  
Chapter 17  Transparency  
Chapter 18  Institutional provisions  
Chapter 19  Dispute settlement  
Chapter 20  General  provisions and exceptions  
Chapter 21  Final provisions  
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapter 2 of the Agreement covers trade in goods. It is comp lemented by Chapters 3 
through 7 , which also contain disciplin es applicable to trade in goods.9 Chapter 2, inter alia , 
governs the elimination of customs duties according to the Parties' Schedules.  
3.2.  A Committee on Trade in Goods is established to address tariff and non -tariff barriers to 
trade in goods b etween the Pa rties (Article 2.15 ). It shall, among other functions, review the 
Parties' non -tariff measures in certain circumstances to ensure that unnecessary obstacles to trade 
are not created. The Committee shall consider approaches that may better facilitate trade between 
the Parties and present to the Parties the results of its consideration, including a ny 
recommendations (Article 2.9 ). Moreover, each Party shall designate a contact point to facilitate 
communication between the Parties on any matter relating to Cha pter 2 on trade in goods 
(Article  2.16).  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.3.  The Parties agree to apply national treatment to each other's imports in accordance with 
Article III of GATT 1994 and its interpretative n otes, which are incorporated into and made part of 
the Agreement, mutatis mutandis (Article 2.3 ). 
3.4.  Neither Party shall adopt or maintain any prohibition or restriction on the import of any good 
of the other Party, except as provided in the Agreement or in a ccordance with Article XI of 
GATT  1994, which is, together with its interpretative notes, also incorporated into and made part 
of the Agreement mutatis mutandis (Article 2.8 ).  
3.5.  Neither Party shall, as a condition for engaging in importation or for the impo rtation of a 
good, require a person of the other Party to establish or maintain a contractual or other 
relationship with a distributor in its territory.  
                                                
9 Chapters 3 through 6 contain disciplines on rules or origin; customs administration and trade 
facilitation; s anitary and phytosanitary measures; technical barriers to trade; and trade remedies.  WT/REG367/1 /Rev.1  
 
- 12 - 
 
  3.6.  The Agreement prohibits the Parties from adopting or maintaining a measure that is 
inconsistent with th e WTO Import Licensing Agreement (Article 2.10).  Each Party also commits to 
notify the other Party of its existing import licensing procedures.  The Parties count the notification 
to the WTO Committee on Import Licensing as the relevant notification under t he Agreement .10 
3.7.  Articles 2.5 and 2.6  prohibit the imposition of customs duties on  certain temporarily admitted 
goods as well as goods that re -enter a Party's territory after r epair or alteration. Moreover, with 
the exception of tobacco products, c ommercial  samples of negligible value and  printed advertising 
materials  shall be granted customs duty -free entry .  
3.8.  With respect to administrative fees and formalities, the Agreement builds on the provisions of 
Article VIII of GATT 1994 (Article 2.11 ). It also forese es that each Party shall make available and 
maintain through the Internet a current list of the fees and charges it imposes in connection with 
importation or exportation .11  
3.1.2   Liberalization of trade and tariff lines  
3.9.  Neither Party shall increase any existing customs duty, or adopt any new customs duty12, on 
an originating good. Unless otherwise provided in the Agreement, each Party shall progressively 
eliminate its customs duties on originating goods in accordance with its Schedule, contained in 
Annex 2 -A to th e Agreement (Article 2.4 ).  
3.1.3   Liberalization schedule  
3.10.   Annex 2 -A to the Agreement contains the Parties' respective tariff elimination programmes. 
Section A refers to Korea's Schedule, while Section B contains New Zealand 's tariff concessions.  
3.11.   The base rates of customs duty set out in both Parties' Schedules reflect their MFN r ates in 
effect on 1 January 2009 . 
3.12.   On the request of either  Party, the Parties shall consider accelerating the elimination of 
customs duties  (paragraph  4 of Article 2.4 ). A Party may at a ny time accelerate unilaterally the 
elimination of customs duties on originating goods of the other Party. In that case, it shall 
communicate  its intention to do so  to the other Party (paragraph  6 of Article 2.4).  
3.1.3.1   New Zealand  
3.13.   New Zealand 's applied tariff i n 2015  consisted of 7,510  lines at the HS eight -digit level 
(HS 2012). 99.49 % of the tariff rates were ad valorem  and 38 lines had non -ad valorem  tariffs.13  
3.14.   Four staging categories apply to the elimination of customs duties by New Zealand : 
 Customs duties f or goods in category "0" were eliminated or were already duty free on 
the date of entry into force of the Agreement;  
 
 Customs duties for goods in category "3" shall be removed in three equal annual stages 
beginning on the date of entry into force of the Agreement . The goods shall be duty -free 
on 1 January 2017;  
 
                                                
10 New Zealand's last notification to the WTO was on 7 October 2014 (G/LIC/N/3/NZL/4) and the next 
notification is due later in 2016. Korea's recent notification was on 27 October 2015 (G/LIC/N/3/KOR/11).  
11 New Zealand already maintains a list of all customs charges, duties and allowances on imports and 
exports. The list is available through the New Zealand Customs Services website at 
http://www.customs.govt.nz/features/charges/Pages/default.aspx . Fore Korea, a list is available at 
http://www.law.go.kr/adminRulInfoP.do?admRulSeq=2100000042381 . 
12 A Party may , however , raise a customs duty to the lev el established in its Schedule to Annex 2 -A 
following a temporary unilateral reduction.  
13 Six lines consisted in specific duties, and 32 lines that are related  to parts and c omponents, for which 
the duty varies  subject to the rate applying to the  product ( machinery, appliance or equipment ) which is 
incorporating these parts . These 32 tariff lines, for which  duties are either 0%, 5% or 10%, are not included 
for the calculation of MFN average s. WT/REG367/1 /Rev.1  
 
- 13 - 
 
   Customs duties for goods in category "5" shall be removed in five equal annual stages 
beginning on the date of entry into force of the Agreement. The goods shall be duty -free 
on 1 January 2019;  
 
 Customs duties for goods in category "7" shall be removed in seven equal annual stages 
beginning on the date of entry into force of the Agreement. The goods shall be duty -free 
on 1 January 2021;  
 
3.15.   Table 3.1 shows tariff elimination commitments by New Zealan d under the Agreement. In 
2015, 4,381  lines were duty free on an MFN basis, representing 58.3% of New Zealand 's total 
tariff, corresponding to 79.2% of its imports from Korea during 20 12-2014. Immediately following 
the entry into force of the Agreement, an  additional 2,051  lines ( 27.3% of New Zealand 's tariff) 
also became duty -free for imports from Korea. This resulted in 85.6% of New Zealand 's tariff 
becoming duty free, corresponding to 90.8% of New Zealand 's total impor ts from Korea . Further 
tariff lin es will become duty free in 2017, 2019 , and 2021, which corresponds to New Zealand 's full 
implementation of its tariff eliminatio n programme .14 As a consequence, s even years after the 
entry into force of the Agreement, and at the end of the implementation peri od, the entirety of the 
New Zealand  tariff will be duty free for imports from Korea.  
Table 3.1: New Zealand  
Tariff elimination commitments under the Agreement and corresponding average t rade 
Duty phase -out period  Number 
of lines  % of total lines 
in New 
Zealand's tariff 
schedule  Value of New 
Zealand's imports 
from Korea  
(2012 -2014)  
US$ million a % of New Zealand's 
total imports  
from Korea  
(2012 -2014)  
2015 (MFN)  4,381 58.3 1,288.7  79.2 
2015 2,051 27.3 189.4  11.6 
2016 1 0.0 0.0 0.0 
2017 492 6.6 92.4 5.7 
2019 273 3.6 14.7 0.9 
2021 312 4.2 42.9 2.6 
Remain dutiable  - - - - 
TOTAL  7,510 100.0  1,628.1  100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  For the calculation of averages, specific rates are excluded . 
 Based on the HS2012 nomenclature.  
Source:  WTO estimates based on data provided by New Zealand . 
 
3.16.   Table 3.2 shows New Zealand 's tariff elimination, by HS section. The majority of tariffs were 
eliminated in 2015 across all HS Sections. No tariff line will remain subject to duties once 
implemen tation is completed (in 2021).  
                                                
14 The tariff of one line (HS 6309.00.01) has been fully eliminate d in 2016, though this does not 
correspond to any staging category indicated in the Agreement. New Zealand's authorities clarified that this 
was the result of the legal/technical verification process under the Agreement. As headnote number 5 of 
New Zealand 's Schedules stated that interim staged rates shall be rounded down, at least to the nearest tenth 
of a percentage point or, if the rate of duty was expressed in monetary units, at least to the nearest New 
Zealand dollar, it was decided that New Zealand sh ould bring its phasing of the two non ad-valorem  tariff lines 
(6309.00.01 and 6309.00.11) into line with the mentioned footnote. This meant that New Zealand moved the 
date of the full tariff elimination for tariff line 6309.00.01 from year 5 (2019) to year  2 (2016) and for tariff line 
6309.00.11 from year 7 (2021) to year 3 (2017).  WT/REG367/1 /Rev.1  
 
- 14 - 
 
  Table 3.2 New Zealand: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the  
MFN 2014  Number of duty -free lines under 
the Agreement  
Remain 
dutiable  
Avg. Final  
Tariff  
(Dutiable)  2015  
2016  
2017  
2019  
2021  
I 0.7 378 322 56       
II 1.0 337 269 67    1   
III 1.1 61 48 10   1 2   
IV 2.6 527 252 271  4     
V 0.4 213 198 15       
VI 0.7 951 816 121   6 8   
VII 3.1 389 153 135  87 4 10   
VIII 2.5 102 54 35  2 8 3   
IX 2.5 206 103 55    48   
X 0.0 221 221        
XI 4.2 1045 475 94 1 125 204 146   
XII 5.7 105 38 9  24 26 8   
XIII 2.4 225 119 93  6 1 6   
XIV 1.2 68 52 13  1  2   
XV 2.6 798 394 347  19 20 18   
XVI 2.8 1179 510 474  170  25   
XVII 3.4 232 98 85  47  2   
XVIII 1.0 234 182 44    8   
XIX 2.0 32 18 12    2   
XX 4.0 200 52 115  7 3 23   
XXI 0.0 7 7        
Total  2.3 7510  4381  2051  1 492 273 312 - - 
Note:  For the calculation of averages, specific rates are excluded . 
 Based on the HS20 12 nomenclature.  
Source:  WTO estimates based on data provided by New Zealand . 
 
3.1.3.2   Korea  
3.17.   Korea's applied tariff in 2015  consisted of 12,243 lines at the HS ten -digit level (HS  2012). 
99.22% of the tariff rates were ad valorem  and 95 lines had non -ad valorem  tariffs.15  
3.18.   Nineteen staging categories16 apply to the elimination of customs duties by Korea:17 
 Customs duties for goods in category "0" were eliminated or were already duty -free on 
the date of entry into force of the Agreement;  
 
 Customs duties for goods in ten  other categories started to be removed on the date of 
entry into force of the Agreement. They shall be eliminated in, respectively, 3, 5,  6, 7, 
10, 12, 13, 15, 17, 18, and 20 equal annual stages beginning on 1 January 2015. For 
category "3" the goods shal l be duty -free on 1 January 2017  and the goods in category 
"20" shal l be duty free on 1 January 2034 ; 
 
 Customs duties for goods in category "B" started to be reduced on the date of entry into 
force of the Agreement. They shall be reduced by 50% in ten equa l annual stages and 
shall remain at that rate  thereafter (from 1 January 2024 ); 
                                                
15 Ninety -four lines consisted of mixed duties while one tariff line contained specific duties.  
16 Two sub -categories each are also created within two of the staging categories.  
17 Korea's Schedule is generally expressed in terms of the Harmonized Tariff Schedule of Korea (HSK) 
and its interpretation shall be governed by the various Notes applicable to the HSK.  WT/REG367/1 /Rev.1  
 
- 15 - 
 
   For customs duties for goods in two categories ("S -1" and "S -2"), seasonal preferential 
rates have been defined. During the high season, preferential rates are duty -free for 
category "S -1" or shall remain at the base rate for the other categories. For the low 
season, preferential rates are progressively removed to become duty -free according to 
the establ ished schedule (between 5 and 15  years);  
 
 Customs duties for goods in categ ory "E" remain at the base rate  (reflecting Korea's 
applied MFN rate of duty on 1 January 2009) ; 
 
 No obligations regarding customs duties shall apply with respect  to goods in staging 
category "X ".18  
 
3.19.   Table 3.3 shows tariff elimination commitments by Ko rea under the Agreement. In 2015 , 
1,956 lines were duty free on an MFN basis, representing 16% of Korea's tot al tariff, 
corresponding to 37.5 % of its imports from New Zealand  during 2012 -2014. Following the entry 
into force of the Agreement, an additi onal 7,18 2 lines (58.7 % of Korea's tariff) also became 
duty-free for imports from New Zealand . This resulted in 74.7 % of Korea's tariff becoming duty 
free, corresponding to 44.9 % of Korea's total imports from New Zealand  (during 2012 -2014). In 
2025, ten years after  the entry into force of the Agreement, 11,425 tariff lines, 93.5% of Korea's 
tariff and 81.1 % of its imports from New Zealand  will be duty free. At the end of the twenty -year 
implementation period, in 2034 , 11,980  tariff lines ( 97.9% of Korea's tariff), c orresponding to 
96.5% of Korea's imports from New Zealand , will be duty -free. 263 tariff lines will remain dutiable 
once Korea's tariff elimination programme is completed , corresponding to 3.5% of Korea's imports 
from New Zealand in 2012 -2014.  
Table 3.3: Korea  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Korea's tariff 
schedule  Value of Korea's 
imports from  
New Zealand  
(2012 -2014) a 
US$ million  % of Korea's tot al 
imports from  
New Zealand  
2012 -2014  
2015 (MFN)  1,956 16.0 529.8  37.5 
2015 7,182 58.7 104.9  7.4 
2017 1,023 8.4 269.9  19.1 
2019 438 3.6 27.8 2.0 
2020 1 0.0 42.9 3.0 
2021 437 3.6 143.0  10.1 
2024 388 3.2 27.7 2.0 
2026 81 0.7 40.9 2.9 
2027 3 0.0 17.9 1.3 
2029 396 3.2 157.5  11.1 
2031 4 0.0 1.0 0.1 
2032 65 0.5 0.0 0.0 
2034 6 0.0 0.0 0.0 
Remain dutiable  263 2.1 50.1 3.5 
Total  12,243 100.0  1,413.4  100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Tariff lines subject to in -quota rates are ex cluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 16 tariff lines19 under the Excluded category (Category X) reflect the MFN 2015 duties.  This process 
is in acc ordance with the methodology applied by the Secretariat across all FPs where it aims to 
assess the margins of preference in reference to the MFN duties as of entry into force.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provid ed by Korea.  
                                                
18 Nothing in the Agreement shall affect Korea's rights and obligations wi th respect to its implementation 
of the commitments set out in the WTO document WT/Let/492 ( Certification of Modifications and Rectifications 
to Schedule LX – Republic of Korea ) dated 13 April, 2005 and any amendments thereto.  
19 100610.00.00, 100620.10.00,  100620.20.00, 100630.10.00, 100630.20.00, 100640.00.00, 
110290.20.00, 110319.30.00, 110320.20.00, 110419.10.00, 180690.22.90, 180690.29.99, 190120.10.00, 
190120.90.00, 190190.90.91, 190190.90.99 . WT/REG367/1 /Rev.1  
 
- 16 - 
 
  3.20.   Table 3.4 shows Korea's tariff elimination, by HS section. The 263 lines that will remain 
subject to duties once implementation is completed are found in HS Sections I (live animals), 
II (vegetables), III (animal or vegetable fats and oil, IV (prepared food), and IX (wood and wood 
articles), with final average tariffs at betwe en 9% and 630%, and with preferential rates at the 
same level as MFN rates, or below them in the case of products covered under HS Chapters 3,  5, 
7, 10 , 11 and 12 as illus trated by Chart 3.1 below. The highest average tariffs are found, at 630%, 
in HS Chapter 15 (animal or vegetable fats and oils and their cleavage products).   
  WT/REG367/1 /Rev.1  
 
- 17 - Table 3.4 Korea: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2015  Number of duty -free lines under the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2015  2017  2019  2020  2021  2024  2026  2027  2029  2031  2031  2034  
I 20.5 762 21 100 82 95  149 98 29 2 113 2 23 2 46 55.6 
II 108.2  690 29 63 51 68 1 63 90   108  36  181 311.1  
III 13.4 108  11 22 9  27 21   17    1 630.0  
IV 29.3 543 3 49 53 75  92 95  1 135 2 5  33 175.9  
V 3.8 392 51 324 1 10  6          
VI 7.5 2,299  174 1,901  116 68  20 16   3  1    
VII 6.7 377 5 358 14             
VIII 7.7 242 28 196 16 2            
IX 5.8 316 38 17 29 60  33 62 51  20   4 2 9.0 
X 0.0 288 288               
XI 9.7 1,289  28 1,075  180    6         
XII 10.1 100  99 1             
XIII 7.8 345 1 232 104 2  6          
XIV 5.2 118 5 113              
XV 4.2 1,037  412 574 44 6  1          
XVI 5.7 2,064  562 1,197  233 32  40          
XVII 5.8 333 80 227 25 1            
XVIII 6.7 563 77 433 43 10            
XIX 3.4 81 47 34              
XX 5.4 281 92 179 9     1        
XXI 0.0 15 15               
Total  14.1 12,243  1,956  7,182  1,023  438 1 437 388 81 3 396 4 65 6 263 248.4  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Korea.  WT/REG367/1 /Rev.1  
 
- 18 - 
  
 Chart 3.1 Korea: Average of dutiable rates, by HS Chapter  
0100200300400500600700800
01 02 03 04 05 07 08 09 10 11 12 13 15 16 17 18 19 20 21 22 44Average Duty Rate
HS ChapterPreferential MFN
 
Note:   For the calculation of averages, specific rates are excl uded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Korea.  
 
3.1.4   Tariff rate quotas  
3.21.   Korea applies tariff rate quotas (TRQs) to certain originating goods under the Ag reement, as 
defined in Appendix 2 -A-1. Any quantity of originating goods imported from New Zealand under a 
TRQ provided for under the Agreement shall not be counted toward the in -quota amount of any 
TRQ provided for such goods elsewhere in Korea's WTO Sche dule of tariff concession (referred to 
as "HSK" under the Agreement).   
3.22.   Five categories of products imported from New Zealand  are subject to TRQs: (i) milk or 
cream powder with less than 1.5% fat and buttermilk, whole milk powder, and evaporated milk 
and cr eam; (ii) butter and other fats and oils derived from milk; (iii) fresh, grated or powdered, 
processed, and all other cheeses; (iv)  mussels; (v) and prepared dry milk and other . In quota 
imports enter  duty free and quota quantities for each TRQ are set in Appendix 2 -A-1 along with 
the number of years during which the TRQ quantities progressi vely increase . For some products 
(covered in the above -mentioned categories (ii), (iii); and (v) ) the quota will be phased out 
following  the transition period (up to 10  years for butter  and up to 15 years for the others). The 
quota qua ntities for the other products  will remain unchanged once the transition period is over  for 
each respective category (between 10 and 16 years) . Any quantity of originating goods imported 
from New Zealand  under a TRQ provided in the Appendix shall not be counted toward the in -quota 
amount of any TRQ provided for such goods in the HSK (TRQs provided through WTO 
commitments).  
3.23.   The implementation and administration of the TRQs set out in Appendix 2-A-1 are to be in 
accordance with Article XIII of GATT 1994, including its interpretative notes, and the WTO Import 
Licensing Agreement (Article 2.13). Any enterprise or national of a Party fulfilling Korea's legal and 
administrative requirements for impo rts is eligible to be considered for a TRQ allocation under the 
Agreement. Over the course of each year, Korea's administering authority  (that shall be identified 
and promptly notified to New Zealand)  shall publish, in a timely fashion on its designated pu blicly 
available Internet site, administration procedures, utilisation rates and remaining available 
quantities for each TRQ.  In case first -come, first -served is used as the TRQ administration meth od, 
Korea shall publish  that the TRQ has been filled within  10 days  of it being filled . Any new or 
modified administration of a TRQ shall  also be notified prior to its application.  WT/REG367/1 /Rev.1  
 
- 19 - 
 
  3.24.   New Zealand made no commitment in the form of tariff rate quotas.  
3.2  Rules of origin  
3.25.   Chapter 3 contains provisions on rules of origin an d is supplemented by Annexes 3 -A 
(Product Specific Rules of Origin ), 3-B (Committee on outward processing zones on the Korean 
peninsula); 3C  (Implementing arrangement on rules of origin operational procedures) .  
3.26.   A good qualifies as originating  in a Party  if it:  
 is a wholly obt ained or produced good, as defined in Article 3.3 ; 
 is produced entirely in the territory of one or both of the Parties using non -originating 
material that conforms to a change in tariff classification, a regional value content (RVC) 
or other requirements as specified in Annex 3 -A;  
 is produced entirely in the territory of one or both of the Parties, exclusively from 
originating materials . 
3.27.   Annex 3 -A contains product specific rules of origin and the conditions that need to be 
fulfilled f or products to qualify as originating in case the goods are processed in one or both 
Parties. While a change in tariff classification, at the 2, 4, or 6 -digit levels, as indicated in Annex 3 -
A, constitutes the main criteria used to determine origin in case s of substantial transformation of 
goods, the regional value content (RVC) can be used as an alternative criterion in a number of 
cases.20 The RVC is calculated according to the me thods defined under Articles  3.4 (Regional value 
content) and 3.5  (value of m aterials). When the RVC is used as an alternative method to 
determine the origin of a good, in most cases, this means that the good must have a RVC of not 
less than 30% using the Build -up method or not less than 40% using the Build -down method as 
calculate d under Article 3.4 . In some cases, the RVC is not less than 35% using the B uild-down  
method while in other cases, the RVC is not less than 40% using the B uild-down method. 
Annex  3-A also specifies for which tariff lines the good must be wholly obtained in  the territory of 
one or both of the Parties21, and for which one specific manufacturing or processing operation 
confers origin.22 
3.28.   Non-originating products, whose value does not exceed 10% of the adjusted value of the 
good, may be used in the processing of o riginating final products  (Article 3.7) . The de minimis  
tolerance is conditional for  goods classified in HS Chapters 1 through 14 (animal products and 
vegetables). For certain other products (some fish products; some vegetable; and some fruits and 
nuts) th e de minimis  rule is not applicable. Moreover, specific rules are also defined for textiles 
and textile articles and "basic textile materials" (HS Chapters 50 through 63).  
3.29.   Chapter 3 a lso contains, under Articles 3.8  through 3.17 , disciplines on  identical and 
interchangeable goods and materials; accessories, spare parts, tools and instructional or 
information material; packaging materials and containers for retail sale  and for  shipment;  indirect 
materials; non -qualifying operational and processes; direct tr ansport; and compliance . 
Furthermore, the Parties agree that certain goods shall be considered originating even if they have 
undergone working or processing outside Korea, on materials exported from Korea and 
subsequently re -imported, provided that the wor king or processing takes place in the areas 
designated by t he Parties pursuant to Annex 3 -B to the Agreement .23  
                                                
20 This is particularly the case for goods classified under HS Chapters 30 through 32, and 38 (some 
chemicals and pharmaceuticals); 40 (some rubbers); 69 (some ceramics products); and products classified in 
HS Sections 15 through 20 (metal products, machinery, transport and precision equipment, arms and 
ammunition,  miscellaneous articles).  
21 This is the case particularly for agricultural goods, and fish products, classified under HS Chapters 1, 
3 through 10, and 12.  
22 This is the case particularly for goods classified under HS Chapters 50 through 60, and 63 (textile s); 
and under HS Chapters 27 (fuels and mineral oil products), and 28 through 38 (chemical products).  
23 The Annex establishes a Committee on outward processing zones on the Korean Peninsula that shall 
review the conditions on the Korean peninsula and ident ify geographic areas that may be designated as 
outward processing zones.  WT/REG367/1 /Rev.1  
 
- 20 - 
 
  3.30.   Accumulation of origin is governed by the provisions of Article 3.6 . Originating goods of a 
Party, incorporated into a good in the territory of the other Party, shall be considered to be 
originating in the territory of the other Party. Consequently, a good is originating where it is 
produced in the territory of one or both of the Parties by one or more producers, provided that the 
requirements in Chapter 3 are fulfilled.  
3.31.   Section B of Chapter 3, complemented by Annex 3 -C, contains disciplines on operational  
procedures, covering in particular: claims for preferential tariff treatment; evidence of origin; 
waiver of an origin declaration; discrepancies  and formal errors; record keeping requirement; 
obligations regarding exportation; origin verification; denial of preferential tariff treatment; direct 
transport and compliance; and third -party invoicing .  
3.3  Export duties and charges, and quantitative restri ctions  
3.32.   No Party shall adopt or maintain any prohibition or restriction on the export or sale for 
export of any good destined for the territory of another Party, except as provided in the 
Agreement or in accordance with Article XI of GATT 1994, which is, to gether with its interpretative 
notes, incorporated into and made part of the Agreement mutatis mutandis (Article 2.8 ). The 
Agreement contains disciplines applicable where a Party proposes to adopt an export prohibition or 
restriction on foodstuffs or energ y and mineral resources in accordance with paragraph 2(a) of 
Article XI of GATT 1994.  
3.33.   Neither Party shall adopt or maintain any duty, tax, or other charge on the export of goods 
to the territory of another Party, unless also adopted or maintained when dest ined for dom estic 
consumption (Article 2.12 ). 
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.34.   Chapter 5 covers sanitary and phytosanitary measures (SPS) and  Chapter 6 covers  technical 
barriers to trade (TBT).  
3.4.1.1   Sanitary and phytosanitary measures  
3.35.   Under the  Agreement, SPS matters are covered under  Chapter 5. Each Party affirms its 
existing rights and obligations with respect to the other in the WT O Agreement on 
SPS (Article  5.3). Contact Points have been designated by each Party and shall facilitate the 
exchange of information related to SPS issues.  
3.36.   The Agreement establishes a Committee on Sanitary and Phytosanitary Matters to facilitate 
the implementation of Chapter 5 (Article 5.4).  
3.37.   Article 5.6  provides that the dispute resolution  mechanism set out in Chapt er 19  does not 
apply to Chapter 5.  
3.4.1.2   Technical barriers to trade  
3.38.   Chapter 6  covers TBT and applies to all standards, technical regulations, and conformity 
assessment procedures of the central level of government that may affect trade in goods between 
the Par ties.24 The Parties affirm their rights and obligations under the  WTO Agreement on TBT 
(Article 6.4 ). Articles 2 through 9 of the TBT Agreement are incorporated into and made part of the 
Agreement.  
3.39.   With a view to increase and facilitate trade through enhanc ing the Parties' implementation 
of the WTO TBT Agreement and b uilding on work of the APEC on standards and conformance,  the 
Agreement establishes joint disciplines for the use of international standards  (Article 6.5);  and 
equivalence of technical regulatio ns (Article 6.6); conformity assessment procedures (Article 6.7).   
                                                
24 Technical specifications prepared by governmental bodies for production or consumption requirements 
of such bodies are addressed in Chapter 13 (government procurement).  WT/REG367/1 /Rev.1  
 
- 21 - 
 
  3.40.   The Parties also agree to strengthen their joint cooperation on TBT (Article 6.8). Article 6.9  
elaborates on transpare ncy requirements and Article 6.11  establishes information exchange 
(Article 6.11). Moreover, the Parties may conclude annexes to Chapter 6 setting out agreed 
principles and procedures relating to technical regulations and conformity assessment procedures 
applicable to goods trade between them  (Article 6.12). The Agreement inv ites the Parties to 
facilitate dialogue on mutual recognition agreements or arrangement for conformity assessment, 
and discuss the feasibility of developing mutual recognition agreements or arrangements. 
Moreover, the Parties agree to give due consideratio n to any sector specific proposal made by 
either Party .25 
3.4.2   Safeguard mechanisms  
3.41.   Chapter 7  refers to the use of bilateral and global safeguard measures, while Section F of 
Chapter 2 (trade in goods)  establishes the applicable disciplines for agricultural safe guard 
measures under the Agreement.  
3.4.2.1   Global safeguards  
3.42.   Each Party retains its rights and obligations under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards, and the WTO Agreement on Agriculture. The Agreement shall not 
confer any additional rig hts or impose any additional obligations on the Parties with respect to 
measures applied under the respective above -mentioned WTO agreements, except that a Party 
applying such a measure under the WTO agreements may exclude imports of an originating good 
of the other Party, from the measure (Article 7.6 ). 
3.4.2.2   Bilateral safeguards  
3.43.   Disciplines on bilateral safeguard measures are contained in Articles 7.2 through 7.5 . During 
the transition period26, a Party may apply a bilateral safeguard measure. Such a measure may  
consist of either (i) a suspension of the further reduction of the customs duty on the good provide d 
for under the Agreement, or (ii) an increase in the rate of customs duty on the good to a level not 
to exceed the lesser of the MFN applied rate of duty i n effect at the time the safeguard measure is 
applied, or the MFN applied rate of duty on the good in effect on the day immediately preceding 
the date of entry into force of the Agreement. In case of a customs duty applied to a good on a 
seasonal basis, th e calculation shall be in relation to each season.  
3.44.   A bilateral safeguard measure may be applied for such period of time as may be necessary 
to prevent or remedy seriou s injury pursuant to Article 7.3  of the Agreement. The total period of 
application of a b ilateral safeguard measure, including the period of initial application and any 
extension thereof, shall not exceed three years. Neither Party shall apply a bilateral safeguard 
measure more than once against the same good. Where the expected duration of a bilateral 
safeguard measure is over one year, the applying Party shall progressively liberalize it at regular 
intervals.  
3.45.   Bilateral safeguard measures may only be applied following an investigation in accordance 
with the procedures and requirements provided  for in Articles 3 and 4.2 of the WTO Safeguard 
Agreement. These two articles are incorporated into and made part of the Agreement, mutatis 
mutandis . No bilateral safeguard measure or provisional safeguard m easures (governed by 
Article  7.4) shall be applie d against a particular good while a global safeguard measure under 
Article XIX of GATT 1994 and the WTO Safeguard Agreement in respect of that good is in place.  
3.46.   No later than 30 days after it applies a bilateral safeguard measure, a Party shall afford an 
opportunity for the other Party to consult with it regarding appropriate trade liberali zing 
compensation in the form of concessions having substantially equivalent trade effects or equivalent 
                                                
25 In that co ntext, the Agreement refers to Korea's interests including telecommunication equipment, 
electrical and electronic equipment, electromagnetic compatibility and medical devices, while New Zealand's 
interests include alcoholic beverages.  
26 "Transition period"  in relation to a particular good means the period from the date of entry into force 
of the Agreement until five years after the date of the elimination or the completion of the reduction period of 
the customs duties in accordance with that Party's Schedul e of tariff commitments in Annex 2 -A (elimination of 
customs duties).  WT/REG367/1 /Rev.1  
 
- 22 - 
 
  to the value of the additional duties expected to result from the  bilateral safeguard measure. The 
applying Party shall provide such compensation as the Par ties mutually agree (Article 7.5 ). If the 
Parties are unable to agree on compensation, the Party against whose originating good the 
safeguard measure is applied may suspend the application of concessions that have trade effects 
substantially equivalent to the safeguard measure.  
3.4.2.3   Special agricultural safeguards  measures  
3.47.   Section F  of Ch apter 2 (Article 2.14 ) governs the bilateral agricultural safeguard mechanism 
establi shed by the Agreement that provides Korea with the possibility of imposing a (safeguard) 
duty when the aggregate volume of imports of certain agricultural goods  (certain beef products)  
originating in New Zealand27, listed in Korea's Schedule in Annex 2-B, exceeds the trigger quantity 
set out in the Annex. A Party shall maintain an agricultural safeguard measure only until the end of 
the calendar year in which it applies the measure. Agricultural safeguard measures may not be 
applied or maintained, on the sam e good, at the same time a bilateral safeguard, a global 
safeguard, or a safeguard applied under the WTO Agreement on Agriculture is also applied.  
3.48.   Notification and consultation  obligations are contained in the Agreement. The 
implementation and operation of  Article 2.14 may be the subject of discussion and review in the 
Committee on Trade in Goods established under the Agreement.  
3.4.2.4   Other Safeguard measures  
3.49.   The Agreement authorizes the Parties to adopt restrictive import measures in accordance 
with GATT 1994 an d the WTO Understanding on the Balance -of-Payments Provisions of GATT 1994 
and in line with  the modalities contained in Article 20.3.  
3.4.3   Anti-dumping and countervailing measures  
3.50.   Section B of Chapter 7  covers antidumping and countervailing measures.  
3.51.   Each Party  retains its rights and obligations under the WTO Agreement with regard to the 
application of antidumping and countervailing measures. Unless othe rwise provided in Chapter 7 , 
nothing in the Agreement shall be construed to confer any additional rights or im pose any 
additional obligations on a Party with respect to antidumping or countervailing measures.  
3.52.   The Parties also confirm their current practice of counting toward the average all individual 
margins, whether positive or negative, when antidumping margin s are established on the 
weighted -to-weighted basis, transaction -to-transaction basis, or weighted -to-transaction basis, 
and share their expectation that such practice will continue. Moreover, the Party taking a decision 
to impose an antidumping duty in ac cordance with Article 9.1 of the WTO Agreement on 
Antidumping, shall normally apply the "lesser duty" rule.  
3.53.   Article 7.8  reiterates notification obligations and the necessity to initiate an investigation 
prior to taking antidumping or countervailing measure s. Consultations between the Parties are also 
foreseen. Disciplines on undertakings, for both antidumping and countervailing measures, are 
contain ed in Article 7.9 . 
3.4.4   Subsidies and State -aid 
3.54.   There are no provisions on subsidies and State aid in the Agreement . 
3.4.5   Customs -related procedures  
3.55.   Chapter 4 covers customs administration and trade facilitation. It aims at: (i) simplification 
and harmonization of customs procedures of the Parties; (ii) ensuring predictability, consistency 
                                                
27 Annex 2 -B sets out the goods originating in New Zealand that may be subject to agricultural 
safeguard measures under Article 2.14. It also contain the applicable trigger levels, and th e maximum 
safeguard duty rate for each year of implementation (from 40% safeguard duty in year 1 to duty -free in 
year 16). WT/REG367/1 /Rev.1  
 
- 23 - 
 
  and transparency in the applicatio n of their customs laws, including  administrative procedures; (iii) 
ensuring the efficient and expeditious clearance of goods; (iv) facilitating trade between the 
parties; and (v) promoting cooperation between the customs administrations, within the scope of 
Chapter 4. The Parties agree on transparency disciplines, including the establishment  of enquiry 
points, (Article 4.3 ); facilitation of the clearance of goods and harmonization of data requirements 
(Article 4.4 ); use of automated systems in the paperles s trading environment (Article 4.5 ); 
focussing customs resources on shipments of high -risk goods (Article 4.6 ); and simplification of 
customs procedures for the efficie nt release of goods (Article  4.7). Chapter 4 also contains rules on 
express consignments  (Article 4.8); advance rulings (Article 4.9 ), review and appeal procedures 
(Article  4.10); customs cooperation (Article 4.11); bilateral customs consultations (Articles 4.12); 
and confidentiality in relation to some disclosed information (Article 4.13) .  
3.56.   The determination of the value of goods by the Parties shall be made in accordance with the 
provisions of Article VII of GATT 1994 and the WTO Customs Valuation Agreement.  
3.57.   In Article 4.14, the Agreement establishes a Customs Committee to ensure the proper 
functioning of Chapters 3 (rules of origin and origin procedures) and 4 (customs procedures and 
trade facilitation).  
3.4.6   Other regulations  
3.4.6.1   Non-tariff measures  
3.58.   Section D of the Agreement has five articles relating to non -tariff measures. These include 
Article 2 .9, which contains the Parties' recognition of the importance of ensuring the transparency 
of non -tariff measures ( import and export restrictions ), and that any such measures  should not 
create an unnecessary obstacle to trade between them.   
3.5  Sector -specific  provisions on trade in goods  
3.5.1    Agriculture, forestry and fisheries cooperation  
3.59.   Chapter 14 identifies cooperation activities related to agriculture, forestry and fisheries that 
supplement cooperation foreseen under other chapters of the Agreement as well as  existing 
cooperative arrangements between the Parties .28 Cooperation on security of food supply is 
addressed in Article 14.7 , in the event of a severe and sustained disruption to supply of staple 
foods and feed grain relevant to the Parties . 
3.60.   The Agreement establishes a Committee on agriculture, forestry and fisheries cooperation 
(Article 14.8).  
3.61.   In case of differences or disputes arising in respect of the interpretation or application of 
Chapter 14, or any implementation arrangements concluded under it, such  differences or disputes  
should be resolved through consultations . Matters may be referred to the Committee on 
agriculture, forestry and fisheries and guidance may be sought from the Joint Commission.  
4  PROVISIONS ON TRADE IN SERVICES  AND INVESTMENT  
4.1.  Chapter 8 contains disciplines on cross -border tra de in services, while Chapter 10  covers 
investment. Annexes I and II to the Agreement, containing non -conforming measures, constitute 
integral parts of the Parties' commitments under these two Chapters.  
4.2.  Chapter 9  complements the rules and disciplines on trade in services and investment as 
applied to measures affecting the temporary entry of business  persons of a Party into the territory 
of the other Party.  
                                                
28 Such as the Arrangement between the Korean Ministry of Agriculture and Forestry and the New 
Zealand Ministry of Agriculture and For estry on Agricultural Cooperation  (done in 2007), and the Arrangement 
between the Forestry Administration of the Republic of Korea and the Ministry of Forestry of New Zealand 
regarding Cooperation in the Field of Forestry  (done in 1997).  WT/REG367/1 /Rev.1  
 
- 24 - 
 
  4.1  Scope and definitions  
4.3.  Chapter 8  applies to measures of a Par ty affecting cross -border trade in services by service 
suppliers of the other Party. Cross -border supply of a service covers the GATS modes of supply 1, 
2 and 4. It also covers GATS mode 3, though only in relation to provisions on market access, and 
domest ic regulation. The supply of a service in the territory of a Party by a covered investment or 
an investment of an investor of the other Party is therefore not otherwise covered by Chapter 8 . 
Moreover, Chapter 8  does n ot apply to financial services29; govern ment procurement; services 
supplied in the exercise of governmental authority; subsidies or grants; and measures regarding 
seeking access to the employment market, citizenship, nationality, residence or employment on a 
permanent basis . In relation to air  transport  services, only aircraft repair and maintenance 
services, the selling and marketing of air transport services, computer reservation system 
services, and specialty air services are covered.  
4.2  Denial of benefits  
4.4.  Under Article 8.14, a Party ma y deny th e benefits of Chapter 8  (cross -border trade in 
services) to a service provider of the other Party if the service provider is an enterprise owned or 
controlled by persons of a third -party (or the denying Party) and the enterprise has no substantive 
business  operations in the territory of the other Party . The same approach is followed, in re lation 
to investment (Chapter 10 ), for investors of the other Party and for their investments 
(Article  10.14 ). 
4.3  General provisions on trade in services  
4.3.1   Market access  
4.5.  In rel ation to cross -border trade in services (Chapter 8 ), a Party shall not adopt or maintain, 
either on the basis of a regional subdivision or of its entire territory, measures that impose the 
types of limitations covered by Paragraphs 2(a) to 2(e) of Article XVI of the GATS (Article 8.6).  
4.6.  Chapter 10 on investment does not contain market access obligation along the lines of GATS 
Article XVI. Article 8.3 nevertheless stipulates that market access, as well as domestic regulation 
provisions specified for cross -border trade in services shall also apply to measures by a Party 
affecting the supply of a service in its territory by a covered investment. Moreover, Article 10.5 on 
national treatment in relation to investment covers measures that impose limitations on the  
participation of foreign capital (Paragraph 2(f) of Article XVI of the GATS) . 
4.7.  However, the Parties' commitments on market access do not apply to the existing 
non-conforming measures which they list concerning the obligation of market access in Annex I to 
the Agreement and/or any measure that they adopt or maintain with respect to sectors, 
sub-sectors or activities listed concerning the obligation of market access in Annex II of the 
Agreement  (Article 8.8) .  
4.3.2   National treatment and MFN  
4.8.  In relation to cross -border trade in services (Chapter 8 ), Articles 8.4 and 8.5 contain national 
treatment and MFN clauses applicable to the Parties' service providers. In relation to investment, 
similar provisions are contained in Articles 10.5 and 10.6  with respect to the Par ties' investors and 
their investments when those are related to the establishment, acquisition, expansion, 
management, conduct, operation, and sale or other disposition of investments.  
4.9.  The Parties' commitments on national and MFN treatment do not, however , apply to the 
existing non -conforming measures which they list concerning the obligatio n of national and MFN 
treatment  in Annex I to the Agreement and/or any measure that they adopt or maintain with 
respect to sectors, sub -sectors or activities listed con cerning the same obligations in Annex II of 
the Agreement  (Articles 8.8 and 10.15) .  
                                                
29 The term "financ ial services" refers to any service of a financial nature including those defined in 
paragraph 5(a) of the Annex on Financial Services  of GATS.  WT/REG367/1 /Rev.1  
 
- 25 - 
 
  4.3.3   Local  presence  
4.10.   With respect to cross -border trade in services, neither Party shall require a service supplier 
of the other Party to establish or maintain a representative office or any form of enterprise, or to 
be resident, in its territory as a condition for the supply of cross -border trade in services 
(Article  8.7). 
4.11.   The Parties' commitments on local presence do not, however, apply to the existing 
non-conforming measures w hich they list concerning the obligation of local presence in Annex I to 
the Agreement and/or any measure that they adopt or maintain with respect to sectors, 
sub-sectors or activities concerning the obligations listed in Annex II of the Agreement  
(Article  8.8). 
4.3.4   Performance requirements  
4.12.   With respect to investment, neither Party shall impose or enforce the performance 
requirements listed in Article 10.11 . In addition, a Party may not enforce any commitment or 
undertaking, in connection with the establishment , acquisition, expansion, management, conduct, 
operation, or sale or other disposition of an investment of an investor of a Party or of a third -party 
in its territory. Some exceptions are however listed under Article 10.11 (paragraphs 3 through 9) .  
4.13.   The Pa rties' commitments on performance requirements do not, however, apply to the 
existing non -conforming measures which they list concerning the obligation of performance 
requirement in Annex I to the Agreement and/or any measure that they adopt or maintain wi th 
respect to sectors, sub -sectors or activities concerning the obligations listed in Annex II of the 
Agreement  (Article 10.15) . 
4.3.5    Senior Managers and Boards of Directors  
4.14.   With respect to investment, neither Party shall require that an enterprise of that Par ty that 
is a covered investment appoints to senior management positions natural persons of any particular 
nationality (Article 10.12 ). A Party may require that a majority of the board of directors, or any 
committee thereof, of an enterprise of that Party t hat is a covered investment, be of a particular 
nationality, or resident in the territory of the Party, provided that the requirement does not 
materially impair the ability of the investor of the other Party to exercise control over its 
investment.  
4.15.   The Par ties' commitments on Senior Managers and Boards of Directors do not, however, 
apply to the existing non -conforming measures which they list concerning the obligation related to 
senior managers and boards of directors in Annex I to the Agreement and/or any measure that 
they adopt or maintain with respect to sectors, sub -sectors or activities concerning the obligations 
listed in Annex  II of the Agreement  (Article 10.15) .  
4.3.6   Movement of natural persons  (Temporary entry of business persons)  
4.16.   Chapter 9  applies to m easures affecting the temporary entry of business persons  of a Party 
into the territory of the other Party under any of the categories referred to in Annex 9 -A (Korea's 
schedule) or in Annex 9 -B (New Zealand's schedule) . 
4.17.   While requirements and procedures r elating to immigration formalities remain within the 
sphere of competence of each Party, the Agreement establishes some principles in relation to 
requirements and procedures relating to the grant of temporary entry . Each Party shall also ensure 
expeditious  application of procedures (Article 9.6) . Transparency provisions are contained in 
Article  9.5. 
4.18.   Resolution of matters that might affect the operation of Chapter 9 shall endeavour to be 
made through consultations or negotiations  between the Parties. The dis pute settlement 
procedures provided in Chapter 19 shall not apply to Chapter 9 unless the matter involves a 
pattern of practice, and all administrative remedies regarding the particular matter have been 
exhausted.  WT/REG367/1 /Rev.1  
 
- 26 - 
 
  4.19.   Tables 4.1 and 4.2 below summarize entry and temporary stay for the categories for which 
the Parties m ake commitments under Chapter 9  and some of the modalities agreed upon.  
Table 4.1 New Zealand : Commitments  on movement of natural persons  (temporary  entry 
of business persons)  
Category  Conditions  Length of stay  
Business Visitors   - Up to 90 days  
Intra Corporate 
Transferees  (i) Senior Managers ; 
(ii) Specialists.  - Up to 3 years  
- Up to 3 years  
Installers and servicers   - Up to three months in any 12  month 
period.  
Independent service 
suppliers  (i) Independent professionals (only)  - Up to 12 months (only in respect of 
the services sectors set out in New 
Zealand's GATS Schedule) and subject 
to economic needs tests.  
Note1: New Zealand unbound in cases of labour or management disputes, and also with respect to ships' 
crews .  
Note2:  special procedure for the granting of visas to entertainers, performing artists and associated support 
personnel for work purposes.  
Note3:  New Zealand's commitments under th e GATS in respect of mode 4, including any requirements, 
regulations and additional commitments, apply to the services suppliers of Korea.  
Source:  WTO Secretariat, based on Annex 9-B.  
Table 4.2 Korea: Commitm ents on movement of natural persons  (temporary entry of 
business persons)  
Category  Conditions  Length of stay  
Business Visitors  - Compliance with immigration 
measures applicable to temporary 
entry.  - Up to 90 days  
  
Intra Corporate 
Transferees  - Complianc e with immigration 
measures applicable to temporary 
entry.  - Up to 3 years, renewable.  
Contractual Service 
Suppliers  (see the List of 
suppliers contained in 
Appendix 9 -A-1) - special occupation requiring 
theoretical and practical application of 
specialise d knowledge;  
- Possession of the necessary 
academic and professional 
qualifications and experience (in 
accordance with laws, regulations or 
requirements of Korea);  
- employed by an enterprise that has 
no commercial pre sence in K orea; 
- employed for a perio d of not less 
than one year immediately preceding 
the date of application for admission; 
and 
- no remuneration from an enterprise 
located in Korea.  - Up to 1 year or the period of the 
contract (whichever is less).  
- Labour market test may be required 
or nu merical restriction may be 
imposed.  
 
Note:  Korea may refuse to grant temporary entry to a natural person who is likely to be involved in any 
labour dispute that is in progress and adversely affect the settlement of such labour dispute.  
Source:  WTO Secret ariat, based on Annex 9-A.  
4.4  Liberalization commitments  
4.20.    A "negative list" approach is used throughout the Agreement in relation to cross -border 
trade in services. Article 8.8 (cross -border trade in services) provides for the possibility to 
maintain non -conforming measures listed in Annex I to the Agreement and/or to adopt or maintain  
measures in sectors, sub -sectors, or activities listed under Annex II to the Agreement. With regard 
to Article 10.15  (investment), the same approach is followed for disciplines  on investment.  
4.21.   The sections below compare the Parties' liberalization commitments under the Agreement 
and their GATS commitments. Each Party's GATS schedule is c ompared to Annexes I and II to the 
Agreement. After recalling GATS MFN exemptions and identif ying horizontal limitations in the GATS WT/REG367/1 /Rev.1  
 
- 27 - 
 
  and in the Agreement, Tables 4.3 and 4.4 summarize specific commitments under the Agreement, 
by sectors and sub -sectors and compare them with GATS commitments. Improvements over 
existing GATS commitments are a reduct ion of the limitations to market access and/or national 
treatment, a relaxation of the form of establishment under mode 3, and/or additional 
commitments and increased coverage. However, horizontal limitations in the GATS Schedule of 
Specific Commitments an d reservations covering all sectors are not included. Moreover, mode 4 
commitments and limitations are, to a large extent, excluded. Furthermore, as commitments 
reflected in negative lists are difficult to compare with GATS types of commitments, the follow ing 
sections are to be read in conjunction with the Parties' schedules of non-conforming measures  
under the Agreement.  
4.4.1   New Zealand  
4.4.1.1   MFN and horizontal commitments  
4.22.   In the GATS, New Zealand  took commitments in 90 out of 155 services sectors. It did not 
make c ommitments, inter alia , on certain research and development (business services); postal 
and courier services ; franchising (distribution services);  adult education services; environment 
services; health related and  social services; recreational and cultural  and sporting  services; and 
internal waterways, space transport services and services auxiliary to all modes of transports . 
Under the Agreement, as a negative list approach is chosen, as a principle, all the sectors are 
covered, though a number of non -conforming measures are listed in Annexes I and II  to the 
Agreement. No commitments are made under the Agreement in financial services.  
4.23.   Under the GATS, New Zealand  scheduled MFN exemptions , principally for mode 4,  for some 
audiovisual services  (coproduction), interpretation services and some maritime services. Under the 
Agreement, MFN treatment commitments for investment are referred to in Article 10.6 , and, for 
cross-border trade  in services , in Article 8.5, while MFN -non-conforming measures are listed in 
Annexes I and II. Under the Agreement, as under the GATS, New Zealand  reserves MFN non -
conforming measures that might be taken in the audiovisual sector. It also registers another MFN 
exemption  for existing measures  for the registration of patent attorneys. It  moreover covers , for 
all sectors, public law enforcement services, correctional services, social services, sale of shares 
where the New Zealand Government wholly owns or has effective control over an enterprise . MFN 
reservations are also made for some act ivities related to the provision of certain business services, 
some maritime transport services, recreational, cultural and sporting services; communication 
services (postal services and audiovisual services), and some health and social services. Under the  
Agreement, New Zealand  also reserves the right to adopt or maintain any measures that accord 
more favourable treatment to the service suppliers or investors of third -parties under any bilateral 
or multilateral international agreement in force or signed pr ior to the date of entry into force of the 
Agreement. It moreover reserves the right to derogate from the MFN principle in relation to 
advantages that might be granted under any future bilateral or multilateral international 
agreement involving aviation, f isheries, or maritime matters, including salvage. New Zealand 
nevertheless underlines that MFN commitments under the GATS and under the Agreement are not 
comparable given the MFN exemption in Article V of the GATS.  
4.24.   Under the GATS, New Zealand has  horizont al reservations for establishment (mode 3) and 
in connection with the Overseas Investment Regulations of 1985 . Its Schedule also contains 
modalities for mode 4 provision of services .30 Measures according more favourable treatment to 
any Maori person or orga nization are also reserved under the GATS. Under the Agreement, 
New Zealand  replicates some of these reservations. It also  lists existing non -conforming measures, 
applicable to all sectors, in relation to the application of the Companies Act and Financial Reporting 
Act. 
4.4.1.2   Sector specific commitments  
4.25.   The following section identifies some of the main differences, by sector, between 
New Zealand 's GATS schedule and its sector -specific commitments under the Agreement. It should 
also be read in conjunction with Ann exes I and II of the Agreement.  
                                                
30 Mode 4 commitments and reservations are handled in a separate section of this factual presentation.  WT/REG367/1 /Rev.1  
 
- 28 - 
 
  4.26.   As a consequence of the approach chosen (negative list), the coverage of New Zealand 's 
commitments under the Agreement is exp anded for most sectors, as compared to its commitments 
under GATS, while some limitations (both ho rizontal and sector specific) are introduced in its list of 
non-conforming measures, as compared to the limitations registered under GATS.  
4.27.   In relation to measures New Zealand  may take in the future, a "GATS floor" commitment is 
contained  in Annex II under  which  it reserves the right to adopt or maintain any measure that is 
not inconsistent with its obligations under Article XVI of GATS as set out in its GATS Schedule of 
Specific Commitments. Market access improvement s in some specific sectors are neverthel ess 
listed in Appendix II -A. 
Table 4.3 New Zealand : comparison between the GATS and Agreement specific 
commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to the 
GATS  Commitments on 
existing  
measures  
(Ann ex I)  Commitments on 
new of 
maintained  
measures  
(Annex II)  
1. Business services      
A. Professional  Services  Partial  Improved  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  --- New Full Full 
D. Real  Estate  Services  Full Similar  Full Full 
E. Rental/Leasing  Services  without  Operators  Partial  Improved  Full Partial  
F. Other  Business  Services  Partial  Similar  Partial  Partial  
2. Communication services      
A. Postal  services  --- New Full --- 
B. Courier  services  --- New Full Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  
D. Audiovisual  services  Partial  New Partial  Partial  
3. Construction and related engineering services      
A. General  construction  work for buildings Partial  Improved  Full Partial  
B. General  construction  work for civil Engineering  Partial  Improved  Full Partial  
C. Installation  and assembly  work  Partial  Improved  Full Partial  
D. Building  completion  and finishing  work  Partial  Improved  Full Partia l 
E. Other  Partial  Improved  Full Partial  
4. Distribution services      
A. Commission  agents'  services  Partial  Improved  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  
C. Retailing  services  Full Similar  Partial  Partial  
D. Franchising  --- New Full Full 
5. Education services      
A. Primary education services  Full Similar  Full Full 
B. Secondary education services  Full Similar  Full Full 
C. Higher education services  Full Similar  Full Full 
D. Adult education  --- New Full Full 
E. Other education services  --- New Full Full 
6. Environmental services      
A. Sewage services  --- New Full Full 
B. Refuse disposal services  --- New Full Full 
C. Sanitation and similar services  --- New Full Full 
D. Other  --- New Full Full 
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Excluded  --- --- 
B. Banking  and other financial  services  Partial  Excluded  --- --- 
8. Health related and social services      
A. Hospital services  --- New Full Partial  
B. Othe r Human Health Services  --- New Full Partial  
C. Social Services  --- New Full Full 
D. Other  --- New Full Full 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Full Similar  Full Full 
B. Travel  agencies  and tour operators  services  Full Similar  Full Full 
C. Tourist  guides  services  Full Similar  Full Full 
10. Recreational and cultural and sporting services      
A. Entertainment  services  --- New Full Partial  
B. News agency services  --- New Full Full 
C. Libraries, archives, museums and other cultural services  --- New Full Full 
D. Sporting and other recreational services  --- New Full Partial  WT/REG367/1 /Rev.1  
 
- 29 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to the 
GATS  Commitments on 
existing  
measures  
(Ann ex I)  Commitments on 
new of 
maintained  
measures  
(Annex II)  
11. Transport services      
A. Maritime Transport Services  Partial  Improved  Full Partial  
B. Internal Waterways Transport  --- New Full Full 
C. Air  Transport  Services  Partial  Improved  Partial  Partial  
D. Space  Transport  --- New Full Full 
E. Rail  Transport  Services  Partial  New Full Partial  
F. Road  Transport  Services  Partial  Improved  Full Partial  
G. Pipeline  Transport  Full Similar  Full Full 
H. Services  auxiliary  to all modes  of transport  Partial  Improved  Full Full 
I. Other  Transport  Services  --- New Full Full 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:   Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment.  
New: New commitments under the Agreement (full or partial, with or without limitations) which can, in 
most but not all cases, be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to tho se under the GATS.  
Similar:  Similar commitments (Agreement vs GATS); though possibly, in individual cases, with limited 
improvements and/or limited additional reservations.  
Limited:  Some additional limitations (as compared to GATS commitments).  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ NZL), prepared by the 
Secretariat (in 2003) and New Zealand 's Schedules annexed to the Agreement.  
 
4.4.1.2.1   Business services  
4.28.   Non-conforming measures are registered for publicly funded  legal services a nd for a number 
of research and development services and selected testing services  (for which no commitments 
were made under the GATS). Market access improvement s are made for some professional 
services, computer and related services, rental and leasing se rvices as well as some other business 
services (though subject to non-conforming measures for this subsector).  
4.4.1.2.2   Communication services  
4.29.   Postal and courier services, unbound under the GATS, are covered by the Agreement 
although there is a broad reservation fo r postal services under the Agreement. In 
telecommunications, in both the Agreement and the GATS, New Zealand requires government 
approval for a shareholding exceeding 49.9% in Chorus Limited, New Zealand's largest 
telecommunications infrastructure company . The absence of other reservations in this subsector 
results in more liberalization under the Agreement compared to New Zealand's GATS 
commitments. In audiovisual service s, New Zealand requires written approval for the acquisition of 
licences or managemen t rights to use the radio frequen cy spectrum under the Agreement  and has 
scheduled Annex II reservation  regarding the right to adopt or maintain preferential co -production 
arrangements for film and television productions as well as any measure for the prom otion of film 
and television production and local content.  
4.4.1.2.3   Construction and related engineering services  
4.30.   New Zealand improves its commitments over its  GATS Schedule31 where mode 1 is unb ound 
(due to lack of technical feasibility) and a subsector of other s ervices (CPC  518) is not scheduled.  
                                                
31 New Zeal and indicates that it maintains the market access GATS floor, improved for certain 
sub-sectors.  WT/REG367/1 /Rev.1  
 
- 30 - 
 
  4.4.1.2.4   Distribution services  
4.31.   New Zealand retains the right under the Agreement, as in the GATS, to adopt or maintain 
any measure for public health or social security purposes with respect to wholesale and retail trade 
services  in tobacco products and alcoholic beverages. Franchising and other services, which are 
not subject to GATS commitments, are fully liberalized.  
4.4.1.2.5   Educational services  
4.32.   In addition to primary, secondary and tertiary education in private institutions, already 
liberalized in its GATS Schedule, New Zealand covers  adult and other education services  under the 
Agreement , while reserving the right to adopt or maintain any measure on public education and 
the use of statutorily protected educational terms and titles.  
4.4.1.2.6   Environmental services  
4.33.   Environmental services are unbound under the GATS. Under the Agreement, no 
non-conforming measures are listed by New Zealand. However, a reservation is made for public 
utilities and water including the allocation, collection, treatmen t and distribution of drinking water.  
4.4.1.2.7   Financial services  
4.34.   Financial services (partially committed under the GATS) are not covered by Chapters 8 
(cross -border trade in services) or 10 (investment). New Zealand  consequently makes no 
commitment in that regard  under the Agreement.  
4.4.1.2.8   Health related and social services  
4.35.   No commitments are made, under the GATS, for the whole sector. Under the Agreement,  
New Zealand has non-conforming measures for adoption services, hospital services, and maternity 
deliveries and rel ated services, including services provided by midwives to the extent that they are 
provided by the private sector. The provision  of social services is also reserved to the extent that 
they are established for a public purpose.   
4.4.1.2.9   Tourism and travel related s ervices  
4.36.   As under the GATS, the whole sector is fully covered without limitation.  
4.4.1.2.10   Recreational, cultural and sporting services  
4.37.   The whole sector is unbound under the GATS. Under the Agreement, coverage is improved. 
An Annex II  reservation is made with respec t to libraries, archives, museums and other cultural 
services. Additionally, New Zealand reserves the right to adopt or maintain any measure with 
respect to gambling, betting and prostitution services.  
4.4.1.2.11   Transport services  
4.38.   For maritime transport, New Zealan d maintains an Annex II reservation limiting cabotage 
(passengers and cargo); the provision of certain port services; operating a fleet under the 
New Zealand flag and; the registration of vessels in New Zealand. Rental of vessels with crew and 
maintenance and repair of vessels are not subject to restricti ons under the Agreement. Internal 
waterways transport32 and space transport, for which New Zealand has no GATS commitments, 
are covered  under the Agreement. For air transport, in addition to the subsectors i n its GAT S 
Schedule, New Zealand's commitments cover aircraft repair and maintenance, specialized air 
services and ground handling. Under the Agreement, inves tment in international scheduled  air 
services and in Air New Zealand is restricted. In rail transp ort, New Zealand's commitments cover  
maintenance and repair of rail transport equipment and supporting services for rail transport 
                                                
32 New Zealand indicates that there is an Annex II reservation with respect to maritime cabotage. For 
other subsectors of internal waterways transport coverage i s broadened.  WT/REG367/1 /Rev.1  
 
- 31 - 
 
  services in addition to its GATS commitments. There are no limitations listed for r oad transport 
services under the Agreement . 
4.4.2   Korea  
4.4.2.1   MFN and horizontal commitments  
4.39.   In its GATS schedule, Korea took commitments in 98 out of 155 services sectors. While 
partial commitments are made for many sectors, real estate services, postal and courier services, 
the entire education sector, some  environmental services, the entire health related and social 
services sector and recreational and cultural and sporting services, and some transport services 
(internal waterways transport, space, rail and pipeline transport services) are unbound under the  
GATS. Under the Agreement, as a negative list approach is used, all the sectors are covered, 
though a number of non -conforming measures are listed in Annexes I and II  to the Agreement.  No 
commitments are made under the Agreement for financial services.  
4.40.   Korea's only MFN exemption under the GATS is for computerized reservation systems. 
Under the Agreement, while Korea does not list any existing non-MFN measures, it registers a 
number of reservations for measures it may take in the future in some sectors or s ub-sectors for 
which it has no GATS commitments. The specific sectors, sub -sectors or activities for which Korea 
may maintain existing or adopt new or more restrictive measures that do not conform with MFN 
obligations under Article 8.5 (for cross -border tr ade in services) or 10.6  (for investment) include 
measures for: preferential treatment for disadvantaged groups; for taxi services and scheduled 
passenger road transportation services or some freight road transportation services; for internal 
waterways tra nsportation services and space transportation services; for broadcasting services in 
various forms; for education services, at various levels and for various specialties; and for the 
provision of international maritime passenger transportation services, ma ritime cabotage, and the 
operation of Korean vessels. In order to compare MFN exemptions under the GATS and under the 
Agreement it is nevertheless necessary to also take into account the MFN exemptions implied by 
agreements concluded by the Parties under A rticle V of the GATS.  
4.41.   Under the Agreement, as under the GATS, Korea has horizontal reservations on the 
purchase of land, in relation to establishment. Another horizontal reservation under the GATS is on 
the movement of natural persons (mode 4) and is addre ssed in Section 4.3.6 above . Under the 
Agreement, Korea has exemptions for national security or matters otherwise covered under 
Articles XIV and XIV bis of GATS. It also has n on-conforming measures rel ated to possible future 
privatis ation operation s. Korea reserves the right to adopt or maintain any measures that accord 
more favourable treatment to the service suppliers or investors of third -parties under any bilateral 
or multilateral international agreement in force or signed prior to the date of entry into  force of the 
Agreement. It moreover reserves the rights to derogate from the MFN principle in relation 
to advantages that might be granted under any future bilateral or multilateral 
international  agreement involving aviation, fisheries, maritime matters, including salvage, or 
telecommunications. Furthermore, a reciprocity condition is registered in relation to a 
MFN-reservation connected to measures involving sharing of the radio spectrum for certain 
satellite transmission and broadcasting services.  
4.4.2.2   Sector  specific commitments  
4.42.   The following section identifies some of the main differences, by sector, between Korea's 
GATS schedule and its sector -specific commitments under the Agreement. It should also be read  in 
conjunction with Annexes I and II of the Agreem ent.  
4.43.   As a consequence of the approach chosen (negative list), the coverage of Korea's 
commitments under the Agreement is exp anded for most sectors, as compared to its commitments 
under GATS.  According to Korea's explanatory  note related to its list of ser vices and investment 
non-conforming measures (Annex I), "Articles 8.4 (national treatment) and 8.7 (local presence) 
are separate disciplines and a measure that is only inconsistent with Article 8.7 need not be 
reserved against Article 8.4".   
4.44.   While some lim itations are listed as non -conforming measures, in particular in relation to 
the requirement to establish an office in Korea as a condition to perform certain activities WT/REG367/1 /Rev.1  
 
- 32 - 
 
  (applicable for a number of sectors, but not all), Korea is of the view that the commi tment on 
establishment requirement or local presence is not covered under the GATS and that, 
consequently, this requirement was not required to be listed in its GATS Schedule. Korea also 
considers that the Agreement does not include additional limitations,  as compared to its 
commitments under GATS, and that its commitments under the Agreement constitute a more 
liberalized version of its GATS commitments . 
4.45.   In relation to measures Korea  may take in the future, a "GATS floor" commitment in 
Annex  II indicate s that it reserves the right to adopt or maintain any measure that is not 
inconsistent with its obligations under Article XVI of GATS as set out in its GATS  Schedule of 
Specific Commitments. Market access improvement s in some specific sectors are nevertheless 
listed in Appendix II -A. 
Table 4.4 Korea: comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Commitments on 
existing  
measures  
(Annex I)  Commitments o n 
new of 
maintained  
measures  
(Annex II)  
1. Business services      
A. Professional  Services  Partial  Improved  Partial  Partial  
B. Computer  and Related  Services  Full Similar  Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  
D. Real  Estate  Services  --- New Partial  Partial  
E. Rental/Leasing  Services  without  Operators  Partial  Improved*  Partial  Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  
2. Communication services      
A. Postal  services  --- New Full Partial 
B. Courier  services  --- New Partial  Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  
D. Audiovisual  services  Partial  Similar  Partial  Partial  
3. Construction and related engineering services      
A. General  construction  work for buildings  Partial  Improved  Partial  Partial  
B. General  construction  work for civil Engineering  Partial  Improved  Partial  Partial  
C. Installation  and assembly  work  Partial  Improved  Partial  Partial  
D. Building  completion  and finishing  work  Partial  Impro ved Partial  Partial  
E. Other  Partial  Improved  Partial  Partial  
4. Distribution services      
A. Commission  agents'  services  Partial  Improved*  Partial  Partial  
B. Wholesale  trade services  Partial  Improved*  Partial  Partial  
C. Retailing  services  Partial  Improved*  Partial  Partial  
D. Franchising  Partial  Improved  Full Full 
5. Education services      
A. Primary education services  --- New Full Partial  
B. Secondary education services  --- New Full Partial  
C. Higher education services  --- New Partial  Partial  
D. Adult education  --- New Partial  Partial  
E. Other education services  --- New Partial  Partial  
6. Environmental services      
A. Sewage services  Partial  Improved*  Partial  Partial  
B. Refuse disposal services  Partial  Improved*  Partial  Partial  
C. Sanitat ion and similar services  --- Improved  Partial  Partial  
D. Other  Partial  Improved*  Partial  Partial  
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Excluded  --- --- 
B. Banking  and other financial  services  Partial  Exclud ed --- --- 
8. Health related and social services      
A. Hospital services  --- Similar  --- --- 
B. Other Human Health Services  --- Similar  --- --- 
C. Social Services  --- Similar  --- --- 
D. Other  --- Similar  --- --- 
9. Tourism and travel related service s      
A. Hotels  and restaurants (including catering)  Partial  Improved  Full Partial  
B. Travel  agencies  and tour operators  services  Partial  Improved  Full Partial  
C. Tourist  guides  services  Partial  Improved  Full Partial  
10. Recreational and cultural and sporting services      
A. Entertainment  services  --- New Partial  Partial  
B. News agency services  --- New Partial  Partial  
C. Libraries, archives, museums and other cultural services  --- New Partial  Full 
D. Sporting and other recreational services  --- New Partial  Partial  WT/REG367/1 /Rev.1  
 
- 33 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Commitments on 
existing  
measures  
(Annex I)  Commitments o n 
new of 
maintained  
measures  
(Annex II)  
11. Transport services      
A. Maritime Transport Services  Partial  Improved*  Partial  Partial  
B. Internal Waterways Transport  --- New Full Partial  
C. Air  Transport  Services  Partial  Improved*  Partial  Partial  
D. Space  Transport  --- New Full Partial  
E. Rail  Transport  Services  --- New Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  
G. Pipeline  Transport  --- New Full Full 
H. Services  auxiliary  to all modes  of transport  Partial  Improved*  Partial  Partial  
I. Other  Transport  Services  Partial  Improved  Full Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:  Specific commitments subject to some limitation(s) under market access or national t reatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment.  
New: New commitments under the Agreement (full or partial,  with or without limitations) which can, in 
most but not all cases, be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:  Similar commitments (Agreement vs GATS); though possibly, in individual cases, with limited 
improvements and/or limited additional reservations.  
Limited:  Some additional limitations (as compared to GATS commitments).  
*: Subject to the interpretation of Article XVII of the GATS.  
Source:  Draft Consolidated GATS Sc hedule of Specific Commitments (S/DCS/W/KOR/Rev.1), prepared by the 
Secretariat (in 2003) and Korea's Schedules annexed to the Agreement.  
 
4.4.2.2.1   Business services  
4.46.   Through the negative listing, coverage under the Agreement is broadened as compared to 
Korea's com mitments under the GATS. This is in particular the case for real estate services 
(unbound under the GATS), research and development services, professional services and other 
business services.  
4.4.2.2.2   Communication  services  
4.47.   Commitments are made for postal and cou rier services, unbound under the GATS, though 
with some limitations. Coverage on telecommunications is improved, while a number of restrictions 
on audiovisual (and broadcasting) services are maintained, as compared to the GATS.  
4.4.2.2.3   Construction and related eng ineering services  
4.48.   Korea lists an establishment requirement under the Agreement for cross -border provision of 
construction services, but removes its GATS limitation on licensing and contract limits.  
4.4.2.2.4   Distribution services  
4.49.   Distribution services are subject t o a number of restrictions in Korea's GATS Schedule. 
Under the Agreement, the level of liberalization of this sector is improved and more transparency 
is achieved.  
4.4.2.2.5   Educational services  
4.50.   Under the GATS the sector is unbound, while under the Agreement it is covered through the 
negative list approach, though there is a general limitation for future measures that may be taken WT/REG367/1 /Rev.1  
 
- 34 - 
 
  in most of the education sub -sectors. Moreover, Korea maintains its right to adopt or maintain any 
measure with respect to public trainin g. 
4.4.2.2.6   Environmental services  
4.51.   Under the GATS, Korea has commitments, with some limitations, except for sanitation and 
similar services (reserved under the Agreement). Under the Agreement, Korea removes the 
restriction on the number of suppliers in sewage servi ces as well as the economic needs test on 
disposal services (listed in Korea's GATS Schedule). However, future reservations  for treatment 
and supply of potable water; collection and treatment of municipal sewage; collection, 
transportation, and disposal of  municipal refuse; sanitation and similar services; and nature and 
landscape protection services (except for environmental impact assessment services) are listed . 
4.4.2.2.7   Financial services  
4.52.   Financial services (partially committed under the GATS) are not covered by  Chapters 8 
(cross -border trade in services) or 10 (investment). Korea consequently makes no commitment in 
that regard under the Agreement.  
4.4.2.2.8   Health related and social services  
4.53.   The whole sector is unbound under the GATS. Under the Agreement, Korea maintains  its 
right to adopt or maintain any measure with respect to social services established or maintained 
for public purposes, including income security or insurance; social security or insurance; social 
welfare; health; and child care. Korea also reserves the  right to adopt or maintain any measure 
regarding human health services.  
4.4.2.2.9   Tourism and travel related services  
4.54.   The sector is largely covered under the GATS. Under the Agreement, Korea f urther improves 
its commitments, in particular in relation to market acce ss. 
4.4.2.2.10   Recreational, cultural and sporting services  
4.55.   The whole sector, unbound under the GATS, is now covered, with some limitations to cover 
both existing and possible future restrictive measures.  
4.4.2.2.11   Transport services  
4.56.   While only partial commitments are made in the GATS, it is now fully covered under the 
Agreement, which constitutes a change in particular for internal waterways transport, space 
transport, rail transport services, and pipeline transport. Korea nevertheless maintains its right to 
adopt or maintain any measure with respect to public transport.  
4.4.3   Regulatory provisions  
4.4.4   Domestic regulation  
4.57.   Article 8.10 expands  the disciplines relating to  authorizations, qualification requirements 
and procedures, technical standards and licensing requirements in Articles  VI.3 and VI.4 of the 
GATS. It also binds the Parties to amend Article 8.10 to bring the results of the negotiations on 
Article  VI.4 of GATS into effect under the Agreement, as appropriate.  
4.58.   Subject to any measures a Party adopts or maintains with respect t o sectors, subsectors, or 
activities regarding professional services as set out in its Schedules to Annexes I and II, each Party 
shall provide adequate procedures to verify the competence of professionals of the other Party 
(Paragraph 8 of Article 8.10).   WT/REG367/1 /Rev.1  
 
- 35 - 
 
  4.4.5   Recognition  
4.59.   Under Article 8.11, the Agreement mirrors the provisions in paragraphs 1 through 3 of 
Article  VII of the GATS. Moreover, the Parties agree to designate contact points to facilitate 
dialogue and exchange of information on professional service is sues. In relation to recognition of 
qualifications or professional registration, Annex 8 -A states that such recognition may be achieved 
through recognition of regulatory outcomes  and  of qualifications and professional registration 
awarded by a Party as a means of complying with the regulatory requirements of the other Party 
(whether accorded unilaterally or by mutual arrangement) or recognition arrangements concluded 
between the Parties and between industry bodies or through such other means as the Parties  may 
mutually agree.  
4.4.6   Subsidies  
4.60.   Chapter 8  does not apply to subsidies related to trade in services (Article 8.9) . However, the 
Parties shall consider the issue of disciplines on the possible trade distorting effects of subsidies in 
relation to trade in ser vices in the light of any disciplines agreed under Article XI of the GATS, with 
a view to the incorporation of such disciplines into the Agreement.  In case a Party considers that it 
is adversely affected by a subsidy related to trade in services of the oth er Party, consultations are 
foreseen by the Agreement.  
4.4.7   Safeguards  
4.61.   Article 20.3 of the  Agreement authorizes the Parties to adopt or maintain restrictions  on 
trade in services on which they have  undertaken specific commitments and/or restrictions with 
regard  to payments relating to the transfer of proceeds from investment, when a Party is in 
serious balance of payment and external financial difficulties or under threat thereof, or when in 
exceptional circumstances, payments and capital movements between the P arties cause or 
threaten to cause serious difficulties for the operation of monetary policy or exchange rate policy, 
and in accordance with  disciplines  in Article 20.3.  
4.4.8   Other  
4.4.8.1   Investment  
4.62.   Investment is specifically addressed in Chapter 10. It applies to meas ures by a Party 
relating to investors of the other Party; covered investment; and, in relation to performance 
requirements and an article concerning investment and environment, all investments in the 
territory of the Party. Chapter 10 does not apply to ser vices supplied in the exercise of 
governmental authority and to financial services.  
4.63.   In the event of any inconsistency between Chapter 10 (investment) and another Cha pter, 
the other Chapter shall prevail to the extent of the inconsistency.  
4.64.   In addition to t he above -mentioned provisions on national treatment; MFN treatment; 
performance requirements; senior management and boards of directors; and their related 
non-conforming measures; and denial of benefits , Chapter 10 contains disciplines on minimum 
standards  of treatment, which foresees that covered investments shall be accorded fair and 
equitable treatment as well as full protection and security (Article 10.7). Moreover, national 
treatment shall, with some reservations, be granted for investment losses suffered by investments 
owing to war or other armed conflict, or revolt, insurrection, riot, or other civil strife, with some 
exceptions which shall be subject to compensation (Article 10.8). Expropriation33 or nationalization 
is addressed in Article 10.9 . Chapt er 10 also contains provisions on  investment and environment 
(Article 10.13);  special formalities and information requirements (Article  10.16 ), as well as on 
subrogation (Article 10.17 ).  
                                                
33 The Parties' shared understanding on expropriation is contained in Annex 10 -B. WT/REG367/1 /Rev.1  
 
- 36 - 
 
  4.65.   Section B of Chapter 10 establishes an investor -State dispute settle ment mechanism which 
is summarized below.34  
4.5  Sector specific provisions on trade in services  
4.5.1    Education cooperation  
4.66.   The Parties shall designate contact points to facilitate dialogue and exchange of information 
on education cooperation. They shall encourage and facilitate dialogue and cooperation on issues 
of mutual interest in the field of education to benefit both Parties (Article 8.12).  
4.5.2   Audiovisual co -production  
4.67.   The Parties have concluded an agreement concerning audiovisual coproduction, which is 
contained  in Annex III and complemented by Appendix III -1 (implementing arrangement to 
Annex  III). The Agreement expands on and replaces the Agreement between the Government s of 
the Republic of Korea and of New Zealand Concerning the Co -Production of Films (done on  29 
September 2008). The Agreement contains provisions on recognition as a national audio -visual 
works and entitlement to benefits; approval of projects; contributions; non -Party co -productions; 
participation; production; location filming; language; acknow ledgements and credits; entry 
facilitation; import of equipment; distribution; technical cooperation; and dispute settlement. The 
establishment of an ad hoc Committee may be requested by a Party to discuss any matter related 
to the implementation of Annex III. 
4.5.3   Financial services  
4.68.   Unless the Parties otherwise agree, the Parties will meet within three years of entry into 
force of the Agreement to discuss the feasibility and convenience of incorporating financial services 
into the Agreement (Article 8.16).  
4.69.   Measures for prudential reasons35 may be adopted or maintained (Article 20.4).  
4.5.4   Telecommunication Services  
4.70.   The rights and obligations of the parties in respect of telecommunications shall be governed 
by the Annex on Telecommunications  of GATS, which is incorpor ated into and made part of 
Chapter 8, mutatis mutandis  (Article 8.17).  
4.71.   The Parties also affirm their commitments to the principles set forth in the WTO Basic 
Telecommunications Reference Paper  as attached in Annex 8 -B. 
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  While a number of transparency provisions are contained in most chapters of the Agreement, 
Chapter 17  contains general transparency disciplines. Articles  17.2 through 17.5 list requirements 
on publication; review and appeal, administrative proc eedings, and notification and provision of 
information . 
5.2.  With respect to disclosure of information, Article 20.7  states that nothing in the Agreement 
shall be construed to require a Party to furnish or allow access to information, the disclosure of 
which it considers would impede law enforcement; be contrary to the public interest as determined 
by its domestic laws; be contrary to any of its domestic laws; or prejudice the legitimate 
commercial interests of particular enterprises, public or private.  
                                                
34 See the section on dispute settlement.  
35 Measures for prudential reasons include measures for the protection of investors, depositors, policy 
holders or persons  to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity 
and stability of the financial system.  WT/REG367/1 /Rev.1  
 
- 37 - 
 
  5.3.  With re gards to confidentiality, Article 20.8 sets out obligations on a Party receiving 
information from the other Party which that other Party has designated as being confidential.   
5.2  Current payments and capital movements  
5.4.  A Party shall not apply restrictions on i nternational transfers and payments for current 
transactions related to cross -border trade in services. Such payments and transfers shall be 
allowed to be made  freely and without delay . 
5.5.  Articles 8.13 and 10.10  foresee that each Party shall permit all trans fers relating to the cross -
border supply of services or a covered investment in a freely usable currency at the market rate of 
exchange prevailing at the time of the payment or transfer.  
5.6.  For cross -border trade in services, a Party may prevent or delay a pa yment or transfer in 
certain circumstances and under certain conditions (paragraph 3 of both Article s 8.13 and 10.10 ). 
5.3  Exceptions  
5.7.  Exceptions are contained in Articles 20.1, 20.2, 20.4 and 20.5 . In addition, nothing in the 
Agreement precludes the adoption b y New Zealand of measures it deems necessary to accord 
more favourable treatment to Maori in respect of matters covered by the Agreement, including in 
fulfilment of its obligations under the Treaty of Waitangi (Article 20.6) provided such measures are 
not arbitrary or unjustified discrimination or a disguised restriction on trade in goods, services or 
investment. The interpretation of that Treaty shall not be subject to the dispute settlement 
provisions established under the Agreement (Chapter 19).  
5.3.1   General exceptions  
5.8.  With respect to trade in goods36, Article XX of GATT 1994, including its interpretive notes, is 
incorporated into and made part of the Agreement, mutatis mutandis  (Article 20.1 ). With respect 
to trade in services37, Article XIV of GATS, including its footnotes, is incorporated into and made 
part of the Agreement, mutatis mutandis  (Article 22.1).  
5.3.2   Security exceptions  
5.9.  Article 20 .2 replicates the provisions in Article XXI of GATT 1994 and in Article  XIVbis of 
GATS for measures related to security. The Joint Commission shall be informed, to the fullest 
extent possible, of measures taken in relation to security exceptions  and of their termination .  
5.3.3   Taxation  
5.10.   As a principle, nothing in the Agreement shall apply to taxation measures. However, 
Article  20.5 lists the provisions for which that principle is not applicable. T he limitations to the 
applicability  of the Agreement to taxation measures are also mentioned .  
5.11.   Nothing in the Agreement shall affect the rights and obligations of either Party under any 
tax convention  (Article 20.5.6) . In the event of any inconsistency relating to a taxation measure, 
the tax convention shall prevail to the extent of the inconsistency  (Article 20.5.8) . 
5.4  Accession and Withdrawal  
5.12.   The Agreement is open to accession or association, on terms to be agreed between the 
Parties, by any member of the WTO, or by any other State or separate customs territory 
(Article  21.5) . Termination , taking place 180 days after the date that either Party notifies the other 
in writing that is wishes to ter minate the Agreement,  is governed by Article 21.3.  
                                                
36 For the purposes of Chapters 2 (market access for goods); 3 (rules of origin and origin procedures); 
4 (customs administr ation and trade facilitation); 5 (SPS); 6 (TBT); 11 (intellectual property rights); and 
14 (agriculture, forestry and fisheries cooperation).  
37 For the purposes of Chapters 8 (cross -border trade in services); 9 (temporary entry of business 
persons); and 10  (investment).   WT/REG367/1 /Rev.1  
 
- 38 - 
 
  5.13.   With respect to the Agreement between New Zealand and Korea concerning audiovisual 
coproduction, the Parties clarify that Article 17 of Annex III to the Agreement states that that 
Annex is an integral par t of the Agreement. Therefore, the termination and accession provisions 
(Articles 21.3 and 21.5) would apply to Annex III. Article 21.5 (on accession to the Agreement) 
requires any accession to be on terms to be agreed between the Parties, which would in p ractice 
involve discussions with the acceding state or territory, including on how Annex III would apply to 
them.  
5.5  Institutional framework  
5.14.   A Joint Commission is established, inter alia , to review and assess  the implementation and 
operation of the Agreement (Article 18.2). Ad hoc and standing committees and working groups 
may also be established  in addition to those specifically mandated by the Agreement itself .38 
5.15.   In addition, the  Parties shall establish contact points to facilitate communications between 
the Parties on any matter covered by the Agreement (Article 18.4). A number of enquiry points 
(on customs matters) and specific contact points (on market access for goods; rules of origin; SPS 
measures; TBT; intellectual property rights; competition and consum er policy; labour; and 
environment) are also established under the Agreement.  
5.16.   The institutional framework established by the Agreement is summarized by Chart 5.1 
below.  
Chart 5. 1 Institutional Framework  
 
 
                                                
38 The Parties indicate that no ad hoc committee or working group in addition to the committees 
mandated by the Agreement have been established so far.  Source:  WTO Secretariat based on the Agreement.  
 Joint Commission  
(Art. 18.2)  
Committee on Trade in Goods  
(Art. 2.15)  
Committee on Outward Processing zones on 
the Korean Peninsula  
(Annex 3 -B) 
Customs Committee  
(Art. 4.14)  
Committee on Sa nitary and Phytosanitary 
Matters  
(Art. 5.4)  
Committee on Technical Barriers to Trade  
(Art. 6.10)  
Committee on Agriculture, Forestry and 
Fisheries Cooperation  
(Art. 14.8)  
 
Committee on Services  
(Art. 8.15)  Labour Committee  
(Art. 15.4)  
Environment Commi ttee 
(Art. 16.17)  
Ad hoc  Committee on Audiovisual 
Co-production  
(Art. 15 of Annex III)  
 WT/REG367/1 /Rev.1  
 
- 39 - 
 
  5.6  Dispute settlement  
5.17.   Chapter 19  governs dispute settlement for matters covered under the Agreement, with the 
exception of Chapters 5 ( SPS); 12 (competition and consumer policy); 14 (agriculture, forestry 
and fisheries cooperation)39; 15 (labour); 16  (environment), and, in most c ases, 9 (movement of 
natural persons) .  
5.18.   Recourse to the dispute settlement mec hanism established by Chapter 19  is without 
prejudice to any action in the WTO framework, including dispute settlement actions. The 
Agreement provides that the complaining Party may select the  dispute settlement forum. However, 
once a dispute has been initiated, under the WTO , another agreement to which both Parties are a 
party,  or under the Agreement, the forum  selected shall be used to the exclusion of other fora  
(Article 19.4) .  
5.19.   Each Party is required to afford adequate opportunity for consultations to resolve differences  
(Article 19.6) . 
5.20.   Under Articles 19.8 through 19.17 , the Agreement establishes disciplines and procedural 
steps, mainly modelled on the WTO dispute settlement mo dalities, that are applicable to the 
establishment of arbitration panels; the functions of panels; the rules of procedures40; the panel 
report s; suspension and termination of proceedings; implementation of the final report; 
compliance; compensation and susp ension of benefits in case of non -compliance; the compliance 
review; and expenses associated with the conduct of arbitration panel proceedings .  
5.21.   Chart 5.2 below summarizes the main steps of the dispute settlement mechanism 
established by the Agreement.  
                                                
39 Under Article 14.10.2, the Committee on agriculture, forestry and fisheries cooperatio n has exclusive 
authority for resolving any differences or disputes in respect of the interpretation or application of Chapter 14 
(Agriculture, Forestry and Fisheries Cooperation) or any implementation arrangements conducted under it. The 
Committee may, in  seeking to resolve such differences, seek the guidance of the joint Commission 
(Article  14.10.3).  
40 Following the model rules of procedures set out in Annex 19 -A to the Agreement covering matters 
such as: notifications; commencing the arbitration; timetab le; operation of arbitration panels; hearings; 
questions in writing; confidentiality; no ex parte communications; amicus curiae submissions; and computation 
of time.  WT/REG367/1 /Rev.1  
 
- 40 - 
 
  Chart 5.2  Specific Dispute Settlement Mechanism established by the Agreement  
 
 
 Source:  WTO Secretariat based on the Agreement.  
 Consultations (Art. 19.6)  
Establishment of an 
Arbitration Panel (Art. 19.8)  
Proceedings (Art. 19.10  
and Annex 19 -A) 
Panel Report  
(Art. 19.11)  
(Temporary) suspension of 
benefits by complaining Party 
(Art. 19.15)  Compliance review  
(Art. 19.16)  Notification by the Party 
complained against of 
measures taken to comply, 
or intention not to comply 
(Art. 19.14)  
Ruling b y the Panel on the 
level of compensation or of 
the suspension (Art. 19.15)  Non-implementation  
(Art. 20.14)  
Compensation agreed 
between the Parties  
(Art. 19.15)  Goods offices, conciliation or 
mediation (Art. 19.7)  
Suspension and termination 
of proceed ings (Art. 19.12)  WT/REG367/1 /Rev.1  
 
- 41 - 
 
  5.22.   At any time, the Parties may agree to good offices, conciliation or mediation (Article 19.7).  
5.23.   In the event of an investment dispute, an investor -State dispute settlement mechanism 
(ISDS) is establ ished in Section B of Chapter 10  (investment). Articles 10.18  through 10.31  
govern the proceedings of the ISDS mechanism and cover consultations and negotiations; 
submission of a claim to arbitration41; consent o f each party to arbitration; conditions and 
limitations on consent of each Party42; selection of arbitrators; place of arbitration; interpretation 
of Agreement; conduct of the arbitration; transparency of arbitral proceedings; governing law; 
consultation; a wards; and service of documents.  
5.7  Relationship with other agreements concluded by the Parties  
5.24.   Article 1.1 of the Agreement establishes a Free Trade Area  consistent with Article XXIV of 
GATT 1994 and Article V of GATS. The Parties also affirm their existing  rights and obligations with 
respect to each other under existing bilateral and multilateral agreements to which both are a 
party, including th e WTO Agreement (Article 1.2). The fact that another agreement provides more 
favourable treatment of goods, servi ces, investments, or persons than that provided for under the 
Agreement does not mean that there is an inconsistency is recognized by the Parties. In the event 
of inconsistency between the Agreement and other agreements to which both Parties are a party, 
consultations are required to take place  between the Parties to find a mutually satisfactory 
solution.  
5.25.   Table 5. 1 below shows the Parties' RTAs, notified and non -notified, other than the 
Agreement.  
Table 5.1 Republic of Korea and New Zealand: Participation in other RTAs (notified and 
non-notified in force), as of 10 June 2016  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
REPUBLIC OF KOREA  
Republic of Korea - Viet Nam  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
China - Republic of Korea  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Canada - Republic of Korea  01-Jan-15 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Turkey  01-May-13 Goods  2013 GATT Art. XXIV  
Republic of Korea - United 
States  15-Mar-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Kore a 01-Aug-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
European Union - Republic of 
Korea  01-Jul-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
Republic of Korea - India 01-Jan-10 Goods & Services  2010  Enabling Clause, GATT Art. XXIV & 
GATS Art. V  
ASEAN - Republic of Korea  01-Jan-10 
01-May-09 Goods  
Services  2010 Enabling Clause, GATT Art. XXIV & 
GATS Art. V  
EFTA - Republic of Korea  01-Sep-06 Goods & Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Singapore  02-Mar-06 Goods  & Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Chile 01-Apr-04 Goods & Services  2004 GATT Art. XXIV & GATS Art. V  
Asia Pacific Trade Agreement 
(APTA) - Accession of China  01-Jan-02 Goods  2004 Enabling Clause  
Global System of Trade 
Preferences among 
Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 Goods  1976 Enabling Clause  
                                                
41 In relation to the submission of a claim to arbitration, where an investor of New Zealan d makes an 
allegation that Korea has breached an obligation under the Agreement's provisions on investment before a 
court or administrative tribunal of Korea, that election shall be final, and the investor shall not ther eafter allege 
that breach in arbitra tion under the ISDS.  
42 Annex 11 -F registers a limitation by Korea with respect to a submission by an investor of New 
Zealand under Section B. Annex 11 -G limits the coverage of the dispute settlement provision of Section B.  WT/REG367/1 /Rev.1  
 
- 42 - 
 
  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Protocol on Trade 
Negotiations (PTN)  11-Feb-73 Goods  1971 Enabling Clause  
NEW ZEALAND  
New Zealand - Chinese Taipei  01-Dec-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
Hong Kong, China - New 
Zealand  01-Jan-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
New Zealand - Malaysia  01-Aug-10 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
ASEAN - Australia - New 
Zealand  01-Jan-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
China - New Zealand  01-Oct-08 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Trans -Pacific Strategic 
Economic Partnership  28-May-06 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
Thailand - New Zealand  01-Jul-05 Goods & Services  2005 GATT Art. XXIV & GATS Art. V  
New Zealand - Singapore  01-Jan-01 Goods & Services  2001 GATT Art. XXIV & GATS Art. V  
Australia - New Zealand 
(ANZCERTA)  01-Jan-83 
01-Jan-89 Goods 
Services  1983 
1995 GATT Art. XXIV  
GATS Art. V  
South Pacific Regional Trade 
and Economic Cooperation 
Agreement (SPARTECA)  01-Jan-81 Goods  1981 Enabling Clause  
Source:  WTO Secretariat.  
 
5.8  Government procurement  
5.26.   Chapter 13  of the Agreement (Articles 13.1 through 13.19 ) contains rules applicable to 
government procurement and cover s both goods and services , as identified in Section B of 
Annex  13-A. The Parties' commitments cover procuring entities at the central level of Government 
as identified in Section A of Annex 13 -A. Section C of Annex 13 -A addresses construction services. 
The thresholds for goods, services and construction services are contained in Section D to Annex 
13-A and are set at the same levels as under the plurilateral Government Procurement Ag reement 
(GPA) to which  both Korea and New Zealand are parties .43  
5.27.   Mutual access to public procurement markets on the basis of the principle of national 
treatment and non -discrimination shall be granted under the Agreement. Exceptions cover, 
inter alia, meas ures necessary to protect public morals, order or safety; human, animal or plant 
life or health; or intellectual property; as well as measures relating to goods or services of 
handicapped persons, of philanthropic or not -for-profit institutions, or prison labour (Article 13.5). 
An essential security exception is also included in the Agreement. Certain types of procurement 
and some types of activities by procuring entities are excluded from the coverage of Chapter 13 
(Paragraph 3 of Article 13.3). Moreover, Section E of Annex -A clarifies, for each Party, some other 
additional procurements excluded from the coverage of Chapter 13.  
5.28.   The general principles applicable to government procurement covered by Chapter 13 are 
contained in Article 13.4 (non -discrimination ; use of electronic means; conduct of procurement; 
rules of origin; offsets; and measures not specific to procurement) and mirror to a large extent the 
GPA's modalities.  
5.29.   The Agreement disciplines procurement and tendering procedures, including transparenc y 
(Articles 13.6 through 13.19 ).  
5.9  Intellectual property rights  
5.30.   Chapter 11  covers intellectual property rights. The Parties reaffirm their rights and 
obligations under the TRIPS Agreement, and any other multilateral agreement relating to  
intellectual proper ty to which both are  party. The Parties commit to grant national treatment for 
the protection of intellectual property  covered by Chapter 11 . Limitations and exceptions  to 
                                                
43 Korea is a party to the plurila teral WTO Government Procurement Agreement (GPA) since 1997 and a 
party to the revised GPA since 2016 . New Zealand is a party to the plurilateral WTO Government Procurement 
Agreement (GPA)  and the revised GPA  since 2015.  WT/REG367/1 /Rev.1  
 
- 43 - 
 
  national treatment ar e referred to  in paragraph  5 of Article 1 1.3. The Parties shall  be free to 
establish their own regime for the exhaustion of intellectual property rights.  
5.31.   The Agreement builds on TRIPS provisions for the protec tion of trademarks (Article 11.4 ); 
and copyrights  and related rights (Articles 11 .5).  
5.32.   Article 11.6 addresses enforcement of intellectual property rights. Article 11.6.2  states that 
each Party shall provide for effective enforcement procedures to curtail repetitive copyright and 
related rights infringement by means of the internet.  
5.33.   The Parties  also make  commitmen ts relating to the exchange of information (Article 11.8) 
and identif y areas of cooperation b etween each other  (Article 11.9 ). They agree to  designate 
contact points to facilitate communications between them on any matter covered by Chapter 11 
(Article 11. 7). 
5.34.   Under Article 11.10 the Parties agree that,  subject to international obligations, each Party 
may establish appropriate measures to protect genetic resources, traditional knowledge and 
traditional cultural expressions or folklore.  
5.35.   Consultations, throug h the Parties contact points, are foreseen with a view to seeking a 
timely and mutually satisfactory resolution to any intellectual property related issue, including 
enforcement, within the scope of Chapter 11 (Article 11.11). Unresolved matters may be ref erred 
to the Joint Commission established under the Agreement. Chapter 19 (dispute settlement) is 
available to the Parties, should they wish to settle their disputes through the established 
procedure.  
5.10  Other  
5.10.1   Competition  
5.36.   In Chapter 12  on competition policy,  the Parties agree to maintain competition laws that 
proscribe anti -competitive business conduct with the objective of promoting economic efficiency 
and consumer welfare.  Article 12.3 establishes  principles of procedural fairness in the application 
of comp etition laws.  Chapter 12  also provides a framework for the Parties to cooperate, notify and 
consult on competition -related matters (Articles  12.4 through 12.6 ). The Parties shall also promote 
cooperation on matters related to the implementation of competit ion laws and policy (Article 12.7 ). 
In Article 12.9 the Parties affirm their commitment to provide protection in their territories from 
deceptive practices in trade.  Cooperation and coordination on matters related to their consumer 
protection laws are also addressed under Article 12.9. Each Party shall designate on e or more 
contact point for the purposes of Chapter 12 (Article 12.8). The dispute settlement mechanism 
established by the Agreement is not applicable to matters arising under Chapter 12 . 
5.10.2   Labour  
5.37.   In Chapter 15 , the Parties affirm their obligations as members of the International Labour 
Organization (ILO). Each Party shall strive to adopt and maintain in their laws, regulations, policies 
and practices the principles in the 1998 ILO Declaration of: fr eedom of association and effective 
recognition of the right to collective bargaining, the elimination of forced labour, the effective 
abolition of child labour and the elimination of discrimination in employment and occupation 
(Article 15.2.1). The Parties  shall respect each other's right to establish their own policies and 
national priorities and to adopt and administer their own labour laws, regulations and practices in 
accordance with those policies and priorities.  However, the Parties shall not fail to effectively 
enforce their labour laws through a sustained or recurrent action or inaction , in a manner affecting 
trade or investment between the Parties . They shall also ensure that their labour laws, regulations, 
policies and practices are not used for tr ade protectionist purposes. Procedural guarantees shall be 
given and public awareness promoted, as indicated in Article 15.3.  Contact Points are established 
for labour matters to facilitate communication betwee n the Parties ( Paragraph 1 of Article 15.4 ). 
The Agreement also establishes a Labour Committee  to, inter alia , establish an agreed work 
programme of cooperative activities (Paragraph 2 of Article 15) . Consultations on labour matter 
may be requested by a Party to arrive at a mutually satisfactory resol ution of the mat ter (Article 
15.6). The dispute settlement mechanism established by the Agreement is not applicable to WT/REG367/1 /Rev.1  
 
- 44 - 
 
  matters arising under Chapter 15.  A list of potential areas of cooperation is contained in Article 
15.5.  
5.10.3   Environment  
5.38.   Chapter 16  contains  disciplines on the environnement . The right of each Party to establish 
its own levels of environmental protection and environmental development priorities, and to adopt 
or modify accordingly its environmental laws, regulations and policies is recognized.  
5.39.   Each Party shall strive actively to ensure that its laws and policies provide fo r and 
encourage high levels of environmental protection and promote the sustainable management of 
natural and infrastructure resources. Each Party shall also ensure that its environmental  laws, 
regulations, policies  and practices  are consistent with and effectively implement its international 
commitments on environmental protection, including  those established by multilateral environment 
agreement to which it is party. Each Par ty shall also ensure that its environmental laws, 
regulations, policies, and practices shall not be used for trade protectionist purposes . They shall 
consult, as appropriate, on negotiations on trade -related environmental issues of mutual interest. 
The Par ties shall strive to enhance the mutual supportiveness between multilateral environmental 
agreements to which both are party and international trade rules. The y resolve to make efforts to 
facilitate and promote trade and investment in environmental goods a nd services beneficial to the 
environment, including environmental technologies, renewable energy, and energy -efficient goods 
and services.  
5.40.   Transparency provisions are contained in Article 16.5 and review of environmental impacts 
of the Agreement is addre ssed in Article 16.6. Contact Points are established for labour matters to 
facilitate communication between the Parties (Paragraph 1 of Article 1 6.7). The Agreement also 
establishes an Environment Committee to, inter alia , establish an agreed work programm e of 
cooperative activities (Paragraph 2 of Article 16 ). Consultations to resolve possible divergences 
about the implementation of Chapter 16  may be requested by a Party to arrive at a mutually 
satisfactory resolution of the matter (Article 1 6.9). The disp ute settlement mechanism established 
by the Agreement is not applicable to matters arising under Chapter 1 6. Areas  of potential 
cooperation , which may be pursued at bilateral, regi onal or multilateral levels,  are referred to  in 
Article 16.8 and further ide ntified in Annex 16 -A.  
5.10.4   Treaty of Waitangi  
5.41.   Nothing in the Agreement precludes the adoption by New Zealand of measures it deems 
necessary to accord more favourable treatment to Maori in respect of matters covered by the 
Agreement, including in fulfilment of  its obligations under the Treaty of Waitangi  (Article 20.6). 
The interpretation of that Treaty shall not be subject to the dispute settlement provisions 
established under the Agreement (Chapter 19).  WT/REG367/1 /Rev.1  
 
- 45 - 
 
  ANNEX 1  
INDICATORS OF TRADE LIBERALIZATION UNDER  THE AG REEMENT  
New Zealand  
1. Table A1.1 shows tariff liberalization by New Zealand  in relation to Korea's imports (by total, 
agricultural and non -agricultural products). In 2015 , New Zealand 's average applied MFN rate was 
2.3% overall (2.4 % for non -agricultural pro ducts and 1.7 % for agricultural products). 58.3 % of 
New Zealand 's tariff was  duty free on an MFN basis; 57.3 % of non-agricultural products and 
64.8% of agricultural products were duty free. At the time of entry i nto force of the Agreement 
(2015 ), Korea's e xporters enjoyed a  relative  margin of preference of 65.2% % vis-à-vis the 
prevailing MFN tariff; 62.5% for non -agricultural goods and 100% for agricultural products. The 
share of duty free lines applicable to imports from Korea immediately at the entry into  force of the 
Agreement was 85.6% (99.3 % for agricultural products and 83.4 % for non -agricultural products). 
During the following years, this share will further increase to reach 100% in 2021, following  
New Zealand's  full implement ation of  its tariff elimi nation programme.  
Table A1.1 New Zealand: Indicators of MFN tariff rates and preferential rates for imports 
from Korea  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa 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 2015 2.3 5.7 58.3 1.7 5.0 64.8 2.4 5.8 57.3 
Korea  2015 0.8 5.7 85.6 0.0 3.7 99.3 0.9 5.7 83.4 
2016 0.5 3.9 85.7 0.0 2.5 99.3 0.6 3.9 83.4 
2017 0.3 4.0 92.2 0.0 2.6 99.6 0.3 4.0 91.0 
2018 0.2 2.6 92.2 0.0 1.8 99.6 0.2 2.6 91.0 
2019 0.1 2.4 95.8 0.0 1.4 99.7 0.1 2.4 95.2 
2020 0.0 1.2 95.8 0.0 0.7 99.7 0.1 1.2 95.2 
2021 0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
a WTO Definition.  
Note:  For the calculation of averages, specific rates are excluded . 
 Based on the HS 20 12 nomenclature.  
Source:  WTO estimates based on data provided by New Zealand . 
 
2. Table A1.2 gives an indication of additional market access in New Zealand  resulting from the 
entry into force of the Agreement for Korea's top 25 global e xports, which accounted for 49.5% of 
its global exports in 2012 -2014; thes e corresponded  to 109  lines of New Zealand 's tariff at the 
six-digit le vel (using the HS  2012). In 2015 , prior to the entry into force of the Agreement, 67 of 
these tariff lines already had (MFN) duty free access to New Zealand 's market. With the entry into  
force of the  Agreement, in 2015 , 25 of the 42  tariff lines, which were (MFN) dutiable, became duty 
free for exports from Korea. The 17  remaining dutiable tarif f lines will become duty -free in 2017 
(16 lines) and 2021  (1 line).  WT/REG367/1 /Rev.1  
 
- 46 - 
 
  Table A1.2 New Zealand: Market access op portunities under the agreement for Korea's 
top 25 exports to the world  
Korea's top export products  
in 2012 -2014  Access Conditions to New Zealand's import markets  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) MFN 2015  No. of duty fr ee 
lines under the 
agreement  
Remain 
Dutiable  Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  2015  2017  2021  
271019  Medium oils and 
preparations, of petroleum 
or bituminous minerals, not 
containing biodiesel, n.e.s.  7.2 0.7 4 23 4    
870323  Motor cars and other motor 
vehicles principally 
designed for the transport 
of persons, incl. station 
wagons and racing cars, 
with spark -ignition internal 
combustion reciprocating 
piston engine of a cylinder 
capacity > 1.500 cm³ but 
<= 3.000  cm³  4.9 6.7 2 1  2   
901380  Liquid crystal devices, 
n.e.s. and other optical 
appliances and instruments 
not elsewhere specified in 
chapter 90  4.5 0.0  1     
854232  Electronic integrated 
circuits as memories  4.0 0.0  1     
854231  Electronic integrated 
circuits as processors and 
controllers, whether or not 
combined with memories, 
converters, logic circuits, 
amplifiers, clock and timing 
circuits, or other circuits  3.6 0.0  1     
890190  Vessels for the transport of 
goods and vessels for the 
transport of b oth persons 
and goods  2.6 3.3 4 2 4    
870899  Parts and accessories, for 
tractors, motor vehicles for 
the transport of ten or 
more persons, motor cars 
and other motor vehicles 
principally designed for the 
transport of persons, motor 
vehicles for the tran sport of 
goods and special purpose 
motor vehicles, n.e.s.  2.4 4.1 8 3 2 6   
851712  Telephones for cellular 
networks "mobile 
telephones" or for other 
wireless networks  2.2 0.0  1     
271012  Light oils and preparations, 
of petroleum or bituminous 
minerals which >= 90% by 
volume "incl. losses" distil 
at 210°c "astm d 86 
method" (excl. containing 
biodiesel)  2.0 1.5 5 12 5    
890120  Tankers  2.0 0.0  1     WT/REG367/1 /Rev.1  
 
- 47 - 
 
  Korea's top export products  
in 2012 -2014  Access Conditions to New Zealand's import markets  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) MFN 2015  No. of duty fr ee 
lines under the 
agreement  
Remain 
Dutiable  Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  2015  2017  2021  
851770  Parts of telephone sets, 
telephones for cellular 
networks or for other 
wireless networks and of 
other apparatus for the 
transmission or reception of 
voice, images or other 
data, n.e.s.  1.9 1.7 2 4 2    
890590  Light-vessels, fire -floats, 
floating cranes and other 
vessels, the navigability of 
which is subsidiary to their 
main function  1.8 2.5 1 1 1    
852990  Parts suitable for use solely 
or principally with 
transmission and reception 
apparatus for radio -
broadcasting or television, 
television cameras,  digital 
cameras, video camera 
recorders, radar apparatus, 
radio navigational aid 
apparatus or radio re mote 
control apparatus, monitors 
and projectors, n.e.s.  1.3 2.8 5 4 5    
870332  Motor cars and other motor 
vehicles principally 
designed for the transport 
of persons, incl. station 
wagons and racing cars, 
with compression -ignition 
internal combustion pis ton 
engine "diesel or semi -
diesel engine" of a cylinder 
capacity > 1.500 cm³ but 
<= 2.500 cm³  1.1 6.7 2 1  2   
870322  Motor cars and other motor 
vehicles principally 
designed for the transport 
of persons, incl. station 
wagons and racing cars, 
with spark -ignition internal 
combustion reciprocating 
piston engine of a cylinder 
capacity > 1.000 cm³ but 
<= 1.500 cm³  1.0 6.7 2 1  2   
853190  Parts of electric sound or 
visual signalling apparatus, 
n.e.s.  0.9 5.0 2  2    
853400  Printed circuits  0.8 0.0  1     
847330  Parts and accessories of 
automatic data -processing 
machines or for other 
machines of heading 8471, 
n.e.s.  0.8 0.0  1     
290243  p-xylene  0.7 0.0  1     
854239  Electronic integrated 
circuits  0.7 0.0  1     WT/REG367/1 /Rev.1  
 
- 48 - 
 
  Korea's top export products  
in 2012 -2014  Access Conditions to New Zealand's import markets  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) MFN 2015  No. of duty fr ee 
lines under the 
agreement  
Remain 
Dutiable  Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  2015  2017  2021  
854140  Photosensitive 
semiconductor devic es, 
incl. photovoltaic cells 
whether or not assembled 
in modules or made up into 
panels; light emitting 
diodes  0.7 0.0  1     
842952  Self-propelled mechanical 
shovels, excavators and 
shovel loaders, with a 360° 
revolving superstructure  0.7 5.0 1   1   
870324  Motor cars and other motor 
vehicles principally 
designed for the transport 
of persons, incl. station 
wagons and racing cars, 
with spark -ignition internal 
combustion reciprocating 
piston engine of a cylinder 
capacity > 3.000 cm³  0.6 6.7 2 1  2   
854370 Electrical machines and 
apparatus, having 
individual functions, n.e.s. 
in chapter 85  0.6 2.0 2 3  1 1  
291736  Terephthalic acid and its 
salts 0.5 0.0  1     
 TOTALS  49.5 2.2 42 67 25 16 1 - 
Note:  For the calculation of averages, specific rates are e xcluded.  
 Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by New Zealand and UNSD, Comtrade database.  
 
Korea  
3. Table A1.3 shows tariff liberalization by Korea by total, agricultural and no n-agricultural 
products. In 2015 , Korea's a verage applied MFN rate was 14.1 % overall (6.6% for non -agricultural 
products and 59.9% for agricultural products). 16% of Korea's tariff was duty free on an MFN 
basis; 17.7% of non -agricultural products and 5.5% of agricultural products were duty fr ee. As a 
result of the Agr eement entering into force (2015 ), New Zealand  exporters enjoyed a relative  
margin of preference of 35.5% vis-à-vis the prevailing MFN tariff; 80.3% for non -agricultural 
goods and 5% for agricultural products. Immediately at the e ntry into force of the Agreement, the 
share of duty free lines for imports from New Zealand  was 74.6% (84.2 % for non-agricultural 
products and 16.5 % for agricultural products). Ten years after the entry into  force of the 
Agreement, in 2025 , New Zealand  exporters will face zero duties on 93.3 % of Korea's tariff 
(60.5 % for agricultural products and 98.7 % for non -agricultural products). In 2034 , when Korea's 
tariff elimination programme will be fully implemented, the share of Korea's tariff that will be 
duty-free will reach 97.9% (85.2 % for agricultural products and 99.9% for non -agricultural 
products).  
 
 
 
 WT/REG367/1 /Rev.1  
 
- 49 - 
 
  Table A1.3 Korea: Indicators of MFN tariff rates and preferential rates for imports from 
New Zealand  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa 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 2015 14.1 16.8 16.0 59.9 63.4 5.5 6.6 8.0 17.7 
New 
Zealand  2015 9.1 36.0 74.6 56.9 68.1 16.5 1.3 8.1 84.2 
 2016 8.5 33.5 74.6 54.7 65.5 16.5 0.9 5.7 84.2 
 2017 7.9 46.2 83.0 52.5 70.7 25.7 0.5 7.0 92.4 
 2018 7.5 44.0 83.0 50.6 68.1 25.7 0.4 5.2 92.4 
 2019 7.1 52.8 86.6 48.7 75.0 35.1 0.3 5.3 95.0 
 2020 6.8 50.7 86.6 47.1 72.6 35.1 0.2 3.8 95.0 
 2021 6.5 66.1 90.1 45.5 82.7 45.0 0.1 4.6 97.6 
 2022 6.3 63.9 90.1 44.1 80.2 45.0 0.1 3.6 97.6 
 2023 6.1 61.7 90.1 42.7 77.7 45.0 0.1 2.7 97.6 
 2024 5.9 87.8 93.3 41.4 104.9  60.5 0.0 3.2 98.7 
 2025 5.8 86.3 93.3 40.7 103.2  60.5 0.0 2.4 98.7 
 2026 5.7 94.1 94.0 40.0 101.6  60.6 0.0 4.1 99.5 
 2027 5.6 92.8 94.0 39.4 100.4  60.8 0.0 3.4 99.5 
 2028 5.5 91.2 94.0 38.7 98.7 60.8 0.0 2.7 99.5 
 2029 5.4 194.6  97.2 38.0 200.8  81.1 0.0 10.6 99.9 
 2030 5.4 194.2  97.2 38.0 200.4  81.1 0.0 10.5 99.9 
 2031 5.3 196.0  97.3 37.9 202.4  81.3 0.0 10.3 99.9 
 2032 5.3 242.9  97.8 37.8 252.8  85.1 0.0 10.1 99.9 
 2033 5.3 242.8  97.8 37.8 252.8  85.1 0.0 9.9 99.9 
 2034 5.3 248.4  97.9 37.8 254.7  85.2 0.0 15.3 99.9 
a WTO Definition.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valor em parts of alternate rates are included . 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data  provided by Korea . 
 
4. Table A1.4 gives an indication of additional market access in Korea resulting from the entry 
into force of the Agreement for New Zealand 's top 25 global exports, which accounted for 58.9% 
of its global exports in 2012 -2014; these corresponded to 102 lines of Korea's tariff at the 
HS six-digit le vel (using the HS  2012). In 2015 , prior to the entry into force of the Agreement,  
15 of these tariff lines already had (MFN) duty free access to the Korean market. From the date of 
entry into force of  the Agreement, in December 2015, until 2032 , 79 of the 87  tariff lines, which 
were (MFN) dutiable, will progressively, become duty free for exports from New Zealand  (19 in 
2015; 10 in 2019; 3 in 2019; 1 in 2020; 20 in 2021; 11 in 2024; 1 in 2027; 13 in 2029; and 1 in 
2032). Eight tariff lines1 will remain dutiable after the full implementation of Korea's tariff 
elimination programme (in 20 34). 
                                                
1 The tariff lines concerned cover some dairy products (HS 040221 and 040210) with an MFN average 
tariff of 176% in 2015, some food preparations (HS 210690) with an average MFN tariff of 76.8% in 2015, and 
fresh apples (HS 080810) with an MFN tariff of 45% in 2015.   
  WT/REG367/1 /Rev.1  
 
- 50 - Table A1.4 Korea: Market access opportunities under the agreement for New Zealand's top 25 exports to the world  
New Zealand's top export products  
in 2012 - 2014  Access Conditions to Korea's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free lines under the agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. of 
duty 
free 
lines  
2015  
2017  
2019  
2020  
2021  
2024  
2027  
2029  
2032  
040221  Milk and cream in solid forms, of a fat 
content by weight of > 1,5%, 
unsweetened  13.8 176.0  2           2 
440320  Coniferous wood in the rough, 
whether or not stripped of bark or 
sapwood, or roughly squared  4.4 0.0  8           
020230  Frozen, boneless meat of bovine 
animals  3.9 40.0 1         1   
040210  Milk and cream in solid forms, of a fat 
content by weight of <= 1,5%  3.9 176.0  3           3 
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  3.3 3.0 10  10          
020442  Frozen cuts of sheep, with bone in  3.2 22.5 1       1     
040510  Butter  2.7 89.0 1       1     
220421  Wine of fresh grapes, incl. fortified 
wines, and grape must whose 
fermentation has been arrested by 
the addition of alcohol, in containers 
of <= 2 l (excl. sparkling wine)  2.3 15.0 3  3          
040590  Fats and oils derived from milk, and 
dehydrated butter and ghee  2.1 89.0 1       1     
081050  Fresh kiwifruit  2.0 45.0 1     1       
040690  Cheese  2.0 36.0 5      1   4   
760110  Aluminium, not alloyed, unwrought  1.7 1.0 1  1          
440710  Coniferous wood sawn or chipped 
lengthwise, sliced or peeled, whether 
or not planed, sanded or end -jointed, 
of a thickness of > 6 mm  1.7 5.0 11   5   6       
  WT/REG367/1 /Rev.1  
 
- 51 - New Zealand's top export products  
in 2012 - 2014  Access Conditions to Korea's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free lines under the agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. of 
duty 
free 
lines  
2015  
2017  
2019  
2020  
2021  
2024  
2027  
2029  
2032  
040490  Products consisting of natural milk 
constituents, whether or not 
sweetened, n.e.s.  1.4 36.0 2       2     
350110  Casein  1.3 14.0 2      2      
020422  Fresh or chilled cuts of sheep, with 
bone in  1.2 22.5 1       1     
210690  Food preparations, n.e.s.  1.1 76.8 22  3 5 2  7 3    2 
710812  Gold, incl. gold plated with platinum, 
unwrought , for non -monetary 
purposes (excl. gold in powder form)  1.1 3.0 2  2          
080810  Fresh apples  1.0 45.0 1           1 
510121  Shorn wool, degreased, non -
carbonised, neither carded nor 
combed  0.9 0.0  1           
350190  Caseinates and other casein 
derivatives; casein glues  0.8 17.0 4      3    1  
020443  Frozen boneless cuts of sheep  0.8 22.5 1       1     
901920  Ozone therapy, oxygen therapy, 
aerosol therapy, artificial respiration 
or other therapeutic respiration 
apparatus  0.8 0.0  6           
190110 Food preparations for infant use, put 
up for retail sale, of flour, groats, 
meal, starch or malt extract, not 
containing cocoa or containing < 
40% by weight of cocoa calculated on 
a totally defatted basis, n.e.s. and of 
milk, sour cream, whey, yogurt, 
kephir or similar goods of heading 
0401 to 0404, not containing cocoa 
or containing < 5% by weight of 
cocoa calculated on a totally defatted 
basis, n.e.s.  0.8 23.0 4    1  1  1 1    
  WT/REG367/1 /Rev.1  
 
- 52 - New Zealand's top export products  
in 2012 - 2014  Access Conditions to Korea's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free lines under the agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. of 
duty 
free 
lines  
2015  
2017  
2019  
2020  
2021  
2024  
2027  
2029  
2032  
050400  Guts, bladders and stomachs of 
animals (other than fish), whole and 
pieces thereof, fresh, chilled, frozen, 
salted, in brine, dried or smoked  0.6 27.0 8       1  7   
TOTALS  58.9 39.4 87 15 19 10 3 1 20 11 1 13 1 8 
Note:   For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate ra tes are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Korea and UNSD, Comtrade database.  
 
__________