WT/REG371/1  
13 April 2017 
(17-2027) Page: 1/40 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT  BETWEEN  THE REPUBLIC OF KORE A AND VIET NAM  
(GOODS AND SERVICES ) 
Report by the Secretariat  
 This report, prepared for the consideration of the Free Trade Agreement between  
the Republic of Korea and Viet Nam , has bee n 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 thus does not im ply any value judgement by the Secretariat 
regarding the contents of the Agreement.  
 
Any technical questions arising from this report may be addressed to 
Mr. Peter Milthorp (tel: +41 22 739 5016). Any statistical questions arising from 
this report may be a ddressed to Mr. Thakur Parajuli  (tel: +41 22 739 5473). WT/REG371/1  
 
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TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.3   Trade in services and investment  ................................ ................................ ..................  6 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ......................  9 
2.1   Background Information  ................................ ................................ ...............................  9 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  10 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 10 
3.1.1    General provisions  ................................ ................................ ................................ ...10 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 10 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 11 
3.1.3.1    Korea  ................................ ................................ ................................ .................. 11 
3.1.3.2    Viet Nam  ................................ ................................ ................................ ............. 13 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....16 
3.2   Rules of orig in ................................ ................................ ................................ ............ 16 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 17 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 18 
3.4.1    Standards  ................................ ................................ ................................ ............... 18 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......18 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 18 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 18 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .18 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 18 
3.4.2.3    Special safeguards  ................................ ................................ ................................ 19 
3.4.3    Anti-dumping an d countervailing measures  ................................ ................................ .19 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 19 
3.4.5    Customs -related procedures ................................ ................................ ...................... 19 
3.4.6    Other regulations  ................................ ................................ ................................ .....20 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...20 
3.5.1    Economic cooperation  ................................ ................................ .............................. 20 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 20 
4.1   Scope and definitions  ................................ ................................ ................................ ..20 
4.2   Denial of benefits  ................................ ................................ ................................ .......20 
4.3   General provisions on trade in services  ................................ ................................ ......... 21 
4.3.1    Market acces s ................................ ................................ ................................ ......... 21 
4.3.2    National treatment and MFN  ................................ ................................ ...................... 21 
4.3.3    Commercial presence  ................................ ................................ ............................... 21 WT/REG371/1  
 
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  4.3.4    Movement of natural persons  ................................ ................................ .................... 21 
4.4   Liberalization commitments  ................................ ................................ ......................... 22 
4.4.1    Korea  ................................ ................................ ................................ ..................... 23 
4.4.1.1    MFN and horizontal commitments  ................................ ................................ ........... 23 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 23 
4.4.2    Viet Nam  ................................ ................................ ................................ ................ 25 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ........... 25 
4.4.2.2    Sectors  ................................ ................................ ................................ ................ 26 
4.5   Regulatory provisions  ................................ ................................ ................................ ..27 
4.5.1    Domestic regulation  ................................ ................................ ................................ .27 
4.5.2    Recognition  ................................ ................................ ................................ ............. 27 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 27 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 27 
4.6   Sector specific provisions on trade in ser vices ................................ ................................ 27 
4.6.1    Financial Services  ................................ ................................ ................................ ....27 
4.6.2    Telecommunications  ................................ ................................ ................................ .27 
4.6.3    Other  ................................ ................................ ................................ ..................... 28 
4.6.3.1    Investment  ................................ ................................ ................................ .......... 28 
4.6.4    Electronic commerce  ................................ ................................ ................................ 28 
4.6.5    Competition  ................................ ................................ ................................ ............ 29 
5   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  29 
5.1   Transparency  ................................ ................................ ................................ ............. 29 
5.2   Current payments and capital movements  ................................ ................................ .....29 
5.3   Exceptions  ................................ ................................ ................................ ................. 29 
5.3.1    General excepti ons ................................ ................................ ................................ ..29 
5.3.2    Security exceptions  ................................ ................................ ................................ ..30 
5.3.3    Taxation  ................................ ................................ ................................ ................. 30 
5.4   Accession and Withdrawal ................................ ................................ ............................ 30 
5.5   Institutional framework  ................................ ................................ ............................... 30 
5.6   Dispute settlement  ................................ ................................ ................................ .....30 
5.6.1    Generally under the Agreement  ................................ ................................ ................. 30 
5.6.2    Investor -State Dispute Settlement (Investment)  ................................ ......................... 31 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 31 
5.8   Government procurement  ................................ ................................ ............................ 32 
5.9   Intellectual property rig hts ................................ ................................ .......................... 33 
ANNEX 1  ................................ ................................ ................................ ........................  34 
 WT/REG371/1  
 
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Key Facts  
 
Parties to the Agreement:  Republic of Korea and 
Viet Nam 
 
Date of Signature:    5 May 201 5 
 
Date of Entry into Force:  20 Decem ber 2015  
 
Date of Notification:   2 March 2016  
 
Full implementation:   1 January 20 29 
 
 
1  TRADE ENVIRONMENT  
1.1  Merchandise trade  
1.1.  The Free Trade Agreement between the Republic of Korea1 and Viet Nam, (hereinafter 
referred to as "the Agreement") is Korea's 15th free trade agreement  and Viet  Nam's 12th.  
1.2.  In 2014, Korea's po pulation was  50 million, with a GDP of US$1,410 billion. Viet Nam's 
population and GDP in 201 4 were 90.7 million and  US$186.2  billion  respectively . Averaged over 
the period 2012 -2014, the Parties'  trade (goods and services) to GDP ratio was 104.2 for Korea 
and 164.2  for Viet Nam.  
1.3.  In 2014 Korea's merchandise exports amounted to US$573 billion (3.01% of global exports) 
and imports US$526  billion (2.75% of global imports). In 2014 Viet Nam's merchandi se exports 
amounted to US$150.4 billion and imports US$149.3 billion  (0.79% and 0.78% of global exports  
and imports  respectively.  
1.2  Merchandise trade  
1.4.  In 2014, Korea was the world's 5th largest exporter and 6th largest importer , and Viet Nam 
was 32nd largest exporter and importer  in merchandise trade . The structure of the Parties' 
merchandise exports and imports is broadly similar.  Korea's and Viet  Nam's exports and imports 
are largely manufactures (86% of Korea's  total exports and 53% of its total imports ; and 73.9% of 
Viet Nam's exports and 76.5% of imports).  Korea imports a lower percentage of agricultural 
products than does Viet Nam. Over 40% of Korea's imports are fuels and mining products, 
compared to 11% for Viet Nam.  
1.5.  Developments in global and intra -Party trade are presented in Chart 1.1 (A and B) over the 
period 2000 -2014.  
1.6.  Viet Nam has had a consistent trade deficit with Korea.  At the global level, Korea experienced 
a trade surplus during the whole period, with the exception of the year 2008. In the ca se of 
Viet Nam's global trade, Chart 1.1B shows Viet Nam had a trade deficit until 2012  and has been in 
balance since then.   
1.7.  Based on 2 014 trade data, Korea was Viet Nam's  second largest source of imports 
(representing 14.7% of its total imports) and 5th largest destination for exports (representing 4.8% 
of its total exports), while Viet Nam was Korea's 15th largest source of imports  (representing 1.5% 
of its total imports)  and 7th largest destination for exports (representing 3.9% of its total exports).  
                                                
1 Hereinafter referred to as "Korea".  WT/REG371/1  
 
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  Chart 1.1 Korea–Viet Nam : Merchandise trade bilate rally and with world, 2000 -2014  
0510152025
020406080100120140160
2000 2002 2004 2006 2008 2010 2012 2014B. Viet Nam 2000 -2014
(US$ billions)
Imports from Rep. of Korea (Right Axis)
Export to Rep. of Korea (Right Axis)
Total Imports
Total Exports
0510152025
0100200300400500600700
2000 2002 2004 2006 2008 2010 2012 2014A. Korea 2000 -2014 
(US$ billions)
Imports from Viet Nam (Right Axis)
Export to Viet Nam (Right Axis)
Total Imports
Total Exports
 
Source:  UNSD Comtrade database . 
 
1.8.  The commodity structure of trade between Korea and Viet Nam , and between each Party and 
the w orld, during the period 2011 -2014, is shown in Chart 1.2, on the basis of Harmonized System 
(HS) Sections. Mineral products (4 6.6%), base metals (14%), and machinery ( 11.2%) together 
accounted for 71.8% of Viet Nam's imports from Korea, while these three s ectors were also 
Viet Nam's top three global imports (representing respectively 33.8%, 11.9% and 9.7% of Viet 
Nam's g lobal imports). Viet Nam's top three global exports were machinery (28.8%), textiles 
(16.4%) and vegetable products (8.7%).  
1.9.  For Korea, textiles (31.1 %), machinery (17.1%) and minerals (12.0%) together accounted 
for 60.2% of Korea's imports from Viet Nam, with minerals and machinery in Korea's top three 
global imports ((38.3% and 22.9% respectively). Korea's top three global exports were machi nery 
(34.2%), vehicles  - aircraft (19.9%) and mineral products (9.9%).  WT/REG371/1  
 
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  Chart 1.2 Korea–Viet Nam : product composition of merchandise tr ade, annual average 
(2012 -2014 )  
31
17
1266542322234Korea's imports from Viet Nam (%)
38
23984333227Korea's Global Imports (%)
34
2010977734Korea's Global Exports (%)
47
14111054225Viet Nam's imports from Korea (%)
34
12
109884332726Viet Nam's Global Imports (%)
29
16
98744443222222Viet Nam's Global Exports (%)Total: US$ 180.6 billion Total: US$ 520.2 billion
Total: US$ 131.2 billion Total: US$ 132.3 billionTotal: US$ 560.2billion
Total: US$ 19.3 billion
 
Source : UNSD, Comtrade database.  
1.3  Trade in services and investment  
1.10.   In 2014, Viet Nam's shares of world commercial services exports and imports were 0.22% 
and 0.30% respectively. Korea's shares of world commercial services exports and imports were 
2.14% and 2.38 respectively.  With total commercial services exports of US$105.7 million, and 
imports of US$113.9 million, Viet Nam was the world's 36th largest exporter and  importer. Korea 
was the world's 9th largest exporter (US$ 106 billion) and 8th largest importer  (US$526 billion) .2 
1.11.   Charts 1.3 and 1.4 below show global trade in commercial services  for Viet Nam and Korea 
(based on the period 2005 -2014). For Korea the data show an overall deficit in trade in 
commercial services with the world . Viet Nam also had an overall deficit in trade in services.  
Viet Nam's mainly traded services are transport a nd travel, both in imports and exports. Korea's 
mainly traded services are other business services, transport and travel on the import side; those 
same sectors plus construction services dominate Korea's services exports.  
                                                
2 Source: World trade profile 2015.  WT/REG371/1  
 
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  Chart 1.3 Korea : Global trade in commercial services, 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 BP M6. 
 
Chart 1.4 Viet Nam : Global trade in commercial services, 2005 -2014  
0.05.010.015.0
2005 2007 2009 2011 2013A. Viet Nam's 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 others0.02.04.06.08.010.012.0
2005 2007 2009 2011 2013B. Viet Nam's exports to world
2005 -2014
(US$ Billion)
 
Source:  WTO Statistics database based on BP M6. 
1.12.   Charts 1.5 and 1.6 below depict each Part y's foreign direct investment stocks and flows with 
the world which have grown steadily during the period 2000-2014. According to UNCTAD's data, 
Viet Nam was a net recipient of FDI for the period considered. On its side, Korea was also a net 
recipient of F DI until 2006, when it became a net investor. While Viet Nam maintained and 
increased it s FDI stock with the world during over the period, Korea's stocks evolved from negative 
to positive during the 2008 -2009 financial crises. Since that period, Korea's FD I outward stocks 
outnumber FDI inward stocks.  Bilaterally, Korea has continued to invest in Viet Nam, with a clear 
upward trajectory.  WT/REG371/1  
 
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  Chart 1.5 Korea : FDI stock and flow with world, 200 0-2014  
050100150200250300
2000 2002 2004 2006 2008 2010 2012 2014Korea FDI stock with world
2000 -2014
(US$ Billion ) 
Inward Outward
05101520253035
2000 2002 2004 2006 2008 2010 2012 2014Korea FDI flow with world
2000 -2014
(US$ Billion) 
Inward Outward
 
Source:  UNCTAD . 
Chart 1.6 Viet  Nam : FDI stock and flow with w orld, 200 0-2014  
0102030405060708090100
2000 2002 2004 2006 2008 2010 2012 2014Viet Nam FDI stock with world
2000 -2014
(US$ Billion ) 
Inward Outward
024681012
2000 2002 2004 2006 2008 2010 2012 2014Viet Nam FDI flow with world
2000 -2014
(US$ Billion) 
Inward Outward
 
Source:  UNCTAD . 
Note:  Data for Viet Nam's outward stock and flow (2000 -2004) are either not available or not separately 
reported.  
 WT/REG371/1  
 
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  Chart 1 .7 Viet Nam : FDI stock and flow with Korea , 2012 -2014  
0510152025303540
2012 2013 2014Viet Nam FDI stock with Korea 
2012 -2014
(US$ Million ) 
Inward Outward
0123456789
2012 2013 2014Viet Nam FDI flow with Korea
2012 -2014
(US$ Million) 
Inward Outward
 
Source:  Data received from Viet Nam.  
 
2  CHARAC TERISTIC ELEMENTS OF  THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement was signed on 5 May 2015 and notified on 2 March 2016 under 
Article  XXIV:7(a) of GATT 1994 and Article V:7 of GATS (see document WT/REG371/N/1 and 
S/C/N/861). The Agreement entered int o force on 20 December 2015. The text of the Agreement, 
together with its annexes, is available on  the Parties' official websites:  
Korea:  http://www.fta.go.kr/main/situation/kfta/lov5/vn/2 / 
Viet Nam:  http://www.moit.gov.vn/en/News/923/ -the-full-text-of-the-viet-nam---korea -free-
trade -agreement.aspx  
2.2.  The Agreement is composed of 17 Chapters. Box 2.1 below summarizes the structure of the 
Agreement. A number of Annexes, including the Parties' tariff elimination schedules, their lists of 
specific commitments on services also form part of the Agreement.  
Box 2.1 Structure of the Ag reement  
Titles, Chapters (including 
Annexes) and Protocols  Title/description  
Chapter 1  General provisions  
Chapter 2  National Treatment and Market access for goods  
Chapter 3  Rules of origin and origin procedures  
Chapter 4  Customs procedures and trade f acilitation  
Chapter 5  Sanitary and Phytosanitary measures  
Chapter 6  Technical barriers to trade  
Chapter 7  Trade remedies  
Chapter 8  Trade in services  
Chapter 9  Investment  
Chapter 10  Electronic Commerce  
Chapter 11  Competition  
Chapter 12  Intellectual Property  
Chapter 13  Economic Cooperation  
Chapter 14  Transparency  
Chapter 15  Dispute settlement  
Chapter 16  Exceptions  
Chapter 17  Institutional and Final Provisions  
Source:  WTO Secretariat based on the Agreement.  
 WT/REG371/1  
 
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  3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapter 2  of the Agreement covers trade in goods.  Chapter 2, inter alia , governs the 
elimination of customs duties according to the Parties' Schedules. It is complemented by 
Chapters  3 through 7 which also contain disciplines applicable to trade in goods.3  
3.2.  A Commi ttee on Trade in Goods is established to address tariff and non -tariff barriers to 
trade in goods between the Parties (Article 2.14). It shall, among other functions, promote trade in 
goods between the Parties, consider issues relating to non -tariff measur es and other barriers to 
trade in goods between the  Parties, including application of changes to the Harmonized System to 
the tariff reduction commitments set out in Annex 2 -A to the Agreement.  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   Gener al provisions  
3.3.  The Parties agree in Article 2.2 to accord national treatment to each other's imports in 
accordance with Article III of GATT 1994 and its interpretative notes, which are incorporated into 
and made part of the Agreement, mutatis mutandis . 
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 accordance with Article XI of GATT 
1994, which is, together with its interpretative notes, also incorpo rated 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 importation 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.  
3.6.  The Agreement prohibits the Parties from adopting or maintaining a measure that is 
inconsistent with the WTO Import L icensing Agreement (Article 2.9 ). Each Party also commits to 
notify the other Party of i ts existing import licensing procedur es, including the information 
specified in Article 5 of the Import Licensing Agreement.  
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 repair or alteration. Moreover, 
commercial samples of negligible value and printed advertising materials shall be granted customs 
duty-free entry  (Article 2.7) .  
3.8.  With respect to administrative fees and formalities, the Agreement builds on the provisions of 
Article  VIII.1 of GATT 1994 (Article 2.10 ), which together with its interpretative notes  are 
incorporated mutatis mutandis. Each Party shall ensure that any trade related non -tariff measures 
affecting trade between the Parties a re transparent and not prepared, adopted or applied with a 
view to or with the effect of creating unnecessary obstacles to trade between the Parties  
(Article  2.11) .  
3.1.2   Liberalization of trade and tariff lines  
3.9.  Neither Party shall increase any existing customs  duty, or adopt any new customs duty , on 
an originating good  of the other Party (Article 2.4) . Unless otherwise provided in the Agreement, 
each Party shall progressively eliminate its customs duties on originating goods in accordance with 
its Schedule, con tained in Annex 2 -A to the Agreement (Article 2. 3.1).  
                                                
3 Chapters 3 through 7 contain disciplines on rules or origin; customs administration and trade 
facilitation; sanitary and phytosanitary measures; te chnical barriers to trade; and trade remedies.  WT/REG371/1  
 
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  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 Viet Nam's tariff conce ssions.  
3.11.   The base rates of customs duty set out in both Parties' Schedules reflect their MFN rates in 
effect on 1 January 2012 ( Annex 2 -A, Article 3(a) ). 
3.12.   On the request of either Party, the Parties shall consider accelerating the elimination of 
customs dut ies (Article 2.3.2). A Party may at any time accelerate unilaterally the elimination of 
customs duties on originating goods of the other Party (Article 2.3.3). In that case, it shall 
communicate its intention to do so to the other Party (Article 2.3.3).  
3.1.3.1   Korea 
3.13.   Four staging categories apply to the elimination of customs duties by  Korea  ("S-1, B-1, C 
and R") :  
 Customs duties for originating goods in category S -1 shall remain at base rates existing 
before 1  January 2016 and be reduced to zero to 5% no later tha n 1 January 2016;  
 Customs duties for originating goods in category B -1 remain at base rates before 
1 January 2016  and shall be reduced not less than by 20 % of Korea -ASEAN FTA's 
customs MFN duty applied rate4 not later than 1 January 2016;  
 Customs duties on  originating goods in category C remain at base rates before 1 January 
2016 and shall be reduced not less than by 50 % of Korea -ASEAN FTA's applied MFN 
customs duty rate not later than 1 January 2016; and  
 No obligations in relation to lowering of customs d uties in relation to category R .5 
3.14.   Table 3.1 below sets out the tariff elimination commitments under the Agreement and 
corresponding average trade. With the entry into force of the Agreement, 82% of tariff lines will 
become duty free, representing 83.3% of Viet Nam's exports to Korea. At the end of the 
liberalization period, 5.1% of Korea's total imports from Viet Nam will remain dutiable, 
representing 4.7% of Korea's tariff schedule, and representing US$351.7 million in historical trade.  
Table 3.1 Korea: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines Korea's 
tariff 
schedule  Value of Korea's 
imports from 
Viet Nam  
(2012 -2014)a 
US$ million  % of Korea's total 
imports from 
Viet Nam 
2012 -2014  
MFN duty free 2015 1,956  16.0 1,043.3  15.2 
2015 9,303  76.0 5,349.9  78.1 
2017 216 1.8 15.5 0.2 
2019 137 1.1 41.6 0.6 
2021 7 0.1 4.6 0.1 
2024 49 0.4 42.8 0.6 
2029 3 0.0 0.2 0.0 
Remai n Dutiable  572 4.7 351.7  5.1 
Total  12,243  100.0  6,849.6  100.0  
a Import coverage is from HS chapters 1 -97. 
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 . 
                                                
4 i.e. Korea's applied rates as of 1 January 2005.  
5 Nothing in the Agreement shall affect Korea's rights and obligations with respect to its implementation 
of the commitments in WTO document WT/LET/492 dated 13 April 2005 and any amendments thereto.  WT/REG371/1  
 
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   16 tariff lines6 under the Excluded category reflect the MFN 201 5 duties.  This process is in 
accordance 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 provided by Korea and IDB -WTO. 
3.15.   Table 3.2 shows the tariff elimination under the Agreement by HS section. At the end of 
implementation of the Agreement, 572 tariff lines will remain dutiable under the Agreement. The 
average remaining tariffs on HS section II will be 227.2%, Section VI, 211.7%.  
Table 3.2 Korea: Tariff elimin ation 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  2021  2024  2029  
I 20.5 762 21 471 39 17  10 1 203 22.7 
II 108.2  690 29 415 2 24  24 2 194 227.4  
III 13.4 108  92 1 3    12 49.7 
IV 29.3 543 3 367 19 45  8  101 66.8 
V 3.8 392 51 311 30       
VI 7.5 2,299  174 2056 51 4    14 211.7  
VII 6.7 377 5 350 18 4      
VIII 7.7 242 28 214        
IX 5.8 316 38 165 20 36 4 5  48 5.8 
X 0.0 288 288         
XI 9.7 1,289  28 1261        
XII 10.1 100  100        
XIII 7.8 345 1 335 9       
XIV 5.2 118 5 113        
XV 4.2 1,037  412 624 1       
XVI 5.7 2,064  562 1487 7 3 3 2    
XVII 5.8 333 80 234 19       
XVIII 6.7 563 77 486        
XIX 3.4 81 47 34        
XX 5.4 281 92 188  1      
XXI 0.0 15 15         
Total  14.1 12,243  1956  9303  216 137 7 49 3 572 103.7  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; fo r 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 and IDB -WTO. 
                                                
6 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, 19 0190.90.99 . WT/REG371/1  
 
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  Chart 3.1 Korea: Average of dutiabl e rates, by HS Chapter  
0100200300400500600700800
010203040506070809101112131415161718192021222329333544Average Duty Rate
HS ChapterPreferential MFN
 
3.1.3.2   Viet Nam  
3.16.   Four staging categories apply to the elimination of customs duties by Viet Nam("S2, S -3, A 
and B -2"): 
 Customs duties for originating goods in category S -2 shall remain at base rates before 
1 January 2021 and be reduced to zero to 5% not later than 1 January 2021;  
 Customs duties for originating goods in category S -3 remain at base rates before 
1 January 2017 and shall be reduced to 20 % not later than 1 January 2017 and remain 
at the reduced rate before 1 January 2021 and be reduced to zero to 5% not later than 
1 January 2021;  
 Customs duties for originating goods in category A shall remain at base rates before 
1 January 2021 and be reduced to not more than 50 % not later than 1 January 2021; 
and  
 Customs duties on originating g oods in category B -2 shall remain at base rates before 
1 January 2021 and be reduced to not less than 20 % of Korea -ASEAN FTA's applied MFN 
duty rates not later than 1 January 2021.  
3.17.   Table 3. 3 below shows tariff and trade liberalization offered by Viet Nam under the 
Agreement .7 In 2015, 31.8% of Viet Nam's tariff lines were duty free on an MFN basis, 
corresponding to 56% of its total imports from Korea in 2012 -2014. Following the Agreement's 
entry into force, Viet Nam liberalised an additional 46.9% of lines , representing 16% of its imports 
from Korea. Following ten years of implementation (by 2024) Viet  Nam would have liberalized 
89% of its tariff corresponding to 92.6% of its imports from Korea. Liberalization is expected to be 
completed in  2029 at which po int 89% of tariff lines, corresponding to 92.6% of imports from 
Korea will be duty free. A total of 1053 tariff lines will remain subject to duties.  
                                                
7 Of the 9,589 lines in Viet Nam's schedule, 9,502 (99.09%) are subject to ad valorem  duties. According 
to Viet Nam, duties for 87 tariff lines under HS Chapter 87 are empty but are subject to the MFN rate of duty 
based on Viet Nam's Decree "22 /2016/ND -CP" dated 01.09.2016.  WT/REG371/1  
 
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  Table 3.3 Viet Nam: Tariff elimination commitments under the  Agreement and 
corresponding average trade  
Duty phase -out 
period  Number 
of lines  % of total lines 
in Viet Nam's 
tariff schedule  Value of Viet Nam's 
imports from Korea  
(2012 -2014) a 
US$ million  % of Viet Nam's 
total imports from  
Korea  
2012 -2014  
MFN duty f ree 2015 3,052  31.8 10,821.3  56.0 
2015 4,499  46.9 3,090.9  16.0 
2016 337 3.5 910.3  4.7 
2017 15 0.2 273.9  1.4 
2018 440 4.6 2,214.7  11.5 
2019 44 0.5 49.6 0.3 
2021 36 0.4 61.5 0.3 
2022 6 0.1 10.6 0.1 
2024 104 1.1 452.2  2.3 
2029 3 0.0 4.9 0.0 
Remain d utiable  1,0538 11.0 1,420.6  7.4 
Total  9,589  100.0  19,310.6  100.0  
a Import coverage is from HS chapters 1 -97. 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Viet Nam, WTO -IDB, UNSD -Comtrade.  
 
3.18.   Table 3. 4 shows Viet Na m's tariff liberalization by HS Section. Liberalization takes place at 
regular intervals until 2029 with most lines liberalized in 2015. The 1 ,053 products remaining 
dutiable fall in a range of HS Sections, and include both agricultural and industrial good s. The 
average final tariff on dutiable products for agricultural goods ranges from 6.7% to 38.9%, while 
for industrial products it is 5% to 33.3%.  
Table 3.4 Viet Nam: Tariff elimination under the Agreement, b y 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  2016  2017  2018  2019  2021  2022  2024  2029  
I 11.8 521 83 414 3  9   6   6 30.0 
II 15.1 474 70 396   5      3 6.7 
III 15.0 156  154   2        
IV 27.9 444 41 269 10  35 1     88 38.9 
V 6.2 204 75 89   15      25 11.3 
VI 3.2 1,164  683 375 10  32  4  15  45 7.7 
VII 8.3 485 105 248 23  45 1 2  9  52 6.2 
VIII 12.5 100 30 53 10  7        
IX 6.8 157 73 78 6          
X 11.5 271 38 164 21  18 1 1  2  26 9.2 
XI 12.4 1,079  95 698 168 13 82 7   7  9 25.6 
XII 22.3 74 6 59 3  5 1       
                                                
8 Duty rates for - 287 tariff lines subject to staging category "S -2" are reduced to 5% in Year 2021; 
153 tariff lines with staging category "S -3" are reduced to 20% in Year 2017 and further decreased to 5% in 
Year 2021; 15 tariff lines with staging category 'A' are reduced to 50% in Year 2021; 223 tariff lines subject to 
staging category "B -2" are reduced by 20% of Viet Nam's applied tariff in year 2005. Base rates will be applied 
for the tariff lines with staging category " E" and 87 tariff lines under the HS Chapter 87 have no duties 
(marked as CKD) and those are excluded from the reduction commitment according to Viet Nam (MFN  rates 
will be applied for these lines according to the decree "122/2016/ND -CP" dated 01.09.2016 of  Viet Nam) .  WT/REG371/1  
 
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  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  2016  2017  2018  2019  2021  2022  2024  2029  
XIII 17.7 216 14 142 7  17 1   2  33 11.7 
XIV 12.9 81 18 62   1        
XV 7.7 917 348 357 23  70 2 5  7  105 6.6 
XVI 6.2 2,070  1,021  565 25 2 67 27 21  38  304 8.8 
XVII 24.2 569 85 100 1  10 2 3  19 3 346 33.3 
XVIII 4.5 329 223 100 4  2        
XIX 3.5 27 23 4           
XX 18.2 239 12 169 23  18 1   5  11 5.0 
XXI 2.5 12 9 3           
Total 10.5 9,589  3,052  4,499  337 15 440 44 36 6 104 3 1053  18.1 
Note:  For the calculation of averages, 87 t ariff lines under the HS chapter 87 with no duties are excluded.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by  Viet Nam, WTO -IDB, UNSD -Comtrade . 
3.19.   Charts 3.2a and 3.2b show the average remaining dutiable rates by HS Chapter applied by 
Viet Nam to imports from Korea of agricultural and industrial products at the end of the 
implementation period. In the case of agricu ltural products there is some liberalization vis-à-vis 
the MFN rates in HS Chapter s 17, 19, 21, 22 and 24 while in the rest MFN duties match 
preferential duties. The average tariff rates range from 5% in Chapter 13 (lac, gums, resins) to 
47% in Chapter 22 (beverages, spirits and vinegar). In the case of industrial goods, preferential 
duties are mostly lower than MFN duties except for Chapter 38.  The average tariff rates range 
from 5% in several chapters to 34% for motor vehicles (HS 87).  
Chart 3.2a Viet Nam : Average of dutiable rates, by HS Chapter  
0102030405060
04 12 13 17 19 21 22 24Average Duty Rate
HS Chapter (1 -24)Preferential MFN
 
Note:  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Viet Nam, WTO -IDB. 
 WT/REG371/1  
 
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  Chart 3. 2b Viet Nam: Average of dutiable rates, by HS Chapter  
010203040506070
25272829303132333435383940485258606368697072738283848587899496Average Duty Rate
HS Chapter (25 -97)Preferential MFN
*
* 87 tariff lines are excluded 
 
Note:  Based on the HS 2012 nomencla ture. 
Source:  WTO estimates based on data provided by Viet Nam, WTO -IDB. 
 
3.1.4   Tariff rate quotas  
3.20.   Korea applies tariff rate quotas (TRQs) to certain originating goods under the Agreement, as 
defined in Appendix 2 -A-19. Any quantity of originating goods importe d from Viet Nam 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 Schedule of tariff concession (referred to 
as "HSK" under the Agreement).  
3.21.   Under Articl e 2.1 2, TRQs under Appendix 2 -A-1 shall be implemented and administered in 
accordance with Article XIII of GATT 1994, its interpretative notes, and the Import Licensing 
Agreement (as well as any other relevant WTO Agreement). TRQ administration shall be 
consistent, transparent and not adopted or maintained to create discrimination against the other 
Party.  
3.22.   Viet Nam does not  apply TRQs under the Agreement. V iet Nam retains in its WTO GATT 
1994 Schedule the right to impose TRQs on the following products: b ird eggs in shells ; cane or 
beet sugar and chemically pure sucrose in solid form; unmanufactured tobacco and tobacco 
refuse .  
3.2  Rules of origin  
3.23.   Chapter 3 contains provisions on rules of origin and is supplemented by Annex 3 -A (Product 
Specific Rules of Origin ), 3-B (Treatment for certain goods), An nex 3 -C (Certificate of Origin) .  
3.24.   A good qualifies as originating  in a Party  if it: is a wholly obtained or produced  good, as 
defined in Article 3.2 ; if it is not wholly obtained or produced in the territory of a Party , but is 
eligible under Article 3.3, 3.4, 3.5 or 3.6, or is a good which is produced entirely in the territory of 
the exporting Party from originating materials.  
                                                
9 Per Appendix 2 -A-1, paragraph 2(c), the lines concerned (HSK) are 03061661090, 0306169090, 
0306171090, 0306179090, 0306261000, 0306271000, 1605219000. Aggregate quantities of originating goods 
in those categories are duty free in fixed tonna ges, 10,000 tonnes in year one, rising to 15,000 tonnes in 
year 6.  WT/REG371/1  
 
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  3.25.   Article 3.2 sets out an exclusive list of goods that are considered to be wholly obtained or 
produced in the territory of a Party, including plants and plant products grown and harvested 
there, live animals born and raised there, and goods obtained from live animals. Article 3.3 sets 
out formulas for establishing the origin for goods which are not wholly obtained in the territory of a 
Party.  A good will qualify as originating if it 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 co ntent (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.  
3.26.   Annex 3 -A contains product specific rules of origin and the conditions that need to be  
fulfilled for products to qualify as originating in case the goods are 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 or igin in cases of substantial 
transformation of goods, the regional value content (RVC) can be used as an alternative criterion 
in a number of cases.  
3.27.   The RVC is calculated according to the methods defined under Articles  3.3.2(a)  (Regional 
value content) or 3.3.2(b)  (value of materials). Annex  3-A also specifies for which tariff lines the 
good must be wholly obtained in the territory of one or both of the Parties, and for which one 
specific manufacturing or processing operation confers origin.  
3.28.   Non-originatin g products, whose value does not exceed 10% of the f.o.b.  value of the good, 
may be used in the processing of originating final products (Article 3. 9). For certain products 
(some fish products; some vegetable; and some fruits and nuts) the 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 also contains 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 transport; and compliance. Furthermore, the Parties ag ree 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 working or 
processing takes place in the areas designat ed by the Parties pursuant to Annex 3 -B to the 
Agreement.10  
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 
originati ng 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; 
origin verification; denial of preferential tariff treatment; direct transport and compliance; and 
non-party invoicing.  
3.3  Export duties and charges, and quantitative restrictions  
3.32.   No Party shall adopt or maintain any prohibition or restriction on the export or s ale 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, together with its interpretative 
notes, incorporated into and made part of the Agreement mu tatis mutandis (Article 2.8). The 
Agreement contains disciplines applicable where a Party proposes to adopt an export prohibition or 
restriction on foodstuffs or energy and mineral resources in accordance with paragraph 2(a) of 
Article XI of GATT 1994.  
                                                
10 Article 3.5.  WT/REG371/1  
 
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  3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.33.   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  
3.34.   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 WTO 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.  
3.35.   The A greement establishes a Committee on Sanitary and Phytosanitary Matters to facilitate 
the implemen tation of Chapter 5 (Article 5.5 ). 
3.36.   Article 5.6 provides that the dispute resolution mechanism set out in Chapter 19 does not 
apply to Chapter 5.  
3.4.1.2   Technical bar riers to trade  
3.37.   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 Parties.  The Parties affirm their rights and obligat ions under the WTO Agreement on TBT 
(Article 6.2).  
3.38.   The Agreement establishes joint disciplines for the use of international standards 
(Article  6.4); and equivalence of technical regulations (Article 6.5); conformity assessment 
procedures (Article 6.6).  
3.39.   The Parties also agree to strengthen their joint cooperation on TBT (Article 6.8). Article 6.7 
elaborates on transparency requirements and Article 6.9 establishes information exchange. 
Article  6.8 concerns joint cooperation in the field of standards, techni cal regulations  and 
conformity assessment and invites the Parties to facilitate dialogue on mutual recognition 
agreements or arrangement s for conformity assessment, and discuss the feasibility of developing 
mutual recognition agreements or arrangements. Mo reover, the Parties agree to give due 
consideration to any sector specific proposal made by either Party  (Article 6.8.3) . A Committee on 
TBT is established in Article 6.10.  
3.4.2   Safeguard mechanisms  
3.40.   Chapter 7 refers to the use of bilateral and global safeguard measures .  
3.4.2.1   Global safeguards  
3.41.   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  (Article 7.5) . The Agreement 
shall not confer any additional rights or impos e any additional obligations on the Parties with 
respect to measures applied under the respective above -mentioned WTO agreements  
(Article  7.5.1).  
3.4.2.2   Bilateral safeguards  
3.42.   Disciplines on bilateral safeguard measures are contained in Articles 7.1 through 7.4. Pe r 
Article 7.1, such a measure may consist of either (a) a suspension of the further reduction of the 
customs duty on the good provided for under the Agreement, or (b) an increase in the rate of 
customs duty on the good to a level not to exceed the lesser o f the MFN applied rate of duty in 
effect at the time the safeguard measure is applied, or the base rate of duty specified in the 
Schedule to Annex 2 -A of the Agreement.  WT/REG371/1  
 
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  3.43.   A bilateral safegu ard measure may be applied for a maximum of two years (Article 7.2 .5(b), 
extendable by one year) . The total period of application of a bilateral 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 mor e 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.  
3.44.   Bilateral safeguard measures may only be applied following an inves tigation 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 prov isional safeguard m easure (governed by 
Article  7.3) shall be applied 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  
(Article 7.5.1) . 
3.45.   No later tha n 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 liberalizing 
compensation in the form of concessions having substantially equivalent trade effe cts or equivalent 
to the value of the additional duties expected to result from the bilateral safeguard measure . The 
applying Party shall provide such compensation as the Parties mutually agree . 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  (Article 7.4) .  
3.4.2.3   Special safeguards  
3.46.   There are no special safeguards provisi ons in the Agreement.  
3.4.3   Anti-dumping and countervailing measures  
3.47.   Section B of Chapter 7 covers antidumping and countervailing measures.  
3.48.   Each Party retains its rights and obligations under the WTO Agreement with regard to the 
application of antidumping and c ountervailing measures. Unless otherwise provided in Chapter 7, 
nothing in the Agreement shall be construed to confer any additional rights or impose any 
additional obligations on a Party with respect to antidumping or countervailing measures.  
3.49.   The Parties  also confirm their current practice of counting toward the average all individual 
margins, whether positive or negative, when antidumping margins are established on the 
weighted -to-weighted basis, transaction -to-transaction basis, or weighted -to-transacti on basis, 
and share their expectation that such practice will continue. Moreover, the Party taking a decision 
to impose an antidumping duty in accordance with Article 9.1 of the WTO Agreement on 
Antidumping, shall normally apply the "lesser duty" rule.  
3.50.   Article 7.7  reiterates notification obligations and the necessity to initiate an investigation 
prior to taking antidumping or countervailing measures. Consultations between the Parties are also 
foreseen. Disciplines on undertakings, for both antidumping and c ountervailing measur es, are 
contained in Article 7.8 . 
3.4.4   Subsidies and State -aid 
3.51.   There are no provisions on subsidies and State aid in the Agreement.   
3.4.5   Customs -related procedures  
3.52.   Chapter 4 covers customs administration and trade facilitation. The Parties agree  on 
transparency disciplines, including the establishment  of enquiry points, (Article 4.1 ); facilitation of 
the clearance of goods (Article 4.2 ); use of automated systems in the paperless trading 
environment (Article 4.3 ); and focussing customs resources o n shipments  of high -risk goods 
(Article 4.4 ). Chapter 4 also contains rules on express consignments (Article 4. 7); advance rulings WT/REG371/1  
 
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  (Article 4.10 ), review and  appeal procedures (Article 4.8 ); and bilateral customs consultations 
(Articles 4.11) .  
3.53.   In Article 4.12, 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  
3.54.   Section D of Chapter 2 of the Agreement has five  articles relating to non -tariff measures. 
These include Article 2.11 , 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 cre ate an unnecessary obstacle to trade between them.  
3.5  Sector -specific provisions on trade in goods  
3.5.1   Economic cooperation  
3.55.   Chapter 13  identifies cooperation activities related to a number of sectors; a non -exclusive 
list of sectors of mutual benefit are set out  in Article 13.2, including industry, agriculture, forestry 
and fisheries that supplement cooperation foreseen under other chapters of the Agreement as well 
as existing cooperative arrangements between the Parties.   
3.56.   The Agreement establishes a Committee on  Economic Cooperation (Article 13.4 .2). 
4  PROVISIONS ON TRADE IN SERVICES   
4.1.  Chapter 8 contains disciplines on cross -border trade in services, while Chapter 9 covers 
investment  (including services investments) . Annexes 8D sets out the Parties' schedules of spe cific 
commitments on services under Chapter  8. 
4.2.  Chapter 9 complements the rules and disciplines on investment (including services 
investments) as applied to measures affecting the temporary entry of business persons of a Party 
into the territory of the othe r Party.  In the event of any inconsistency between Chapters 8 and 9, 
Chapter 8 prevails to the extent of any inconsistency (Article 9.2).  
4.1  Scope and definitions  
4.3.  Chapter 8 applies to measures of a Party affecting trade in services by service suppliers of 
the other Party. Trade in services covers the  GATS modes of supply 1, 2 and 3 . Annex 8A concerns 
Financial Services, 8B concerns telecommunications, and 8C movement of natural persons.  
4.4.  Chapter 8 does not apply to; services supplied in the exercise of governm ental authority; 
measures relating to air tra ffic rights11; cabotage in maritime transport services; subsidies or 
grants  provided by a Party ; and measures regarding seeking access to the employment market, 
citizenship, nationality, residence or employment o n a permanent basis.  
4.2  Denial of benefits  
4.5.  Under Article 8.14, a Party may deny the benefits of Chapter 8 to the supply of a service if it 
establishes that the service is supplied from or in the territory of a non -Party, in the case of a 
maritime transport s ervice to a service provider of the other Party if the service provider is an 
enterprise owned or controlled by a non -Party and to a juridical person of the other Party in certain 
circumstances . The same approach is followed, in relation to investment (Cha pter 9), for investors 
of the other Party and for their investments (Article 9.11 ). 
 
 
                                                
11 Aircraft repair and maintenance services, the selling and marketing of air transport services, 
compu ter reservation system services are covered by the Chapter.  WT/REG371/1  
 
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  4.3  General provisions on trade in services  
4.3.1   Market access  
4.6.  In relation 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(f) of Article XVI of the GATS (Article 8.4).  
4.7.  Chapter 9 on investment does not contain a market access obligation along the lines of GATS 
Article XVI. Article 8.4  nevertheless stipulates that market access, as well as domestic regulation 
provisions specified for trade in services shall also apply to limitations on foreign capital 
participation in terms of maximum percentage lim its by a Party affecting the supply of a service in 
its territory by a covered investment. Article 9 .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).  
4.3.2   National treatment and MFN   
4.8.  In relation to cross-border trade in services , Articles 8. 2 and 8. 3 respectively contain national 
treatment and MFN clauses applicable to the Parties' service providers. Article 8.3 provides that if 
after the  entry into force of the Agreement a Party enters into another agreement with a non -Party 
in which it provides treatment to services or services suppliers that is more favourable than that 
provided under the Agreement, the other Party may request consultat ions to discuss the possibility 
of extending treatment no less favourable that than under the agreement with the non -Party. In 
relation to investment, similar provisi ons are contained in Articles 9.3 and 9.4  with respect to the 
Parties' 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.  Article 8.6.2 provides that the Parties ' Schedules of Specific Commitments must set out 
measure s inconsistent with Article 8.2 (national treatment) in its limitations on market access 
column.  
4.3.3   Commercial presence  
4.10.   Commercial presence is defined in Article 8.20. The Parties ' (positive list) Schedules in 
Annex 8 -D include horizontal commitments , as well  as specific market access commitments  on 
mode 3 .  
4.3.4   Movement of natural persons  
4.11.   Annex 8 -C on Movement of Natural Persons applies to measures affecting the movement of 
natural persons of a Party falling under the categories specified in the services commitme nts of the 
Parties contained in Annex 8 -D.  
4.12.   Application procedures are set out in Article 3 of Annex 8 -C. Conditions and limitations for 
the movement of natural persons are set out in Article 4 of Annex 8 -C. Article 5 provides that 
information on applicati on requirements and procedures relating to movement of natural persons 
must be published or otherwise made available to the other Party, and each Party must maintain 
or establish contact points to respond to inquiries regarding regulations governing the mo vement 
of natural persons. The dispute settlement procedures in Chapter 15 of the Ag reement do not 
apply to a refus al to grant temporary entr y under Annex 8 -C. A Committee on Movement of 
Natural Persons is created by Article 7 of Annex 8 -C. 
4.13.   The Parties ' Annex 8 -D Schedules contain commitments on movement of natural persons 
under the section "Horizontal Commitments". These are reflected in Tables 4.1 and 4.2 below.  WT/REG371/1  
 
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  Table 4.1 Korea: Commitments on movement of na tural persons (temporary entry of 
business persons)  
Category  Conditions  Length of stay  
(A) Intra Corporate 
Transferees  Employees of firms, that supply 
subsidiaries, branches or designated 
affiliates established in Korea; 
(i) executives, (ii) senior manage rs or 
(iii) specialists . - Up to 3 years, renewable  
(B) Business Visitors  A(i) and (ii) above, responsible for the 
setting up of a commercial presence 
in Korea and not engaged in making 
direct sales or supply of services.   - Up to 90 days  
 
(C) Service Sa lespersons  Engaged in activities or representing 
service supplier for purposes of 
negotiating for the sale of services, 
not to public and not engaged in 
supplying the service  - Up to 90 days  
(D) Contractual Service 
Suppliers  
 Engaged in supply of contract ed 
service as employees of a juridical 
person with no presence in Korea  - duration of the contract not exceeding 
1 year  
Source:  WTO Secretariat, based on Annex es 8-C and 8 -D.  
Table 4.2 Viet Nam: Commitments  on movement of natural persons (temporary entry of 
business persons)  
Category  Conditions  Length of stay  
(a) Intra Corporate 
Transferees  Higher level Managers, executives 
and specialists of a foreign enterprise 
which has a commercial presence in 
Viet Nam . At least 20% of the total 
must be Vietnamese nationals.  - up to 3 years, extendable  
(b) Other personnel  Other Managers, executive and 
specialists  - up to 3 years, extendable  
 
(c) Service Sales  
persons  Persons e ngaged in activities or 
representing servic e supplier for 
purposes of negotiating for the sale of 
services, not to public and not 
engaged in supplying the service  - Up to 90 days  
(d) Persons responsible 
for setting up a 
commercial presence  
 
 Managers and executives responsible 
for setting up a com mercial presence 
of a service provider, not engaged in 
making direct sales or supplying 
services, principal place of business  - up to 90 days  
 
 
 
(e) Contractual Service 
Suppliers  
 Engaged in supply of contracted 
service as qualified employees of a 
foreig n enterprise with no commercial 
presence in Viet Nam  maximum 90 days  
Source:  WTO Secretariat, based on Annex es 8-C and 8 -D.  
4.4  Liberalization commitments  
4.14.   A "positive list", GATS style approach is used to schedule the Parties ' commitments in 
services .12 Article 8.19 provides that if after entry into force of the Agreement a Party ratifies any 
agreement on trade in services adopting a negative list approach with a non -Party, the other Party 
may request the former Party to renegotiate the Chapter and Annexes rel ating to trade in services 
and investment based on a negative list approach.  According to the Parties, no steps have yet 
been taken to create negative lists of services and investment commitments under Article 8.19 .  
4.15.   With regard to investment, Article 9 .1 provides that  all investments are covered, except 
those related to government procurement, subsidies or grants provided by a Party and meas ures 
adopted or maintained by a Party affecting the supply of services by a services supplier of the 
                                                
12 Under Art icle 8.19, if either Party ratifies any agreement using a negative list approach to schedule 
commitments in services, the other Party to the Agreement may request the former to renegotiate the 
chapters with the Annexes relating to trade in services and inv estment based on a negative list approach.  WT/REG371/1  
 
- 23 - 
 
  other Party in i ts territory pursuant to Chapter 8, regardless of whether specific services sectors 
are scheduled in Annex 8 -D to the Agreement.   
4.16.   The Parties may negotiate commitments with respect to measures affecting trade in 
services not subject to scheduling, includin g on qualifications, standards or licensing  (Article 8.5) .  
4.17.   The sections below compare the Parties' liberalization commitments under the Agreement 
and their GATS commitments. Each Party's GATS schedule is compared to the Agreement. After 
recalling GATS MFN  exemptions and identifying horizontal limitations in the GATS and in the 
Agreement, Tables 4.3 and 4.4 summarize specific commitments under the Agreem ent, by sectors 
and sub -sectors .  
4.18.   Improvements over existing GATS commitments are a reduction of the limi tations 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 and reservations covering all sectors are not included. 
Moreover, mode 4 commitments and limitations are, excluded.  
4.4.1   Korea  
4.4.1.1   MFN and horizontal commitments  
4.19.   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. Korea's only MFN exemption under the GATS is for computerized reservation systems.  
4.20.   Under the Agreement, as under the GATS, Korea has horizontal reserv ations 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 addressed in Section 4.3.4  above .  
4.4.1.2   Sector specific commitments  
The following section identifies some of the main differences, by sector, between Korea's GATS 
schedule and its positive list , sector -specific commitments under the Agreement.  
4.4.1.2.1   Business services  
4.21.   Under real estate services Korea has entered a new binding, cov ering brokerage services 
with a full commitment in mode 3 (market access and national treatment), and appraisal services 
with a full mode 3 commitment (market access and national treatment). Under professional 
services, Korea has entered new commitments in  legal services and veterinary services. In R&D 
services, Korea has added new commitments in natural sciences and inter disciplinary research 
and development services. Korea has also entered commitments in rental/leasing services without 
operators.  
4.4.1.2.2   Communi cation services  
4.22.   Korea has provided a new commitment on courier services ("Courier Services including 
express delivery services  under the Agreement . The provision of such services is limited to air and 
sea transport modes for mode 1. For mode 3 there is,  a trucking business licence for domestic 
courier supply is subject to an economic needs test. Under telecommunication services Korea has 
improved the commitment by slightly reducing the market access restrictions set out in its GATS 
Schedule.  WT/REG371/1  
 
- 24 - 
 
  4.4.1.2.3   Construction a nd related services  
4.23.   Korea has substantially improved its commitments in this sector, removing a range of GATS 
subsector limitations on licensing and contract limits and replacing them with "none" for modes 2 
and 3 in both the market access and national tre atment columns.  
4.4.1.2.4   Distribution services  
4.24.   Distribution services are subject to 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.  
4.4.1.2.5   Educational servi ces 
4.25.   Under the GATS the sector is unbound , but under the Agreement Korea has undertaken 
commitments in higher education services and adult education services . 
4.4.1.2.6   Environmental services  
4.26.   Under the GATS, Korea has commitments, with some limitations, except for sa nitation and 
similar services. Under the Agreement, Korea removes the restriction on the number of suppliers 
in sewage services as well as the economic needs test on refuse disposal services (listed in Korea's 
GATS Schedule). Sub sectors in D. Other are ex panded in comparison to Korea's GATS Schedule.  
4.4.1.2.7   Tourism and travel related services  
4.27.   The sector is largely covered under the GATS. Under the Agreement, Korea f urther improves 
its commitments, in particular in relation to market access , now with "none" in mo de 3 both for 
the market access and national treatment columns . 
4.4.1.2.8   Recreational, cultural and sporting services  
4.28.   Although t he whole sector  was unbound under the GATS, A. Entertainment services is now 
covered , with a full commitment in mode 3 market access.  
4.4.1.2.9   Transport services  
4.29.   While only partial commitments are made in the GATS, there is some expansion of coverage  
under the Agreement, in particular for rail transport services (maintenance and repa ir and services 
auxiliary to rail transport services (now fully com mitted in mode 3) and pipeline transport.  
Table 4.3 Korea: comparison between GATS and Agreement specific commitments   
Sectors / Sub -sectors  GATS  Commitments under the 
Agreement  
1. Business services    
A. Professional  Services  Partial  Improved  
B. Computer  and Related  Services  Full Same  
C. Research  and Development  Services  Partial  Improved  
D. Real  Estate  Services  --- Improved  
E. Rental/Leasing  Services  without  Operators  Partial  Improved  
F. Other  Business Services  Partial  Improved  
2. Communication services    
A. Postal  services  --- --- 
B. Courier  services  --- Improved  
C. Telecommunication  services  Partial  Same  
D. Audiovisual  services  Partial  Same  
3. Construction and related engineering services    
A. General  construction  work for buildings  Partial  Improved  
B. General  construction  work for civil Engineering  Partial  Improved  
C. Installation  and assembly  work  Partial  Improved  
D. Building  completion  and finishing  work  Partial  Improved  
E. Other  Partial  Improved  
4. Distribution services    
A. Commission  agents'  services  Partial  Improved  WT/REG371/1  
 
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  Sectors / Sub -sectors  GATS  Commitments under the 
Agreement  
B. Wholesale  trade services  Partial  Improved  
C. Retailing  services  Partial  Improved  
D. Franchising  Partial  Improved  
5. Education services    
A. Primary educa tion services  --- --- 
B. Secondary education services  --- --- 
C. Higher education services  --- Improved  
D. Adult education  --- Improved  
E. Other education services  --- --- 
6. Environmental services    
A. Sewage services  Partial  Improved  
B. Refuse disposal services  Partial  Improved  
C. Sanitation and similar services  --- --- 
D. Other  Partial  Improved  
7. Financial services    
A. All insurance  and insurance -related  services  Partial  Similar  
B. Banking  and other financial  services  Partial  Similar   
8. Health related and social services    
A. Hospital services  --- --- 
B. Other Human Health Services  --- --- 
C. Social Services  --- --- 
D. Other  --- --- 
9. Tourism and travel related services    
A. Hotels  and restaurants (including catering)  Partial  Improved  
B. Travel  agencies  and tour operators  services  Partial Same  
C. Tourist  guides  services  Partial Improved  
10. Recreational and cultural and sporting services    
A. Entertainment  services  --- Improved  
B. News agency services  --- --- 
C. Libraries , archives, museums and other cultural services  --- --- 
D. Sporting and other recreational services  --- --- 
11. Transport services    
A. Maritime Transport Services  Partial  Improved  
B. Internal Waterways Transport  --- --- 
C. Air  Transport  Services  Partial Improved  
D. Space  Transport  --- --- 
E. Rail  Transport  Services  --- Improved  
F. Road  Transport  Services  Partial  Same  
G. Pipeline  Transport  --- Improved  
H. Services  auxiliary  to all modes  of transport  Partial  Same  
I. Other  Transport  Services  Partial  Improved  
12. Other Services not included elsewhere  --- Improved  
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 acce ss or national treatment, 
under any of the three modes.  
Full:  Specific commitment not subject to limitation under market access or national treatment under any 
of the 3 modes.  
---: No specific commitment.  
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.  
Source:  Draft Consolidated GATS Schedule 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    Viet Nam  
4.4.2.1   MFN and horizontal commitments  
4.30.   Under the GATS, Viet Nam has retained cross sectoral MFN exemptions, retaining 
preferential tre atment under bilateral investment treaties, co -production agreements on audio 
visual works, as well as on maritime transport and services auxiliary to transport services. Under 
the Agreement, Viet Nam has retained a list of identical Article 8.3 (MFN) exem ptions . Viet Nam's 
horizontal limitations under the GATS are the same as under the Agreement.  WT/REG371/1  
 
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  4.4.2.2   Sectors  
4.31.   Under the Agreement, Viet Nam has made exactly the same commitments as in its GATS  
schedule . 
Table 4.4 Viet Nam: comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  Commitments under the 
Agreement  
1. Business services    
A. Professional  Services  Partial  Improved  
B. Computer  and Related  Services  Partial  Same  
C. Research  and Development  Services  Partial  Same  
D. Real  Estate  Services  --- --- 
E. Rental/Leasing  Services  without  Operators  Partial  Improved  
F. Other  Business  Services  Partial  Same  
2. Communication services    
A. Postal  services  --- --- 
B. Courier  services  Partial Same  
C. Telecommunication  services  Partial  Same  
D. Audiovisual  services  Partial  Same  
3. Construction and related engineering services    
A. General  construction  work for buildings  Partial  Same  
B. General  construction  work for civil Engineering  Partial  Same  
C. Installation  and assembly  work  Partial  Same  
D. Building  completion  and finishing  work  Partial  Same  
E. Other  Partial  Same  
4. Distribution services    
A. Commission  agents'  services  Partial  Same  
B. Wholesale  trade services  Partial  Same  
C. Retailing  services  Partial  Same  
D. Franchising  Partial  Same  
5. Education services    
A. Primary education services  --- --- 
B. Secondary education services  Partial  Same  
C. Higher education services  Partia l Same  
D. Adult education  Partia l Same  
E. Other education services  Partial  Same  
6. Environmental services    
A. Sewage services  Partial  Same  
B. Refuse disposal services  Partial  Same  
C. Sanitation and similar services  --- --- 
D. Other  Partial  Same  
7. Financial services    
A. All insurance  and insurance -related  services  Partial  Same  
B. Banking  and other  financial  services  Partial  Same  
8. Health related and social services    
A. Hospital services  Partial  Same  
B. Other Human Health Services  Partial  Same  
C. Social Services  --- --- 
D. Other --- --- 
9. Tourism and travel related services    
A. Hotels  and restaurants (including catering)  Partial  Same  
B. Travel  agencies  and tour operators  services  Partial  Same  
C. Tourist  guides  services  --- --- 
10. Recreational and cultural and sportin g services    
A. Entertainment  services  Partial  Same  
B. News agency services  --- --- 
C. Libraries, archives, museums and other cultural services  --- --- 
D. Sporting and other recreational services  Partial  Same  
11. Transport services    
A. Maritime Tr ansport Services  Partial  Same  
B. Internal Waterways Transport  Partial  Same  
C. Air  Transport  Services  Partial  Same  
D. Space  Transport  --- --- 
E. Rail  Transport  Services  Partial  Same  
F. Road  Transport  Services  Partial  Same  
G. Pipeline  Transport  --- --- 
H. Services  auxiliary  to all modes  of transport  Partial  Same  WT/REG371/1  
 
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  Sectors / Sub -sectors  GATS  Commitments under the 
Agreement  
I. Other  Transport  Services  --- --- 
12. Other Services not included elsewhere  --- --- 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not consi dered.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
---: No specific commitment.  
Improved: Overall improved commitments made under the Agreement compared to those unde r the GATS.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments ( GATS/SC/142 ).  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.32.   Article 8.8 mirrors Article VI of the GATS.  
4.5.2   Recognition  
4.33.   Article 8.9 of  the Agreement mirrors Article VII of the GATS.  
4.5.3   Subsidies  
4.34.   Article 8.16 provides that if subsidies or grants by a Party significantly affect trade in 
services committed under the Chapter the other Party may request consultations with a view to an 
amicable resolution of the matter. If one Party requests information on subsidies related to trade 
in services the other Party shall provide such information.  
4.5.4   Safeguards  
4.35.   Article  8.15 provides that if the implementation of the Chapter causes substantial adverse 
impact to a service sector of a Party, the affected Party may request con sultations with the other 
Party. 
4.6  Sector specific provisions on trade in services  
4.6.1   Financial Services  
4.36.   Annex 8A applies to measures concerning the supply of financial services. Article 2 of the 
Annex provides that a Party shall not be pre vented from taking measures for prudential reasons 
provided that they are; not used to avoid the Party's commitments under the Agreement, if used 
to ensure the stability of the exchange rate and speculative capital flows, no more than necessary 
(and shall be phased out within one year or when conditions change) and if so, shall be applied on 
an MFN basis. Transparency requirements for regulations and policies governing the activities of 
financial service providers are set out in Article 3. Each Party commit s to promoting regulatory 
transparency in financial services, including through publication of applicable regulations in 
advance with an opportunity to comment thereon. Each Party shall grant to established financial 
services suppliers of the other Party a ccess to payment and clearing systems operated by public 
entities and to official funding and refinancing facilities available in the ordinary course of business 
(Article 4) . Chapter 15 (Dispute Settlement) applies to the Annex. The Parties may recognise 
prudential measures of the other Party, or seek to join an agreement between the other Party and 
a third Party on equivalent prudential measures (Article 9, mirroring Article 3 of the GATS Annex 
on Financial Services). A Committee on Financial Services is e stablished by Article 10.  
4.6.2   Telecommunications  
4.37.   Annex 8 -B, on Telecommunications closely follows the GATS Annex on Telecommunications. 
It applies to measures adopted or maintained by a Party affecting trade in public 
telecommunications transport networks and  services.  Elements of the Telecommunications 
Reference Paper are also found in Annex 8 -B. Article 3 on Competitive Safeguards provides that WT/REG371/1  
 
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  each Party shall prevent suppliers of major suppliers of public telecommunications transport 
networks or services f rom engaging in or continuing anti -competitive practices. An illustrative list 
of anti -competitive practices is set out in Article 3(b) of Annex 8 -B. Article 4 sets out obligations 
for the Parties on licensing, criteria and procedures. The Annex also inclu des Articles on 
interconnection (Article 5), colocation (Article 6), telecommunications regulatory bodies in the 
territory of a Party (Article 10), administration of universal service (Article 11). Resolution of 
disputes on telecommunications and transpare ncy are dealt with in Articles 13 and 14 of Annex 8 -
B respectively.  
4.6.3   Other  
4.6.3.1   Investment  
4.38.   Investment is spec ifically addressed in Chapter 9 . It applies to measures by a Party relating 
to investors of the other Party; covered investment; and, in relation to perf ormance requirements , 
all investments in the t erritory of the Party. Chapter 9  does not apply to measure s relating t o 
government procurement, subsidies and grants, or measures affecting the supply of services by a 
service supplier of the other Party in its  territory pursuant  to Chapter 8.  The Chapter does apply to 
any measure affecting the supply of services by a service provider through commercial presence 
pursuant to Chapter 8.  
4.39.   In the event of any  inconsistency between Chapter 9  (investment) and another Chapter, the 
other Chapter shall prevail to the extent of the inconsistency  (Article 9.2) .  
4.40.   Article 9.2 requires that national treatment be accorded to investors of the other Party and 
to their covered investments. Article 9.4 requires that most -favoured -nation treatment be 
accorded to investor of the other Party. Chapter 9  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 (Ar ticle 9.5). Compensation shall be paid f or investment 
losses suffered by investments owing to war or other armed conflict, or revolt, insurrection, riot, or 
other civil strife, (Article 9.6). Expropriation and compensation is addressed in Article 9. 7. Chapter 
9 also contains provisions on special formalities and information requirements (Article 9.13), as 
well as on subrogation (Article 9.14 ).  
4.41.   Article 9.12 provides that Annexes I and II setting out non -conforming measures on 
investment will be negotiated a nd developed within one year of the entry into force of the 
Agreement. According to the Parties, they are in the process of creating Investment reservation 
lists under Article 9.12.  
4.42.   Section B of Chapter 9 establishes an investor -State dispute settlement me chanism which is 
summarized below  (see Dispute Settlement) .  
4.6.4    Electronic commerce  
4.43.   Chapter 10 of the Agreement concerns electronic commerce. In Article 10.1 the Parties 
recognise the economic growth and opportunity that electronic commerce provides and the 
importance of promoting electronic commerce between the Parties as well as cooperation 
regarding its future development. Article 10.2 provides that the Parties shall not impose customs 
duties on electronic transmissions in compliance with any agreement rel ating to electronic 
commerce under the WTO, although Parties may impose internal taxes, fees or other internal 
charges on content transmitted electronically.  
4.44.   Article 10.3 on electronic authentication, electronic signatures and digital certificates 
exhorts  the Parties to adopt or maintain legislation for electronic authentication that would (a) 
permit parties to an electronic transaction to mutually determine appropriate authentication 
technologies for their transactions, (b) permit parties to an electronic  transaction to have the 
opportunity to prove their transaction complies with the Party's domestic laws and regulations, (c) 
not limit the recognition of authentication technologies and implementation models. Each Party 
shall endeavour to adopt or maintain  its domestic laws and regulations governing electronic 
commerce taking into account the UNICTRAL Model Law on Electronic Commerce 1996 WT/REG371/1  
 
- 29 - 
 
  (Article  10.5).On line consumer and personal data protection obligations are set out in Article 10.5 
and 10.6 respectivel y.  
4.45.   Mechanisms for cooperation on electronic commerce are set out in Article 10.8, with an 
inclusive list of activities that would enhance the development of electronic commerce.  
4.6.5   Competition  
4.46.   In Chapter 1 1 on competition policy, the Parties agree in Articl e 11.1 to proscribe 
anti-competitive business conduct with the objective of promoting economic efficiency an d 
consumer welfare. The minimum scope of competition laws are set out in footnote 1 to 
Chapter  11. Article  11.2 establishes principles of procedural  fairness in the application of 
competition l aws. Article s 11.5-11.9 provide a framework for the Parties to cooperate, notify , 
consult and provide technical assistance on competition -related matters. The Parties shall also 
promote cooperation on matters re lated to the implementation of competition laws and policy 
(Article 11.3 ). Each Party shall ensure that the competition authority of the Party shall endeavour 
to provide available information to facilitate effective enforcement of its competition laws for the 
purposes of Chapter  11 (Article 11.6 ). The dispute settlement mechanism established by the 
Agreement is not applicable to matters arising under Chapter 11 (Article 11.10) . 
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  While a number of transparency provisions are contained in several chapters of the 
Agreement, C hapter 14  contains general transpa rency disciplines. Articles  14.1 through 14.4  list 
requirements on publication; provision of information ; administrative proceedings ; and review and 
appeal . 
5.2  Current payments and capital movements  
5.2.  Article 8.12 provides that a  Party shall not apply restrictions on international transfers and 
payments for current transactions related to cross -border trade in services. Such payments and 
transfers shall be allowed t o be made freely and without delay.  
5.3.  Article 8.13 provides that if a Party is in serious balance of payments and external financial 
difficulties or threat thereof it may adopt or maintain restrictions on trade in services in accordance 
with Article XII of G ATS.  
5.4.  Article 9.8 provides that each Party shall permit all transfers relating to a covered investment 
in a freely usable currency at the market rate of exchange prevailing at the time of the payment or 
transfer.   
5.3  Exceptions  
5.5.  Chapter 16 of the Agreement con cerns Exceptions.  
5.3.1   General exceptions  
5.6.  With respect to trade in goods13, Article XX of GATT 1994, including its interpretive notes, is 
incorporated into and made part of the Agreement, mutatis mutandis  (Article 16 .1). With respect 
to trade in services14, Article XIV of GATS, including its footnotes, is incorporated into and made 
part of the Agreement, mutatis mutandis  (Article 22.1).  
                                                
13 For the purposes of Chapters 2 (market access for goods); 3 (rules of origin and origin procedures); 
4 (customs administration and trade facilitation); 5 (SPS); 6 (TBT); 7 (Trade Remedies).  
14 For the purposes of  Chapters 8 (trade in services) and 9 (investment).  WT/REG371/1  
 
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  5.3.2   Security  exceptions  
5.7.  Article 16 .2 replicates the provisions in Article XXI of GATT 1994 and in Article  XIVbis of 
GATS for measur es 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  
(Article 16.2.2) . 
5.3.3   Taxation  
5.8.  Per Article 16.3.1, nothing in the Agreement shall appl y to taxation measures, except as 
expressly provided in Article 16.3.  
5.9.  Article 16.3.6 concerns the determination of whether a taxation measure amounts to an 
expropriation (as set out in Annex 9 -B on Exprop riation) and establishes a (non -exclusive) list of 
considerations (in addition to the factors listed in Annex 9 -B) to assist in the determination. 
Article  16.3.7 provides that no investor shall invoke Article 9.7 (Expropriation and Compensation) 
as the basis for a claim where it has been determined per Art icle 16.3 that the measure is not an 
expropriation.  
5.4  Accession and Withdrawal  
5.10.   There are no provisions in the Agreement on accession.  
5.11.    Article 17.9.2 provides that either Party may notify the other Party of its intention to  
denounce the Agreement in writing through diplomatic channels. Such a denunciation shall be 
effective 6 months after the notification in writing.  
5.5  Institutional framework  
5.12.   A Joint Commission is established (Article 17.2), inter alia , to review and assess the 
implementation and operation of the Agreement (Article 17.2). The Committee may establish and 
delegate responsibilities to committees, working groups and other bodies (Article 17.1.4).  
5.6  Dispute settlement  
5.6.1   Generally under the Agreement  
5.13.   Chapter 15  governs dispute settlement for matters cove red under the Agreement, with the 
exception of Chapters 5 (SPS) ; 11 (competition); 13 (economic cooperation) ; Article 8.19 
(renegotiation of services commitments based on negative list approach) and Annex 3 -B 
(treatment for certain goods).  
5.14.   Recourse to the dispute settlement mec hanism established by Chapter 15  is without 
prejudice to any action in the WTO framework, including dispute settlement actions. The 
Agreement contains a "fork in the road" provision on dispute settlement and provides that the 
complain ing Party may select the  dispute settlement forum, but 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 1 5.3).  
5.15.   Each Party is required to afford adequate opportunity for consultations to resolve differences 
(Article 15.4 ). 
5.16.   Under Articles 15.5-15.15,  the Agreement establishes disciplines and procedural steps, 
similar to the WTO dispute settlement modalities, t hat are applicable to the establishment of 
arbitration panels; the functions of panels; the rules of procedures15; the panel reports; 
suspension and termination of proceedings; implementation of the final report; compliance; 
compensation and suspension of b enefits in case of non -compliance; the compliance review; code 
                                                
15 Following the rules of procedures set out in Annex 15 -A to the Agreement covering matters such as: 
notifications; commencing the arbitration; timetable; operation of arbitration panels; hearings; questi ons in 
writing; confidentiality; no ex parte communications; amicus curiae submissions; and computation of time.  WT/REG371/1  
 
- 31 - 
 
  of conduct for arbitrators16 and expenses associated with the conduct of arbitration panel 
proceedings.  
5.17.   Chart 5. 1 below summarizes the main steps of the dispute settlement mechanism 
established  by the Agreement.   
Chart 5.1 Dispute Settlement Mechanism established by the Agreement  
 
 
5.18.   At any time, the Parties may agree to good offices, concili ation or mediation (Article 15.5 ). 
5.6.2   Investor -State Dispute Settlement (Investment)  
5.19.   Section B of Chapter 9 concern s investor -State disp ute settlement mechanism (ISDS) . 
Articles 9.15 through 9.27 govern the proceedings of the ISDS mechanism and cover consultations 
and negotiations; conditio ns precedent to and submission of a claim to arbitration; consent of each 
party to arbitration; conditions and limitations on consent of each Party; selection of arbitrators; 
place of arbitration; interpretation of Agreement; conduct of the arbitration; tr ansparency of 
arbitral proceedings; governing law; consultation; awards; and service of documents.   
5.7  Relationship with other agreements concluded by the Parties  
5.20.   Article 1.1 of the Agreement states that 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, includin g the WTO Agreement (Arti cle 1.3 ).  
5.21.   Table 5.1 below shows the Parties' RTAs, notified and non -notified, other than the 
Agreement.  
                                                
16 See Annex 15 -B. Source:  WTO Secretariat based on the Agreement.  
 Consultations (Art. 15.4)  
Establishment of an 
Arbitration Panel (Art. 15.6)  
Proceedings (Art. 15.9  
and Annex 15 -A) 
Panel Report  
(Art. 15.11, 15.12 ) 
(Temporary) suspension of 
benefits by complaining Party 
(Art. 15.14)  Compliance review  
(Art. 15.14)  Notification by the Party 
complained against of 
measures taken to comply, 
or intention not to comply 
(Art. 15.13)  
Ruling by the Panel on the 
level of compensation or of 
the suspension (Art. 15.14)  Non-implementation  
(Art. 15.14)  
Compensation agreed 
between the Parties  
(Art. 15.14)  Goods offices, conciliation or 
mediation (Art. 15.5)  
Suspension and termination 
of proceedings (Art. 15.10)  WT/REG371/1  
 
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  Table 5.1 Korea and Viet Nam: Participation in other RTAs (notified and non -notified in 
force), as of 11  October 2016  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
REPUBLIC OF KOREA  
Republic of Korea - Colombia  15-Jul-16 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - New 
Zealand  20-Dec-15 Goods & Services  2015 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 - Australi a 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 - US 15-Mar-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Korea  01-Aug-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Republic of Korea  01-Jul-11 Goods & Services  2011 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  
Republic of Ko rea - India 01-Jan-10 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 
Countri es (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 Goods  1976 Enabling Clause  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
VIET NAM  
Chile - Viet Nam  01-Jan-14 Goods  2015 GATT Art. X XIV 
ASEAN - Australia - New 
Zealand  01-Jan-10 Goods & Services  2010 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  
ASEAN - India 01-Jan-10 
01-Jul-15 Goods  
Services 2010 
2015 Enabling Clause  
GATS Art. V  
Japan - Viet Nam  01-Oct-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
ASEAN - Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
ASEAN - China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS  Art. V  
ASEAN Free Trade Area 
(AFTA)  28-Jan-92 Goods  1992 Enabling Clause  
Global System of Trade 
Preferences among 
Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Eurasian Economic Union 
(EAEU) - Viet Nam  05-Oct-16 Goods & Services  Not notified  
ASEAN Framework Agreement 
on Services (AFAS)  12-Aug-98 Services  Not notified  
Source:  WTO Secretariat.  
 
5.8  Government procurement  
5.22.   According to the Parties, there are no provisions in the Agreement concerning government 
procurement.  
 
 
 WT/REG371/1  
 
- 33 - 
 
  5.9  Intellectual property rights  
5.23.   Chapter 12  covers intellectual property rights. The Parties reaffirm their rights and 
obligations under the TRIPS Agreement, and any other multilateral agreement relating to 
intellectual property to which both are party. The Parties commit to grant national treatment for 
the protection of intellectua l property covered by Chapter 12  (Article 12.2) .  
5.24.   The Agreement builds on TRIPS provisions for the protection of trademarks (Article 1 2.5); 
unfair competition (Article 12.6), patents  (Article 12. 7) and copyrights a nd related rights 
(Articles  12.8).  
5.25.   Article 12.9 addresses enforcement of intellectu al property rights. Article 12 .9.15 states that 
each Party shall provide for effective enforcement procedures to curtail repetitive copyright and 
related  rights infringement by means of the internet.  
5.26.   The Parties also make commitments relating to cooperation and the exchange of 
information (Article 1 2.10) and identify areas of cooperation between each other in relation to 
intellectual property (Article 12. 10.4).  
5.27.   Chapter 19 (dispute settlement) is available to the Parties, should they wish to settle their 
disputes throug h the established procedure.  WT/REG371/1  
 
- 34 - 
 
  ANNEX 1  
Korea  
 
1. Table A1.1 below shows tariff liberalization by Korea by total, agricultural and non -
agricultu ral products. In 2015, Korea's average 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 agricult ural products were duty 
free.  
2. As a result of the Agreement entering into force, Viet Nam's exporters enjoyed a relative 
margin of preference of 51.1% vis-à-vis the prevailing MFN tariff; 93.9% for non -agricultural 
goods and 22.7% for agricultural products . Immediately at the entry into force of the Agreement, 
the share of duty free lines for imports from Viet Nam was 92% (95.8.% for non -agricultural 
products and 68.4% for agricultural products). Ten years after the entry into force of the 
Agreement, in 202 5, Viet Nam's exporters will face zero duties on 95.3% of Korea's tariff (98.5% 
for non -agricultural products and 75.7% for agricultural. In 2029, when Korea's tariff elimination 
programme will be fully implemented, the share of Korea's tariff that will be  duty free will reach 
95.3% (98.5% for non -agricultural products and 75.8% for agricultural products).  
Table A1. 1 Korea: Indicators of MFN tariff rates and preferential rates for imports from 
Viet Nam  
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 
(%) Overal l 
(%) On 
dutiable 
(%) 
MFN 2015 14.1 16.8 16.0 59.9 63.4 5.5 6.6 8.0 17.7 
Viet Nam  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2015 6.9 85.3 92.0 46.3 146.6  68.4 0.4 9.1 95.8 
2016 5.3 65.5 92.0 35.6 112.8  68.4 0.3 6.9 95.8 
2017 5.2 82.2 93.7 35.2 119.6  70.6 0.2 9.0 97.5 
2018 5.1 81.2 93.7 34.9 118.5  70.6 0.2 8.2 97.5 
2019 5.0 97.6 94.8 34.6 132.0  73.8 0.2 10.7 98.3 
2020 5.0 97.0 94.8 34.4 131.2  73.8 0.2 10.6 98.3 
2021 5.0 97.4 94.9 34.1 130.4  73.8 0.2 10.8 98.4 
2022 4.9 96.8 94.9 33.9 129.5  73.8 0.2 10.7 98.4 
2023 4.9 96.2 94.9 33.7 128.7  73.8 0.2 10.6 98.4 
2024 4.9 103.7  95.3 33.5 137.6  75.7 0.2 11.6 98.5 
2025 4.9 103.6  95.3 33.5 137.5  75.7 0.2 11.6 98.5 
2026 4.9 103.4  95.3 33.4 137.4  75.7 0.2 11.6 98.5 
2027 4.9 103.3  95.3 33.4 137.2  75.7 0.2 11.6 98.5 
2028 4.8 103.2  95.3 33.4 137.1  75.7 0.2 11.6 98.5 
2029 4.8 103.7  95.3 33.3 137.9  75.8 0.2 11.6 98.5 
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 valorem  parts of alternate rates are included . 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data  provided by Korea . WT/REG371/1  
 
- 35 - 
 
  3. Table A1.2 below sets out market access opportunities under the Agreement for Viet Na m's 
top 25 exports to the world. By 2019, only 5 lines will remain dutiable, and upon full 
implementation only 4 tariff lines will remain dutiable on those products. 2 tariff lines on rice and 
2 on shrimp will remain dutiable after full implementation of t he Agreement.  
Table A1.2 Korea: Market access opportunities under the agreement for Viet  Nam's top 
25 exports to the world  
Viet Nam'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  
851712  Telephones for cellular 
networks "mobile telephones" 
or for  other wireless networks  12.8 0.0  10     
270900  Petroleum oils and oils obtained 
from bituminous minerals, 
crude  5.8 3.0 10  10    
090111  Coffee  2.3 2.0 1  1    
100630  Semi-milled or wholly milled 
rice, whether or not polished or 
glazed  2.3 513.0  2     2 
847130  Data-processing machines, 
automatic, portable, weighing 
<= 10 kg, consisting of at least 
a central processing unit, a 
keyboard and a display  1.8 0.0  1     
640399  Footwear with outer soles of 
rubber, plastics or composition 
leather, with uppe rs of leather  1.7 13.0 5  5    
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.  1.6 0.7 2 21 2    
030617  Froze n shrimps and prawns, 
even smoked, whether in shell 
or not, incl. shrimps and 
prawns in shell, cooked by 
steaming or by boiling in water  1.5 20.0 4  2   2 
400122  Technically specified natural 
rubber "tsnr"  1.4 0.0  1     
854430  Ignition wiring sets and other 
wiring sets for vehicles, aircraft 
or ships  1.4 8.0 1  1    
640411  Sports footwear, incl. tennis 
shoes, basketball shoes, gym 
shoes, training shoes and the 
like, with outer soles of rubber 
or plastics and uppers of textile 
materials  1.3 13.0 1  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  1.3 0.0  3     
080132  Fresh or dried cashew nuts, 
shelled  1.3 8.0 1    1  WT/REG371/1  
 
- 36 - 
 
  Viet Nam'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  
900691  Parts and accessories for 
photographic cameras, n.e.s.  1.2 8.0 1  1    
030462  Frozen fillets of catfish 
"pangasius spp., silurus spp., 
clarias spp., ictalurus spp."  1.2 10.0 1  1    
640299  Footwear with outer soles and 
uppers of rub ber or plastics  1.0 13.0 3  3    
844332  Machines which only perform 
one of the functions of printing, 
copying or facsimile 
transmission, capable of 
connecting to an automatic 
data processing machine or to 
a network  0.9 1.6 2 8 2    
640419  Footwear with outer soles of 
rubber or plastics and uppers of 
textile materials  0.9 13.0 2  2    
611020  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, 
of cotton, knitted or crocheted  0.8 13.0 1  1    
271019  Medium oils and preparations, 
of petroleum  or bituminous 
minerals, not containing 
biodiesel, n.e.s.  0.8 6.3 41  30 11   
844331  Machines which perform two or 
more of the functions of 
printing, copying or facsimile 
transmission, capable of 
connecting to an automatic 
data processing machine or to 
a network  0.8 2.0 2 6 2    
940350  Wooden furniture for bedrooms  0.7 0.0  2     
940360  Wooden furniture  0.7 0.0  8     
440122  Wood in chips or particles  0.7 1.0 1 1 1    
270111  Anthracite, whether or not 
pulverised, non -agglomerated  0.7 0.0  1     
TOTALS 47.0 25.9 81 62 65 11 1 4 
Note:  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 and UNSD,  Comtrade database.  
 
Viet Nam  
 
4. Viet Nam's overall average applied MFN tariff rate in 2015 was 10.5% (Table A1.3 ). The 
average applied tariff on agricultural goods was 17.7%, compared to an average applied tariff of 
9.4% on non -agricultural products. Duty -free tariff lines accounted for 31.8% of all tariff lines  
(13.2% for agricultural products and 34.7% for non -agricultural products).  
5. Upon entry into force of the Agreement, the share of duty -free tariff lines in agricultural 
products rose from 13.2% to 87.4 %, while the share of duty -free tariff lines in non -agricultural 
products rose from 34.7% to 77. 4%. Ten years after the entry into force of the Agreement, in 
2025, Korea's exporters will face zero duties on 89% of Viet Nam's tariff lines ( 92.5% for WT/REG371/1  
 
- 37 - 
 
  agricul tural products  and 88.4% for non -agricultural products). By the end of the transition period 
in 2029, 92.5% of agricultural products and 88.5% of non -agricultural products will be duty -free. 
Table A1. 3 Viet Nam : Indicators of MFN tariff rates and preferent ial 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 tar iff 
Share of 
duty-free 
tariff 
lines (%)  Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2015 10.5 15.5 31.8 17.7 20.4 13.2 9.4 14.4 34.7 
Korea  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2015 3.5 16.9 78.7 3.4 27.1 87.4 3.5 15.9 77.4 
2016 3.2 18.6 82.3 3.3 28.7 88.5 3.1 17.6 81.3 
2017 3.0 17.7 82.4 3.3 28.5 88.5 2.9 16.5 81.5 
2018 2.6 21.6 87.0 3.0 37.4 92.0 2.6 20.1 86.2 
2019 2.6 22.1 87.5 3.0 37.5 92.1 2.5 20.6 86.7 
2020 2.6 21.9 87.5 3.0 37.3 92.1 2.5 20.3 86.7 
2021 1.9 16.7 87.8 2.8 35.4 92.1 1.8 14.8 87.2 
2022 1.9 16.6 87.9 2.8 37.4 92.5 1.7 14.6 87.2 
2023 1.9 16.5 87.9 2.8 37.4 92.5 1.7 14.4 87.2 
2024 1.8 18.1 89.0 2.8 37.4 92.5 1.7 15.9 88.4 
2025 1.8 18.1 89.0 2.8 37.4 92.5 1.7 15.9 88.4 
2026 1.8 18.1 89.0 2.8 37.4 92.5 1.7 15.9 88.4 
2027 1.8 18.1 89.0 2.8 37.4 92.5 1.7 15.9 88.4 
2028 1.8 18.1 89.0 2.8 37.4 92.5 1.7 15.9 88.4 
2029 1.8 18.1 89.0 2.8 37.4 92.5 1.7 16.0 88.5 
a WTO Definition.  
Note:  Based on the HS 2012 nomenclature.  
 
Source:  WTO estimates  based on data provided by Viet Nam, WTO -IDB. 
 
6. Table A1. 4 shows the market access opportunities in Viet Nam for Korea's top 25 exports, 
which in 2012 -2014 accounted for an average of 49.5% of Korea's global exports. The table shows 
in which year all HS 8 -digit tariff lines corresponding to the product definition will become duty 
free under the Agreement.  
7. Korea's top 25 exports cover a total of 1 73 HS lines of which 47 were already duty free on 
an MFN basis in Viet Nam's market in 2015. 26 lines were libera lized in 2015 and a further 24 lines 
in the period 201 6-2024. 76 lines (motor cars, and their parts and accessories, and light oils) 
remain subject to duties in Viet Nam once the Agreement is fully implemented . The MFN average 
rates in 2015 for these produ cts ranged from 14.5% for HS 870899 (parts and accessories for 
tractors and motor vehicles), to 57.1% for HS 870332 (motor vehicles) . WT/REG371/1  
 
- 38 - 
 
  Table A1. 4 Viet Nam : Market access opportunities under the agreement for Korea's top 
25 exports to the world  
Korea's top e xport  
products in 2012 -2014  Access Conditions to Viet Nam'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  2016  2018  2024  
271019  Medium oils and preparations, of 
petroleum or bituminous 
minerals, not containing 
biodiesel, n.e.s.  7.2 10.4 16  2  14   
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 56.1 22  2  1  19 
901380  Liquid crystal devices, n.e.s. and 
other optical appliances and 
instruments not elsewhere 
specified in chapter 90  4.5 0.0  3      
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 
both persons and goods .. 2.6 8.0 8 2 8     
870899  Parts and accessor ies, 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 transport of 
goods and special purpose motor 
vehicles, n.e.s.  2.4 14.5 11     3 8 
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 8 6 
method" .. 2.0 25.6 14      14 
890120  Tankers  2.0 4.0 2 1 2     
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 0.8 2 8 1 1    WT/REG371/1  
 
- 39 - 
 
  Korea's top e xport  
products in 2012 -2014  Access Conditions to Viet Nam'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  2016  2018  2024  
890590  Light-vessels, fire -floats, floating 
cranes and other vessels, the 
navigability of which is subsidiary 
to their main function .. 1.8 5.0 2  2     
852990  Parts suitable for use solely or 
principally with transmission and 
recep tion apparatus for radio -
broadcasting or television, 
television cameras,  digital 
cameras, video camera recorders, 
radar apparatus, radio 
navigational aid apparatus or 
radio remote control apparatus, 
monitors and projectors, n.e.s. .. 1.3 1.0 3 8 2  1   
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 piston engine "diesel 
or semi -diesel engine" of a 
cylinder capacity > 1.500 cm³ but 
<= 2.500 cm³ .. 1.1 57.1 22  1  2  19 
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 57.5 7    1  6 
853190  Parts of electric sound or visual 
signalling apparatus, n.e.s.  0.9 5.0 2 2 2     
853400  Printed circuits  0.8 0.0  4      
847330  Parts and accessories of 
automatic data -processing 
machin es or for other machines 
of heading 8471, n.e.s.  0.8 0.0  2      
290243  p-xylene  0.7 2.0 1  1     
854239  Electronic integrated circuits .. 0.7 0.0  1      
854140  Photosensitive semiconductor 
devices, incl. photovoltaic cells 
whether or not assembled in 
modules or made up into panels; 
light emitting diodes .. 0.7 0.0  5      
842952  Self-propelled mechanical 
shovels, excavators and shovel 
loaders, with a 360° revolving 
superstructure  0.7 0.0  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 43.4 14  3   1 10 WT/REG371/1  
 
- 40 - 
 
  Korea's top e xport  
products in 2012 -2014  Access Conditions to Viet Nam'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  2016  2018  2024  
854370  Electrical machines and 
apparatus, having i ndividual 
functions, n.e.s. in chapter 85  0.6 0.0  6      
291736  Terephthalic acid and its salts  0.5 0.0  1      
TOTALS  49.5 11.6 126 47 26 1 19 4 76 
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Viet Nam, WTO -IDB, UNSD -Comtrade . 
 
__________