WORLD TRADE  
ORGANIZATION   
WT/REG298/2 
4 September 2012 
 (12-4750) 
Committee on Regional Trade Agreements Original:   English/ 
 Spanish 
 
 
  
FREE TRADE AGREEMENT BETWEEN PERU AND THE REPUBLIC OF KOREA, 
(GOODS & SERVICES) 
 
Questions and Replies 
 
  The following communication, dated 29 August 2012,  is being circulated at the request of the 
delegations of Peru and the Republic of Korea. 
 
_______________ 
 
 This document reproduces the questions addressed to the Parties and the responses submitted.  
Question from the Delegation of Australia 
 
1. Paragraph 95, Australia notes that Korea has set out its GATS-plus market access 
commitments in Appendix II-A, which is referred to in Korea's Annex II reservations. 
 We would be interested to hear why Ko rea has chosen this approach to listing 
commitments.  
 
 What does Korea see are the benefits of this approach?  
 Reservation 8 in Annex II of the schedule of Korea sets out Korea's reservation with respect 
to the MA obligation.  In this respect, Appendix II-A has been introduced to modify the scope of 
reservation of the MA obligation.  
 Questions from the Delegation of Canada 
 2. Paragraph 167, pages 45-46:  Canada notes th at Article 16.16 of the Agreement refers to 
future negotiations of the chapter on government procurement in the event that one of the 
Parties' offers better conditions or benefits to  a non-Party.  Can the Parties describe the 
enforcement mechanism for this provision?  Does a Party have any recourse should the other Party refuse to enter into negotiations with a view to extend advantageous coverage on a 
reciprocal basis? 
 Article 16.16 envisages negotiations with a vi ew to extending advantage coverage on a 
reciprocal basis, in case where a Party offers, af ter the entry into force of the Agreement, to a 
non-Party additional advantages with regard to its government procurement market.  As the 
implementation of the Agreement is in its early stag e, this provision has not been invoked yet.  Still, 
the Parties are obliged to agree to the request of  the other Party for negotiations pursuant to this 
Article.  Therefore, as long as the Parties act in good faith in accordance with Article 16.16 of the WT/REG298/2 
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  Agreement, the negotiations themselv es will be initiated, and the out come depends on how the Parties 
carry out the negotiations.  
3. Paragraph 167, pages 45-46:   Canada notes that Article 16.17 of the Agreement refers to 
the participation of small and medium sized ente rprises in government procurement.  Can the 
Parties describe how they intend to fulfil thei r commitment of "facilitating access of small and 
medium-sized enterprises to government proc urement procedures, methods, and contracting 
requirements, focusing on their special needs"  while respecting the general principles of the 
agreement (such as valuation and non-discrimination)?  
 There is no specific mechanis m that Parties have agreed upon regarding how to implement 
this Article so far.  The Parties simply reaffirm  the importance of facilitating the access of SMEs to 
government procurement procedures, methods, and contracting requirements that may be 
accomplished for example by exchanging information between the Parties or by carrying out joint 
seminars or events to that respect, while r ecognizing general principles of the Agreement. 
 
Questions from the Delegation of the European Union 
 
Intellectual Property Rights 
 4. Article 17.6 provides, in recital 1, the importance of the protection of geographical 
indications (GI).  It states that each Party shall provide a system for the protection of 
geographical indications in accordance with Sect ion 3 of Part II of the TRIPS Agreement and 
protect the geographical indications of the ot her Party in accordance with its domestic 
legislation.  
Against this background, Peru and Korea  are invited to clarify the following: 
 
(a) Could the Parties explain how they implement Article 17.6 in order to protect 
each other's geographical indications? 
 Article 17.6 of the Free Trade Agreement between  Peru and the Republic of Korea recognizes 
that the geographical indications of the Parties established in Annex 17A  of the Agreement are 
geographical indications protected in the territory of the Party from which the geographical indication 
originates, that means these geographical indicati ons comply with the definition established in 
paragraph 1 of Article 22 of the TRIPS Agreement.  Those GIs will be protected in the territory of 
each Party, according to the Parties domestic legislation.     Reflecting the obligations under Section 3 of Pa rt II of the TRIPS Agreement and the relevant 
provisions in free trade agreements, Korean and Per uvian laws and regulations provides the protection 
of geographical indications as follows: 
Response from the Republic of Korea 
- Trademark Act:  Now, the certification marks for geographical indications as well as the 
collective marks for geographical indications are available for the protection of 
geographical indications under this Act.  
- Agricultural and Fishery Products Quality Cont rol Act:  This Act provides the exclusive 
right to use geographical indication on agri cultural and fishery products (including 
processed goods) upon registration.  
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  - Unfair Competition Prevention and Trade Secret Protection Act:  Under this Act, an act of 
causing confusion about the source of origin is prohibited as an act of the unfair 
competition.  In addition, this Act provid es the protection of geographical indications 
which Korea is committed to protect under its free trade agreements.  
- Liquor Tax Act:  Liquor Tax Act stipulates the protection of geographical indications for 
wines and spirits in accordance with Ar ticle 23 of the TRIPS Agreement.  
 
Response from Peru 
- Andean Decision 4861 and Legislative Decree 10752:  both establishing the industrial 
property regime of Peru, and the procedural and substantive aspects for the protection of 
geographical indications. 
 
(b) Furthermore, could the Parties submit de tails on the applicable procedures? 
 In Korea, the registration procedures to pr otect geographic indication under Trademark Act 
and Agricultural and Fishery Products Qu ality Control Act are the following:  
 
(a) Registration procedures under Agricultural and Fishery Products Quality Control Act: 
 Application  Review by Council for the registra tion of geographical indication and 
Field Study  Notice of Application  [if there is an objection to this application, 
Filing Objection  Review of Geographical indication]  Notice of Registration; 
 
 - Geographical indications that are identical or similar to certification or collective 
marks for geographical indications regist ered under the Trademark Act cannot be 
registered through these procedures. 
 
 (b) Registration procedures under Trademark Act: 
 Application  Review by Examiners  Notice of Application  [if there is an 
 objection to this application, Filing Objection  Review by Examiners]  Notice of 
 Registration; 
 
 ‐     Signs that are identical or similar to geographical indications registered under the 
 Agricultural and Fishery Products Qualit y Control Act cannot be registered as 
 trademarks under Trademark Act. 
 In Peru, the applicable procedures are tho se established in Peruvian internal law by 
Andean Decision 486 and Legislative Decree 1075.  In general terms, the pro cedure starts with the 
filing of an application for the protection of a ge ographical indication, which is then published in 
order to have a period (30 working days) for oppositions  of interested third parties.  After such period 
has elapsed, the competent authority conducts an ass essment of the application in terms of absolute 
and relative grounds after which a resolution is issued granting or denying the application filed.  This 
decision can be challenged administratively and judicially. 
 
 
 
                                                      
 1 Notified to the WTO in document:  IP/N/1/PER/I/3 (7 November 2000). 
 2 Notified to the WTO in document:  IP/N/1/PER/2 (29 July 2010).  WT/REG298/2 
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  General Provisions of the Agreement 
Other 
 
5. The EU welcomes the fact that the Agreement refers to sustainability issues, but it would 
be grateful if the Parties could clarify how they intend to address those issues.  
The Agreement covers a wide array of issues relating to sustainability in the development 
and expansion of trade and investment. For th is reason, the Agreement includes chapters on 
Environment, Labour and Cooperation. However, sustainability is sought not only through those 
chapters, but by creating a clear and predictable le gal environment for trade and investment to take 
place in line with both countries' wider developmen t goals. In that sense, the Agreement should be 
read in light of its Preamble , which includes the following: 
Parties are resolved to: 
 promote broad-based economic development in  order to reduce poverty and generate 
opportunities for sustainable economic growth; 
 
 implement this Agreement in a manner cons istent with environmental protection and 
conservation and basic human and funda mental rights protection and promote 
sustainable development. 
 
6. In the same perspective, could the Parti es clarify whether they would encourage 
investors to adopt high standards of corporate social responsibility?  
 There are no specific provisions regarding cor porate social responsibility in the Agreement, 
nonetheless, such provisions are included in an i ndependent instrument to which both Parties are 
signatory:  the OECD Declaration on Internatio nal Investment and Multinational Enterprises, 
promoting responsible business conduct and encour aging multinational companies operating in the 
countries to contribute to economic, social and envir onmental progress.  In that sense, Korea and Peru 
follow the OECD Guidelines for Multinational En terprises (which set voluntary principles and 
guidelines for responsible business conduct in a global context, consistent with applicable laws and 
internationally recognized standards), and would encourage investors to adopt high standards of 
corporate social responsibility.  
Sector Specific Provisions on Trade in Services 
Financial Services 
 
7. Article 12.10 provides for the exceptions to  be applicable.  Then, Article 12.10.3 
stipulates that "a Party may prevent or limit tr ansfers by a financial institution or cross-border 
financial service supplier to, or for the benefit of , an affiliate of or person related to such 
institution or supplier…".  
 Could the Parties explain which is the purpose of this subparagraph?  Do Parties think 
that the measures included in the quoted par agraph are not covered by the general prudential 
carve-out included in paragraph 1 of Article 12.10?   
 The general prudential carve-out included in paragraph 1 of Article 12.10 definitely covers 
the measures included in paragraph 3 of Article 12.10.  The Article 12.10.3 describes examples of 
prudential carve-out specifically relate d to Article 9.13 and Article 10.12. 
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  8. Could the Parties explain whether th e Agreement foresees any compensation 
mechanism for financial institutions, which could be adversely affected by actions included in Annex 12a paragraph 2? 
 While, in principle, the Agreement does not foresee any compensation for financial 
institutions that could be affected by actions included  in Annex 12a, paragraph 2, the Parties are of the 
view that financial institutions have recourse to both domestic remedy or international arbitration 
procedures if they consider that somehow they ha ve been adversely affected beyond what has been 
agreed in Annex 12a.  
Questions from the Delegation of Mexico 
 
Intellectual Property 
 9. Could the Parties please indicate the copy right agreements administered by the World 
Intellectual Property Organization (WIPO) that th ey are party to and in respect of which they 
reaffirm their obligations? 
Response from Peru 
- Berne Convention for the Protection of  Literary and Artistic Works (1971);  
 
- Rome Convention for the Protection of Performers, Producers of Phonograms and 
Broadcasting Organizations (Rome Convention 1961);  
 
- WIPO Copyright Treaty, 1996;  
 
- WIPO Performances and Phonograms Treaty, 1996;  and  
 
- Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication 
of Their Phonograms.  
 
10. What is the term of protection for the copyright and related rights provided for in the 
Peru-Korea FTA? 
 Where the term of protection of a work (inc luding a photographic work), performance, or 
phonogram is to be calculated:  
 (a) on the basis of the life of a natural person,  the term shall be not less than the life of 
 the author and 70 years after the author's death;  and 
  (b) on a basis other than the life of a natural person, the term shall be:  
 
  (i) not less than 70 years from the end of the calendar year of the first authorized 
  publication of the work, performance, or phonogram;  or  
  (ii) failing such authorized publication within 50 years from the creation of the 
 work, performance, or phonogram, not less than 70 years from the end of the 
 calendar year of the creation of the work, performance, or phonogram. 
  The rights of broadcasting organizations shall expire not less than 50 years after the transmission of a broadcast, whether this broadcast is  transmitted by wire or over the air, including by 
cable or satellite. WT/REG298/2 
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  11. Does the Peru-Korea FTA contain any provisions on legal protection and legal remedies 
against the circumvention of technological pr otection measures and against the removal or 
alteration of electronic rights management information? 
 No, the Peru-Korea FTA does not contain any provisions regarding the circumvention of 
technological protection measures or against th e removal or alteration of electronic rights 
management information. 
 
12. Does the Peru-Korea FTA contain any pr ovisions on copyright restrictions and 
exceptions for persons with disabilities? 
 No, the Peru-Korea FTA does not contain provisions on copyright restrictions and exceptions 
for persons with disabilities, however exceptions an d limitations are under domestic legal systems of 
each Party.  
13. What type of cooperation is provided for by the Peru-Korea FTA in terms of 
intellectual property? 
 The cooperation provided in the Peru-Korea FTA  in terms of intellectual property includes 
the development of cooperation programs thr ough collaboration in science, technology, and 
innovation; the Exchange of views and informati on on the legal framework regarding the protection 
and Enforcement of intellectual property rights; and the encouragement and facilitation of activities 
such as educational projects on the use of intellect ual property, training and specialization courses for 
officials on intellectual property rights, internationa l search and international preliminary examination 
under the Patent Cooperation Treaty, patent technology, licensing, market intelligence, plant variety 
protection, and other issues of mutual interest concerning intellectual property rights.  
14. How will the Parties cooperate to eliminate trade in goods that infringe intellectual 
property rights? 
 The Peru-Korea FTA estab lishes certain activities in order to cooperate for the elimination of 
trade in goods that infringe intellectual property rights  subject to their respective laws, regulations, or 
policies.  This cooperation should be based in the exchange of information between their competent 
enforcement agencies, dialogue on enforcement is sues, among others, as both Parties consider 
convenient.  
 15. What adjustments did Peru and Korea have to  make to their domestic legislation in 
order to implement what they agreed in the FTA as regards copyright? 
Response from Peru 
 
 Peru has not required any adjustments to its national legislation in order to implement the 
Peru-Korea FTA. 
 Response from the Republic of Korea 
  Article 39 (Principles of the Protection Period) and the article 86 (Protection Period) of the 
Copyright Act of  Korea were amended in a way to  extend the term of protection of copyright and 
related right from 50 years to 70 years in order to implement the FTA. 
 
    WT/REG298/2 
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  Labour Affairs 
 
16. Please explain the mandate and functions of the Labour Affairs Council established 
under Article 18.4 of the Agreement. 
 The Labor Affairs Council is a cooperation ch annel comprised of representatives responsible 
for labor affairs from both Parties.  The Council is in  charge of discussing matt ers of mutual interest 
and monitoring the implementation of Chapter 18 (Labor), including labor cooperation activities 
specified in Annex 18A.  
17. Does Chapter 18 provide for any procedure to address differences between the Parties 
regarding labour affairs?  If so, please provide a brief description. 
 In accordance to Article 18.6, both Parties ma y request consultations on their differences by 
delivering their intentions to their contact points,  and they may seek help from the Labor Affairs 
Council if necessary.  Environment 
 18. Please explain the relationship between co mpliance with Multilateral Environmental 
Agreements and Chapter 19 of the Agreement. 
 The Parties shall comply with their ob ligations under the multila teral environmental 
agreements to which that Party is a party.  Chapter 19 of the Agreement reiterates each Party's 
obligations under the MEAs. 
 
19. Chapter 19 of the Agreement contains provisions on climate change and technology.  
Please provide a brief description of these provisions. 
 Under the provision on climate change of the Agreement, the Parties agree to promote joint 
measures to limit or reduce the adverse effects of climate change.  Each Party, within its own 
capacities, shall adopt policies and measures on i ssues such as energy efficiency, research and 
environmental technologies to tackle climate ch ange, and measures for evaluating the vulnerability 
and adaption to climate change.   And, under the provision on technology favoring environment of the Agreement, the Parties 
agree to promote the development, diffusion, and use, among others, of clean and efficient 
technologies that reduce environmental pollution.   
20. Please provide a brief description of the Chapter 19 provisions on biological diversity. 
 Under the provision on biological diversity of the Agreement, the Parties recognize the 
importance of the conservation and sustainable use of biological diversity as a key element in the 
achievement of sustainable development. Also, re cognizing that each Party has the sovereign rights 
over its natural resources and the authority to dete rmine access to its genetic resources in accordance 
with its domestic legislation, the Parties shall e ndeavor to create conditions to facilitate access to 
genetic resources for environmentally sound uses.  
 Also, the Parties recognize the importance of respecting and preserving traditional knowledge 
and practices of their indigenous and other communi ties, and agree to exchange views on information 
on this matter.  This provision reflects the main points of the Nagoya Protocol. 
 WT/REG298/2 
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  21. What are the mandate and functions of th e Environmental Affairs Council established 
under Article 19.10 of the Agreement? 
 The Environmental Affairs Council establishe d under Article 19.10 of the Agreement will 
discuss matters of mutual interest and oversees the implementation of Chapter 19, including cooperative activities undertaken under Annex 19A. 
 
22. Does Chapter 19 provide for any procedure to address differences between the Parties 
regarding labour affairs?  If so, please provide a brief description. 
 In accordance with Article 19.12, a Party ma y request consultations with the other Party 
regarding any matter of mutual interest arising unde r this Chapter.  The Parties shall make every 
attempt to arrive at a mutually satisfactory resolution of the matter. 
 
Question from the Delegation of the United States 
 
Services 
23. Paragraph 126 of the Factual Presentation notes that, pursuant to Annex 10A of the 
Agreement, Parties have agreed to "encourage" their relevant professional bodies to develop mutually acceptable standards and criteria for licensing and certification, and to develop 
procedures for the temporary licensing of one another's professionals. 
 What efforts have the Parties made to fulfil these obligations to "encourage" their 
professional bodies, and what have been the outcomes of those efforts? 
 
 Both Parties have reached out  to the relevant stakeholders including those in particular 
industry associations and encouraged them to c ooperate on mutual recognition.  These works should 
be further continued depending on the interest of both Parties. 
 
__________