WT/REG3 75/1 
 
 
10 July  2017 
(17-3694) Page: 1/55 
Committee on Regional Trade Agreements   
 
 
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT  BETWEEN THE REPUBLIC OF KORE A AND COLOMBIA  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade Agreement between the 
Republic of Korea and Colombia , 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 Jean-Daniel Rey  
(tel: +41 22 739 5264). Any statistical questions arising from this report may be 
addre ssed to Thakur Parajuli (tel: +41 22 739 5473). 
 
 WT/REG375/1  
 
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TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Trade in services and investment  ................................ ................................ ..................  6 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ......................  8 
2.1   Background Information  ................................ ................................ ...............................  8 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  9 
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  ................................ ................................ ............................. 10 
3.1.3.1    Korea  ................................ ................................ ................................ .................. 11 
3.1.3.2    Colombia  ................................ ................................ ................................ ............. 15 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....19 
3.2   Rules of origin  ................................ ................................ ................................ ............ 20 
3.3   Export duties and cha rges, and quantitative restrictions  ................................ .................. 22 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 22 
3.4.1    Standards  ................................ ................................ ................................ ............... 22 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......22 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 22 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 23 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .23 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 23 
3.4.2.3    Special safeguards  ................................ ................................ ................................ 24 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .24 
3.4.4   Subsidies and State -aid ................................ ................................ ............................ 25 
3.4.5    Customs -related procedures ................................ ................................ ...................... 25 
3.5   Cooperation on trade in goods in specific sectors  ................................ ............................ 26 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 26 
4.1   Scope and definitions  ................................ ................................ ................................ ..26 
4.2   Denial of benefits  ................................ ................................ ................................ .......26 
4.3   General provisions on trade in services  ................................ ................................ ......... 27 
4.3.1    Market access  ................................ ................................ ................................ ......... 27 
4.3.2    National treatment and MFN  ................................ ................................ ...................... 27 
4.3.3    Local presence  ................................ ................................ ................................ ........ 27 
4.3.4    Performance requirements  ................................ ................................ ........................ 27 
4.3.5    Senior Managers and Boards of Directors  ................................ ................................ ....27 
4.3.6    Movement of natural persons  ................................ ................................ .................... 28 
4.4   Liberalization commitments  ................................ ................................ ......................... 28 WT/REG375/1  
 
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  4.4.1    Korea  ................................ ................................ ................................ ..................... 28 
4.4.1.1    MFN and horizontal comm itments  ................................ ................................ ........... 29 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 29 
4.4.2    Colombia  ................................ ................................ ................................ ................ 33 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ........... 33 
4.4.2.2    Sector specific commitments  ................................ ................................ .................. 33 
4.5   Regulatory provisions  ................................ ................................ ................................ ..37 
4.5.1    Domestic regulation  ................................ ................................ ................................ .37 
4.5.2    Recognition  ................................ ................................ ................................ ............. 37 
4.5.3    Subsid ies ................................ ................................ ................................ ................ 38 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 38 
4.5.4.1    Measures to safeguard the balance -of-payments ................................ ....................... 38 
4.5.5    Other  ................................ ................................ ................................ ..................... 38 
4.5.5.1    Monopolies and exclusive service suppliers  ................................ ............................... 38 
4.5.5.2    Transparency in devel oping and applying regulations  ................................ ................ 38 
4.5.5.3    Investment  ................................ ................................ ................................ .......... 38 
4.6   Sector specific provisions on trade in services  ................................ ................................ 39 
4.6.1    Telecommunications services  ................................ ................................ .................... 39 
4.6.2    Financial services  ................................ ................................ ................................ .....39 
4.6.3    Common understanding on some services  ................................ ................................ ..39 
4.6.4    Cooperation on trade in services in specific sectors  ................................ ...................... 40 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  40 
5.1   Transparency  ................................ ................................ ................................ ............. 40 
5.2   Current payments and capital movements  ................................ ................................ .....40 
5.3   Exceptions  ................................ ................................ ................................ ................. 41 
5.3.1    General exceptions  ................................ ................................ ................................ ..41 
5.3.2    Security exceptions  ................................ ................................ ................................ ..41 
5.3.3    Taxation  ................................ ................................ ................................ ................. 41 
5.4   Accession and Withdrawal ................................ ................................ ............................ 41 
5.5   Institutional framework  ................................ ................................ ............................... 41 
5.6   Dispute settlement  ................................ ................................ ................................ .....42 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 43 
5.8   Government procurement  ................................ ................................ ............................ 45 
5.9   Intellectual property rights  ................................ ................................ .......................... 46 
5.10   Other  ................................ ................................ ................................ ...................... 46 
5.10.1    Electronic commerce  ................................ ................................ .............................. 46 
5.10.2    Competition and consumer policy  ................................ ................................ ............. 47 
5.10.3    Trade and sustainable development (Environment and Labour)  ................................ ...47 
5.10.4    Cooperation  ................................ ................................ ................................ .......... 48 
ANNEX 1  ................................ ................................ ................................ ........................  49 WT/REG375/1  
 
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Key Facts  
 
Parties to the Agreement:  Republic of Korea and Colombia  
 
Date of Signature:   21 February  2013 
 
Date of Entry into Force:  15 July 2016 
 
Date of Notification:   5 October 2016  
 
Full implementation:   1 January 2035  
 
 
1  TRADE ENVI RONMENT  
1.1.  In 2015 , the GDP of the Republic of Korea (hereinafter referred to as "Korea") was estimated 
at US$1,378  billion, while that of Colombia was US$ 292 billion. Averaged over the period 
2013-2015, the Parties' trade (goods and services) to GDP ratio wa s 47.8 for Korea  and 18.3 for 
Colombia.1 
1.1  Merchandise trade  
1.2.  In 2015  Korea 's merchandise exports amounted to US$ 527 billion ( 3.2% of global exports) 
and imports amounted to US$ 436 billion ( 2.61% of global imports). In the same year Colombia 's 
merchandise exp orts amounted to US$ 36 billion ( 0.22% of global exports) and imports 
US$54 billion ( 0.32% of global imports). Korea  was the world's 5th largest exporter and 6th largest 
importer of merchandise, while Colombia  was the 39th largest exporter and 3 0rd largest importer. 
The structure of the Parties' merchandise exports and imports  differ, with Korea  exporting and 
importing mainly manufactured products (representing 89.4 % of its total exports  and 61.6 % of its 
total imports) while  Colombia 's exports are a mix of f uels and mining products (54.1%) and 
manufactured products (19.4% of its global imports) and imports are larg ely manufactured 
products  (76.5% of its total imports).  
1.3.  Developments in global and intra -Party trade are presented in Chart 1.1 (A and B) over the  
period 2000 -2015. A steady but modest trade  surplus  is reported for Korea  globally while the trade 
surplus wa s larger  in its bilateral trade with Colombia for almost the entire period. Colombia 
reports an almost constant trade deficit , both globally (exce pt in 2011 and 2012) and in its 
bilateral trade with Korea. For both Colombia and Korea, there was a notable slow -down  in trade in 
connection with the financial crisis in 2009 , while the ir trade has picked up since with the 
exception of  2015 which shows a contraction in  trade  both globally and bilaterally .  
1.4.  Based on 2015  trade data2, Colombia  was Korea 's 48th largest source of imports3 and 
39th largest destination for exports4, while Korea  was Colombia 's 8th largest source of imports5 and 
24th largest expor t destination.6 
                                                
1 Source for this section: WTO Trade Profiles, as available on 23 February 2017 based on 2015 data.  
2 Source: UNSD Comtrade database (excluding intra -EU trade). The na tional statistics of the Parties 
may differ slightly from the official sources systematically used in the preparation of factual presentations.  
3 In 2015, the five top sources of imports for Korea were: China (20.7%); the EU(28) (13.1%); Japan 
(10.5%); the  US (10.1%); and Saudi Arabia (4.5%).  
4 In 2015, the five top destinations for Korea's exports were: China (26%); the US (13.3%); the EU 
(28) (9.2%); Hong Kong, China (5.8%); and Vietnam (5.3%).   
5 In 2015, the five top sources of imports for Colombia wer e: the US (28.8%); China (18.6%); the 
EU(28) (15.3%); Mexico (7.1%); and Brazil (3.9%).   
6 In 2015, the five top destinations for Colombia's exports were: the US (28.2%); the EU(28) (16.9%); 
Panama (6.7%); China (6.3%); and Ecuador (4%).    WT/REG375/1  
 
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  Chart 1.1 Korea -Colombia : Merchandise bilateral t rade and with world (2000 -2015 ) 
0.00.20.40.60.81.01.21.41.61.8
010203040506070
2000 2002 2004 2006 2008 2010 2012 2014B. Colombia 2000 -2015
(US$ billions)
Imports from Rep. of Korea (Right Axis)
Export to Rep. of Korea (Right Axis)
Total Imports
Total Exports
0.00.20.40.60.81.01.21.41.61.8
0100200300400500600700
2000 2002 2004 2006 2008 2010 2012 2014A. Korea 2000 -2015 
(US$ billions)
Imports from Colombia (Right Axis)
Export to Colombia (Right Axis)
Total Imports
Total Exports
 
Source:  UNSD Comtrade database.  
 
1.5.  The commodity structure of trade between Korea  and Colombia , and between each  Party and 
the world, during the period 2013 -2015, is shown in Chart 1.2, on the basis of Harmonized System 
(HS) Sections.  
1.6.  Mineral products (43 %), base metals (27.6 %), and vegetable products (19.8 %) together 
accounted for 90.4% of Korea 's imports from Colombia , while these three sectors were Korea 's 
largest , 3rd, and 9th largest global imports  respectively , representing 45.3% of Korea 's total global 
imports (respectively 34.4%, 9%, and 1.9 % of Korea 's global imports). These three categories of 
products cor responded respectively to Colombia 's 4th, 5th, and 7th largest global exports 
(corresponding together to 22.7% of Colombia 's global exports). With respect to the Colombian 
market, vehicles (37.9%), machinery (19.7%), and plastics (18.4%)  together accounted  for 76% 
of Colombia's  imports from Korea. These three sectors were Colombia's  3rd largest , largest , and 
6th largest global imports representing overall 43.1% of Colombia's  total global imports 
(respectively 13.7%, 23.3%, and 6 .1% of Colombia's  global impo rts). These three categories of 
products corresponded respectively to Korea's  2nd, largest, and 5th largest global exports 
(corresponding together to  65% of Korea's  global exports).  WT/REG375/1  
 
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  Chart 1.2 Colombia -Korea : product composition of merchan dise trade, annual average 
(2013 -2015 ) 
43
2820333Korea's imports from Colombia (%)
34
259844332226Korea's Global Imports (%)
36
209877634Korea's Global Exports (%)
38
201897224Colombia's imports from Korea (%)
23
14
14 11764443226Colombia's Global Imports (%)
63954333226Colombia's Global Exports (%)Total: US$ 379 million Total: US$ 492,555 million
Total: US$ 59,148 million Total: US$ 49,769 millionTotal:  US$ 553,197 million
Total: US$ 1,317 million
 
Source:  UNSD Comtrade database.  
 
1.2  Trade in services and investment  
1.7.  In 2015 , Korea 's shares of total commercial services exports and imports were 2.04% and 
2.44% respectively, while Colom bia's share was 0.15% of world exports and 0.24% of world 
imports of services. With total commercial services exports of US$ 97 billion, and imports of 
US$112 billion, Korea  was the world's 9th largest exporter and 7th largest importer of commercial 
service s. Colombia  was the world's 41st largest exporter (US$ 7 billion) and 40th largest importer 
(US$11 billion).  
1.8.  Charts 1.3 and 1.4 below show global trade in commercial services for Korea  and Colombia 
(based on the period 2005 -2015). Both Parties had an overal l deficit in trade in commercial 
services with the world , although  the volume of services traded by Korea is considerably higher in 
absolute terms compared to  Colombia . In the case of Korea , transport, other business services, 
and travel  represent the thre e main traded services, with construction services also contributing 
substantially to Korea's exports to the world . The same categories of services also constitute 
Colombia's main trade services, with travel being the largest  imported and exported service . WT/REG375/1  
 
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  Chart 1.3 Korea : Trade in commercia l services with world (2005 -2015 )  
020406080100120140
2005 2007 2009 2011 2013 2015A. Korea imports from world
2005 -2015
(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 others020406080100120140
2005 2007 2009 2011 2013 2015B. Korea exports to world
2005 -2015
(US$ Billion)
 
Source:  WTO Statistics database based on BPM6.  
Chart 1.4 Colombia : Trade in commercial  services with world, (2005 -2015) 
051015
2005 2007 2009 2011 2013 2015A. Colombia imports from world
2005 -2015
(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 others051015
2005 2007 2009 2011 2013 2015B. Colombia exports to world
2005 -2015
(US$ Billion)
 
Note:  No export under the  service categories: Maintenance and repair services n.i.e. and Construction . 
Source:  WTO Statistics database based on BMP6.  
 
1.9.  Charts 1.5 and 1.6 below depict each Party's foreign direct investment stocks and flows with 
the w orld during the period 2000 -2015. The overall FDI stocks of both Parties ' have grown steadily  
during the period, while FDI flows have fluctuated . Colombia has had  an FDI deficit  (both in terms 
of stock and flow). For Korea, inward FDI stocks exceeded outward stocks during the first part of 
the period (2000 -2007) while FDI stocks have surpassed inward stocks since 2008. With respect to 
overall FDI flow s, outward FDI flow s have exceeded  inward flow s since 2005 . Bilateral FDI data are 
not available.  WT/REG375/1  
 
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  Chart 1.5 Korea : FDI sto ck and flow with the world (2000 -2014) and with Colombia  
(2000 -2015 ) 
050100150200250300
2000 2002 2004 2006 2008 2010 2012 2014Korea FDI stock with world
2000 -2015
(US$ Billion ) 
Inward Outward
05101520253035
2000 2002 2004 2006 2008 2010 2012 2014Korea FDI flow with world
2000 -2015
(US$ Billion) 
Inward Outward
 
Source:  UNCTAD . 
Chart 1.6 Colombia : FDI stock and f low with the world (2000 -2015 )  
020406080100120140160
2000 2002 2004 2006 2008 2010 2012 2014Colombia FDI stock with world
2000 -2015
(US$ Billion ) 
Inward Outward
-2024681012141618
2000 2002 2004 2006 2008 2010 2012 2014Colombia FDI flow with world
2000 -2015
(US$ Billion) 
Inward Outward
 
Source:  UNCTAD . 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Free Trade Agreement between Korea and Colombia, (hereinafter referred to as "the 
Agreement") is Korea's 16th free trade agreement and Colombia's 11th free trade agreement.  
2.2.  The Agreement was signed on 21 February 2013  and notified on 5 October 2016  under 
Article  XXIV:7(a) of GATT 1994 and Article V:7(a) of GATS (see document WT/REG3 75/N/1 and 
S/C/N/868) . It entered into force on 15 July 2016 . 
2.3.  The Agreement establishes a free trade area (Article 1.1). 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/co/2/  
 
Colombia :  http://mincit.gov.co/tlc/publicaciones.php?id=5869  and 
http://www.mincit.gov.co/tlc/publicaciones.php?id=4468  
 WT/REG375/1  
 
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  2.4.  The Agreement is composed of 22  Chapters. Table 2.1 below summarizes the st ructure of the 
Agreement. A number of Annexes, including the Parties' tariff elimination schedules and the lists of 
reservations on cross -border supply of services and investment (non -conforming measures)  also 
form part of the Agreement. Two Side letters o n trade in services -related specific issues 
compl ement the text of the Agreement . 
Table 2.1 Structure of the Agreement  
Titles, Chapters  Title/description  
Preamble   
Chapter 1  Initial provisions and general definitions  
Chapter 2  National treatment and market access for goods  
Chapter 3  Rules of origin and origin procedures  
Chapter 4  Customs administration and trade facilitation  
Chapter 5  Sanitary and phytosanitary measures  
Chapter 6  Technical barriers to trade 
Chapter 7  Trade remedies  
Chapter 8  Investment  
Chapter 9  Cross -border trade in services  
Chapter 10  Temporary entry for business persons  
Chapter 11  Telecommunications  
Chapter 12  Electronic commerce  
Chapter 13  Competition and consumer policy  
Chapter 14  Government procurement  
Chapter 15  Intellectual property rights  
Chapter 16  Trade and sustainable development  
Chapter 17  Cooperation  
Chapter 18  Transparency  
Chapter 19  Institutional provisions  
Chapter 20  Dispute settlement  
Chapter 21  Exception s 
Chapter 22  Final provisions  
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapter 2 of the Agreement covers trade in goods. It is complemented by Chapters 3 
through 7, which also contain disciplines applicable to trade in  goods  only7 while other Chapters of 
the Agreement contain rules of a more horizontal nature covering trade in goods and in services, 
or other trade -related aspects.  
3.2.  While Section A of Chapter 2 is related to the application of the national treatment prin ciple, 
Section B contains the rules applicable to the elimination of customs duties. Section C of Chapter 2 
contains disciplines on special regimes (standstill on waivers of customs duties; duty -free 
temporary admission of certain goods; no duty levied on goods re -entered after repair or 
alteration; and duty -free entry of commercial samples of negligible value and printed advertising 
material ). Rules on non -tariff measures are contained in Section D of Chapter 2 and relate to 
import and export restrictions;  import licensing; administrative fees and formalities; export duties, 
taxes, or other charges; and state trading enterprises. Other measures, such as agricultural 
safeguard measures; agricultural export subsidies; and a reference to the Andean price band 
system are covered in Section E of Chapter 2.  
3.3.  A Committee on Trade in Goods is established to address tariff and non -tariff barriers to 
trade in goods b etween the Parties (Article 2.16 ). An ad -hoc Working group on trade in agricultural 
goods is also establ ished to address any obstacle to the trade of agricultural goods between the 
Parties (Article 2.16, paragraph 4).   
 
 
                                                
7 Chapters 3 th rough 7 contain disciplines on rules or origin; customs administration; sanitary and 
phytosanitary measures; technical barriers to trade; and trade remedies.  WT/REG375/1  
 
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  3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.4.  The Parties agree to apply national treatment to each other's i mports in accordance with 
Article III of GATT 1994, which is incorporated into and made part of the Agreement, mutatis 
mutandis (Article 2.2 paragraph 1 ). Colombia initially  had the possibility to  derogate from the 
national treatment principle when taking measures covered by Annex 2.2 to the Agreement, in 
particular with respect to the taxation of alcoho lic beverages. Such derogation  became obsolete on 
1 August 2013.  
3.5.  Neither Party shall adopt or maintain any prohibition or restriction on the import of any g ood 
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 incorporated into and made part 
of the Agreement mutatis mutandis (Article 2.8 ). In the case o f Colombia, however,  import 
controls on  some automotive vehicles  and on  determined goods8 (as provided for in Articles 3 and 
6 of the Colombian Decree 3803 of October 2006 ) remain applicable ( Annex 2.2, third and fourth 
indents of paragraph 1) . Remanufactu red goods are not covered by this exception, though 
consultations between the Parties are foreseen with a view to resolving any issue related to the 
trade of remanufactured goods and to agree on the definition of "remanufactured goods"9. The 
Agreement also  highlight s that neither Party shall  require a person of the other Party to establish 
or maintain a contractual or other relationship with a distributor in its territory  as a condition for 
engaging in importation or for the import of a good  (Paragraph 4 of  Article 2.8).  
3.6.  With respect to administrative fees and formalities, the Agreement builds on the provisions of 
Article VIII of GATT 1994 (Article 2.10 ). It also foresees that each Party shall make available and 
maintain through the Internet a current list o f the fees and charges it imposes in connection with 
importation or exportation.10  
3.7.  The Parties confirm their rights and obligations with respect to the WTO Agreement on 
Import Licensing. However,  neither Party shall apply an import licensing pr ocedure to a  good of 
the other P arty unless it has provided a notification, as indicated in Article  2.9 (second paragraph).  
3.1.2   Liberalization of trade and tariff lines  
3.8.  The Parties shall eliminate customs duties on each other's  originating goods  in accordance 
with their  Schedules contained in Annex 2 -A to the Agreement. Moreover, neither Party shall 
increase any existing customs duty, or adopt any new customs duty11, on an originating good of 
the other Party other than in accordance  with the Agreement (Article 2.3 paragraph  1).  
3.9.  The Parties may consult and consider accelerating the elimination of customs duties foreseen 
by the Agreement (Article 2.3 paragraph 4).  
3.1.3   Liberalization schedule  
3.10.   Annex 2 -A to the Agreement contains the Parties' respective  tariff elimination programmes . 
The staging categories are indicated in Annex 2 -A, as complemented in the General Notes to the ir 
tariff schedules.   
3.11.   Paragraph 2 of Article 2.3 establishes that each Party shall progressively eliminate its 
customs duties on originating goods, in accordanc e with its Schedule in Annex 2 -A. Except as 
otherwise provided in a Party's Schedule of tariff concessions, the Agreement identifies the 
following ten staging categories applying to the elimination of customs duties by each Party : 
                                                
8 The following categories of goods are covered by Decree 3803/2006: fishing resources, surveillan ce 
and private security equipment, radioactive isotopes and radioactive material, some private forces equipment, 
hydrocarbons and gasoline.  
9 Such consultations had not taken place on the date the factual presentation was being prepared.  
10 Colombia clarifi ed that it does not apply any charge or administrative formality addressed in 
Article  VIII of GATT 1994.  
11 A Party may , however , raise a customs duty to the level established in its Schedule to Annex 2 -A 
following a temporary unilateral reduction.  WT/REG375/1  
 
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   Customs duties for goods in category "0" were eliminated or were already duty free on 
the date of entry into force of the Agreement (15 July 2016);  
 
 Customs duties for goods in category "3" shall be reduced to and bound at zero over 
three equal annual stages from the entry into fo rce of the Agreement. The goods shal l 
be duty -free on 1 January 2018 ;  
 
 Customs duties for goods in category "5" shall be reduced to and bound at zero over five 
equal annual stages from the entry into force of the Agreement. The goods shal l be 
duty-free on  1 January 2020 ; 
 
 Customs duties for goods in category "7" shall be reduced to and bound at zero over 
seven  equal annual stages from the entry into force of the Agreement. The goods shal l 
be duty -free on 1 January 2022 ;  
 
 Customs duties for goods in catego ry "10" shall be reduced to and bound at zero over 
ten equal annual stages from the entry into force of the Agreement. The goods shal l be 
duty-free on 1 January 2025 ;  
 
 Customs duties for goods in category "12" shall be reduced to and bound at zero over 
twelve equal annual stages from the entry into force of the Agreement. The goods shall 
be duty -free on 1 January 2027 ;  
 
 Customs duties for goods in category "15" shall be reduced to and bound at zero over 
fifteen  equal annual stages from the entry into forc e of the Agreement. The goods shal l 
be duty -free on 1 January 2030 ;  
 
 Customs duties for goods in category "16" shall be reduced to and bound at zero over 
sixteen  equal annual stages from the entry into force of the Agreement. The goods shal l 
be duty -free on 1 January 2031 ;  
 
 Customs duties for goods in category "19" shall be reduced to and bound at zero over 
nineteen  equal annual stages from the entry into force of the Agreement. The goods 
shall be duty -free on 1 January 2034 ; and  
 
 Customs duties for good s in category "E" shall remain at base rates.  
 
3.12.   The base rates of customs duty are set out in both Parties' Schedules . If a Party reduces its 
applied MFN customs duty below  the customs duty c alculated in accordance with a P arty's 
schedule to Annex 2 -A, that  applied MFN duty shall also be applied to the other Party. 
Notwithstanding the above, Colombia shall apply a preferential customs duty rate which is 0.5  
percentage  points less than the applied MFN customs duty rate on the date of entry into force of 
the A greement to goods from Korea for as long as the applied MFN customs duty rate is lower than 
the rate calculated in accordance with Colombia's tariff elimination programme. Specific modalities 
for the application of the preferential customs duty rate based on MFN customs duty rates are 
detailed in the General Notes on the tariff schedule of Colombia.  
3.1.3.1   Korea  
3.13.   Korea 's applied t ariff in 2016  consisted of 12,243  lines at the HS ten-digit level (HS  2012). 
99.23% of the tariff rates were ad valorem  and 94  lines had non-ad valorem  tariffs.12  
3.14.   In addition to the above -mentioned ten staging categories Korea's Schedule also contains 
the following five (5) staging categories : 
 Customs  duties for goods in category "12 -A" shall be reduced to an d bound at zero over 
ten equal a nnual stages starting two years after  the entry into force of the Agreement. 
The customs duties shall therefore  remain at base rates during the first two years. The 
goods shal l be duty -free on 1 January 2027 ;  
 
                                                
12 93 lin es had mixed duties, and 1 line specific duties.  WT/REG375/1  
 
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   Customs  duties for goods in category "13 " sha ll be reduced to an d bound at zero over 
thirteen  equal annual stages from the entry into force of the Agreement. The goods shal l 
be duty -free on 1 January 2028 ; 
 Customs duties for goods in category "16 -A" shall be reduced to and bound at zero over 
fourteen  equal annual stages starting two years after  the entry into force of the 
Agreement. The customs duties shall therefore  remain at base rates for the first two 
years . The goods shal l be duty -free on 1 January 2031 ;  
 
 Customs duties for goods in category "16 -S" shall be subject to the following provisions ;  
i. For goods entered into Korea from 1 May through 31 October, customs duties shall 
remain at base rate; and  
ii. For goods entered into Korea from 1 November through 30 April, customs duties 
shall be removed in s ixteen equal annual stages from the entry into force of the 
Agreement. The goods shall be duty -free on 1 January 2031; and  
 Customs duties for goods in category "X" are not subject to  tariff elimination .  
 
3.15.   Table 3.1 shows tariff elimination commitments by Korea  under the Agreement. In 2016 , 
1,953  lines were duty free on an MFN basis, representing 16% of Korea 's total tariff, 
corresponding to 15% of its imports from Colombia  during 2013 -2015. Immediately following the 
entry into force of the Agreement, an ad ditional 7,898 lines (64.5 % of Korea 's tariff) became 
duty-free for imports from Colombia . This resulted in 80.5% of Korea 's tariff becoming duty free, 
corresponding to 38.7% of Korea 's total imports from Colombia  (during 2013 -2015). Further tariff 
lines w ill become duty free in 2018, 2020, 2022, 2025, 2027, 2028, 2030, 2031, and 2034. After 
ten years of implementation of the tariff elimination programme, 95.6% of Korea's tariff will be 
duty-free, corresponding to 99.8% of its import s from Colombia during 2 013-2015. As a 
consequence  of the Agreement, 98.4%  of the Korea n tariff will be duty free for imports from 
Colombia, with 173 tariff lines remaining dutiable  once the Agreement is fully implemented in 
2034. 
Table 3.1: Korea  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Korea's tariff 
schedule  Value of Korea's 
imports from Colombia  
(2013 -2015) a 
US$ million  % of Kore a's total 
imports from  
Colombia  
(2013 -2015)  
2016 (MFN)  1,953  16.0 56.7 15.0 
2016 7,898  64.5 89.7 23.7 
2018 299 2.4 160.3  42.3 
2020 765 6.2 66.8 17.6 
2022 166 1.4 4.9 1.3 
2025 625 5.1 0.2 0.0 
2027 39 0.3 0.0 0.0 
2028 2 0.0 0.0 0.0 
2030 4 0.0 0.0 0.0 
2031 314 2.6 0.6 0.2 
2034 5 0.0 0.0 0.0 
Remain dutiable  173 1.4 0.0 0.0 
Total  12,243  100.0  379.2  100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Tariff lines subject to in -quota rates13 are excluded in the computation; for the calculation of  
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included . 
 16 tariff lines14 under the Excluded category reflect the MFN 2016 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 . 
                                                
13 A number of products are subject to TRQs on an MFN basis while 5 of these products ( 040210.10.10, 
040210.10.90, 040210.90.00, 040221.10.00, 040221.90.00 ) are also subject to preferential TRQ commitments 
under the Agreement.  
14 100610.00.00, 100620.10.00, 100620.20.00, 100630.10.00, 100630.20.00, 100640.00.00, 
110290.20.00, 110319.30.00, 110320.20.00, 110419.10.00, 180690.22.90, 180690.29.99, 190120.10.00, 
190120.90.00, 190190.90.91, 190190.90.99  WT/REG375/1  
 
- 13 - 
 
  3.16.   Table 3.2 shows Korea 's tariff elimination, by HS  section. The 173 tariff lines that will 
remain subject to duties once implementation is completed in 2034 are found in sections I (Live 
animals and animal products); II (Vegetables); III (animal or vegetable fat and oils); IV (prepared 
foodstuffs, and bev erages); and VI (chemicals) , with final average tariffs at between 59.8% and 
754.3%.   
  WT/REG375/1  
 
- 14 - Table 3.2 Korea: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the  
MFN 2016  Number of duty -free lines under the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2016  2018  2020  2022  2025  2027  2028  2030  2031  2034  
I 20.5 762 21 60 44 186 81 235 12 2  74 5 42 59.8 
II 108.2  690 29 42 43 185 33 143 2  1 113  99 372.3  
III 13.4 108  26 4 51 1 13    12  1 630.0  
IV 29.5 543 4 33 50 180 45 94 1  3 103  30 181.3  
V 3.8 392 47 335 10           
VI 7.5 2,299  174 2,049  18 34  11    12  1 754.3  
VII 6.7 377 5 370 2           
VIII 7.7 242 28 214            
IX 5.8 316 38 36 4 96  119 23       
X 0.0 288 288             
XI 9.7 1,289  28 1,233  6 9 6 7        
XII 10.1 100  100            
XIII 7.8 345 1 337  7          
XIV 5.2 118 5 70 27 16          
XV 4.2 1,037  412 619 2 1  3        
XVI 5.6 2,064  562 1,457 45           
XVII 5.8 333 80 220 33           
XVIII 6.7 563 77 476 10           
XIX 3.4 81 47 34            
XX 5.4 281 92 187 1    1       
XXI 0.0 15 15             
Total  14.1 12,243  1,953  7,898  299 765 166 625 39 2 4 314 5 173 267.0  
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 dat a provided by Korea.  WT/R EG375/1  
 
- 15 - 
 
  3.17.   As illustrated by Chart 3.1 below , the duties remaining  are set at the same level as MFN 
rates for most HS Chapters . The exceptions are for  some products classified in Chapters 3 (fish 
and crustaceans), and 8 (fruits and nuts), where the average preferential rates are lower than the 
average MFN rate s. The highest average tariffs  for lines remaining dutiable , at rates above 600%,  
are found in HS 13 (some lac, gums, resins and other vegetable saps and extracts at 754.3%); 
15 (some animal  or vegetable fats and oils at 630%); 21 (some miscellaneous edible preparations 
at 754.3%); and 33 (some essential oils and resinoids, perfumer, cosmetic or toilet preparations 
at 754.3%) . 
Chart 3.1 Korea: Av erage of dutiable rates, by HS Chapter  
0100200300400500600700800
02 03 04 07 08 09 10 11 12 13 15 16 17 18 19 20 21 23 33Average Duty Rate
HS Chapters Preferential MFN
 
Note:  Based on the HS 2012 nomenclature . 
 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 r ates are included.  
Source:  WTO estimates based on data provided by Korea . 
 
3.1.3.2   Colombia  
3.18.   Colombia 's applied tariff in 2016  consisted of 7,483  lines at the HS ten-digit level 
(HS 2012). 97.78 % of the tariff rates were ad valorem  and 166 lines had non -ad valorem  tariffs.15  
3.19.   In addition to the above -mentioned ten staging categories Colombia's  Schedule contains the 
following four staging categories:  
 Customs duties for goods in category " 9" shall be reduced to and bound at zero over 
nine equal annual stages from the e ntry into force of the Agreement. The goods shall be 
duty-free on 1 January 20 24; 
 
 Customs duties for goods in category " 18" shall be reduced to and bound at zero over 
eighteen  equal annual stages from the entry into force of the Agreement. The goods 
shall be duty -free on 1 January 20 33; 
 
 Customs duties for goods in category "1 8-A" shall be reduced to and bound at zero over 
thirteen  equal annual stages starting five years after  the entry into force of the 
Agreement. The customs duties shall therefore  remain  at base rates during the first five 
years. The goods shall be duty -free on 1 January 20 33; and 
 
                                                
15 All non -ad valorem  duties were compound duties and were related to the applied Price Band 
Mechanism.  WT/REG375/1  
 
- 16 - 
 
   Customs duties for goods in category " 20" shall be reduced to and bound at zero over 
twenty  equal annual stages from the entry into force of the Agreement. The  goods shall 
be duty -free on 1 January 20 35. 
 
3.20.   Table 3.3 shows tariff elimination commitments by Colombia  under the Agreement. In 2016 , 
272 lines were duty free on an MFN basis, representing 3.6% of Colombia 's total tariff, 
corresponding to 3.3% of its impo rts from Korea  during 2013-2015. Immediately following the 
entry into force of the Agreement, an additional 4,188  lines ( 56% of Colombia 's tariff) became 
duty-free for imports from Korea . This resulted in 59.6% of Colombia 's tariff being  duty free, 
corresp onding to 35.6% of its total imports from Korea  (during 2013-2015). Further tariff lines will 
become duty free in 2018, 2020, 2022, 2024, 2025, 2027, 2030, 2031, 2033, and 2034 . After ten 
years of implementation of the tariff elimination programme, 96.3% o f Colombia's tariff will be 
duty-free, corresponding to 97.1% of its total import s from Korea during the period 2013 -2015.  In 
2035, which corresponds to Colombia's  full implementation of its tariff elimination programme, the 
ad valorem  part of the tariff w ill have been  eliminated for 93 out of 98 (eight -digit) tariff lines 
subject to the price band system . Because the variable component of these tariff lines is unknown, 
all the  tariff lines  subject to this system  are nevertheless  classified  in the "remain d utiable" 
category. At the end of the implementation  period , twenty years after the entry into force of the 
Agreement, close to Colombia's entire tariff will be duty free for imports from Korea, with 2.1% of 
the tariff remain ing dutiable, corresponding to 1 56 (eight -digit) tariff lines and representing a 
negligible share  of its imports from Korea (during 2013 -2015) . 
Table 3.3: Colombia:  
Tariff elimination commitments under the Agreement and corresponding averag e trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Colombia's 
tariff 
schedule  Value of Colombia's 
imports from Korea  
(2013 -2015) a 
US$ million  % of Colombia's total 
imports from  
Korea  
(2013 -2015)  
2016 (MFN)  272 3.6 43.9 3.3 
2016 4,188  56.0 425.8  32.3 
2018 33 0.4 3.3 0.2 
2020 1,574  21.0 297.0  22.5 
2022 508 6.8 75.1 5.7 
2024 1 0.0 5.9 0.4 
2025 634 8.5 427.7  32.5 
2027 24 0.3 38.6 2.9 
2030 41 0.5 0.0 0.0 
2031 42 0.6 0.0 0.0 
2033 5 0.1 0.0 0.0 
2034 5 0.1 0.0 0.0 
Remain dutiable  156b 2.1 0.0 0.0 
Total  7,483  100.0  1,317.3  100.0  
a Import coverage is from HS chapters 1 -97. 
b There are 98 tariff lines that are subject to price band system under the Agreement and the 
ad-valorem part of the duty is liberalized. However since the " Aplica S istema Andino " is unknown, 
those lines are counted as remaining dutiable.   
Note:  Tariff lines subject to in -quota rates16 are excluded in the computation . For the calculation of 
averages, duties o n the tariff lines subject to the price band system ( Aplica S istema Andino ) on an 
MFN basis and under the Agreement are excluded.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Colombia . 
 
                                                
16 6 products ( 0402.10.00, 0402.10.00, 0402.21.00, 0402.21.00, 0402.21.00  and 0402.21.00 ) are 
subject to TRQs under the agreement.  WT/R EG375/1  
 
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  3.21.   Table 3.4 shows Colombia 's tariff elimination, by HS section. The 156 lines that will rem ain 
subject to duties once implementation is completed in 2035 are found in sections I (Live animals 
and animal products); II (Vegetables); III (animal or vegetable fat and oils); IV (prepared 
foodstuffs, and beverages); and VI (chemicals) , with final aver age tariffs at between 28.1% and 
88.4%. With respect to products for which duties will still remain , and  that are classified in 
HS Sections III and VI , all the tariff lines are subject to the price band mechanism. Consequently, 
the final average tariff rat es for these products  cannot be computed .   
  WT/REG375/1  
 
- 18 - Table 3.4 Colombia: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2016  Number of duty -free lines under the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2016  2018  2020  2022  2024  2025  2027  2030  2031  2033  2034  
I 19.8 415  103  61 35  147 3 2 17 5 5 37 88.4 
II 13.1 428 1 277 2 29 10  38 5 11 9   46 28.1 
III 10.0 66  16  4 2    2    42 * 
IV 13.6 310  121  49 4  63 5 26 16   26 10.6 
V 5.0 193 1 183  9           
VI 5.0 1,425  175 1,034   145 59  7      5 * 
VII 7.4 315 8 131 11 75 80  10        
VIII 8.9 78  32  16 9  21        
IX 7.5 108  28  41 25  14        
X 8.1 197 14 75  47 35  26        
XI 10.2 933 1 325 20 568 12  7        
XII 13.5 55  7  20 4  24        
XIII 7.8 167  81  33 52  1        
XIV 7.1 59  46  1 5  7        
XV 6.3 719 17 423  155 90  34        
XVI 6.1 1,241  35 911  207 49  29 10       
XVII 12.2 246 12 66  71 16 1 79 1       
XVIII 5.7 282 2 242  25 6  7        
XIX 14.9 69  50  1   18        
XX 12.8 170 6 34  17 15  98        
XXI 15.0 7  3     4        
Total  8.5 7,483  272 4,188  33 1,574  508 1 634 24 41 42 5 5 156 50.6 
* All the remaining dutiable li nes corresponding to the HS section are of price band system.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of averages, duties of the tariff lines subject to price band system 
(Aplica  Sistema Andino ) on MFN basis and under the agreement are excluded.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data  provided by Colombia.  
 
 
 WT/REG375/1  
 
- 19 - 
 
 3.22.   Chart 3. 2 shows the average MFN and preferential rates for products remaining subject to 
duties once the Agr eement is implemented. The duties  remaining  are at the same level as the MFN 
rates, with the exception of some products in Chapters 11 (products of the milling industry; malt ; 
starches; inulin; wheat gluten ), 19 (some preparation of cereals, flour, starch or milk; etc .) and 
20 (preparation of vegetables, fruit, nuts or other parts of plants), for which the applied 
preferential rates are lower . The highest average tariffs for lines remaining dutiable are found in 
HS Chapters 4 (some dairy products, birds' ef fs, natural honey, etc . at 92.6%); 2 (some meat and 
edible meat offal at 80%); and 10 (some cereals at 80%). Products in Chapters 12, 15, 17, 23, 35 
and 38 are subject to the price band system for which the average rates cannot be calculated.  
Chart 3.2 Colombia: Average of dutiable rates, by HS Chapter  
0102030405060708090100
02 04 07 08 10 11 12 15 16 17 19 20 23 35 38Average Duty Rate
HS Chapters Preferential MFN
* * * * * *
* Tariff lines subject to price band system only 
 
Note:  Based on the HS 2012 nomenclature.  
 Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, duties of t he tariff lines subject to price band system (Aplica Sistema Andino) on MFN 
basis and under the agreement are excluded . 
Source:  WTO estimates based on data provided by Colombia . 
3.23.   The Agreement allows Colombia to maintain the Andean Price Band System establi shed in 
1994 by Decision 371 of the Andean Community and its modifications with respect  to the goods 
listed in Annex 2-C. The Annex covers some products in Chapters 2 (meat); 4 ( milk, cream, and 
butter ); 10 ( maize ); 11 ( maize flour, and maize starch ); 12 ( oil seeds, grains, seeds and fruit ); 
15 (animal or vegetable fats and oils ); 16 ( sausages and similar products, and other prepared or 
preserved meat, meat offal or blood ); 17 ( sugar ); 23 ( flours, bran of cereals, oil -cake and other 
solid residues, vegetabl e waste, and preparations of a kind used in animal feeding ); 35 ( dextrins 
and other modified starches, and glues ); and 38 ( industrial monocarboxylic fatty acids ). While 
Annex 2 -C of the Agreement includes 98 tariff lines  subject to preferential treatment , a total of  
166 tariff lines were subject to  the Price Band Mechanism applied (on an MFN basis) by Colombia 
on the date of entry into force of the Agreement .  
3.1.4   Tariff rate quotas  
3.24.   With respect to Country Specific Tariff Quota s (Article 2.13), the commitments of both 
Parties are specified in Appendix 2 -A-1. Each Party shall allow duty free importation of an annual 
aggregate quantity of 100 metric ton nes of the goods classified under the headings identified in 
Annex 2 -A-1 by each Pa rty and summarized in Tables 3 .5 and 3.6  below.  WT/REG375/1  
 
- 20 - 
 
  3.25.   For each Party, i mports of the other Party's  products in excess of the specified quantity in 
Appendix  2-A-1 shall be treated in accordance with staging category "E" as described in paragraph 
1(j) of Annex 2 -A to the Agreement  (tariffs to remain at base rates17). 
3.26.   In the case of Korea's TRQ commitments, the Korea Agro -Fisheries and Food Trade 
Corporation shall administer the TRQs and allocate the in -quota quantity of the TRQ through 
quarterly auctions. In the case of Colombia's TRQ commitment s, the Ministry of Agriculture and 
Rural Development shall administer the TRQs.  
Table 3.5 Products covered by Korea's country specific tariff quota commitments under 
the Agreement18 
HS Code  Product description  
0402101010  Skim milk powder  
0402101090  Other (Milk and cream, concentrated or containing added sugar or other sweetening 
matter – in powder, granules or other solid forms, of a fat content, by weight, not 
exceeding 1.5% - of a fat content, by weight, no t exceeding 1%)  
0402109000  Other (Milk and cream, concentrated or containing added sugar or other sweetening 
matter – in powder, granules or other solid forms, of a fat content, by weight, not 
exceeding 1.5% - of a fat content, by weight, not exceeding 1 %)  
0402211000  Whole milk powder  
0402219000  Other (Milk and cream, concentrated or containing added sugar or other sweetening 
matter – in powder, granules or other solid forms, of a fat content, by weight, not 
exceeding 1.5% - not containing added sugar or other sweetening matter)  
Source:  WTO Secretariat based on the Agreement ( Appendix  2-A-1). 
Table 3.6 Products covered by Columbia's country specific tariff quota commitments 
under the Agreement19 
HS Code  Product description  
04021010  Milk and cream, concentrated or containing added sugar or other sweetening matter – 
in powder, granules or other solid forms, of a fat content, by weight, not exceeding 
1.5%)  in packing of a net content not exceeding 2.5 kg  
04021090  Other (Milk and cream, c oncentrated or containing added sugar or other sweetening 
matter – in powder, granules or other solid forms, of a fat content, by weight, not 
exceeding 1.5%)  
04022111  Milk and cream, concentrated or containing added sugar or other sweetening matter – 
in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5% - 
not containing added sugar or other sweetening matter , in packing of a net content not 
exceeding 2.5 kg  
04022119  Other (Milk and cream, concentrated or containing added s ugar or other sweetening 
matter – in powder, granules or other solid forms, of a fat content, by weight, 
exceeding 1.5% - not containing added sugar or other sweetening matter)  
04022191  Milk and cream, concentrated or containing added sugar or other swee tening matter – 
in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5% - 
not containing added sugar or other sweetening matter  in packing of a net content not 
exceeding 2.5 kg  
04022199  Other (Milk and cream, concentrated or containing added sugar or other sweetening 
matter – in powder, granules or other solid forms, of a fat content, by weight, 
exceeding 1.5% - not containing added sugar or other sweetening matter)  
Source:  WTO Secretariat based on the Agreement (Appendix 2 -A-1). 
3.2  Rules of origin  
3.27.   Chapter 3 contains provisions on rules of origin a nd is supplemented by Annexes 3 -A 
(Produ ct Specific Rules Schedule); 3 -B (Exemption from the principle of territoriality ); and 3 -C 
(Certificate  of origin).  
                                                
17 Should the MFN rate be set below  the base rate, that base rate would be adjusted accordingly.  
18 An MFN tariff rate quota is also in place for these products, with in -quota rate set at 10% (unlike 
duty-free under the Agreement), and out of quota set at 176% (also applicable under the Agre ement, as these 
tariff lines are exempted from the tariff elimination programme).  
19 An MFN tariff rate quota is not in place for these products. The applicable MFN rate (and consequently 
out-of-quota rate under the Agreement, as these products are exempted  from the tariff elimination 
programme) was set at 98% in 2016.  WT/REG375/1  
 
- 21 - 
 
  3.28.   A good qualifies as origina ting in a Party  if it satisfies all other applicable requirement under 
Chapter 3, and it complies with one of the following conditions :  
 It is wholly obtained or pro duced, as defined in Article 3.2 , in a Part y; 
 It complies with the applicable product speci fied rule containe d in Annex 3 -A to the 
Agreement; or   
 It is produced entirely in the territory of one or both Parties, exclusi vely from originating 
materials.  
3.29.   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. A change in tariff classification  (CTC) constitutes a criteria commonly used to determine 
origin in cases of substa ntial transformation of goods. In a large num ber of  cases the regional 
value content (RVC) can be used as an alternative criterion. The RVC is calculated according to the 
methods defined under Article  3.3 (Regional value content)  and the value of materials is set 
according to the rule contained in Ar ticle 3.4 . When the RVC is used as an alternative method to 
determine the origin of a good, it ranges between 30% and 60%, as indicated in  Annex 3 -A. In 
certain cases, the RVC is proposed at different levels (usually between 35% and 45%) using either 
the b uild-up method, the build -down method, or the net cost method  (Article 3.3) . Specific rules  
on manufacturing and processing operation are also  applicable , for example  in connection with 
chemical processes (HS Chapters 28-38) or in relation to the productio n of apparel and clothing 
accessories or made -up textiles ( HS Chapter 61, 62 and 63) . 
3.30.   Products incorporating non -originating materials , whose value does not exceed 10% of the 
adjusted value of the good, may nonetheless be considered originating good s (Article 3.7 ; 
de minimis  provision ).  
3.31.   Chapter 3 contains,  under Articles 3.8 through 3.15 , disciplines on fungible goods; 
accessories, spare parts and tools; sets of goods; packaging materials  and containers  for retail 
sale; packing materials and containers for  shipment; indirect materials; non -qualifying operation s; 
and direct transport .  
3.32.   Section B of Chapter 3, complemented by Annex 3 -C20, contains disciplines on origin  
procedures, covering in particular: certificate s of origin; claims for preferential tariff t reatment; 
post-importation claims for preferential tariff treatment; waiver of certificate or of  origin; 
obligations regarding exportations; record keeping requirements; discrepancies and formal errors; 
origin verification; denial of preferential tariff tr eatment; non -party invoices; uniform regulations; 
and penalties .21  
3.33.   Accumulation  of origin is governed by the provisions of Article 3.6. Originating goods or 
materials of a Party, incorporated into a good in the territory of the other Party, shall be 
consid ered to be originating in the territory of the other Party.  
3.34.   In regard of the principle of territoriality, the conditions for acquiring originating status shall 
be fulfilled without interruption in the territory of one or both of the Parties. Nevertheless,  an 
originating good exported from a Party to a third -party shall, when returned, be considered to be 
non-originating unless it is demonstrated  to the satisfaction of the customs authorities  that the 
returning good is the same as that exported, and has not  undergone any operation beyond that 
necessary to preserve it in good condition while being exported. However, a number of goods, 
listed in Annex 3 -B to the Agreement, shall be considered to be originating even if such goods 
have undergone operations and p rocesses outside the territory of the Parties.  Annex 3 -B lists the 
goods covered by provisions on outward -processing connected to the operations and processes 
performed in the Gaesong Industrial Complex ( a special administrative industrial region located i n 
North Korea) on materials exported there from Korea and subsequently re -imported by Korea 
(paragraph 1 of Annex 3 -B).22 Colombia  may suspend t he application of Annex 3 -B when an 
                                                
20 Annex 3 -C provides for a model format of a certificate or origin.  
21 Definitions are contained in Article 3.30.  
22 The 100 tariff lines (HS six -digit level) included in Annex 3 -B can be found in HS Chapters 50 (silk); 
55 (man -made staple fibres); 62 (apparel and clothing accessories); 65 (headgear); 70 (glass and glassware); WT/REG375/1  
 
- 22 - 
 
  originating good  included in the Annex is being imported under preferential t ariff treatment into its 
territory in such increased quantities and under such conditions as to cause, or threaten to cause, 
serious injury to its domestic industry (paragraph 7 of Annex  3-B).  
3.35.   The Parties agree to consult regularly to ensure that Chapter 3 is administered effectively, 
uniformly, and consistently with the spirit and objectives of the Agreement. They agree to 
cooperate in the administration of the disciplines on rules of origin. Consultations on p ossible 
amendments or modifications to Chapte r 3 and its Annexes may take place taking into account 
developments in technology, production processes, or other related matters (Article 3.17).  
3.3  Export duties and charges, and quantitative restrictions  
3.36.   Neither Party shall adopt or maintain any prohibition  or restriction on the exportation or sale 
for export  of any good to 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 incorporated into 
and made part of the Agreement mutatis mutandis (Article 2.8 ). Colombia may however maintain 
a quality control mechanism  for export s of coffee .23 
3.37.   Neither Party may adopt or maintain any duty, tax, or other charge on the export of any 
good to the territory of the other Pa rty, unless the duty, tax, or charge is also adopted or 
maintained on the good when destined for domestic consumption (Article 2.11). An exception is 
granted to Columbia to allow it to require a contribution on the export s of coffee24 and of 
emeralds25 (Anne x 2.11 to the Agreement).  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.38.   Chapter 5 covers sanitary and phytosanitary measures (SPS) and Chapter 6 addresses 
technical barriers to trade (TBT).  
3.4.1.1   Sanitary and phytosanitary measures  
3.39.   Under the Agreement, SPS m atters are regulated through Chapter 5. The Parties affirm 
their rights and obligations with respect to the other under the W TO Agreement on SPS, taking 
into account guidelines, procedures, and information from the Codex Alimentarius Commission, the 
Intern ational Plant Protection Convention  (IPPC), and the World Organization for Animal Health 
(OIE) (Article  5.3). Article 5.4 addresses risk assessment on a Party's SPS measures.  
3.40.   A Committee on Sanitary and Phytosanitary Measures is established under the Agree ment 
(Article 5.5 ). 
3.4.1.2   Technical barriers to trade  
3.41.   Chapter 6 covers TBT and applies to the preparation, adoption, and application of all 
standards, technical regulations, and conformity assessment procedures of the Parties  that may 
affect trade in goods betwe en the m. The Parties affirm their rights and obligations under the WTO 
Agreement on TBT , which is incorporated into and make part of the Agreement, mutatis mutandis  
(Article 6.2 ).  
3.42.   Building on WTO TBT disciplines, the Agreement establishes joint discipline s for the use of 
international standards (Article 6.4 ); equivalence of technical regulations (Article 6.5); conformity 
assessment procedures (Article 6.6) . The Parties also agree to strengthen their cooperation  in the 
fields of standards, technical regulat ions and conformity assessment procedures to facilitate access 
                                                                                                                                                  
71 (iron and steel); 73 (articles of iron and steel); 82 (tools of base metal); 83 (miscellaneous articles of base 
metal) ; 84 (machinery and mechanical appliances); 85 (electrical machinery and equipment); 88 (aircraft); 
90 (optical and technical instruments); 91 (clocks and watches); 94 (furniture); and 96 (miscellaneous 
manufactured products).  
23 Pursuant to Law No. 9 of 17  January 1991.  
24 Pursuant to Law No. 101 of 1993.  
25 Pursuant to Law No. 488 of 1998.  WT/REG375/1  
 
- 23 - 
 
  to their  respective markets (Article 6.8). Article 6.7  elaborat es on transparency requirements and 
Article  6.10 covers informatio n exchange between the Parties.  The Parties also undertake to 
exchange information and experiences on their border control and market surveillance activities 
(except for confidential information); and ensure that border control and market surveillance 
activities are undertaken by the competent authorities, to which end  these authorities may use 
accredited designated, or delegated bodies, avoiding conflicts of interest between those bodies and 
the economic agents subject to control or supervision (Article 6.12).  
3.43.   A Committee on Technical Barrier s to Trade is established u nder the Agreement 
(Article  6.9). In Annex 6 -A, the Parties identify their Coordinators for TBT  matters.  
3.4.2   Safeguard mechanisms  
3.44.   Chapter 7 refers, inter alia , to the use of bilateral and global safegu ard measures, while 
Article  2.13 establishes the applicable  disciplines for the special agricultural safeguard measures 
under the Agreement.  
3.4.2.1   Global safeguards  
3.45.   Each Party retains its rights and obligations under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards. The Agreement shall not confer any additi onal rights or impose any 
additional obligations on the Parties with respect to measures applied under them , except that a 
Party taking a global safeguard measure may exclude imports of an originating good of the other 
Party if such imports are not a subst antial cause of serious injury or threat thereof (Article 7.5).  
3.46.   The dispute settlement mechanism established by the Agreement is not available to Parties 
in relation to the implementation of Article 7.5.  
3.4.2.2   Bilateral safeguards  
3.47.   Disciplines on bilateral safegu ard measures are contained in Articles 7.1 through 7.3 . During 
the transition period26, a Party may apply a bilateral safeguard measure. Such a measure may 
consist of either (i) a suspension of the further reduction of the customs duty on the good provided 
for under the Agreement, or (ii) an increase in the rate of customs duty on the good to a level not 
to exceed the lesser of the MFN applied rate of duty in effect at the time the safeguard measure is 
applied, and the base rate of duty as specified in the P arty's Schedule to Annex 2 -A. 
3.48.   A bilateral safeguard measure may be applied for such period of time as may be necessary 
to prevent or remedy seriou s injury pursuant to Article 7.1  of the Agreement. The total period of 
application of a bilateral safeguard me asure  shall be two years, with a possible extension of one 
year. This means that the period of application, including the period of initial application and any 
extension thereof, shall not exceed three years. Such measure shall be terminated in any case at  
the end of the transition period. A bilateral safeguard measure shall not be applied more than once  
on the same product . Where the expected duration of a bilateral safeguard measure is over one 
year, the applying Party shall progressively liberalize it at  regular intervals.  
3.49.   According to Article 7.2 , bilateral safeguard measures may only be applied following an 
investigation in accordance with the procedures and requirements provided for in Articles 3 and 
4.2 of the WTO Safeguard Agreement. These two articl es are incorporated into and made part of 
the Agreement, mutatis mutandis . No bilateral safeguard measure or provisional safeguard 
measures (governed by Article  7.5) 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.  
                                                
26 The terms "transition period" in relation to a particular product means the ten -year period from the 
date of entry into force of the Agreement. For any product for which  the date on which the customs duty is to 
be eliminated in accordance with Annex 2 -A (Schedules of tariff concessions) is more than ten years, 
"transition period" shall mean the tariff elimination period for that product.  WT/REG375/1  
 
- 24 - 
 
  3.50.   A Party initiating a bilateral safeguard investigation, taking a decision to apply or extend a 
bilateral safeguard or taking a decision to liberalize a bilateral safegua rd taken shall immediately 
notify the other Party. Conditions to apply provisional measures are contained in Article 7.3.  
3.51.   A Party shall provide adequate opportunity to the other Party for prior consultations with a 
view to reviewing the information, exchan ging views on the bilateral safeguard measure and 
reaching an agreement on compensation. Consultations regarding appropriate trade liberali zing 
compensation in the form of concessions having substantially equivalent trade effects or equivalent 
to the value  of the additional duties expected to result from the bilateral safeguard measure shall 
begin within 30 days of the application of the bilatera l safeguard measure (Article 7.4 ). If the 
Parties are unable to agree on compensation, the Party on whose origina ting good the safeguard 
measure is applied may suspend the application of concessions that have trade effects 
substantially equivalent to the safeguard measure. The obligation to provide compensation and the 
corresponding right to suspend concessions shall  end on the date of the termination of the 
safeguard measure.  Moreover, the right of suspension of concession shall not be exercised for the 
first two years during which a bilateral safeguard measure is in effect, provided that the safeguard 
measure has be en taken as a result of an absolute increase in imports and that such measure 
conforms with the Agreement.  
3.4.2.3   Special safeguards  
3.4.2.3.1   Special agricultural safeguard measures  
3.52.   A special agricultural safeguard (temporary) mechanis m is established by Article 2.13 . It is 
available to the Parties  as specified in Annex 2 -B to the Agreement  in accordance with Article 2.13 . 
3.53.   Korea may  impos e a (safeguard) duty when the aggregate volume of imports of certain 
Colombian  products27 exceeds the trigger quantity set out in Annex  2-B. The sum of the 
(safeguard) additional duty and any other customs duties applied to the products in question shall 
not exceed the lesser of the MFN applied rate of customs duty in effect on the date on which the 
special agricultural safeguard measure is  applied, or the base rate.  No agricultural safeguard 
measure may be applied or maintained after a period of 20 years starting from the entry into force 
of the Agreement for beef, respectively 21 years for mandarin  oranges . 
3.54.   Colombia may  impose a (safeguard ) duty when the aggregate volume of imports of certain 
Korean  products28 exceeds the trigger quantity set out in the Annex 2 -B. No agricultural safeguard 
measure may be applied or maintained after a period of 20 years starting from the entry into force 
of the Agreement.  
3.55.   The Committee on Trade in Goods may review and discuss the implementation and 
operation of Article 2.13 . 
3.56.   Agricultural safeguard measures may not be applied or maintained, on the same good, at 
the same time a bilateral safeguard, or a global s afeguard, based on Article XIX of the GATT 1994 
and the WTO Agreement on Safeguard is also applied.  
3.4.2.3.2   Measures to safeguard the balance -of-payments  
3.57.   The Agreement has no provisions on  measures for balance -of-payment purposes . 
3.4.3   Anti-dumping and countervailing m easures  
3.58.   Article 7.7  covers antidumping and countervailing measures.  
                                                
27 Annex 2 -B sets out the goods ori ginating in Colombia that may be subject to agricultural safeguard 
measures under Article 2.13. The products concerned are: (a) some beef products (HS 0201.30.0000; and 
0202.30.0000); and (b) mandarin oranges (HS 0805.20.9000). Annex 2 -B also contains, for  each stage, the 
applicable trigger quantity level.  
28 The goods originating in Korea that may be subject to agricultural safeguard measures under 
Article  2.13 are some beef products covered by HS 0201.30.00 or 0202.30.00. The applicable trigger quantity 
level is contained in Annex 2 -B for each stage.  WT/REG375/1  
 
- 25 - 
 
  3.59.   Each Party retains its rights and obligations under the WTO Agreement on Subsidies and 
Countervailing Measures with regard to the application of antidumping and countervailing 
measures and  under the WTO Agreement on Implementation of Article VI of the GATT 1994. The 
Parties nevertheless agree to endeavour to count  toward the average  all individual margins, 
whether positive or negative  when establishing antidumping margins; and to apply the "lesser 
duty" rule when imposing an antidumping duty.  
3.60.   Articles 7.8  reiterate notification obligations and underline the Parties' commitments to 
afford  due consideration and adequate  opportunities regarding antidumping applications and price 
undertakings in  particular .  
3.61.   The dispute settlement mechanism established by the Agreement (Chapter 20) is not 
applicable to the Parties for most of the provisions related to antidumping and counter vailing 
measures (Article 7.9).  
3.4.4   Subsidies and State -aid 
3.62.   The Agreement doe s not contain specific disciplines on subsidies , besides the general 
reference to the WTO Agreement on subsidies and countervailing measures and  for export 
subsidies on agricultural goods. The Agreement also does not contain specific rules on state -aid. It  
however governs the operation of state trading enterprises.  
3.63.   According to Article 2.14, neither Party shall introduce or reintroduce an export subsidy on 
an agricultural good destined for the territory of the other Party . The Parties also confirm that no 
subsidized agricultural goods are exported to the other Party. They agree to consult with a view to 
resolving issues related to agricultural export subsidies upon request of a Party.  
3.64.   The Parties' rights and obligations in respect of state trading enterprise s shall be governed 
by Article XVII of the GATT 1994, its interpretative notes and the Understanding on the 
interpretation of Article XVII of the GATT 1994, which are incorporated into and made part of the 
Agreement, mutatis mutandis  (Article 2.12).  
3.4.5   Custom s-related procedures  
3.65.   Chapter 4 covers customs administration and trade facilitation. In section A, on trade 
facilitation, i t establishes principles for the Parties to administer their import, export and transit 
procedure (Article 4.1). The Parties agree on  transparency disciplines, including the establishment  
of enquiry points  to receive requests for consultations  (Article 4.2 ). Section A also covers 
harmonization and facilitation (Article 4.3); the use of information technology to support customs 
operation s in a paperl ess trading context (Article 4.4 ); the use of risk management techniques in 
the administration of customs procedures (Article 4.5);  the promotion of the implementation of the 
Authorized Economic Operator (Article 4.6); and simplification  of cu stoms procedures for the 
efficien t release of goods (Article  4.7). Section A  also contains rules on  express shipments 
(Article  4.8); advance rulings (Article 4.9); and review and appeal with respect to determination 
on customs matters (Article 4.10).  Section B of Chapter 4 contains disciplines on customs 
cooperation (Article 4.11) and mutual administrative assistance in customs matters (Articles 4.12 
through 4.15). Specific disciplines on transparency and on mutual administrative assistance are 
also contain ed in Chapter 4, complemented by provisions on experts and witnesses, assistance 
expenses, bilateral customs consultation, and confidentiality (Articles 4.16 through 4.20) . 
3.66.   The Agreement establishes a Customs Committee that is responsible for addressing ru les of 
origin, origin procedures, trade facilitation, and customs matters (Article 4.21).  
3.67.   With respect to the implementation of Chapter 4, the Agreement foresees that the customs 
authorities of the Parties will decide on all practical measures and arrangem ents necessary, taking 
into consideration the rules in force, in particular in the field of data protection. The Parties agree 
to consult each other and subsequently keep each other informed of the detailed rules of 
implementation which are adopted in acco rdance with the provisions of Chapter 4  (Article 4.22) . WT/REG375/1  
 
- 26 - 
 
  3.5  Cooperation on trade in goods in specific sectors29 
3.68.   Chapter 17 (on cooperation) identifies some specific sectors in which the Parties make 
commitments to strengthen cooperation . In particular  the Parti es shall endeavour to promote 
cooperation in the field s of agriculture30; fisheries and aquaculture31; forestry32; as well as in 
energy and mineral resources .33 The Parties also agree to  endeavour to strengthen and develop 
trade, investment, and technological cooperation, including but not limited to the following 
sectors: auto parts and automobiles; cosmetics and toiletries; textile s, apparel, design, and 
fashion; electricity, and related goods (and services); and home appliance s (Article 17.10) . 
4  PROVISIONS ON  TRADE IN SERVICES  
4.1.  Chapter 8 contains disciplines on investment, Chapter 9 covers cross -border trade in 
services; Chapter 10 contains rules on the temporary entry for business persons; and Chapter 11 
applies to telecommunications. Annexes I and II and the corresponding Schedules containing the 
Parties' non -conforming measures complement the legal framework established by the Agreement.  
4.1  Scope and definitions  
4.2.  Chapter 9  (cross -border trade in services) applies to measures of a Party affecting the 
production, distribution, marketing, sale, and delivery of a services, as well as the purchase or use 
of, or payment for, a service. Measures also covered are those affecting access to and the use of 
distribution, transport, or telecommunications networks and services  in connection with the supply 
of a service; the presence in a Party's territory of a service supplier of the other Party; and the 
provision of a bond or other form of financial security as a condition for the supply of a service. 
Disciplines on t rade in s ervices , as covered under Chapter 9, apply to the supply of a service  
through modes 1, 2 and 4 , as iden tified by the GATS. As a consequence, the supply of services 
through commercial presence  (mode 3)  is not covered by Chapter 9 .34 Chapter 9 does not apply 
either  to government procurement35 and measures affecting air services other than some aircraft 
repair and maintenance services, selling and marketing of air transport services, and computer 
reservation system s service s. Also excluded from the coverage of C hapter 9 are services supplied 
in the exercise of governmental authority; subsidies o r grants; and measures relating to  access to 
the employment market. Financial services are also excluded from the s cope of Chapter 9 but a 
work programme on financial serv ices is contained in Article 9.12.  
4.3.  Chapter 8 (investment) covers  measures of one Party related to investors of the o ther Party; 
covered investments ; and all investments in the territory of the Party (when in connection  with 
performance requirements  or inve stment and environment). Chapter 8 does not apply to services 
supplied in the exercise of governmental authority. Neither does i t cover measures adopted or 
maintained by a Party related to investors of the other Party, and investments of such investors, in  
financial institutions in the Party's territory.   
4.2  Denial of benefits  
4.4.  In relation to trade in services, a Party ma y deny the benefits of chapter 9  to a service 
supplier of the other Party if the service supplier is a n enterprise  owned or controlled by pers ons of 
a third -party and the denying Party adopts or maintains measures with respect to the third -party 
or a person of the third -party that prohibit transactions with the enterprise or that would be 
violated or circumvented if the benefits of Chapter 9 wer e accorded to the enterprise. Moreover, 
benefits may be denied  if the service supplier is an enterprise owned or controlled by persons of a 
third-party or of the denying Party that has no substantial business activities in the territory of the 
                                                
29 See also section 5.10.4 below.  
30 Cooperation areas are identified in Article 17.3 . 
31 Cooperation areas are identified in Artic le 17.4 . 
32 Cooperation areas are identified in Artic le 17.5 . 
33 Cooperation areas a re identified in Artic le 17.8 . 
34 Nevertheless, the provisions on market access, domestic regulation, and transparency in developing 
and applying regulations (Articles 9.4, 9.7 and 9.8) shall also apply to measures adopted or maintained by a 
Party affecting  the supply of a service in its territory by a covered investment (subject to non -conforming 
measures and exceptions).  
35 Government procurement is covered under Chapter 14.  WT/REG375/1  
 
- 27 - 
 
  other Party (Article 9.11).  A similar provision applies to Chapter 8 (investment) though the 
conditions of the denial of benefits have been tailored  to the investments (Article  8.12).  
4.3  General provisions on trade in services  
4.3.1   Market access  
4.5.  Borrowing from the text of Art icle XVI (paragraph 1 a-e) of the GATS, the Agreement 
prohibits the Parties from impos ing limitations on the number of service suppliers; the total value 
of service transactions or assets; the total number of service operations or the total quantity of 
services output; or the total number of natural persons that may be employed in a particular 
service sector  or that a service supplier may employ and who are necessary for, and directly 
related to, the supply of a specific service . It also prevents the Parties  from taking measures that 
restrict or require specific types of legal entit ies or joint venture s through which a service supplier 
may supply a service. Though Article 9.4 applies to cross -border trade in services, through  
Article  9.1 (paragraph 3), it is also made applicable to measures adopted or maintained by a Party 
affecting the supply of a service in its territory by a covered investment.  There are  non-conforming 
measures listed under Annexes I and II.  
4.3.2   National treatment and MFN  
4.6.  In relation to cross-border trade in services, Articles 9.2 and 9.3  contain national treatment 
and MFN rules.  The corresponding disciplines applicable to investment and with respect to the 
establishment, acquisition, expansion, management, conduct, operation, and sale or other 
disposition of investment in a Party's territory are contained in Articles 8.3 and 8.4.  
4.7.  There are e xisting non -conforming measures36 listed in the Parties' Schedules in Annex I and 
measures that may be maintained or taken in sectors are listed  in the Schedu les in Annex II. 
Annexes I and II contain reservations with respect to the obligations applicable to cross -border 
trade in services (Chapter 9) and/or to investment (Chapter  8).  
4.3.3   Local  presence  
4.8.  While Chapter 9 (cross -border trade in services) does not cove r the supply of services 
through mode 3 , Article 9.5 nevertheless establishes that neither Party may require a service 
supplier of the other Party to establish or maintain a representative office or any form of 
enterprise, or to be resident, in its territo ry as a condition for the cross -border supply of a service. 
Chapter 8 (investment) however covers aspects of investment that may pertain to commercial 
presence (and the supply of services through mode 3).  The non -conforming measures are referred 
to in the Parties' Schedules in Annexes I and II.  
4.3.4   Performance requirements  
4.9.  With respect to investment (Chapter 8), neither Party shall impose or enforce the 
performance requirements listed in Article 8.9. In addition, a Party may not condition the receipt 
or continu ed receipt of an advantage , in connection with the establishment, acquisition, expansion, 
management, conduct, operation, or sale or other disposition of an investment of an investor of a 
Party or of a third -party in its territory , on compliance with any r equirement listed in Article 8.9.2 . 
Some exceptions are however listed under Article 8.9 (paragraph 3 in dents (b) through (f)). The 
non-conforming measures are referred to in the Parties' Schedules in Annexes I and II.  
4.3.5    Senior Managers and Boards of Direct ors 
4.10.   With respect to investment (Chapter 8), neither Party may require that an enterprise of that 
Party that is a covered investment appoint to senior management positions natural persons of any 
particular nationality (Article 8.10). A Party may require tha t a majority of the board of directors, 
or any committee thereof, of an enterprise of that Party that is a covered investment, be of a 
particular nationality, or resident in the territory of the Party, provided that the requirement does 
not materially impa ir the ability of the investor of the other Party to exercise control over its 
                                                
36 Referred to in Articles 8.13 and 9.6.  WT/REG375/1  
 
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  investment.  The non -conforming measures are referred to in the Parties' Schedules in Annexes I 
and II.  
4.3.6   Movement of natural persons  
4.11.   Chapter 10 applies to measures affecting the temporary entry for business persons  of a 
Party of the other Party under any of the categories referred to in Annex 10 -A.37 Each Party's 
commitments on the duration of stay granted to each category of business persons are identified 
in Appendix 10 -A-2. 
4.12.   While  measures  relating to access to the employment market; citizenship; nationality;  
permanent re sidence;  or employment on a permanent basis  remain within the sphere of 
competence of each Party and out of the scope of Chapter 10, the Agreement establishes some  
principles in relation to the grant of temporary entry (Article 10.3 ); provision of information 
(Article 10.4); and transparency in the development and application of regulations (Article  10.9).   
4.13.   The Agreement establishes a Temporary Entry Working Group t o consider matters 
pertaining to Chapter 10 (Article 10.5). The Parties also agree to establish contact points who shall 
exchange information (Article 10.6).  
4.14.   The dispute settlement mechanism established under the Agreement (Chapter 20), shall not 
be applic able to matters covered by Chapter 10 unless the matter involves a pattern of practice, 
and the business person has exhausted the available administrative remedies regarding the 
particular matter (Article 10.7).  
4.4  Liberalization commitments  
4.15.   A "negative list"  approach is used throughout the Agreement for cross-border trade in 
services (Chapter 9) and investment (Chapter 8). Article 9 .6 (cross -border trade in services) 
provides the possibility to maintain non -conforming measures listed in Annex I to the Agreeme nt 
and/or to maintain or adopt new measures in sectors, sub -sectors, or activities listed under Annex 
II to the Agreeme nt. With regard to Article 8.13  (investment), the same approach is followed  for 
disciplines on investment and the investment -related non -conforming measures are also listed in 
Annexes I and II.  
4.16.   The sections below compare the Parties' liberalization commitments under the Agreement 
and their GATS commitments. Each Party's GATS schedule is compared to Annexes I, and II to the 
Agreement. After recalling GATS MFN exemptions and identifying horizontal limitations in the GATS 
and in the Agreement, Tables 4.1 and 4.2  summarize specific commitments under the Agreement, 
by main sectors and sub -sectors and compare them with GATS commitments. Improvemen ts over 
existing GATS commitments are a reduction of the limitations to market access and/or national 
treatment, a relaxation of the form of establishment under mode 3, and/or additional 
commitments and increased coverage. However, horizontal limitations i n the GATS Schedule of 
Specific Commitments and reservations covering all sectors are not included. Moreover, mode 4 
commitments and limitations are, to a large extent, excluded. Furthermore, as the comparison 
between commitments in negative lists  and the GATS  are not straightforward , the following 
sections are to be read in conjunction with the Parties' schedules of commitments under the 
Agreement.  
4.4.1   Korea  
4.17.   In the GATS, Korea has no  commitments, inter alia , on certain business services (real estate 
services f or example); health related and social services; recreational, cultural and sporting 
services; and internal waterways, space, pipeline, and rail transport services. Under the 
Agreement, as a negative list approach is chosen all the sectors are covered, tho ugh a number of 
non-conforming measures are listed in Annexes I and II to the Agreement. The coverage of 
Korea's commitments under the Agreement is expanded to cover sectors and subsectors that are 
                                                
37 Annex 10 -A contains the Parties' commitme nts and the applicable modalities concerning the following 
categories of business persons: (a) business visitors engaging in the activities identified in Appendix 10 -A-1; 
(b) traders and investors; (c) intra -company transferees; (d) contractual service sup pliers identified in the 
Appendix 10 -A-3; (e) spouses and dependants; and (f) management trainee.  WT/REG375/1  
 
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  unbound under the GATS .38 The expansion of  coverage  is howe ver mitigated  by reservations , 
either horizontal or sector -based , in Korea's lists of non -conforming measures . 
4.4.1.1   MFN and horizontal commitments  
4.18.   Under the GATS, Korea  only scheduled an MFN exemption  for computerized reservation 
systems . Under the Agreement, M FN treatment commitments for investm ent are referred to in 
Article 8 .4, and, for cross-border trade in services, are governed by Article 9.3. Through  its 
Schedule in Annex II, Korea reserves the right to maintain existing or adopt new or more 
restrictive m easures that do not conform to MFN obligations in the Agreement  for a number of 
sectors and/or activities . With respect  to cross -border trade in services this is the case for to 
reservations for preferences granted to disadvantaged groups or in the context  of the relatively 
wide carve -outs for social services established or maintained for public purposes .39 Reservations 
are made for p references granted through preferential agreements concluded prior to the entry 
into force of the Agreement. The same also app lies to bilateral or multilateral international 
agreement s, Korea may be a party to, involving aviation, fisheries, or maritime matters (including 
salvage), whether they were concluded prior to the Agreement or may be signed after the date of 
its entry int o force. New MFN reservations, applicable to Colombian services and services 
providers, are also registered with respect to broadcasting services; preferences that may be 
granted by railroad transportation agreements; taxi services and scheduled passenger road 
transportation services; some freight road transportation services;  internal  waterways 
transportation services and space transportation services; education services; human health 
services ; some recreational, cultural, and sporting services; and mariti me passenger 
transportation and maritime cabotage .  
4.19.   Under the GATS, Korea  makes horizontal reservations for the acquisition of stocks and land 
(mode 3). Mode 4 reservations are also registered.  Under the Agreement, Korea  replicates some of  
these reservatio ns, in particular though specific commitments for the  temporary entry for business 
persons in Chapter 10, including in its specific commitments in Appendix 10 -A-2. Through the 
negative listing approach, Korea  also introduces horizontal reservations to cove r the transfer or 
disposition of equity interests or assets held by state enterprises or governmental authorities; 
acquisition of land; preferences granted to disadvantage d groups; the administration or operation 
of state -owned electronic information syste ms; social services established or maintained for public 
purposes;  Korea's obligations under Article XVI of GATS as set out in Korea's Schedule of Specific 
Commitments under the GATS;  as well as preferences granted through intergovernmental 
agreements (as above -mentioned).   
4.20.   Korea' Schedule of specific commitments under the Agreement contains  local presence 
requirements  in connection with th e provision of certain services . Though such requirement is not 
formulated as a horizo ntal limitation, it is registered  for a number of sectors or sub -sectors  
(including, inter alia , some professional services; courier services; some real estate services; 
rental, leasing and repair services; and some environmental services) . 
4.4.1.2   Sector specific commitments  
4.21.   The following sectio n identifies some of the main differences, by sector, between Korea 's 
GATS schedule and its sector -specific commitments under the Agreement. It should also be  read in 
conjunction with Annexes I and II of the Agreement.  
4.22.   As a consequence of the negative approach chosen, Korea expands coverage of its 
commitments under the Agreement for most sectors, as compared to its GATS commitments. 
Nevertheless,  some new limitations are listed as non -conforming measures, in particular the 
requirement to establish an offic e in Korea as a condition to perform certain activities (applicable 
for a number of sectors, but not all).  Korea is of the view that the commitment on establishment 
requirement or local presence is not covered under the GATS and that, consequently, this 
requirement was not required to be listed in its GATS Schedule.   
                                                
38 With the exception of financial services that is partially covered under the GATS and that is excluded 
under the Agreement.  
39 The public services carve -out may cover areas such as income security or insurance, social security or 
insurance, social welfare, public training, health, and child care.  WT/REG375/1  
 
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  Table 4.1 Korea : comparison between the GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in servic es investment  
Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Full Partial  
B. Computer  and Related  Services  Full Similar  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  Full 
D. Real  Estate  Services  --- New Partial  Partial  Full Partial  
E. Rental/Leasing  Services  without   
Operators  Partial  Improved*  Partial  Full Full Full 
F. Other  Business  Services  Partial  Improved*  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- New Full --- Full --- 
B. Courier  services  --- New Partial  Full Full Full 
C. Telecommunication  services  Partial  Improved*  Partial  Full Partial  Full 
D. Audiovisual services  Partial  Improved  Partial  Partial  Partial  Partial  
E. Other  --- New Full Full Full Full 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Partial  Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Partial  Full Full Full 
C. Installation  and assembly  work  Partial  Improved  Partial  Full Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Partial  Full Full Full 
E. Other  Partial  Improved  Partial  Full Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved*  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Partial  Full Partial  Full 
E. Other  --- New Partial  Full Partial  Full 
5. Education services        
A. Primary educati on services  --- New Full --- Full --- 
B. Secondary education services  --- New Full --- Full --- 
C. Higher education services  --- New Partial  --- Partial  --- 
D. Adult education  --- New Partial  --- Full --- 
E. Other education services  --- New Full --- Full --- 
6. Environmental services        
A. Sewage services  Partial  Improved*  Partial  Partial  Full Partial  
B. Refuse disposal services  Partial  Improved*  Partial  Partial  Full Partial  
C. Sanitation and similar services  --- New Partial  Partial  Full Partial 
D. Other  Partial  Improved*  Partial  Partial  Full Partial  
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Excluded  Excluded  Excluded  Excluded  Excluded  
B. Banking  and other financial  services  Partial  Excluded  Exclu ded Excluded  Excluded  Excluded  
8. Health related and social services        
A. Hospital services  --- New Full --- Full --- 
B. Other Human Health Services  --- New Full --- Full --- 
C. Social Services  --- New Full --- Full --- 
D. Other  --- New Full --- Full --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved*  Full Partial  Full Partial  
B. Travel  agencies  and tour operators   
services  Partial  Improved*  Full Partial  Full Partial  
C. Tourist  guides services  Partial  Improved*  Full Partial  Full Partial  
D. Other  --- New Full Full Full Partial  
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  --- New Partial  Partial  Partial  Partial  
B. News agency services  --- New Partial  Partial  Partial  Partial  
C. Libraries, archives, museums and other 
cultural services  --- New Full Partial  Full Partial  
D. Sporting and other recreational services  --- New Full Full Full Full 
E. Other  --- New Full Full Full Full 
11. Transport se rvices        
A. Maritime Transport Services  Partial  Improved*  Partial  Partial  Full Partial  
B. Internal Waterways Transport  --- New Full Partial  Full Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Full Partial  Full 
D. Space  Transport  --- New Full Partial   Partial  WT/REG375/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in servic es investment  
Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
E. Rail  Transport  Services  --- New Partial  Full Full Full 
F. Road  Transport  Services  Partial  Improved  Partial  Partial  Full Partial  
G. Pipeline  Transport  --- New Full Partial  Full Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Full Partial  Full Partial  
I. Other  Transport  Services  Partial  Improved  Full Full Full Full 
12. Other services not included 
elsewhere  --- New Full Full Full Full 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Excluded:  Sector/subsector excluded from the scope of the Agreement.   
Partial:  Specific commitments subject to limitations  under any of the three modes.  In some cases, there 
may be a broad carve out for the whole sector/subsector (particularly for possible future measures)  
Full: Specific commitments not subject to  any limitation s under any of the three modes.  
---: No specific commitment  (unbound) , or exclusion by listing the subsector under  non-conforming 
measures in Annex II.  
New: New commitments under the Agreement (full or partial, with or without limitations) which can, in 
most cases, be seen as "improved". In some cases, a broad carve -out may diminish, or even nullify, 
the improvement represented by a "new" com mitment.  
Improved: Overall improved commitments under the Agreement compared to the GATS.  
Improved *: Overall improved commitments under the Agreement compared to the GATS , though there are 
some new limitations for some sub -sectors in parallel to improved c overage in other sub -sectors . 
Source:  Draft Consolidated GATS Schedule of S pecific Commitments (S/DCS/W/KOR/Rev.1 ), prepared by the 
Secretariat (in 2003) and Korea 's Schedules annexed to the Agreement.  
 
4.23.   Korea's Schedule includes a GATS floor commitment th rough which it reserves the right to 
adopt or maintain any measure that is not inconsistent with its obligations under Article XVI of 
GATS as in its  GATS Schedules. For a number of sub -sectors, Korea registers specific market 
access improvements, in partic ular in relation to modes 1 and 2, and through  the provision of 
services through commercial presence.  
4.4.1.2.1   Business services  
4.24.   Through the negative listing, coverage under the Agreement is broadened as compared to 
Korea's commitments under the GATS. This is in pa rticular the case for some professional services 
(a number of legal services; opticians or optometrist; and veterinary services); real estate services 
(unbound under the GATS), and other business services. Market access improvements a re also 
specifically r egistered, in connection with Korea's GATS floor commitment, in particular for 
research and development services, public opinion polling services, services incidental to mining, 
packaging services, as well as convention services other than convention agenc y services.  
4.4.1.2.2   Communication services  
4.25.   In relation to postal services (unbound under the GATS), Korea makes  a broad reservation 
with respect to the exclusive right of the Korean Postal Authority for collecting, processing, and 
delivering letters. Some co mmitme nts, with limitations, are made under the Agreement for postal 
services which are unbound under the GATS . Coverage on telecommunications is broadly 
improved, while a number of restrictions on audiovisual (and broadcasting) services are 
maintained  and some are introduced with respect to digital audio or video services , as compared 
to the GATS.  
4.4.1.2.3   Construction and related engineering services  
4.26.   Korea lists an establishment requirement under the Agreement for the cross-border 
provision of construction services, but  removes its GATS limitation on licensing and contract limits.  WT/REG375/1  
 
- 32 - 
 
  4.4.1.2.4   Distribution services  
4.27.   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 , as a whole,  improved and more 
transparency is achieved.  
4.4.1.2.5   Educational services  
4.28.   Under the GATS , the sector is unbound, while under the Agreement it is covered thro ugh 
the negative list approach. T here is , however,  a general limitation for possible future measures 
that may  be taken in most education sub -sectors. Moreover, Korea maintains its right to adopt or 
maintain any measure with respect to public training  under  its broad public sector carve out 
reservation . 
4.4.1.2.6   Environmental services  
4.29.   Under the GATS, Korea has commitments,  with some limitations, except for s anitation 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 disposal services (listed in Korea's GATS 
Schedule). However, it has reservations for possible future measures for treatment and supply of 
potable water; collection and treatment of municipal sewage; collection, transportation, and 
disposal of municipal refuse; sanitation and similar services; and nature and  landscape protection 
services (except for environmental impact assessment services).  
4.4.1.2.7   Financial services   
4.30.   Under the GATS, Korea took partial commitments on financial services. Under the 
Agreement, neither Chapter  8 (investment) nor Chapter  9 (cross -border trade in services) is 
applicable  to financial services . The Parties  agree to  meet four years after the entry into force of 
the Agreement to discuss the viability and convenience of incorporating financial services into the 
Agreement (Article 9.12).  
4.4.1.2.8   Health related and social services  
4.31.   The sector is unbound under the GATS. Under the Agreement, Korea maintains its right to 
adopt or maintain any measure with respect to social services established or maintained for public 
purposes, including income security or in surance; social security or insurance; social welfare; 
health; and child care  (broad public service carve out) . Korea also reserves the right to adopt or 
maintain any measure regarding human health services.  
4.4.1.2.9   Tourism and travel related services  
4.32.   The sector i s largely covered under the GATS. Under the Agreement, Korea further improves 
its commitments, in particular in relation to market access.  It however reserves the right to adopt 
or maintain any measure with respect to tourism in rural, fishery, and agricul tural sites.  
4.4.1.2.10   Recreational, cultural and sporting services  
4.33.   The whole sector, unbound under the GATS, is now covered, with a number of  limitations to 
cover both existing and possible future restrictive measures.  
4.4.1.2.11   Transport services  
4.34.   While only partial commitme nts are made in the GATS, the sector  is fully covered under the 
Agreement, which constitutes a change in particular for internal waterways transport, space 
transport, rail transport services, and pipeline transport. Korea registers some conditions with 
respect to the legal form required to supply international maritime cargo transportation and 
shipping brokerage services and to operate as an investment company. Moreover, only a 
nationality requirement is set with respect to the supply of maritime pilotage s ervices.  WT/REG375/1  
 
- 33 - 
 
  4.4.2   Colombia  
4.35.   In its GATS schedule, Colombia took partial commitments for a number of sectors. 
Nevertheless, some business services (research and development services, and real estate 
services); postal and courier services, as well as audiovisual; the whole of distribution, education, 
and environmental services; health related and social services; recreational, cultural and sporting 
services and the whole of transport services  were unbound . Under the Agreement, as a negative 
list approach is chosen, as a principle, all the sectors are covered, though a number of non -
conforming measures are listed in Annexes I and II to the Agreement. The degree of coverage is 
limited  by the introduction of a relatively broad cultural industries carve -out (covering for in stance 
audiovisual services as well as museum, archives, and cultural services) and the exclusion of social 
services established or maintained for a public purpose .40  
4.4.2.1   MFN and horizontal commitments  
4.36.   Under the GATS, Colombia  scheduled MFN exemption s for preferences granted to some 
value -added telecommunications services. MFN exemptions were also granted  to some audiovisual 
services; financial services, as well as road and rail transport services. Under the Agreement, MFN 
treatment commitments for investment a re referred to in Article 8.4, and, for cross -border trade in 
services , are governed by Article 9.3. Colombia  reserves the right to maintain existing or adopt 
new or more restrictive measures that do not conform with MFN obligations in the Agreement  
throug h its Annex I Schedule, for fishing and services related to fishing, with respect to cross -
border trade in services . MFN non -conforming measures may, in most cases with respect to all 
modes of supply, also be maintained or adopted, in the case of new measu res, with respect to 
minorities and ethnic groups -related issues ; and cultural industries and activities. Colombia also 
reserves the right to adopt or maintain any measure that accords differential treatment to 
countries under any bilateral or multilateral  international agreement in force or signed prior to the 
date of entry into force of the Agreement. With respect to differential treatment granted through 
preferential agreement involving aviation; fisheries; and maritime matters, including salvage, 
conclu ded after the entry into force of the Agreement, Colombia also introduces a reservation in its 
Schedule in Annex II.  
4.37.   With respect to  horizontal reservations , under the GATS, Colombia has mode 3 related 
limitations with respect to measures connected to defe nce matters, toxic waste, and the protection 
of coastal zones. Specific conditions were also placed  with respect to measures applicable to the 
acquisition of land in the archipelago of San Andrés  and Providencia  as well as  mode 4 
reservations. Under the Ag reement, Colombia  replicates some of these reservations, in particular 
though its specific commitments on the  temporary entry of business persons in Chapter 10, and 
Appendix 10 -A-2. Under the Agreement, t hrough the negative listing approach, Colombia  also 
introduces horizontal reservations  that partly mirror th ose in  the GATS while some  are new. For 
instance, Colombia lists existing non -conforming measures such as the obligation to establish a 
branch in Colombia in order to develop a concession granted by t he Colombian State; minim um 
shares  of Colombian workers to be employed in certain companies providing services; the 
mandatory use of an Administrator ( Administrador ) to make portfolio investments in securities in 
Colombia; conditions applicable when transf erring  or disposing  of equity interests or assets held by 
state enterprises or governmental authorities;  or acquisition of land  (mirroring reservations under 
the GATS). Colombia further reserves its right to maintain or adopt possible future measures on 
the ownership of real estate  by Koreans in border regions, national coasts, or insular territory of 
the country ; the preferential treatment that may be granted through existing agreements or, for 
certain matters, future bilateral or multilateral agreements; the treatment of minorities and ethnic 
groups; as well as public services and services connected to cultural industries, as mentioned 
above.  
4.4.2.2   Sector specific commitments  
4.38.   The following section identifies some of the main differences, by sector, between Colom bia's 
GATS schedule and its sector -specific commitments under the Agreement. It should also be read in 
conjunction with Annexes I and II of the Agreement.  
                                                
40 The public services carve -out may cover areas such as social re -adaptation; income security or 
insurance; social security; social welfare; public training and education; health; and child care.  WT/REG375/1  
 
- 34 - 
 
  4.39.   As a consequence of the approach chosen (negative list), the coverage of Colombia's 
commitments unde r the Agreement is exp anded for most sectors, as compared  to its GATS  
commitments . This is in particular the case for the sectors that are unbound under the GATS41, 
though a number of limitations, existing or future, are listed as non -conforming measures  under 
the Agreement . 
Table 4.2 Colombia : comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  RTA 
Compared 
to GATS  Trade in services  investment  
Existing 
Measures  
(Annex I ) Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
1. Business services        
A. Professional  Services  Partial  Improved * Partial  Partial  Full Full 
B. Computer  and Related  Services  Partial  Improved  Full Full Full Full 
C. Research  and Development  Services  --- New Partial  Partial  Full Full 
D. Real  Estate  Services  --- New Full Full Full Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Full Full Full Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Full 
2. Communication services        
A. Postal  services  --- New Partial  Full Full Full 
B. Courier  services  --- New Partial  Full Full Full 
C. Telecommunication  services  Partial  Improved  Partial  Full Full Full 
D. Audiovisual s ervices  --- New Partial  Partial  Partial  Partial  
E. Other  --- New Full Full Full Full 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  partial  Improved  Full Full Full Full 
C. Installation  and assembly  work  partial  Improved  Full Full Full Full 
D. Building  completion  and finishing  work  --- New Full Full Full Full 
E. Other  partial  Improved  Full Full Full Full 
4. Di stribution services        
A. Commission  agents'  services  --- New Full Partial  Full Partial  
B. Wholesale  trade services  --- New Full Partial  Full Partial  
C. Retailing  services  --- New Full Partial  Full Partial  
D. Franchising  --- New Full Partial  Full Partial 
E. Other  --- New Full Partial  Full Partial  
5. Education services        
A. Primary education services  --- Similar  Full --- Full --- 
B. Secondary education services  --- Similar  Full --- Full --- 
C. Higher education services  --- Similar  Full --- Full --- 
D. Adult education  --- Similar  Full --- Full --- 
E. Other education services  --- Similar  Full --- Full --- 
6. Environmental services        
A. Sewage services  --- New Full Partial  Partial  Full 
B. Refuse disposal services  --- New Full Partial  Partial  Full 
C. Sanitation and similar services  --- New Full Partial  Partial  Full 
D. Other  --- New Full Partial  Partial  Full 
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Excluded  Excluded  Excluded  Excluded  Exclu ded 
B. Banking  and other financial  services  Partial  Excluded  Excluded  Excluded  Excluded  Excluded  
8. Health related and social services        
A. Hospital services  --- Similar  Full --- Full --- 
B. Other Human Health Services  --- Similar  Full --- Full --- 
C. Social Services  --- Similar  Full --- Full --- 
D. Other  --- Similar  Full --- Full --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  partial  Improved  Full Full Full Full 
B. Travel  agencies  and tour operators  
Services  full Limited  Partial  Full Full Full 
C. Tourist  guides  services  --- New Full Full Full Full 
D. Other  --- New Full Full Full Full 
                                                
41 The sectors that were entirely unbound under the GATS are: distribution services; education services; 
environmental services; health related and social services; recreationa l and cultural and sporting services; and 
transport services.  WT/REG375/1  
 
- 35 - 
 
  Sectors / Sub -sectors  GATS  RTA 
Compared 
to GATS  Trade in services  investment  
Existing 
Measures  
(Annex I ) Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  --- New Full Full Full Full 
B. News agency services  --- New Full Partial  Partial  Partial  
C. Libraries, archives, museums and other 
cultural services  --- New Full Partial  Full Full 
D. Sporting and other recreational services  --- New Full Partial  Full Full 
E. Other  --- New Full Full Full Full 
11. Transport services        
A. Maritime Transport Services  --- New Partial  Full Partial  Full 
B. Internal Waterways Transport  --- New Partial  Partial  Partial  Full 
C. Air  Transport  Services  --- New Full Partial  Partial  Partial  
D. Spac e Transport  --- New Full Full Full Full 
E. Rail  Transport  Services  --- New Full Partial  Full Full 
F. Road  Transport  Services  --- New Full Partial  Partial  Full 
G. Pipeline  Transport  --- New Full Partial  Full Full 
H. Services  auxiliary  to all modes  of  
transport  --- New Full Partial  Full Full 
I. Other  Transport  Services  --- New Full Partial  Full Full 
12. Other services not included 
elsewhere  --- New Full Full Full Full 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/lim itations not considered.  
Excluded:  Sector/subsector excluded from the scope of the Agreement.   
Partial:  Specific commitments subject to limitations under any of the three modes. In some cases, there 
may be a broad carve out for the whole sector/subsector (particularly for future measures) . 
Full: Specific commitments not subject to any limitation under any of the three modes.  
---: No specific commitment (unbound) , or full exclusion of the whole subsector through  non-conforming 
measures in Annex II.  
New: New commitments under the Agreement (full or partial, with or without limitations) which can, in 
most cases  be seen as "improved". In some cases, a broad carve -out may diminish, or even nullify, 
the improvement represented by a "new" commitment.  
Improved: Ove rall improved commitments made under the Agreement compared to those under the GATS.  
Improved *: Overall improved commitments made under the Agreement compared to those under the GATS , 
though there are some new limitations for some sub -sectors in parallel t o improved coverage in 
other sub -sectors . 
Similar:  Similar (in some cases same) commitments (Agreement vs GATS); though possibly, in individual 
cases, with limited improvements and/or limited additional reservations.  
Limited:  Some additional limitations (a s compared to GATS commitments).  
Source:  Draft Consolidated GATS Schedule of Specific Com mitments (S/DCS/W/COL ), prepared by t he 
Secretariat (in 2003 ) and Colombia 's Schedules annexed to the Agreement.  
4.4.2.2.1   Business services  
4.40.   Through the negative listing, cove rage under the Agreement is broadened as compared to 
Colombia's  GATS  commitments . This is in particular the case for some research and development 
services; real estate services, and a number of other business services . A number of existing 
restrictions ar e listed for the following sub -sectors, essentially with respect to cross -border trade in 
services but also for investment: (i) some legal services; (ii) some research and development 
services and national sciences; and some other business services (servic es incidental to fishing, 
mining; and energy distribution; investigation and security; and printing and publishing). In a few 
cases, new notaries  or some services incidental to energy distribution  for instance, there are 
different restrictions compared to the GATS.  With respect to professional services, Colombia makes 
a relatively open -ended reservation regarding recognition of professional degrees and the 
possibility to adopt or maintain a measure allowing a professional to practice a profession in the 
territory of the other Party.  Colombia also reserves the right to adopt or maintain any measure for 
the following sub -sectors (all unbound under the GATS): professional services related to health; 
investigations and security services; research and development  services and the establishment of 
exclusive areas for services incidental to energy distribution in order to ensure universal service.  WT/REG375/1  
 
- 36 - 
 
  4.4.2.2.2   Communication services  
4.41.   In relation to postal and courier services (unbound under the GATS), Colombia  limits to 
juridical  persons organized under Colombian law the supply of postal service and " mensajeria 
especialzada ". Coverage of telecommunications is broadly improved, with some reservations with 
respect to concessions for the supply of telecommunications services within C olombia and the 
grant of licences to enterprises to provide long distance basic switched telecommunications 
services. Audiovisual services, unbound under the GATS, are covered under the Agreement, 
though Colombia lists reservations with respect to the exhi bition and distribution of foreign films, 
the grant of concession s to supply radio broadcasting  services, free -to-air television services , and 
the supply of subscription television services. A broad reservation is also made with respect to 
possible future measures on cinematographic works, including over free -to-air television; 
community television; multichannel free -to-air commercial television; advertising placed with 
some media services companies; and access to Colombian audiovisual programming through 
interactive audio and/or video services.   
4.4.2.2.3   Construction and related engineering services  
4.42.   While the whole sector is only partially covered under the GATS, under the Agreement, 
coverage is full without any limitation being  listed . 
4.4.2.2.4   Distribution services  
4.43.   Under t he GATS , the sector is unbound, while under the Agreement it is covered through 
the negative list approach. Colombia however reserves the right to adopt or maintain any measure 
with respect to distribution, wholesale and retail services in sectors in which  the government 
establishes a monopoly .42 A reservation is also registered relating to the design, distribution, 
retailing, or exhibition of handicrafts that are identified as handicrafts of Colombia.  
4.4.2.2.5   Educational services  
4.44.   Under the GATS , the sector is unbou nd, while under the Agreement it is covered through 
the negative list approach. Colombia however reserves the right to adopt or maintain any measure 
with respect to primary and secondary education services, and, with respect to higher education, 
requiremen ts relating to the specific type of legal entity that may supply such services. The broad 
public sector carve -out also cover s public training and education . 
4.4.2.2.6   Environmental services  
4.45.   Under  the Agreement , the whole sector (unbound under the GATS)  is covered th rough the 
negative list approach. Colombia however reserves the right to adopt or maintain any measure 
with respect to environmental services established or maintained for a public purpose, in relation 
to cross -border trade in services but not in connectio n with investment .  
4.4.2.2.7   Financial services  
4.46.   Under the GATS, Colombia  took partial commitments on financial services. Under the 
Agreement, the sector is unbound . The Parties agree to meet four years after the entry into force 
of the Agreement to discuss the via bility and convenience of incorporating financial services into 
the Agreement (Article 9.12).  
4.4.2.2.8   Health related and social services  
4.47.   Under the GATS , the sector is unbound, while under the Agreement it is covered through 
the negative list approach. Colombia how ever reserves the right to adopt or maintain any measure 
                                                
42 At the date of entry into force of the Agreement, Colombia had in place monopolies only for liquor and 
gambling.  WT/REG375/1  
 
- 37 - 
 
  with respect to health related and social services .43 The broad public sector carve -out also cover s 
social re -adaptation, social security, and social welfare . 
4.4.2.2.9   Tourism and travel related services  
4.48.   The s ector is partly  unbound under the GATS, with partial  commitments taken with respect 
to hotels and restaurant and full commitments without limitation made for travel agencies and tour 
operators. Under the Agreement, the whole sector is covered  with local pr esence requirements in  
travel and tourism services44 (fully bound under the GATS).  
4.4.2.2.10   Recreational, cultural and sporting services  
4.49.   The whole sector, unbound under the GATS, is covered, with some  limitations to cover 
possible future restrictive measures.  In par ticular, Colombia reserves the right to adopt or 
maintain any measure with respect to libraries, archives and museums; as well as in connection 
with sporting and other recreational services.  
4.4.2.2.11   Transport services  
4.50.   Under the GATS the  sector is unbound, while un der the Agreement it is covered through the 
negative list approach. Colombia however reserves the right to adopt or maintain any measure 
with respect to the number of concessions and the total number of operations for road 
transportation passenger services ; passenger and freight rail transportation services; pipeline 
transport services; services auxiliary to all modes of transport; and other transport services . A 
number of specific reservations are also made for the supply of public transportation services 
within the national territory (local presence requirements). Maritime and fluvial transportation 
services as well as port services are also subject to conditions and limitations. The possibility to 
grant preferential treatment to third -parties through bila teral or multilateral agreements signed 
after the date of entry into force of the Agreement involving road and river transportation services 
is also reserved.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.51.   Article 9.7  replicates the disciplines on qualificatio n requirements, and procedures, technical 
standards and licensing require ments in Articles VI.3 and VI.4  of the GATS.  The disciplines in 
Article 9.7 shall not apply to authorization requirements that a Party adopts or maintains with 
respect to sectors, sub -sectors, or activities as set out in its Schedule to Annex II.  Though 
Article  9.7 applies to cross -border trade in services, through  Article 9.1 (paragraph 3), it is also 
made applicable to measures adopted or maintained by a party affecting the supply of  a service in 
its territory by a covered investment.  
4.5.2   Recognition  
4.52.   Under Article 9.9 , the Agreement mirrors the provisions in paragraphs 1 -3 of Article  VII of 
the GATS. It also states t hat the MFN provisions (Article 9.3 ) shall not be construed to require a 
Party to accord recognition to the education or experience obtained, requirements met, or licences 
or certifications granted in the territory of the other Party, where recognition is granted 
autonomously of or by agreement  or arrangement  with a third -party. 
4.53.   Under Annex 9 -A (on professional services), t he Parties commit  to encourage, where they 
agree , the relevant bodies in their respective territories to develop mutually acceptable standards 
and criteria for licensing and certification of professional servi ces suppliers of the other Party and 
to provide recommendations on mutual recognition to the Joint Commission  (Article 19.1 ). 
Annex  9-A also contain s the Parties' commitments with respect to the encouragement of relevant 
bodies to develop procedures for th e temporary licensing of professional service suppliers; or for 
                                                
43 The same reservations applies to professional services related to health (see  under business 
services).  
44 This condition does not apply to tour guide services.  WT/REG375/1  
 
- 38 - 
 
  fostering the development of mutual recognition agreements or arrangements  among relevant 
professional bodies , the feasibility of developing model procedures for the licensing and 
certificatio n of professional services suppliers, and other issues of mutual interest related to the 
supply of professional services.  
4.5.3   Subsidies  
4.54.   Subsidies or grants provided by a Party, including government -supported loans, guarantees, 
and insurance , are specifically e xclude d from the coverage of Chapter 9 ( cross-border trade in 
services ).  
4.5.4   Safeguards  
4.55.   Besides the provisions related to balance -of-payments, the Agreement does not contain 
specific provisions on safeguards with respect to trade in services.  
4.5.4.1   Measures to safe guard the balance -of-payments  
4.56.   In relation to investment, nothing in the Agreement shall be construed to prevent a Party 
from adopting o r maintaining temporary safeguard measures pursuant to the Party's laws and 
regulations with regard to payments and capit al movement s, inter alia , in the event of serious 
balance of payments or external financial difficulties or threat thereof.  
4.5.5   Other  
4.5.5.1   Monopolies and exclusive service suppliers  
4.57.   Article 13.9, on competition policy, contains disciplines on  state enterprises and/ or 
designated monopolies  that are also applicable to monopolies involved in trade in services .  
4.5.5.2   Transparency in developing and applying regulations  
4.58.   While general transparency requirements in Chapter 18 are also applicable to trade in 
services and investmen t, Article 9.8 provides for the Parties to establish or maintain appropriate 
mechanisms for responding to inquiries from interested persons regarding their regulations related 
to Chapters 8 and 9. Moreover, in case a Party does not provide advance notice o f and opportunity 
for comment  on regulations it proposes to adopt on services and investment, it shall, to the extent 
possible, address in writing the reasons for not doing so. Each Party shall also allow reasonable 
time between the publication of final tr ade in services and investment -related regulations and their 
effective dates. Though Article 9.8  applies to cross -border trade in services, through  Article 9.1 
(paragraph 3), it is also made applicable to measures adopted or maintained  by a P arty affecting  
the supply of a service in its territory by a covered investment.   
4.5.5.3   Investment  
4.59.   Investment is spe cifically addressed in Chapter 8 . It applies to measures by a Party relating 
to investors of the other Party a nd covered investment , and all investment in the t erritory of the 
party with respect to Articles 8.9 and 8.11 .  
4.60.   In the event of any inconsistency between Chapter 8 and another Chapter, the other 
Chapter shall prevail to the extent of the inconsistency.  
4.61.   In addition to the above -mentioned provisions on nat ional treatment; MFN treatment; 
performance requirements; senior management and boards of directors; and their related 
non-conforming measures; as well as on denial of benefits; Chapter 8 contains disciplines on 
minimum standards of treatment, which forese es that covered investments shall be accorded fair 
and equitable treatment as well as full protection and security (Article 8.5). Moreover, national 
treatment shall, with some reservations, be granted for investment losses and r elated 
compensations (Articl e 8.6). Expropriation45 or nationalization is not permitted unless on a 
                                                
45 This provision shall be interpreted in accordance with Annexes 8 -A and 8 -B. WT/REG375/1  
 
- 39 - 
 
  non-discriminatory basis, for a public purpose, in accordance with  the principle of  due process of 
law, embodied in the principal legal systems of the world,  and upon payment of prompt,  adequate 
and ef fective compensation (Article 8 .7). Chapter  11 also contains provisions on transfers (Article 
8.8); investment and environment (Article 8.11); special formalities and info rmation requirements 
(Article  8.14), as well as on subrogation (Artic le 8.15 ). The non -conforming measures applicable to 
Chapter 8 and 9 are contained in  the same Schedules to, respectively Annexes I and II.   
4.62.   Section B of Chapter 8  establishes an investor -State dispute settlement mechanism which is 
summarized below.46  
4.6  Secto r specific provisions on trade in services  
4.63.   Through specific Chapters or particular provisions, as well as through exchanges of letters, 
the Agreement contains disciplines and rules that are applicable specifically to certain services 
sectors or aspects of particular types of activities. These rules are briefly summarized and/or 
mentioned below.  
4.6.1    Telecommunication s services   
4.64.   Chapter 11  contains additional disciplines applicable to telecommunication services. In 
particular, it replicates a number of elements in the Annex on Telecommunications of the GATS 
and the Reference Paper on Telecommunications. Chapter 11 contains disciplines on access to and 
use of public telecommunications transport networks and services;  additional obligations for major 
suppliers of p ublic telecommunications transport networks and services47; and other measures 
related to conditions for the supply of value -added services, independent regulatory bodies, 
universal service, licensing process, or allocation and use of scarce resources.  
4.65.   Further to the transparency provisions on administrative proceedings and review and appeal 
(Articles 18.3 and 18.4), Chapter 11 contains disciplines on recourse to a telecommunications 
regulatory body  or other relevant body of the Party  to resolve disputes reg arding some 
telecommunications -related matters, as well as reconsideration of its determination s or decisions. 
Rules on judicial review are also contained in Article 11.13. Moreover, further to transparency 
provisions on publication and notification and pr ovision of information (Articles 18.1 and 18.2), 
Articles 11.14 contains some additional transparency disciplines applicable to telecommunications 
services.  
4.66.   The Parties agree to promote collaboration between their private sectors and to cooperate in 
the ex change of technical information, the development of intergovernmental training programs 
and other related activities. They commit to encourage access to and use of technologies related 
to public telecommunications transport networks and services as well as  value -added services 
(Article 11.16).  
4.67.   In the event of any inconsistency between Chapter 11 (on telecommunications) and another 
Chapter, the Chapter on telecommunications prevails  to the extent of the inconsistency . 
4.6.2   Financial services  
4.68.   While Chapters 8 (inv estment) and 9 (cross -border trade in services) do not apply to 
financial services, the Parties' authorities responsible for financial services shall meet four years 
after the entry into force of the Agreement (2020) to discuss the viability and convenienc e of 
incorporating financial services into the Agreement (Article 9.12).  
4.6.3   Common understanding on some se rvices  
4.69.   The Parties exchanged side letters on the ir shared understanding  related to certain 
investment and/or cross -border trade in services -related issu es. In particular, t hey agree on  the 
consistency with Articles 8.3 (national treatment), 8.9 (performance requirements) , 9.2 (national 
                                                
46 See the section on dispute settlement.  
47 Including provisions on treatment by major suppliers ; competitive safeguards; interconnection; 
resale; and unbundling of network elements.  WT/REG375/1  
 
- 40 - 
 
  treatment),  and/or 9.4 (market access) for certain measures or regulations related to: (i) recycling 
of resources and the  encouragement of low -emission s motor vehicle distribution; (ii) the possibility 
to prohibit an enterprise from concurrently holding two or more business licences  to supply 
different services; ( iii) the possibility, for Korea, to establish restrictions on the establishment, 
extension, or transfer of educations institutions within certain geographical areas under the Seoul 
Metropolitan Area Readjustment Planning Act ; (iv)  the possibility, for Korea, to allow local higher 
education institutions to jointly ope rate curricula only with higher education institutions organized 
under Korea law, or with foreign higher education institutions that have obtained accreditation 
from a foreign government or authorized foreign accreditation bodies; (v)  the possibility, for 
Korea, to establish requirements, under certain conditions, regarding the types and quantities of 
raw materials for producing liquor under the Liquors Act ; (vi) the possibility to control a rail 
transportation company's ability to stop supplying its servic e, including closure or liquidation of the 
company; and (vii) the possibility to regulate zoning and land use.  
4.70.   The Parties  also exchanged side letters on the ir shared understanding reached during 
negotiations on Chapters 8 (investment) and 9 (cross -border  trade in services)  on gambling and 
betting services . They agree that the cross -border trade in gambling and betting services is not 
subject to Chapter 9 and investment in gambling and betting services is not subject to Chapter 8. 
As a consequence, each Pa rty retains the right to adopt or maintain any measure in relation to 
betting and gambling services, in accordance with its respective la ws or regulations.  
4.6.4   Cooperation on trade in services in specific sectors48 
4.71.   Chapter 17 (on cooperation) identifies some s pecific sectors for which commitments for 
strengthening cooperation are made by the Parties. In particular  the Parties shall  endeavour to 
coope rate in maritime transport through contact points to facilitate information exchange; training 
programs; exchange  programs; and technical assistance and capacity building activities 
(Article  17.6).  Article 17.7 identifies means and areas of cooperation with respect to information 
and communications technology. The Parties shall also promote cooperation as a means of building 
a stronger, more stable, and mutually beneficial partnership in the field of  energy and mineral 
resources ( Article 17.8 ). Article 17. 12 identifies means and areas of cooperation with respect to 
tourism . It includes, inter alia , joint research on t ourism development and promotion; the setting 
up of linkages and networks between the websites of the Parties; training and education; and joint 
campaigns to promote tourism.   
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  Chapter 18  contains general tra nsparency disciplines  that complement a number of specific 
transparency requirements also contained in the Agreement . Articles  18.1 through 18.4 list 
requirements on publication; notification and provision of information; administrative proc eedings; 
and re view and appeal.   
5.2  Current payments and capital movements  
5.2.  Article 9.10 foresee s that each Party shall permit all transfers and payments related t o the 
cross-border supply of se rvices freely and without delay into and out of its territory . Moreover, 
each P arty shall permit such transfers and payments related to the cross -border supply of services 
to be made in a freely usable currency at the market rate of exchange pre vailing at the time of 
transfer (Article 9.10) .49 
5.3.  With respect to investment, the Agreement c ontains similar commitments (and possible 
derogations to it) by the Parties with respect to transfers related to a covered investment 
(Article  8.8).  
 
                                                
48 See also section 5.10.4 below.  
49 A transfer or a payment may be prevented or delayed by a Party in certain circumstances and under 
the conditions established in paragr aph 3 of Article 9.10.  WT/REG375/1  
 
- 41 - 
 
  5.3  Exceptions  
5.4.  Exceptions are contained in Articles 21.1 through 21.4. 
5.3.1   General exceptions  
5.5.  With respect to tra de in goods50, Article XX of GATT 1994, including its interpretive notes, is 
incorporated into and made part of the Agreement, mutatis mutandis . With respect to trade in 
services51, Article XIV of the GATS, including its footnotes, is incorporated into and m ade part of 
the Agreement, mutatis mutandis  (Article 21.1) .  
5.3.2   Security exceptions  
5.6.  The spirit of Articles XXI of GATT 1994 and XIV bis of the GATS  is incorporated into  and made 
part of the Agreement through Article 21.2 which refers to the possib ility for a Party to, inter alia , 
apply measures that it would consider necessary to fulfil  its obligations with respect t o the 
maintenance or restoration of international peace or security or the protection of its own essential 
security interests. If a Party invokes Article 21.2 in an arbitral proceeding initiated under Chapter 8 
(investment) or Chapter 20 (dispute settlement), the tribunal or panel hearing the matter shall 
find that the exception applies.   
5.3.3   Taxation  
5.7.  Except as set out in Article 21.3, nothing in the Ag reement shall apply to taxation measures. 
Similarly, the Parties reserve their rights and obligations under any  tax convention and in the case 
of inconsistences, the text of the convention would prevail. Article 21.3 nevertheless provides for 
circumstances  under which certain provisions of the Agreement (Articles 2.2, 2.11, 8.3, 8.4, 8.7, 
8.9, 8.17, 9.2, and  9.3) may apply conditionally.  
5.4  Accession and Withdrawal  
5.8.  The Agreement does not contain any accession provisions. Termination is, h owever, 
governed by Ar ticle 22.5 . It foresees that the Agreement shall remain in force unless either Party 
notifies the other Party in writing to terminate the Agreement. Such termination shall take effect 
180 days following the date of receipt of the notification.  
5.5  Institutiona l framework  
5.9.  A Joint Commission is established, inter alia , to supervise the implementation of the 
Agreement (Article 19.1 ). The Joint Commission shall also supervise the work of all committees, 
working groups, and other bodies established under the Agreeme nt and identified in Annex 19 -A. 
5.10.   Each Party shall designate a contact point to facilitate communications between the Parties 
on matters covered by the Agreement  (Article 19.2) . A number of addition al contact points are 
also established by the Agreement on specific matters.  
5.11.   The institutional framework established by the Agreement  is summarized by Chart 5.1 
below.  
                                                
50 For the purposes of Chapters 2 (national treatment and market access for goods); 3 (rules of origin 
and origin procedures); 4  (customs administration and trade facilitation); 6 (TBT measures); 7 (Trade 
Remedies); and 12 (electronic  commerce).  
51 For the purposes of Chapters 8 (investment); 9 (cross -border trade in services); 10 (temporary entry 
of business persons); 11 (telecommunication); and 12 (electronic commerce).  WT/REG375/1  
 
- 42 - 
 
  Chart 5.1 Institutional Framework  
 
 
5.6  Dispute settlement  
5.12.   Chapter 20  governs dispute settlement for matters covered unde r the Agreement, with the 
exception of Chapters 5 (SPS); 13 (competition and consumer policy); 16 (trade and sustainable 
development); and 17 (cooperation) .  
5.13.   Recourse to the dispute settlement mechanis m established by Chapter 20  is without 
prejudice to the  rights of the Parties to have recourse to dispute settlement procedures available 
under the WTO. The Agreement provides for the choice of the disput e settlement forum (Article 
20.3). Once a dispute settlement forum has been elected, the forum selected sha ll be used to the 
exclusion of the other.  
5.14.   The Parties endeavour to agree on the interpretation and application of the Agreement 
through cooperation (Ar ticle 20 .1) and/or consultations with the aim of reaching a mutu ally agreed 
solution (Article 20 .5). A Pa rty may at any time agree to good offices, conciliatio n or mediation 
(Article 20 .6). In case the consultations fail to resolve a dispute, the Parties may request the 
intervention of the Joint Commission (Article 20.5). Good offices, conciliation, or mediat ion may be 
used voluntarily if the Parties so agree (Article 20.6). R ecourse to an arbitral tribunal is possible 
and the applicable procedures and disciplines are described in Articles 20.7 through 20.9 (including 
Annexes 10 -A and 20 -B). The disciplines an d procedural steps established under the Agreement 
are partly  modelled on the WT O dispute settlement modalities.  In case of non -implementation of 
the final report, the r ules on compensation and suspension of concessions are defined in  Article 
20.11. While a post-suspension review is also envisaged in Article 20.11, a compliance review is 
governed by Article 20.12.  
5.15.   Chart 5.2 below summarizes the main steps of the dispute settlement mechanism 
established by the Agreement.  Source:  WTO Secretariat based on the Agreement.  
 Joint Commission  
(Art. 19.1)  
Committee on Trade in Goods  
(Art. 2.16)  
Council on  Sustainable Development  
(Art. 16.11)  
 Customs Committee  
(Art. 4.21)  
Committee on Sanitary and Phytosanitary 
Measures  
(Art. 5.5)  
Committee on Technical Barriers to Trade  
(Art. 6.9)  
Committee on Telecommunications 
Cooperation  
(Art. 11.16)  
Committee on Government Procurement  
(Art. 14.18)  Ad hoc  Working Group on Trade in 
Agricultural Goods  
(Art. 2.16)  
Working Group on Temporary Entry  
(Art. 10.5)  WT/REG375/1  
 
- 43 - 
 
  Chart 5.2 Specific Dispute Settlemen t Mechanism established by the Agreement  
 
 
5.16.   In the event of a  dispute on  investment, an investor -State dispute settlement mechanism 
(ISDS) is estab lished in Section B of Chapter 8 (investment). Articles  8.16 through 8.27  govern 
the proceedings of the ISDS and cover consultation and negotiation; submission of a claim; 
consent of each Party to arbitration; conditions and limitations on consent of each Party; 
constitution of an arbitral tribunal; conduct of the arbitration; governing  law; expert reports; 
consolidation; awards; and service of documents . 
5.7  Relationship with other agreements concluded by the Parties  
5.17.   Article 1.1 states that the Agreement is consistent with Article XXIV of GATT 1994 and 
Article V of the GATS.  
5.18.   The Parties al so affirm their existing rights and obligations with respect to each other under 
the WTO Agreement and other agreements to which both are a party (Article 1.2). In the event of 
inconsistency between the Agreement and other agreements to which both Parties are a party, the 
Agreement shall prevail to the extent of the inconsistency, except as otherwise provided in the 
Agreement . 
5.19.   Table 5.1 below shows the Parties' RTAs, notified and non -notified, other than the 
Agreement.  Source:  WTO Secretariat based on the Agreement.  
 Consultations (Art. 20.4)  
Establishment of a Panel  
(Art. 20.7)  
(Annex 20 -A) 
Proceedings (Art. 20.8  
 and Annex 20 -B) 
Panel Report  
(Art. 20.9)  
(Temporary) suspension of 
benefits by complaining Party 
(Art. 20.11)  Compliance review  
(Art. 20.12)  Implementation of the Final 
Report (Art. 20.10)  Cooperation (Ar t. 20.1)  
Referral to the Joint 
Commission (Art. 20.5)  
Ruling by the Panel on the level of compensation or of the 
suspension (Art. 20.11)  Non-implementation  
(Art. 20.11)  
Compensation agreed 
between the Parties  
(Art. 20.11)  Good offices, conciliation,  or 
mediation (Art. 20.6)  WT/REG375/1  
 
- 44 - 
 
  Table 5.1 Korea and Colombia:  Particip ation in other RTAs (notified and non -notified in 
force), as of 27 June 2017  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Republic of Korea  
Republic of Korea - New 
Zealand  20-Dec-15 Goods & Services  2015 GATT Ar t. XXIV & GATS Art. V  
China - Republic of Korea  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Viet Nam  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Canada - Republic of Korea  01-Jan-15 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Turkey  01-May-13 Goods  2013 GATT Art. XXIV  
Republic of Korea - United 
States  15-Mar-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of 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 
14-Oct-10 Goods &  Services  2010 Enabling Clause, GATT Art. 
XXIV & GATS Art. V  
Republic of Korea - 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 Countries (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  
Asia Pacific Trade Agreement 
(APTA)  13-Sep-13 Services  Not notified  
Colombia  
EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
Costa Rica - Colombia  01-Aug-16 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Pacific Alliance  01-May-16 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru (*) 01-Mar-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
United States - Colombia  15-May-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Canada - Colombia  15-Aug-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
EFTA - Colombia  01-Jul-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
Colombia - Northern Triangle 
(El Salvador, Guatemala, 
Honduras)  12-Nov-09 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Chile - Colombia  08-May-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Colombia - Mexico  01-Jan-95 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
Global System of Trade 
Preferences amo ng 
Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Andean Community (CAN)  25-May-88 Goods  1990 Enabling Clause  
Latin American Integration 
Association (LAIA)  18-Mar-81 Goods  1982 Enabling Clause  
Colombia - Venezuela  29-Aug-16 Goods  Not notified  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
Andean Community  14-Dec-06 Services  Not notified  
MERCOSUR - Andean 
Community (except Peru) 
[LAIA,AAP.CE N°59]  05-Jan-05 Goods & Services  Not notified  
Colombia - Cuba  
[LAIA,AAP.CE N°49]  10-Jul-01 Goods  Not notified  WT/REG375/1  
 
- 45 - 
 
  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Colombia - CARICOM  
[LAIA, AAP.A25TM N°31]  01-Jan-95 Goods  Not notified  
Colombia - Panama  
[LAIA, AAP.A25TM N°29]  01-Jan-95 Goods  Not notified  
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7]  01-Jan-89 Goods  Not notified  
LAIA- Preferences in favour 
of Paraguay [LAIA, AR.AM 
N°3] 03-Sep-85 Goods  Not notified  
LAIA - Preferences in favour 
of Bolivia [LAIA, AR.AM N°1]  19-Oct-93 Goods  Not notified  
(*) The Agreement between the EU and Colombia provisionally entered into force on 1 Augus t 2013.  
Source:  WTO Secretariat.  
 
5.8  Government procurement  
5.20.   Chapter 14 of the Agreement contains rules applicable to Government procurement and 
cover both goods and services. Non -covered procurem ents are listed under Article 14 .1 
(paragraph  3).52 Section G of Annex 14 -A (General notes) also identifies, for each Party, activities 
that are not covered by Chapter 14 as well as certain country -specific uncovered procurements. 
Annex 14 -A specifies the relevant threshold53 above which procurements are open by a Party to all 
goods procured by the entities listed in Sections A through C of Annex 14 -A and services54 
procured by the entities listed in Sections A through C (subject to the notes to the respective 
sections and the general notes of Section G) . The central level  of and sub-central level of 
government entities, as well as the other covered entities are listed for each Party in Sections A to 
C of Annex 14 -A. According to Section F of Annex 14 -A, the Agreements' provisions on 
government procurement apply to the proc urement of all construction services under Provisional 
CPC51 procured by the entities listed in Sections A through C, unless otherwise specified in 
Chapter 14.  
5.21.   The Parties' commitments are made subject to the cond itions specified in Annex 14 -A, which 
mirro r, to a large extent, the disciplines contained in the GPA and the revised GPA .  
5.22.   Korea was a party to the plurilateral WTO Government Procurement Agreement (GPA) since 
1997 and became a party to the  revised GPA  in January 2016 . Since 1996, Colombia  is an 
observer, but not a party, to the GPA. This means that, in relation to Chapter 14,  Colombia is 
committed to provide  national treatment and non-discrimination for Korean participants  in 
Colombian public pr ocurement. It also commits to strengthen  transparency  in public contracts, 
thresholds, and publication of processes in order to promote  the participation of  Korean suppliers . 
Korea's commitments made under the Agreement build on its commitments under the GPA  and the 
revised GPA . As compared to the GPA commit ments undertaken by Korea, the threshold levels 
referred to in Sections A and B, are lower , thus increasing the coverage of government 
procurement commitments. Some government entities, covered under the revised GPA are 
however not listed in Section A of A nnex 14 -A with respect to Korea . Moreover, most procurement 
related to defence is also excluded from the coverage of Chapter 14.   
5.23.   A Committee on Government procurement is established under Article 14.18 to, inter alia , 
evaluate the implementation of Chapte r 14; coordinate cooperation activities; and consider further 
negotiation s aimed at broadening the coverage of Chapter 14. In case a Party offers  to a 
                                                
52 Activities such as acquisition or rental of land, existing buil ding, or other immovable property or rights 
thereon are among the uncovered procurements. Public employment contracts and related measures, 
inter alia, are also excluded.  
53 Threshold adjustment formula are indicated in Section J of Annex 14 -A. 
54 Section E of Annex 14 -A identifies services that are excluded from the coverage of Chapter 14. For 
Colombia, services such as some research and development services; some utilities related to energy 
distribution and environmental services; some social services; and some production of television programs. For 
Korea, no services, except financial services (with respect to central level and sub -central level of government) 
shall be excluded. With respect to other entities, services listed in the revised Government Procu rement 
Agreement (GPA) shall be included (others being excluded).  WT/REG375/1  
 
- 46 - 
 
  third-party additional advantages (compared to the  market access coverage agreed under 
Chapter  14), upon request by the other Party, that Party shall agree to enter into negotiations with 
a view to extending coverage under Chapter 14 on a reciprocal basis (Article  14.19).  
5.9  Intellectual property rights  
5.24.   Chapter 15  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 Parties are party , as well as the agreements administered by 
the World Intellectual Property Organization that are in force between the Parties (Articles 15.2) .  
5.25.   The Parties commit to grant national treatment for the protection of intellectual property  
rights (IPRs)  (Article 15.4).  General provisions applicable to intellectual property rights include the 
recog nition of the importance of the principles established with respect to the relation between 
IPRs and healt h55; the prevention of the abuse of IPRs by rights holders; or the recognition that 
technology transfer contributes to the strengthening of national ca pabilities. The Parties shall 
remain free to establish their own regime for the exhaustion of IPRs.   
5.26.   The Agreement contains specific provisions on matters otherwise covered under the TRIPS 
Agreement. This is particularly the case with respect to trademarks56 (Article 15.6); and copyright 
and related rights57 (Article 15.7).  
5.27.   Article  15.8 addresses the enforcement of intellectual property rights. It refers to the 
provisions of the TRIPS Agreement  and also addresses the presumption of authorship or 
ownership, as  well as special measures against repetitive copyright infringers on the internet .  
5.28.   Chapter 15 addresses special requirements related to border measures (Article 15.9) and 
technology transfer and cooperation with  a view to ensuring effective protection of IPRs and the 
prevention of trade in goods or services infringing IPRs (Article 15.10).  
5.29.   References to the protection of genetic resources, traditional knowledge, and folklore are 
also made in Article 16.5 (on biological diversity).  
5.10  Other  
5.10.1   Electronic commerc e 
5.30.   Chapter 12 contains disciplines applicable to electronic commerce. Its objective is to 
promote the development of electronic commerce between the Parties, including by encouraging 
cooperation on electronic commerce. The Parties agree that the development  of electronic 
commerce shall be fully compatible with international standards of data protection, in order to 
ensure the confidence of users of electronic commerce (Article 12.1).  When developing personal 
data protection standards  and the criteria of rele vant international organizations shall be taken 
into account (Article 12.3).  
5.31.   The Agreement specifies that neither Party may apply  customs  duties, fees, or charges on 
or in connection with the importation or exportation of products by electronic means. Internal 
taxes or other internal charges on products delivered electronically may , however , be imposed by 
the Parties, provided that such taxes or charges are imposed in a manner that is consistent with 
                                                
55 In particular the principles established in the Declaration on the TRIPS Agreement and Public Health  
(2001); the Decision of the WTO General Council on the Implementation of Paragraph 6 of  the Doha 
Declaration on the TRIPS Agreement and Public Health  (2004); or the Global Strategy and Plan of Action on 
Public Health, Innovation; and Intellectual Property  adopted by the Assembly of the World Health 
Organization(2008).  
56 The provisions on tra demarks cover: (i) trademarks protection; (ii) exceptions to trademarks rights; 
(iii) well -known trademarks; (iv) registration and applications of trademarks; (v) and judicial and 
administrative means.  
57 The provisions on copyright and related rights cover : (i) protection granted); (ii) rights of performers 
and producers of phonograms; (iii) collective management organization; (iv) rights of broadcasting 
organization; (v) protection of technological measures; (vi) protection of rights management information ; and 
(vii) protection of encrypted program -carrying satellite signals.  WT/REG375/1  
 
- 47 - 
 
  the Agreement (Article 12.2). Chapter 12 also contains g uidelines on paperless trade 
administration and consumer protection, and identifies areas of cooperation.  
5.32.   In the event of any inconsistency between Chapter 12 and another Chapter in the 
Agreement, the other Chapter shall prevail to the extent of the incons istency (Article 12.7).  
5.10.2   Competition  and consumer policy   
5.33.   Under Chapter 13, the Parties commit to maintain competition laws that promote and 
protect the competitive process in their market s by proscribing anti -competitive practices. They 
also agree to stren gthen their cooperation in relation to the enforcement of their respective 
competition laws and policies. The Chapter also contain disciplines on notification and foresee s 
consultations to foster mutual understanding between the Parties  and technical assis tance, while 
maintaining confidentiality when exchanging information on competition -related matters. 
Cooperation on consumer protection is also foreseen (Article 13.8).  
5.34.   The dispute settlement mechanism established by the Agreement (Chapter 20) is not 
applicable for any matter arising under Chapter 13 (on competition policy).  
5.35.   Nothing in Chapter 13 shall prev ent a Party from establishing or maintaining state 
enterprises and/or designated monopolies. The Parties commit to ensure that state enterprises and 
designated monopolies are subject to their respective competition laws.  
5.10.3   Trade and sustainable development  (Environment and Labour)  
5.36.   Chapter 16 contains disciplines applicable to measures adopted or maintained by the Parties 
that may affect trade -related aspec ts of environmental and labour58 issues. Nothing in Chapter 16 
shall be construed to empower a Party's competent authorities to carry out activities oriented 
towards the enforcement of environmental and/or labour legislation in the territory of the other 
Party. Provisions on procedural guarantee and on transparency are contained in Section C of 
Chapter 16 containing general provisions.  
5.37.   On trade and environment, the Agreement contains a best endeavour commitment of the 
Parties to ensure that environmental an d commercial policies mutually support each other towards 
the conservation and sustainable use of biodiversity and all natural resources  in general. The 
Parties nevertheless reaffirm their sovereign right s over their natural resources and to establish 
their own levels of environmental protection. Each Party shall endeavour to maintain its laws, 
regulations, and policies consistent and in compliance with multilateral enviro nmental agreements 
(MEAs). The P arties refer to the 2001 Ministerial Declaration , in particular with respect to the 
relationship between the TRIPS Agreement and the Convention on Biological Diversity  and the 
protection of genetic resources, traditional knowledge, and folklore. Each Party shall also 
endeavour to seek ways to share informatio n on patent applications based on genetic resources or 
traditional knowledge. The Parties also agree to share views and information on discussions in the 
WIPO Intergovernmental Committee on Intellectual Property and Genetic Resources, Traditional 
Knowledge , and Folklore, the WTO TRIPS Council, and any other relevant fora in addressing 
matters related to genetic resources and traditional knowledge.  
5.38.   On trade and labour, the Parties reaffirm their obligations as members of the ILO and their 
commitments in rega rds with the ILO Declaration on Fundamental Principles and Rights at Work 
and its Follow -Up (1998). The y reaffirm each other's sovereign right s to establish their own labour 
legislation, and to adopt and modify accordingly their labour laws and policies. M oreover, the 
Parties recognize that it is inappropriate to promote trade or investment by weakening or reducing 
the level of protection afforded in their labour legislation.  
5.39.   Any matter related to the interpretation or implementation of Chapter 16 shall be  resolved 
amicably and bona fide  by the P arties through direct dialogue, consultations, and cooperation 
                                                
58 In Chapter 16, the term "labour" included the issues relevant to the Decent Work Agenda  as agreed 
on in the International Labour Organization and in the 2006 Ministerial Declaration of the UN Economic and 
Social Council on Full Employment and Decent Work . WT/REG375/1  
 
- 48 - 
 
  (Article 16.13). The Agreement identifies, in Annex 16 -A areas of cooperation between the Parties 
in respect of Chapter 16.   
5.40.   The Agreement establishes a  Council on sustainable development to consider any issue 
within the scope of Chapter 16 (Article 16.11). Each Party shall also designate the contact points in 
the relevant ministries through whom all matters arising from Chapter 16 will be channelled 
(Article 16.12).  
5.41.   With respect to the relation between environment and investment, Article 8.11 confirms 
that nothing in Chapter 8 (on investment) shall be construed to prevent a Party from adopting, 
maintaining, or enforcing any measure otherwise consistent with Chapter 8 that is considered  
appropriate to ensure that investment activity in its territory is undertaken in a manner sensitive 
to environmental concerns.  
5.10.4   Cooperation59 
5.42.   Under Chapter 17 (on cooperation), the Agreement identifies cooperation modalities with 
respect to specific manufacturing sectors, categories of products, or particular services sectors. 
The Parties agree to cooperate with the objective of identifying and employing the most effective 
methods and means for the implementation of Chapter 17 . They also agree to pay particular 
attention to cooperation initiatives aimed at (a) stimulating productive synergies, creating new 
opportunities for trade and investment, and promoting competitiveness and innovation; 
(b) promoting the development of smal l and medium enterprises; (c) strengthening institutional 
capacities for implementation and better use of the Agreement; and (d) meeting the needs of 
cooperation that have been identified in o ther Chapters of the Agreement.  
5.43.   Beside the areas of cooperation already mentioned previously,  the Agreement also identifies 
modalities fo r small and medium -sized enterprises cooperation; industrial and commercial 
cooperation; science and technology cooperation; and cultural cooperation. The Agreement also 
provide s some  guidance with respect to the identification, development, follow -up and monitoring 
initiatives  of cooperation (Article 17.14).  
 
                                                
59 This section is to be read in conjunction with sections 3.5 and 4.6.5 above.  WT/REG375/1  
 
- 49 - 
 
  ANNEX 1  
INDICATORS OF TRADE LIBERALIZATION UNDER  THE AGREEMENT  
Korea  
1. Table A1.1 shows tariff liberalization by Korea  in relat ion to imports from Colombia  (by total, 
agricultural and non -agricultural products). In 2016 , Korea 's average applied MFN rate was 14.1% 
overall (6.6 % for n on-agricultural products and 60 % for agricultural products). 16% of Korea 's 
tariff was duty free on an MFN basis; 17.7% of non -agricultural products and 5.6% of agricultural 
products were duty free. A s a result of the entry i nto force of the Agreement (2016 ), Colombian  
exporters enjoyed a relative margin of preference of 38% vis-à-vis the prevailing MFN tariff; 86% 
for non -agricultural goods and 6.7% for agricultural products. The share of duty free lines 
applicable to imports from Colombia  immediately at the entry into force of the Agreement was 
80.5% (15.9% for agricultural products and 91% for non -agricultural products). This share will 
further increase to reach 95.6% in 2026, following ten years of implementation and 98.6% in 2034 
(100% for non -agricultural products and 90.2% for agricultural products), when Korea  will have 
fully implemented its tariff  elimination programme.  
Table A1.1 Korea: Indicators of MFN tariff rates and preferential rates for imports from 
Colombia  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average applied 
tariff  Share 
of duty -
free 
tariff  
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2016 14.1 16.8 16.0 60.0 63.5 5.6 6.6 8.0 17.7 
Colombia  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2016 8.7 44.5 80.5 56.0 66.6 15.9 0.9 10.4 91.0 
2017 8.1 41.4 80.5 52.9 62.9 15.9 0.7 8.2 91.0 
2018 7.5 43.9 82.9 49.9 63.6 21.6 0.5 7.7 92.9 
2019 6.9 40.6 82.9 46.8 59.7 21.6 0.4 5.8 92.9 
2020 6.4 59.2 89.2 43.9 86.4 49.2 0.3 6.4 95.7 
2021 6.1 56.0 89.2 41.8 82.4 49.2 0.2 4.9 95.7 
2022 5.7 60.4 90.5 39.7 84.5 53.0 0.1 4.4 96.7 
2023 5.4 57.2 90.5 37.8 80.4 53.0 0.1 3.2 96.7 
2024 5.1 53.9 90.5 35.9 76.4 53.0 0.1 1.9 96.7 
2025 4.8 109.8  95.6 34.0 119.6 71.6 0.0 4.8 99.6 
2026 4.6 105.7  95.6 32.8 115.3  71.6 0.0 3.9 99.6 
2027 4.5 109.7  95.9 31.6 114.5  72.4 0.0 6.3 99.8 
2028 4.3 105.9  95.9 30.4 110.6  72.5 0.0 5.1 99.8 
2029 4.1 101.6  95.9 29.2 106.2  72.5 0.0 4.0 99.8 
2030 3.9 98.2 96.0 27.9 102.6  72.8 0.0 2.8 99.8 
2031 3.8 259.6  98.5 26.8 263.8  89.9 0.0 12.3 100.0  
2032 3.8 259.6  98.5 26.7 263.8  89.9 0.0 12.3 100.0  
2033 3.8 259.5  98.5 26.7 263.8  89.9 0.0 12.3 100.0  
2034 3.8 267.0  98.6 26.7 271.5  90.2 0.0 12.3 100.0  
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/REG375/1  
 
- 50 - 
 
  2. Table A1.2 gives an indication of additional market access in Korea  resulting from the entry 
into force of the Agreement for Colombia 's top 25 global exports, which accounted for 81.3% of its 
global exports in 2013 -2015; these co rresponded to 111 lines of Korea 's tariff at the HS six-digit 
level (using the HS  2012) . In 2016 , prior to the entry into force of the Agreement, 7 of these tariff 
lines already had (MFN) duty free access to Korea 's market. With the entry into  force of the  
Agreement, in 2016 , 75 of the 104 tariff lines, which were (MFN) dutiable, became duty free for 
exports from Colombia . The 29 dutiable tarif f lines are to become  duty-free in 2018 (10 lines); 
2022 (1  line); 2025 (1 line); and 2031 (1 line). None of the ta riff lines covering Colombia's top 
25 global exports are to remain  dutiable after 2031 .  
Table A1.2 Korea: Market access opportunities under the agreement for Colombia's top 
25 exports to the world  
Colombia's top export products  
in 2013 - 2015  Access Cond itions to Korea's import markets  
HS number and description of 
the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty free lines under 
the agreement  
Remain Dutiable  Average 
MFN applied 
rate (%)  
No. of 
dutiable 
lines  
No. of duty 
free lines  
2016  
2018 
2020  
2022  
2025  
2031  
270900  Petroleum oils and oils 
obtained from 
bituminous minerals, 
crude  44.4 3.0 10   10      
270112  Bituminous coal, whether 
or not pulverised, non -
agglomerated  11.3 0.0  4        
090111  Coffee  4.6 2.0 1  1       
271019  Medium o ils and 
preparations, of 
petroleum or bituminous 
minerals, not containing 
biodiesel, n.e.s.  4.3 6.3 41  41       
710812  Gold, incl. gold plated 
with platinum, 
unwrought, for non -
monetary purposes..  3.0 3.0 2  2       
080390  Fresh or dried bananas  1.5 30.0 1    1     
271012  Light oils and 
preparations, of 
petroleum or bituminous 
minerals which >= 90% 
by volume "incl. losses" 
distil at 210°c "astm d 
86 method"  1.4 2.8 6  6       
060319  Fresh cut flowers and 
buds, of a kind suitable 
for bouquets or for 
ornamental purposes  1.2 25.0 4    2 1 1   
720260  Ferro-nickel  1.2 3.0 1    1     
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 rec iprocating 
piston engine of a 
cylinder capacity > 
1.500 cm³ but <= 3.000 
cm³ 0.8 8.0 4  4       WT/REG375/1  
 
- 51 - 
 
  Colombia's top export products  
in 2013 - 2015  Access Cond itions to Korea's import markets  
HS number and description of 
the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty free lines under 
the agreement  
Remain Dutiable  Average 
MFN applied 
rate (%)  
No. of 
dutiable 
lines  
No. of duty 
free lines  
2016  
2018 
2020  
2022  
2025  
2031  
270400  Coke and semi -coke of 
coal, of lignite or of peat, 
whether or not 
agglomerated; retort 
carbon  0.7 3.0 4  4       
060311  Fresh cut roses and 
buds, of a kind suitable 
for bouquets or for 
ornamental purposes  0.7 25.0 1    1     
390410  Poly"vinyl chloride", in 
primary forms, not 
mixed with any other 
substances  0.6 6.5 1  1       
300490  Medicaments consisting 
of mixed or unmixed 
products for therapeutic 
or prophylactic purposes, 
put up in measured 
doses "incl. those in the 
form of transdermal 
administration" or in 
forms or packings for 
retail sale  0.6 8.0 7  5 2      
170490  Sugar confectionery not 
containing cocoa, incl. 
white chocolate  0.6 8.0 5    5     
390210  Polypropylene, in 
primary forms  0.6 6.5 1  1       
170199  Cane or beet sugar and 
chemically pure sucrose, 
in solid form  0.5 30.0 1       1  
740400  Waste and scrap, of 
copper  0.5 0.0  1        
271121  Natural gas in gaseous 
state 0.5 3.0 1  1       
210111  Extracts, essences and 
concentrates, of coffee  0.5 8.0 2   2      
060312  Fresh cut carnations and 
buds, of a kind suitable 
for bouquets or for 
ornamental purposes  0.4 25.0 1   1      
380892  Fungicides  0.4 4.3 2  1 1      
151110  Crude palm oil  0.3 3.0 1  1       
380891  Insecticides  0.3 4.3 2  2       
961900  Sanitary towels (pads) 
and tampons, napkins 
and napkin liners for 
babies, and similar 
articles, of any material  0.3 7.2 5 2 5       
TOTALS  81.3 9.0 104 7 75 16 10 1 1 1 - 
Note:   For the ca lculation 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.  
 WT/REG375/1  
 
- 52 - 
 
  Colombia  
3. Table A1.3 shows t ariff liberalization by Colombia  in relation to imports from Korea  (by total, 
agricultural and non -agricultural products). In 2016 , Colombia 's average applied MFN rate was 
8.5% overall ( 7.5% for non -agricultural products and 15.1% for agricultural products ). 3.6% of 
Colombia 's tariff was duty free on an MFN basis; 4.2% of non -agricultural products and 0.1% of 
agricultural products were duty free. A s a result of the  entry i nto force of the Agreement (2016 ), 
Korea n exporters enjoyed a relative margin of prefe rence of 41.2% vis-à-vis the prevailing MFN 
tariff; 42.7% for non -agricultural goods and 35.1% for agricultural products. The share of duty 
free lines applicable to imports from Korea  immediately at the entry into force of the Agreement 
was 59.6% (54% for agricultural products and 60.5% for non -agricultural products). This share 
will further increase to reach 96.4% in 2026 , following ten years of implementation and 97.9% in 
2034 (close to 100 % for non -agricultural products and 85.2% for agricultural product s), when 
Colombia  will have fully implemented its tariff elimination programme.  
Table A1.3 Colombia: Indicators of MFN tariff rates and preferential rates for imports 
from Korea  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural pro ducts  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2016 8.5 8.8 3.6 15.1 15.1 0.1 7.5 7.9 4.2 
Korea  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2016 5.0 12.7 59.6 9.8 24.2 54.0 4.3 11.0 60.5 
2017 4.7 11.8 59.6 9.1 22.5 54.0 4.0 10.2 60.5 
2018 3.9 10.1 60.0 8.5 21.0 54.2 3.3 8.4 61.0 
2019 2.9 7.5 60.0 7.7 19.1 54.2 2.2 5.7 61.0 
2020 1.9 10.8 81.1 7.0 22.0 61.8 1.2 7.5 84.2 
2021 1.6 8.7 81.1 6.5 20.2 61.8 0.8 5.3 84.2 
2022 1.2 11.0 87.9 6.0 19.4 62.9 0.5 6.3 91.9 
2023 1.0 9.0 87.9 5.4 17.7 62.9 0.3 4.1 91.9 
2024 0.8 7.2 87.9 5.0 16.2 62.9 0.2 2.2 91.9 
2025 0.6 24.2 96.4 4.4 25.6 75.0 0.0 3.3 99.8 
2026 0.5 22.9 96.4 4.2 24.3 75.0 0.0 2.0 99.8 
2027 0.5 25.1 96.7 4.0 25.1 76.3 0.0 0.0 100.0  
2028 0.5 23.9 96.7 3.8 23.9 76.3 0.0 0.0 100.0  
2029 0.5 22.7 96.7 3.6 22.7 76.3 0.0 0.0 100.0  
2030 0.4 29.5 97.2 3.4 29.5 80.2 0.0 0.0 100.0  
2031 0.4 45.7 97.8 3.3 45.7 84.3 0.0 0.0 100.0  
2032 0.4 44.6 97.8 3.2 44.6 84.3 0.0 0.0 100.0  
2033 0.4 46.9 97.8 3.1 46.9 84.7 0.0 0.0 100.0  
2034 0.4 50.6 97.9 3.1 50.6 85.2 0.0 0.0 100.0  
a WTO Definitio n. 
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, duties of the tariff lines subject to price band system ( Aplica Sistema Andino ) on MFN 
basis and under the agreement are excluded . 
 Based on t he HS 2012 nomenclature.  
Source:  WTO estimates based on data  provided by Colombia . 
4. Table A1.4 gives an indication of additional market access in Colombia  resulting from the 
entry into force of the Agreement for Korea 's top 25 global exports, which account ed for 49.3% of 
its global exports in 2013 -2015; these corresponded to 85 lines of Colombia 's tariff at the HS six-
digit le vel (using the HS  2012). In 2016 , prior to the entry into force of the Agreement,  4 of these 
tariff lines were already duty free on an MFN basis in  Colombia 's market. With the entry into  force WT/REG375/1  
 
- 53 - 
 
  of the Agreement, in 2016 , 50 of the 81 tariff lines, which were (MFN) dutiable, became duty free 
for imports from Korea . All of the remaining dutiable tariff lin es will become duty -free in 2020  
(17 tariff line s), 2024 (1 line) and 2025 (13  lines). None of the tariff lines covering Korea's top 
25 global expo rts will remain  dutiable after 2025 . 
Table A1.4 Colombia: Market access opportunities under the agreement for Korea's top 
25 exports to the wor ld 
Korea's top export products  
in 2013 - 2015  Access Conditions to Colombia's import 
markets  
HS number and description  
of the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty free lines 
under the agreement  
Remain Dutiable  Average MFN 
applied rate 
(%) 
No. of  
duti-ble 
lines  
No. of duty 
free lines  
2016  
2020  
2024  
2025  
271019  Medium oils and preparations, of 
petroleum or bituminous 
minerals, not containing 
biodiesel, n.e.s.  6.0 5.0 17  15 2    
854232  Electronic integrated circuits as 
memories  4.8 5.0 1  1     
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  4.7 35.0 4     4  
901380  Liquid crystal devices, n.e.s. and 
other optical appliances and 
instruments not elsewhere 
specified in chapter 90  4.2 5.0 2  2     
854231  Electronic integrated circuits as 
processors and controllers, 
whether or not co mbined with 
memories, converters, logic 
circuits, amplifiers, clock and 
timing circuits, or other circuits  3.6 5.0 1  1     
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.  2.5 5.0 1  1     
870899  Parts and accessories, for 
tractors, motor vehicles for the 
transport of ten or more persons, 
motor cars and other motor 
vehicles principally designed for 
the transport o f persons, motor 
vehicles for the transport of 
goods and special purpose motor 
vehicles, n.e.s.  2.3 7.1 12  1 11    
890590  Light-vessels, fire -floats, floating 
cranes and other vessels, the 
navigability of which is subsidiary 
to their main function  2.2 5.0 1  1     
851712  Telephones for cellular networks 
"mobile telephones" or for other 
wireless networks  2.2 5.0 1  1     
890120  Tankers  2.1 5.0 2 1 2     WT/REG375/1  
 
- 54 - 
 
  Korea's top export products  
in 2013 - 2015  Access Conditions to Colombia's import 
markets  
HS number and description  
of the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty free lines 
under the agreement  
Remain Dutiable  Average MFN 
applied rate 
(%) 
No. of  
duti-ble 
lines  
No. of duty 
free lines  
2016  
2020  
2024  
2025  
890190  Vessels for the transport of goods 
and vessels for the transport of 
both persons and goods  2.0 5.0 2 1 1 1    
271012  Light oils and preparations, of 
petroleum or bituminous 
minerals which >= 90% by 
volume "incl. losses" distil at 
210°c "astm d 86 method"  1.9 5.0 10  9 1    
852990  Parts suitable for use solely or 
principally with transmission and 
reception apparatus for radio -
broadcasting or television, 
television cameras,  digital 
cameras, video camera 
recorders, radar apparatus, radio 
navigational aid apparatus or 
radio remote control apparatus, 
monitors and projectors, n.e.s.  1.2 5.0 2 2 2     
870322  Motor cars and other motor 
vehicles principally designed for 
the transport of persons, incl. 
station wagons and racing cars, 
with spark -ignition internal 
combustion reciprocating piston 
engine of a cylinder capacity > 
1.000 cm³ but <= 1.500 cm³  1.1 35.0 4     4  
870332  Motor cars and other motor 
vehicles principally designed for 
the transport of persons, incl. 
station wagons  1.0 35.0 2    1 1  
847330  Parts and accessories of 
automatic data -processing 
machines or for other machines 
of heading 8471, n .e.s. 0.9 5.0 1  1     
853190  Parts of electric sound or visual 
signalling apparatus, n.e.s.  0.9 5.0 1  1     
853400  Printed circuits  0.9 5.0 1  1     
290243  p-xylene  0.9 5.0 1  1     
870324  Motor cars and other motor 
vehicles principally designed for 
the transport of persons, incl. 
station  0.8 35.0 4     4  
854239  Electronic integrated circuits  0.7 5.0 1  1     
854140  Photosensitive semiconductor 
devices, incl. photovoltaic cells 
whether or not assembled in 
modules or made up into panels; 
light emitt ing diodes  0.7 5.0 2  2     
854370  Electrical machines and 
apparatus, having individual 
functions, n.e.s. in chapter 85  0.6 5.0 5  4 1    WT/REG375/1  
 
- 55 - 
 
  Korea's top export products  
in 2013 - 2015  Access Conditions to Colombia's import 
markets  
HS number and description  
of the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty free lines 
under the agreement  
Remain Dutiable  Average MFN 
applied rate 
(%) 
No. of  
duti-ble 
lines  
No. of duty 
free lines  
2016  
2020  
2024  
2025  
870840  Gear boxes and parts thereof, for 
tractors, motor vehicles for the 
transport of ten or more persons, 
motor ca rs 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.  0.6 5.0 2  2     
853890  Parts suitable for use solely or 
principally with the apparatus of 
heading 8535, 8536 or 8537, 
n.e.s.  0.6 5.0 1   1    
TOTALS  49.3 9.9 81 4 50 17 1 13 - 
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 Colombia  and UNSD, Comtrade database.  
_________