WORLD TRADE  
ORGANIZATION  WT/REG217/2/Rev.1 
9 July 2009 
 (09-3361) 
Committee on Regional Trade Agreements  
 
 
 
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement between  
the EFTA States and Korea 
(Goods and Services) 
 
Report by the Secretariat 
 
Revision  
 
 
 
This report, prepared for the considera tion of the Free Trade Agreement between 
the EFTA States and Korea has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties.  The report has been drawn 
up in accordance with the rules and pro cedures contained in the Decision for a 
Transparency Mechanism for Regi onal Trade Agreements (WT/L/671). 
 
Any technical questions arising from this report may be addressed to Ms. Juneyoung  Lee (tel: +41 22 739 6791).  WT/REG217/2/Rev.1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I. TRADE ENVIRONMENT 1  
A. MERCHANDISE TRADE  1  
B. TRADE IN SERVICES AND INVESTMENT  5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 7  
A. BACKGROUND INFORMATION  7  
III. TRADE IN GOODS 10  
A. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  10  
1. Import duties and charges, and quantitative restrictions 10  
(a) General provisions 10  
(b) Overall tariff liberalization 11  
(c) EFTA States' liberalization schedule 14  
(d) Korea's liberalization schedule 16  
2. Rules of origin 18  
3. Export duties and charges, and quantitative restrictions 19  
B. REGULATORY PROVISIONS ON TRADE IN GOODS  20  
1. Standards 20  
(a) Sanitary and phytosanitary measures 20  
(b) Technical barriers to trade 20  
2. Safeguard mechanisms 20  
(a) Global safeguards 20  
(b) Bilateral safeguards 21  
(c) Special safeguards 22  
3. Anti-dumping measures 22  
4. Subsidies and countervailing measures 22  
5. Customs-related procedures 22  
6. Other regulations 23  
IV. TRADE IN SERVICES 23  
A. SCOPE AND DEFINITIONS  23  
B. DENIAL OF BENEFITS  24  
C. GENERAL PROVISIONS ON TRADE IN SERVICES  24  
1. Market access 24  
2. National treatment and MFN 24  
3. Commercial presence 24  
4. Movement of natural persons 24  
5. Transparency 25  
D. LIBERALIZATION COMMITMENTS  25  
1. Korea 26  
(a) Horizontal co mmitments 26  
(b) Sector- specific commitments 26  
2. Iceland 27  
(a) Horizontal co mmitments 27  
(b) Sector-specific commitments 28  
3. Liechtenstein 29  
(a) Horizontal co mmitments 29  
(b) Sector- specific commitments 29  WT/REG217/2/Rev.1 
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  4. Norway 29  
(a) Horizontal co mmitments 29  
(b) Sector-specific commitments 30  
5. Switzerland 31  
(a) Horizontal co mmitments 31  
(b) Sector-specific commitments 31  
E. REGULATORY PROVISIONS ON TRADE IN SERVICES  33  
1. Domestic regulation 33  
2. Recognition 33  
3. Monopolies and exclusive service suppliers 34  
4. Safeguard measures 34  
F. SECTOR -SPECIFIC PROVISIONS ON TRADE IN SERVICES  34  
1. Financial services 34  
2. Telecommunications services 35  
3. Co-production in broadcasting services 35  
V. INVESTMENT 35 
VI. GENERAL PROVISIONS OF THE AGREEMENT 37  
A. TRANSPARENCY  37  
B. EXCEPTIONS AND RESERVATIONS  37  
C. ACCESSION AND WITHDRAWAL  37  
D. INSTITUTIONAL FRAMEWORK  38  
E. DISPUTE SETTLEMENT  38  
F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  40  
G. GOVERNMENT PROCUREMENT  41  
H. INTELLECTUAL PROPERTY RIGHTS  41  
I. COMPETITION POLICY  43  
ANNEX I 44 
ANNEX II 52 
 
  WT/REG217/2/Rev.1 
 Page 1 
 
 
  EFTA STATES -KOREA FREE TRADE AGREEMENT (GOODS & SERVICES) 
 
Factual Presentation by the Secretariat  
 
 
I. TRADE ENVIRONMENT 
1. The Free Trade Agreement (FTA) between the EFTA States and Korea (hereinafter referred 
to as "the Agreement") is EFTA's second FTA with an Asian country (after Singapore) and Korea's 
first FTA with an European partner. 
2. In 2006, the EFTA States' total merchandise imports from the world accounted for 
US$211.7 billion1 and their total exports for US$273.2 billion.2  In the same year, Korea's total 
imports from the world accounted for US$309.3 billion and exports for US$325.4 billion.3  In 2006, 
Korea's share in world exports and im ports was 2.69% and 2.49%, respectively4;  the corresponding 
shares for the EFTA States were 2.3%5 and 1.7%.6 
A. MERCHANDISE TRADE  
3. Recent developments in trade between the EFTA States and Korea (hereinafter referred to as 
"the Parties") are presented in Charts I.1 and I.2.  Over the period surveyed (1997-2007) except for in 
1998 and 2000, EFTA has run a consistent trade surplu s with Korea.  Since 2002 in particular there 
has been a steady increase in  trade between the Parties.  Korea's exports to EFTA fell by more than 
half between 1998 and 1999.7 
 
                                                      
1 WTO Statistics Database, Trade Profiles: Iceland (U S$6.156 million);  Norway (US$64.267 million);  
Switzerland (US$141.284 million). 
2 WTO Statistics Database, Trade Profiles:  Iceland (US$3.453 million);  Norway 
(US$122.123 million);  Switzerland (US$147.719 million). 
3 WTO Statistics Database, Trade Profiles. 
4 WTO Statistics Database, Trade Profiles. 
5 WTO Statistics Database, Trade Profiles: Iceland (0 .03%);  Norway (1.01%);  Switzerland (1.22%). 
6 WTO Statistics Database, Trade Profiles: Iceland (0 .05%);  Norway (0.52%);  Switzerland (1.14%). 
7 There is a discrepancy in the trade data reported by the EFTA States and Korea to Comtrade due to 
the use of different methodology for th e measurement of merchandise trade. WT/REG217/2/Rev.1 
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  020406080100120140160180200220240260280300320
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.00.20.40.60.81.01.21.41.61.82.02.22.42.62.83.03.2US$billion US$billionChart I.1 - EFTA: merchandise impo rts from and exports to world 
and Korea, 1997-2007
Source:     UNSD, Comtrade database.Imports from Korea
Exports to KoreaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
050100150200250300350400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007012345678US$billion US$billionChart I.2 - Korea: merchandise im ports from and exports to world 
and EFTA, 1997-2007
Source: UNSD, Comtrade database.Imports from EFTA
Exports to EFTATotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
 
 
   WT/REG217/2/Rev.1 
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  4. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world on average during 2003-2005, is show n in Chart I.3, based on Harmonized System 
(HS) sections. 
5. EFTA's largest export product categories (miner als, chemicals, machinery and optical 
products), which accounted for 72% of its total exports  to the world in this period, made up 76.8% of 
Korea's imports from EFTA.  Korea's largest expor t product categories (machinery, vehicles, base 
metals and plastics), which accounted for 76% of its total exports in this period, made up 85.8% of 
EFTA's imports from Korea, with vehicles and machinery together at 78.3%. 
 WT/REG217/2/Rev.1 
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  Chart I.3
EFTA and Korea: product compositio n of merchandise trade, average 
(2003-2005)
EFTA's imports from Korea Korea's imports from EFTA
           Source:  UNSD, Comtrade database.Per cent
Total:  US$1,023 million Total:  US$1,867 million
Total:  US$164.8 billion Total: US$221.5 billion
Total:  US$206 billion Total:  US$244 billionEFTA's global exports Korea's global exportsEFTA's global imports Korea's global imports Chemicals 3.3
Machinery
31.0
Minerals 27.9Minerals 4.6
Chemicals 19.5Optical 2.1
Machinery
15.8Other 
9.7Other 
5.4
Base metals 6.7Minerals 25.5
Base metals 8.2
Machinery 43.5
Base metals 
7.7 Textiles 3.4
Vehicles 3.2Optical 3.0Other
4.5Other
9.1
Other 
11.9Machinery 36.2Vehicles  42.1
Animals 2.9Minerals 6.0Machinery 21.4
Vehicles  11.5Chemicals  16.2Prepared foods 3.2Vegetables 2.1
Plastics 4.2
Textiles 4.9Pulp of wood  3.2
Plastics2.2Other 
6.7
Optical 4.9
Chemicals 5.0Chemicals  8.0
Plastics 6.0Minerals 5.9
Miscellaneous 3.6Base metals 2.0
Plastics 6.5Pearls & precious 
metals 6.5
Pearls & precious 
metals 4.3
Pearls & precious metals 
3.2Base metals 10.5Plastics 2.6
Optical 4.3Vehicles 2.5
Optical 8.8Machinery 46.7
Chemicals 13.2Optical 11.0Base metals 7.5
Textiles 3.0
Vehicles 18.8Textiles 6.0
 
  WT/REG217/2/Rev.1 
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  B. TRADE IN SERVICES AND INVESTMENT  
6. Chart I.4 shows the breakdown of commercial se rvices trade for EFTA in 1997-2006.  Total 
exports of commercial services have risen stead ily during the period and especially since 2001.  
Imports have grown more slowly.  Exports of comme rcial services have been mainly driven by other 
business services, whereas travel services accounted  for the top import services.  Transportation 
services were one of the main contributors to both imports and exports of services during this 
period.
0102030405060708090
1997
1998
1999200020012002
2003
2004200520060102030405060708090
1997
1998
1999
2000
2001
2002
20032004
2005
2006Chart I.4
EFTA, total commercial services trade, 1997-2006
Exports Imports
Transportation services Insurance services Other business services
Travel services Financial services
Communication services Computer and information servicesPersonal, cultural and 
recreational services
Source: IMF, BOP CD-Rom.Construction services Royalties and license fees Government servicesUS$ billions US$ billions
 
7. Chart I.5 shows the breakdown of commercial services trade for Korea in 1997-2006.  
Imports have risen more rapidly than exports durin g this period.  Transportation services account for 
the bulk of its exports with significant shares for other business and travel services.  Imports of commercial services have been also ma inly driven by the same services. 
 WT/REG217/2/Rev.1 
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  0102030405060
1997
1998
1999
2000
2001
2002
2003
2004
2005
20060102030405060
1997
1998
1999
2000
2001
20022003
2004
2005
2006Chart I.5
Korea, total commercial services trade, 1997-2006
Exports Imports
Transportation services Insurance services Other business services
Travel services Financial services
Communication services Computer and information servicesPersonal, cultural and 
recreational services
Source: IMF, BOP CD-Rom.Construction services Royalties and license fees Government servicesUS$ billions US$ billions
Note:       Imports of insurance services were negative in 1999 (US$-114 million). 
 
 
8. Tables I.1.A-B shows Korea's total flow of in ward and outward foreign direct investment 
(FDI) from and to the EFTA States.  Data on investment stock are not available. 
Table I.1.A 
Korea: Inward investment vis-à-vis  each EFTA State (US$'000)  
 2003 2004 2005 2006 June 2007 
Switzerland 20,882 70,354 40,254 228,713 10,915 
Norway 5,747 101,511 47,003 22,745 57,042 
Iceland 0 43 0 1,070 0 
Liechtenstein 102 975 1,125 55 0 
 
Source:  Data provided by Korea. 
 
Table I.1.B 
Korea: Outward investment vis-à-vis  each EFTA State (US$'000)  
 2003 2004 2005 2006 June 2007 
Switzerland 3,441 16 3,671 5,720 67,298 
Norway 0 5,411 0 0 0 
Iceland 0 0 0 0 0 
Liechtenstein 0 0 0 0 0 
Source:  Data provided by Korea. 
  WT/REG217/2/Rev.1 
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  9. Korea's inward and outward investment flow in services sectors vis-à-vis  each EFTA State is 
depicted in Tables I.2.A-B.  According to Korea, th ere are other services in outward investment to the 
EFTA States.  However, it has decided not to provide  data in that regard since the amount of it is 
small. 
Table I.2.A 
Korea: Inward investment in services  from each EFTA State, (US$'000)  
  2003 2004 2005 2006 June 2007 
Wholesale and retail trade  
Switzerland 6,427 6,812 13,843 6,376 3,153 
Norway 5,267 1,424 61 88 0 
Iceland 0 43 0 1,070 0 
Liechtenstein 0 0 0 0 0 
Transport  
Switzerland 952 0 2,866 1,860 325 
Norway 0 100,087 0 5,900 57,042 
Iceland 0 0 0 0 0 
Liechtenstein 0 0 0 0 0 
Financial institutions and insurance 
Switzerland 0 0 0 58,000 5,274 
Norway 0 0 0 0 0 
Iceland 0 0 0 0 0 
Liechtenstein 0 0 0 0 0 
Hotels & restaurants 
Switzerland 0 0 0 0 0 
Norway 0 0 0 158 0 
Iceland 0 0 0 0 0 
Liechtenstein 0 0 0 0 0 
Telecommunications 
Switzerland 0 20,000 15,000 0 0 
Norway 0 0 0 0 0 
Iceland 0 0 0 0 0 
Liechtenstein 0 0 0 0 0 
Business 
Switzerland 11,452 17,966 1,049 5,520 108 
Norway 360 0 150 53 0 
Iceland 0 0 0 0 0 
Liechtenstein 0 0 0 0 0 
Source:  Data provided by Korea. 
Table I.2.B 
Korea:  Outward investment in services in each EFTA State  
Wholesale and retail trade (US$'000)  
   2003 2004 2005 2006 June 2007 
Switzerland 0 16 3,671 4,457 64,000 
Norway 0 5,411 0 0 0 
Iceland 0 0 0 0 0 
Liechtenstein 0 0 0 0 0 
Source:  Data provided by Korea. 
 
II. CHARACTERISTIC ELEMEN TS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
10. The Agreement was signed by the EFTA Stat es – Iceland, Liechtenstein, Norway and 
Switzerland - and Korea on 15 December 2005 and entered into force on 1 September 2006 
(1 October 2006 for Iceland).  Unless otherwise provi ded for in the Agreement, its provisions apply to 
trade and economic relations between the EFTA Stat es on one hand, and Korea on the other, but not 
to trade relations between the EFTA States (Article  1.3.1).  When ratifying the Agreement Norway 
exempted the territory of Svalbard from the appli cation of the Agreement with the exception of trade WT/REG217/2/Rev.1 
Page 8 
 
 
  in goods in accordance with Annex II.  Switzerland represents Liechtenstein in the Agreement with 
which it has a customs union (Article 1.3.2). 
11. The FTA negotiations, composed of four rounds , were concluded within about six months 
between January 2005 and July 2005. 
12. The goods and services aspects of the Agreement were notified to the WTO by the Parties on 
23 August 2006 under Article XXIV of the GATT 199 4 and Article V of the GATS, respectively 
(WT/REG217/N/1 and S/C/N/373).  The text of the Agre ement is available, together with its related 
annexes, on the following official websites: 
EFTA:  http://www.efta.int/content/free-tr ade/fta-countries/the-republic-of-korea  
Korea: http://www.fta.go.kr/pds/fta_korea/efta/kor/060217_KEFTA.pdf  (in Korean)  WT/REG217/2/Rev.1 
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  13. The Agreement is composed of ten Chapters  and has related Annexes and Appendices, as 
follows: 
Box II.1:  Composition of the Agreement 
Preamble 
Chapter 1:  General Provisions 
Chapter 2:  Trade in Goods 
Chapter 3:  Trade in Services 
Chapter 4:  Financial Services 
Chapter 5:  Competition 
Chapter 6:  Government Procurement 
Chapter 7:  Intellectual Property 
Chapter 8:  Institutional Provisions 
Chapter 9:  Dispute Settlement 
Chapter 10:  Final Provisions 
Final Act 
Record of Understanding re lating to the FTA between  EFTA States  and Korea 
Annexes 
   Annex I – Rules of Origin and Customs Procedures 
Appendix 1  – Introductory notes to the list in Appendix 2 
Appendix 2  – List of working or processing required to be carried out on non-originating materials 
in order that the product manufactur ed can obtain originating status 
Appendix 3  - Text of the origin declaration referred to in Article 15 
Appendix 4  – Exemptions from the principle of territoriality  
   Annex II – Territorial Application referred to in paragraph 2 of Article 1.2  
   Annex III – Products referred to in paragraph 1(a) of Article 2.1 
   Annex IV – Processed Agricultural Products referred to in paragraph 1(b) of Article 2.1 
   Annex V – Fish and Other Marine Products referred to in paragraph 1(c) of Article 2.1 
   Annex VI – Customs Duties referred to in paragraph 1 of Article 2.3 
   Annex VII – Schedules of Specific Commitments 
Appendix 1  - Korea 
Appendix 2  - Iceland 
Appendix 3  - Liechtenstein 
Appendix 4  - Norway 
Appendix 5  - Switzerland 
   Annex VIII – List of MFN-Exemptions 
Iceland 
Liechtenstein 
Norway 
Switzerland 
   Annex IX – Mutual Recognition referred to in paragraph 3 of Article 3.9 
   Annex X – Telecommunications Services referred to in paragraph 4 of Article 3.16  
   Annex XI – Co-production of Broadcasting Programmes referred to in paragraph 4 of Article 3.16 
   Annex XII – Contact Points regarding Government Procurement referred to in Article 6.2 
   Annex XIII – Intellectual Property Rights referred to in paragraph 1 of Article 7.1 
Agreement on Agriculture 
   Between Korea and Iceland 
   Between Korea and Norway 
   Between Korea and Switzerland 
Investment Agreement 
   Annex I – referred to in Article 12, reservations by Korea 
   Annex II – referred to in Article 12, reservations by Iceland 
   Annex III – referred to in Article 12, reservations by Liechtenstein 
   Annex IV- referred to in Article 12, reservations by Switzerland 
   Annex V – referred to in Article 12, reservations by the EFTA Parties 
Declaration by Korea and Switzerland on Medical Devices  
Source : Free Trade Agreement between the EFTA States and Korea. WT/REG217/2/Rev.1 
Page 10 
 
 
  14. No overall implementation period is explicitly stated in the Agreement.  However, EFTA 
States will abolish customs duties on the covered products upon entry into force (2006) of the 
Agreement except Norway which will eliminat e customs duties on some products in 2007 
(see Table III.1A), while Korea will gradually eliminate duties on the covered products over a 
transition period ending on 1 January 2016. 
15. Three bilateral "agricultural agreements" (h ereafter referred to as AAs) were concluded 
between Korea and Iceland, Norway, and Switzerland/ Liechtenstein.  According to Article 2.1.2 of 
the Agreement, the AAs form part of the instru ments establishing a free-trade area between the EFTA 
States and Korea. 
16. Although the AAs have not been notified as such  to the WTO, the information contained 
therein has been incorporated in this factual presen tation so as to offer a complete picture of existing 
trade commitments between the EFTA States and Korea.  Therefore, unless expressly specified, 
market access commitments and disciplines described in this presentation refer to products covered in 
both the Agreement and the AAs. 
III. TRADE IN GOODS 
A. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
17. The Agreement covers: industrial products (H S Chapters 25-97), with the exception of 
products listed in Annex III8;  "processed agricultural products" (as defined in Annex IV); and "fish 
and other marine products" (as pr ovided in Annex V).  The AAs detail separate liberalization 
commitments that apply to each country for agricultu ral products falling within HS Chapters 1 to 24.  
The base rates of customs duties for the products set  out in Annexes IV-VI are applied MFN rates in 
2005. 
18. The Parties commit to not introduce new customs duties on imports, charges, prohibitions or 
restrictions (Articles 2.3 and 2.5).  The EFTA St ates will eliminate duties on industrial products 
covered by the Agreement as of the date of entry in to force while Korea will gradually eliminate them 
over a seven-year period in accordance with Annex VI (with tariff reductions taking place on 1 January of each given year) (Article 2.3.1).  Kore a's progressive tariff liberalization, as specified in 
the Appendix to Annex VI, lists three categories of  goods subject to tariff elimination, respectively 
ending in 2009, 2011, and 2013.  An additional cat egory R in the Appendix lists products that are 
excluded from liberalization, but which will be revi ewed by the Joint Committee no later than three 
years after the entry into force of the Agreement and thereafter, at two-year intervals, if need be.  In 
the meantime, if Korea grants pref erential treatment on category R products to a third party, the same 
treatment must be extended to the EFTA States. 
19. Annex IV describes liberalization commitments fo r processed agricultural products (listed in 
Tables 1 and 2 of the Annex).  The Parties may le vy fixed duties at a level no greater than the 
difference between the domestic and world market pri ce of the agricultural raw material incorporated 
in the product concerned (Article 1.2 of Annex IV ).  For products originating in Korea, the EFTA 
States grant no less favourable treatment than th at accorded to the Euro pean Communities;  for 
products originating in the EFTA States, Korea grants treatment specified in Table 2 of the Annex.  In 
                                                     
 
8 The exception applies, depending on the importing Parties except Iceland, to some products of 
headings 29.05, 3301, 35.01, 35.02, 3503.00,  3504.00, 35.05, 38.09, 38.23 and 38.24.  WT/REG217/2/Rev.1 
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  particular, for product categories B2 and B4 Kor ea will progressively eliminate duties, starting from 
2007 and ending in 2011 and 2016, r espectively.  The Parties will review the development of their 
trade in products under Annex IV and decide on  possible changes to coverage (Article 5 of 
Annex IV). 
20. Fish and other marine products are covered by Annex V to the Agreement.  It provides for the 
elimination of all customs duties on imports and char ges having equivalent effect for products listed 
in Table 1 originating in an EFTA country or in  Korea.  However, Switzerland will continue to 
maintain customs duties on some imports from Korea liste d in Table 2.  For products listed in Table 3, 
Korea commits to either i) gradually eliminate cust oms duties, and charges having equivalent effect, 
starting from 2006 and ending in 2009, 2011, 2013 or 2016;  ii) apply tariff-rate quotas (TRQs)9;  or 
iii) review the liberalization schedules no later than  seven years after the entry into force of the 
Agreement. 
21. For imports of covered agricultural products, Korea has committed to eliminate or reduce10 
customs duties on imports from Iceland upon the entry into force of the Agreement; for eight lines on 
other meat of sheep, fresh or chilled and frozen, it will gradually eliminate import duties by 2011.  
Duties on all covered imports from Norway and for most covered imports from Switzerland will be 
eliminated or reduced11 upon the entry into force of the Agreement;  for a number of imports from 
Switzerland12 it will gradually eliminate import duties by 2016.  Korea did not set gradual elimination 
scheme vis-à-vis  Norway on covered agricultural products - the tariff pattern is either duty-free upon 
the entry into force of the Agreement or the tariff rate of the first year standstills during the implementation period.  Iceland fully liberalized all covered imports from Korea upon the entry into 
force of the Agreement.  Norway  has eliminated duty on most covered imports from Korea except for 
a number of lines on which it applies rates of 10%, 20% or 80%.  Switzerland has committed to eliminate or reduce duties on covered Korean agricu ltural products upon the entry into force of the 
Agreement. 
22. The Parties commit to continue efforts with a view to achieving further agricultural trade 
liberalization (Article 5 of the AAs).  They r eaffirm their rights and obligations under the WTO 
Agreement on Agriculture (Articles 7 of the AAs).   If a Party introduces or reintroduces an export 
subsidy on a product specified in the Annexes of th e AAs, the other Party may increase its duties on 
such imports up to the applied MFN rates in effect at that time (Articles 8 of the AAs). 
(b) Overall tariff liberalization 
23. Tables III.1A-D show tariff elimination commitme nts by the Parties.  With regard to the 
EFTA States, 83.9% of Norway's tariff was alread y duty-free on an MFN basis in 2006 corresponding 
to 95.9% of its imports from Korea for the period 2003-2005
13;  on entry into force of the Agreement 
                                                      
9 For mackerel (030374 0000), the annual aggr egate quota quantity is 500 metr ic tonnes;  as of 2006 the 
in-quota rate is zero (compared to an MFN rate of 10%) and the out of quota rate is the applied MFN rate.  The 
TRQ shall be reviewed six years after th e entry into force of the Agreement. 
10 Duties vary from 4% to 24.3%. 
11 Duties vary from 2.4% to 36% for imports from Norway and from 3.8% to 56.8% for Switzerland. 
12 These are one line relating to cheese (0406900000), ten lines for wine of fresh grapes, and one line 
for other undenatured ethyl alcohol.  Subject to the presentation of a certifi cate of authenticity a TRQ is applied 
to imports of other cheese up to an annual aggregate quan tity of 45 tonnes for the first five years from the entry 
into force of the Agreement and 60 tonnes as of the si xth year.  The in-quota ra te decreases annually from 
32.8% in 2006 (compared to an MFN rate of 36%) and is to be eliminated in 2016.  The out of quota rate is the 
applied MFN rate and will remain at the applied MFN level after 2016 as well. 
13 Norway's applied MFN tariff in 2006 contained 7, 202 lines at the HS 8-digit level;  89.6% of the 
tariff contains ad valorem  rates.  Of the non ad valorem  rates 701 are specific;  2 are alternate rates and 44 are WT/REG217/2/Rev.1 
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  (2006) and 2007 a further 6.4% and 0.1% of tariff lines (3.6% of imports from Korea), respectively 
became duty free, amounting to 90.4% of the tariff, while  9.7% of the tariff is to remain dutiable.  In 
the case of Switzerland 17.5% of the tariff was alread y duty free on an MFN basis, corresponding to 
26.1% of imports from Korea for the period 2003-200514;  at entry into force of the Agreement in 
2006, an additional 66.5% of the tariff (73.9% of Switzerland's im ports from Korea) became duty free 
for import from Korea with 16% of the tariff to remain  dutiable.  In the case of Iceland, 70.9% of its 
tariff lines were already duty-free on an MFN basis in 2006 corresponding to 18.7% of its total 
imports from Korea for the period 2003-2005.15  On entry into force of the Agreement a further 24% 
of Iceland's tariff schedule was liberalized, accoun ting for an additional 81.3% of its imports from 
Korea becoming duty-free.  The remaining 414 lines (5 .1% of Iceland's tariff lines) remain dutiable;  
the value of these imports from Korea is zero. 
Table III.1 
Tariff elimination commitments under the Agreement  and corresponding average trade values for 2003-2005 
A:  Norway 
Duty phase-out 
period Number 
of lines % of total lines in Norway's 
tariff schedule Value of Norway's imports from 
Korea in million US$ % of total Norway's 
imports from Korea 
MFN duty-free 
(2006) 6,039 83.9 469.6 95.9 
2006 459 6.4 17.7 3.6 
2007 9 0.1 0.0 0.0 
Remain 
dutiable  695 9.7 2.5 0.5 
Total 7,202 100.0 489.9a 100.0 
a  Only trade falling under HS Chapter 1-97 is included. 
Source:  WTO Secretariat estimates based on data provided by Norway and the WTO-IDB. 
 
B: Switzerland 
Duty phase-out 
period Number 
of lines % of total lines in Switzerland's 
tariff schedule Value of Switzerland's imports 
from Korea in million US$ % of total 
Switzerland's imports 
from Korea 
MFN duty-free (2006) 1,449 17.5 128.7 26.1 
2006 5,507 66.5 364.9 73.9 
Remain 
dutiable  1,322 16.0 0.3 0.1 
Total 8,278 100.0 493.8 100.0 
Source:  WTO Secretariat estimates based on data provided by Switzerland and the WTO-IDB. 
 
 
  
 
 
                                                                                                                                                                    
 
subject to a rate based on the real content of the agricultural ingredients of the product.  For the lines carrying 
alternate rates of duty, only the ad valorem  component has been used in the tariff calculations. 
14 Switzerland's MFN applied tariff in 2006 consisted of 8,282 lines at the HS 8-digit level;  only 
17.5% of the tariff is subject to ad valorem  rates of duty.  All the remaining lines are subject to specific rates of 
duty which could not be used for the calculation of average rates of applied tariffs. 
15 Iceland's MFN applied tariff in 2006 consisted of 8, 171 tariff lines at the HS 8-digit level;  96.1% of 
this tariff is ad valorem , 3.1% relates to compound duties and the remaining 0.8% relates to tariff lines with 
specific duties.  No tariff-rate quotas are provided.  WT/REG217/2/Rev.1 
 Page 13 
 
 
  C:  Iceland 
Duty phase-out 
period Number 
of lines % of total lines in Iceland's 
tariff schedule Value of Iceland's imports from 
Korea in million US$ % of total Iceland's 
imports from Korea 
MFN duty-free (2006) 5,792 70.9 7.3 18.7 
2006 1,965 24.0 31.8 81.3 
Remain 
dutiable  414 5.1 0.0 0.0 
Total 8,171 100.0 39.1 100.0 
Source:  WTO Secretariat estimates based on data provided by Iceland. 
 
24. Table III.1.D shows Korea's duty elimination in terms of tariff lines and trade, applied to 
EFTA States.  13.3% of total tariff lines were alre ady duty free on an MFN basis for all EFTA States 
before the entry into force of the Agreement.16  In 2006 a further 66.4%, 66.2% and 65.8% of the 
tariff became duty free for imports from Iceland, Norway and Switzerland, respectively.  The 
remaining tariffs are to be progressively eliminated in four stages, in 2009,  2011, 2013 and 2016 for 
all EFTA States.  By the end of the implementation period in 2016, 89%, 88.7%, and 88.5% of tariff 
lines and 99.1%, 93%, and 98.6% of the value of imports from Iceland, Norway and Switzerland, 
respectively will be duty-free. 
D: Korea 
(a)  Iceland 
Duty phase-out period Number of 
lines % of total lines in 
Korea's tariff schedule Value of Korea's imports from 
Iceland in million US$ % of total Korea's 
imports from Iceland 
MFN duty-free (2006) 1,498 13.3 4.2 36.2 
2006 7,475 66.4 4.2 36.2 
2009 386 3.4 1.0 8.6 
2011 400 3.6 1.4 12.1 
2013 137 1.2 0.2 1.7 
2016 122 1.1 0.5 4.3 
Remain dutiable  1,243 11.0 0.1 0.9 
Total 11,261 100.0 11.6 100.0 
Note: Excluding in-quota rates. 
 
Source :  WTO Secretariat estimates based on data provided by Korea and the WTO-IDB. 
(b)  Norway  
Duty phase-out period Number of 
lines % of total lines in 
Korea's tariff schedule Value of Korea's imports from 
Norway in million US$ % of total Korea's 
imports from 
Norway 
MFN duty-free (2006) 1,498 13.3 71.9 12.4 
2006 7,451 66.2 114.3 19.7 
2009 386 3.4 96.2 16.6 
2011 395 3.5 231.1 39.9 
2013 137 1.2 24.6 4.2 
2016 122 1.1 0.5 0.1 
Remain dutiable  1,272 11.3 40.3 7.0 
Total 11,261 100.0 578.9 100.0 
Note: Excluding in-quota rates. 
 
Source :  WTO Secretariat estimates based on data provided by Korea and the WTO-IDB. 
 
 
                                                      
16 Korea's applied MFN tariff in 2006 consisted of 11,2 61 lines at the HS 10-digit level.  99.25% of the 
tariff has ad valorem  rates of duty.  Of the lines with non ad valorem  rates, 77 are subject to alternate rates of 
duty.  In addition eight lines relating to rice are prohibite d for import.  Of the tariff lines with alternate duties, 
only the ad valorem  component of the duty has been used in the tariff calculations. WT/REG217/2/Rev.1 
Page 14 
 
 
  (c)  Switzerland  
Duty phase-out period Number of 
lines % of total lines in 
Korea's tariff schedule Value of Korea's imports from 
Switzerland in million US$ % of total Korea's 
imports from 
Switzerland 
MFN duty-free (2006) 1,498 13.3 244.4 19.2 
2006 7,412 65.8 341.7 26.9 
2009 386 3.4 118.9 9.3 
2011 395 3.5 407.3 32.0 
2013 137 1.2 141.9 11.2 
2016 133 1.2 0.5 0.0 
Remain dutiable  1,300 11.5 18.0 1.4 
Total 11,261 100.0 1,272.6 100.0 
Note: Excluding in-quota rates. 
 
Source :  WTO Secretariat estimates based on data provided by Korea and the WTO-IDB. 
 
(c) EFTA States' liberalization schedule 
25. Table III.2 shows Norway's trade liberalizati on commitments under the Agreement organized 
by product categories according to HS section.  Of the 7,202 lines forming Norway's tariff schedule, 
6,039 were already duty-free on an MFN basis in 2006.  Of the remaining 468 lines subject to full 
liberalization in 2006 and 2007, the vast majority are products falling under HS Sections XI (textiles), 
IV (prepared food) and II (vegetable products).  The remaining 695 tariff lines not subject to duty 
elimination relate mostly to products falling un der HS sections I to IV.  Some of these lines do, 
however, include limited concessions for imports from Korea in the form of seasonal restrictions.17 
Table III.2-Norway: 
Tariff elimination under the Agreement, by HS section 
HS section and description MFN 
average
% Total 
no. of 
lines MFN 
duty free 
lines 
(2006) Duty-free 
lines 
in 2006  Duty-free 
lines in 
2007 No. of 
excluded 
lines  Avg.  
tariff of 
excluded 
lines  
I Live animals and animal products 8.5 426 247 1  178a 427.2 
II Vegetable products 12.4 539 241 57 5 236a 85.3 
III Animal or vegetable fats and oils 5.6 125 51 4  70a 14.0 
IV Prepared food etc. 1.3 438 166 74 4 194a 13.4 
V Minerals 0.0 195 195     
VI Chemicals and chemical products 0.6 975 958   17a 179.2 
VII Plastics and rubber 0.0 304 304     
VIII Hides and skins 0.0 95 95     
IX Wood and articles 0.0 146 146     
X Pulp, paper etc. 0.0 181 181     
XI Textiles and textiles articles 3.2 993 670 323    
XII Footwear, headgear 0.0 72 72     
XIII Articles of stone 0.0 177 177     
XIV Precious stones, etc. 0.0 54 54     
XV Base metals and base meta ls products 0.0 680 680     
XVI Machinery 0.0 1,076 1,076     
XVII Transport equipment 0.0 218 218     
XVIII Precision equipment 0.0 294 294     
XIX Arms and ammunition 0.0 27 27     
XX Misc. manufactured articles 0.0 180 180     
XXI Works of art, etc. 0.0 7 7     
Total 1.6 7,202 6,039 459 9 695 80.8 
 
a Combination of ad valorem  and specific duties. 
Note:  For tariff lines subject to TRQs only the out-of-quota dut y is included in the tariff-related calculations; for the calc ulation of 
 MFN averages specific rates are excluded and the ad valorem  part of alternate rates are included. 
 
Source :  WTO estimates based on data provi ded by Norway and the WTO-IDB. 
                                                      
17 Such lines are considered as excluded  since they are not fully liberalized.  WT/REG217/2/Rev.1 
 Page 15 
 
 
  26. Table III.3 shows Switzerland's trade libera lization commitments under the Agreement 
organized by product categories according to HS section.  Of the 8,282 tariff lines forming 
Switzerland's tariff schedule, 1,449 were already duty-free on an MFN basis in 2006.  Of the reaming 5,507 tariff lines subject to full liberalization, th e vast majority fall under HS section XI (textiles), 
XVI (machinery), XV (base metals), and VI (chemicals).  The remaining 1,326 tariff lines not subject 
to duty elimination mostly fall under HS sections  I to IV.  Switzerland has accorded preferential 
treatment to some imports from Korea, subject to TRQs and/or seasonal restrictions.
18 
Table III.3-Switzerland: 
Tariff elimination under the Agreement, by HS section 
HS section and description MFN 
average
% Total no. 
of lines MFN duty 
free lines 
(2006)  Duty-free 
lines 
in 2006  No. of 
excluded 
lines  Avg.  
tariff of 
excluded 
lines  
I Live animals and animal products .. 333 113 44 176 .. 
II Vegetable products ..  956 144 173 639 ..  
III Animal or vegetable fats and oils ..  189 32 80 77 ..  
IV Prepared food etc. ..  604 78 108 418 ..  
V Minerals ..  187 123 64  ..  
VI Chemicals and chemical products ..  1,036 421 603 12 ..  
VII Plastics and rubber ..  241 30 211  ..  
VIII Hides and skins ..  77 17 60  ..  
IX Wood and articles ..  108 11 97  ..  
X Pulp, paper etc. ..  184 21 163  ..  
XI Textiles and textiles articles ..  1,125 41 1,084  ..  
XII Footwear, headgear ..  66  66  ..  
XIII Articles of stone ..  157 2 155  ..  
XIV Precious stones, etc. ..  61 7 54  ..  
XV Base metals and base metals 
products .. 944 39 905  ..  
XVI Machinery ..  1,302 246 1,056  ..  
XVII Transport equipment ..  199 18 181  ..  
XVIII Precision equipment ..  281 65 216  ..  
XIX Arms and ammunition ..  29  29  ..  
XX Misc. manufactured articles ..  189 33 156  ..  
XXI Works of art, etc. ..  10 8 2  ..  
Total .. 8,278 1,449 5,507 1,322 .. 
.. Not available;  the majority of Switzerland' s tariff is subject to specific duties for which ad valorem  equivalents are not available. 
Note:  For tariff lines subject to TRQs only the out-of-quota dut y is included in the tariff-related calculations;  specific du ties are 
 excluded for the calculation of MFN averages.  
Source :  WTO estimates based on data provide d by Switzerland and the WTO-IDB. 
 
27. Table III.4 shows Iceland's trade liberalizati on commitments under the Agreement organized 
by product categories according to HS section.  Of the 8,171 tariff lines forming Iceland's tariff 
schedule, 5,792 lines were already duty-free on an MFN basis in 2006.  The remaining 1,965 tariff 
lines subject to full liberalization mainly include products falling under HS sections XI (textiles), IV 
(prepared food), XVI (machinery), and XX (miscellaneous).  The 414 tariff lines not subject to duty elimination all relate to products falling under HS Sections I to IV. 
Table III.4-Iceland: 
Tariff elimination under the Agreement, by HS section 
HS section and description MFN 
average% Total no. 
of lines MFN duty 
free lines 
(2006)  Duty-free 
lines 
in 2006  No. of 
excluded 
lines  Avg.  
tariff of 
excluded lines  
I Live animals and animal products 8.6 555 391  164a 29.9 
II Vegetable products 9.0 399 295 29 75a 39.3 
III Animal or vegetable fats and oils 0.0 102 98  4 - 
IV Prepared food etc. 9.4 1,010 540 299 171a 41.2 
V Minerals 0.0 179 178 1   
Table III.4-Iceland (Cont'd) 
 
                                                      
18 Such lines are considered as excluded  since they are not fully liberalized. WT/REG217/2/Rev.1 
Page 16 
 
 
  HS section and description MFN 
average% Total no. 
of lines MFN duty 
free lines 
(2006)  Duty-free 
lines 
in 2006  No. of 
excluded 
lines  Avg.  
tariff of 
excluded lines  
VI Chemicals and chemical products 1.2 988 839 149   
VII Plastics and rubber 2.4 368 240 128   
VIII Hides and skins 5.4 128 25 103   
IX Wood and articles 1.7 206 149 57   
X Pulp, paper etc. 2.0 190 143 47   
XI Textiles and textiles articles 4.2 1,174 792 382   
XII Footwear, headgear 12.7 82 7 75   
XIII Articles of stone 3.4 189 108 81   
XIV Precious stones, etc. 3.0 61 43 18   
XV Base metals and base metals 
products 1.2 698 597 101   
XVI Machinery 2.1 1,109 832 277   
XVII Transport equipment 1.2 275 238 37   
XVIII Precision equipment 0.1 252 249 3   
XIX Arms and ammunition 6.1 27 6 21   
XX Misc. manufactured articles 8.7 172 16 156   
XXI Works of art, etc. 1.4 7 6 1   
Total 4.0 8,171 5,792 1,965 414 35.0 
a Combination of ad valorem  and specific duties (for tariff lines with non ad valorem  components, only the ad valorem  part 
of the rate was included in the cal culation of the tariff averages). 
 
Note:  For the calculation of MFN averag es specific rates are excluded and the ad valorem  part of compound rates is included. 
 
Source :  WTO estimates based on data provided by Iceland. 
 
(d) Korea's liberalization schedule 
28. Table III.5 shows Korea's trade liberalizati on commitments under the Agreement organized 
according to HS section product categories for each EFTA  State.  In general, the number of duty-free 
lines and the pattern of liberaliz ation are similar for 2009 and 2013 for all EFTA States.  The tariff 
lines subject to duty after entry into force of th e Agreement vary: 2,288 tariff lines for imports from 
Iceland, 2,312 tariff lines for imports from No rway, and 2,351 tariff lines for imports from 
Switzerland;  they include mainly chemicals a nd chemical products, machinery, live animals and 
animal products, and wood and articles.  At the en d of the implementation period, Korea will maintain 
duties under HS sections I-VI, and especially in HS sections I-IV. 
Table III.5 
Korea: Tariff elimination under the Agreement, by HS section 
(a)  Iceland 
Number of duty-free lines under the 
agreement 
HS section and description MFN 
avg. 
% Total 
No of 
lines No. of 
MFN 
duty 
free 
lines 
(2006) 
2006 
2009 
2011 2013 
2016 
No. of excluded 
lines Avg.  
tariff of 
excluded 
lines  
I Live animals and animal products 20.6 531 5 103 5 75 6 82 255a  25.2 
II Vegetable products 99.6 576 22 47    5 502b  113.3 
III Animal or vegetable fats and 
oils 16.6 98  32 1    65a  21.9 
IV Prepared food etc. 23.6 504 3 76 2 31  35 357a  26.5 
V Minerals 3.8 345  315  1   29  4.4 
VI Chemicals and chemical 
products 7.3 2,256 164 1,812 168 54 23  35  90.7 
VII Plastics and rubber 6.9 374 1 326 11 28 8    
VIII Hides and skins 8.0 244  244       
IX Wood and articles 5.7 230  97 31 60 42    
X Pulp, paper etc. 0.1 247 240 7       
XI Textiles and textiles article s 9.9 1,318  1,293 14 8 3    
XII Footwear, headgear 10.2 106  106       
Table III.5 (Cont'd)  WT/REG217/2/Rev.1 
 Page 17 
 
 
  Number of duty-free lines under the 
agreement 
HS section and description MFN 
avg. 
% Total 
No of 
lines No. of 
MFN 
duty 
free 
lines 
(2006) 
2006 
2009 
2011 2013 
2016 
No. of excluded 
lines Avg.  
tariff of 
excluded 
lines  
XIII Articles of stone 7.9 282 1 266 13 1 1    
XIV Precious stones, etc. 5.2 118 5 111 1 1     
XV Base metals and base metals 
products 4.9 909 274 618 3 10 4    
XVI Machinery 5.8 1,879 483 1,165 114 84 33    
XVII Transport equipment 5.8 348 78 249  9 12    
XVIII Precision equipment 6.4 591 110 422 21 34 4    
XIX Arms and ammunition 3.7 26 14 12       
XX Misc. manufactured articles 5.4 266 85 174 2 4 1    
XXI Works of art, etc. 0.0 13 13        
Total 12.8 11,261 1,498 7,475 386 400 137 122 1,243 62.0 
a Combination of ad valorem  and specific duties (for tariff lines with non ad valorem  components, only the ad valorem  part of the 
rate was included in the calcula tion of the tariff averages). 
b Combination of ad valorem,  mixed duty and prohibited tariff lines. 
 
Source :  WTO estimates based on data pr ovided by Korea and the WTO-IDB. 
 
(b)  Norway 
Number of duty-free lines under the 
agreement 
HS section and description MFN 
avg. 
% Total 
No of 
lines No. of 
MFN 
duty 
free 
lines 
(2006) 
2006 
2009 
2011 
2013 
2016 
No. of excluded 
lines Avg.  
tariff of 
excluded 
lines  
I Live animals and animal products 20.6 531 5 101 5 70 6 82 262a  25.1 
II Vegetable products 99.6 576 22 39    5 510b  111.9 
III Animal or vegetable fats and 
oils 16.6 98  29 1    68a  21.2 
IV Prepared food etc. 23.6 504 3 65 2 31  35 368a  26.0 
V Minerals 3.8 345  315  1   29  4.4 
VI Chemicals and chemical 
products 7.3 2,256 164 1,812 168 54 23  35  90.7 
VII Plastics and rubber 6.9 374 1 326 11 28 8    
VIII Hides and skins 8.0 244  244       
IX Wood and articles 5.7 230  97 31 60 42    
X Pulp, paper etc. 0.1 247 240 7       
XI Textiles and textiles article s 9.9 1,318  1,293 14 8 3    
XII Footwear, headgear 10.2 106  106       
XIII Articles of stone 7.9 282 1 266 13 1 1    
XIV Precious stones, etc. 5.2 118 5 111 1 1     
XV Base metals and base metals 
products 4.9 909 274 618 3 10 4    
XVI Machinery 5.8 1,879 483 1,165 114 84 33    
XVII Transport equipment 5.8 348 78 249  9 12    
XVIII Precision equipment 6.4 591 110 422 21 34 4    
XIX Arms and ammunition 3.7 26 14 12       
XX Misc. manufactured articles 5.4 266 85 174 2 4 1    
XXI Works of art, etc. 0.0 13 13        
Total 12.8 11,261 1,498 7,451 386 395 137 122 1,272 61.0 
a Combination of ad valorem  and specific duties (for tariff lines with non ad valorem  components, only the ad valorem  part of the 
rate was included in the calcula tion of the tariff averages). 
b  Combination of ad valorem,  mixed duty and prohibited tariff lines. 
 
Source :  WTO estimates based on data pr ovided by Korea and the WTO-IDB. 
 
 
 
  WT/REG217/2/Rev.1 
Page 18 
 
 
  (c)  Switzerland 
Number of duty-free lines under the 
agreement 
HS section and description MFN 
avg. 
% Total 
No of 
lines No. of 
MFN 
duty 
free 
lines 
(2006) 
2006 
2009 
2011 2013 
2016 
No. of excluded 
lines Avg.  
tariff of 
excluded 
lines  
I Live animals and animal products 20.6 531 5 99 5 70 6 82 264a  24.6 
II Vegetable products 99.6 576 22 28    5 521b  109.8 
III Animal or vegetable fats and oils 16.6 98  13 1    84a  18.1 
IV Prepared food etc. 23.6 504 3 55 2 31  46 367a  24.9 
V Minerals 3.8 345  315  1   29  4.4 
VI Chemicals and chemical products 7.3 2,256 164 1,812 168 54 23  35  90.7 
VII Plastics and rubber 6.9 374 1 326 11 28 8    
VIII Hides and skins 8.0 244  244       
IX Wood and articles 5.7 230  97 31 60 42    
X Pulp, paper etc. 0.1 247 240 7       
XI Textiles and textiles article s 9.9 1,318  1,293 14 8 3    
XII Footwear, headgear 10.2 106  106       
XIII Articles of stone 7.9 282 1 266 13 1 1    
XIV Precious stones, etc. 5.2 118 5 111 1 1     
XV Base metals and base metals 
products 4.9 909 274 618 3 10 4    
XVI Machinery 5.8 1,879 483 1,165 114 84 33    
XVII Transport equipment 5.8 348 78 249  9 12    
XVIII Precision equipment 6.4 591 110 422 21 34 4    
XIX Arms and ammunition 3.7 26 14 12       
XX Misc. manufactured articles 5.4 266 85 174 2 4 1    
XXI Works of art, etc. 0.0 13 13        
Total 12.8 11,261 1,498 7,412 386 395 137 133 1,300  59.4 
 
a Combination of ad valorem  and specific duties (for tariff lines with non ad valorem  components, only the ad valorem  part of the 
rate was included in the calcula tion of the tariff averages). 
b Combination of ad valorem,  mixed duty and prohibited tariff lines. 
 
Note:  For tariff lines subject to TRQs only the out-of-quota dut y is included in the tariff-rela ted calculations.  For the cal culation of 
MFN averages specific rates are excluded and the ad valorem parts of alternate rates are included. 
 
Source :  WTO estimates based on data pr ovided by Korea and the WTO-IDB. 
 
2. Rules of origin 
29. Disciplines regarding rules of origin and cust oms procedures covered by the Agreement are 
set out in Annex I (Article 2.2).  Articles 2-14 of Annex I deal with the rules of origin themselves, 
while Articles 15-34 deal with other custom s-related issues (see  paragraphs 50-51). 
30. The basic requirements for a product to be consid ered originating (Article 2 of Annex I) are: 
(a) the product is wholly obtained in one of the Part ies, as defined in Article 4; (b) the non-originating 
materials incorporated in a product have undergone  sufficient working or processing in one of the 
Parties; or (c) the product is obtained in one Party exclusively from materials qualifying in their own 
right as originating. 
31. There are no regime-wide rules of origin, but Appendix 2 to Annex I specifies criteria that 
non-originating materials should meet so that the fina l product acquires originating status (Article 5 of 
Annex I).  In most cases, origin is granted if th e working or processing carried out on non-originating 
material results in a change in tariff classifica tion (CTC) on an HS basis at the heading level 
(CTH, 4-digit) although in a few instances (HS Chapters 54-55, 58, 61-63) they are specified at the 
chapter level (CTCh, 2-digit).  However, all agri cultural products except HS Chapters 13, 18-21, and 
23 must be wholly obtained (Article 4 of Annex I).  WT/REG217/2/Rev.1 
 Page 19 
 
 
  32. A non-originating content (MC) can also be provi ded either as an alternative criteria or to 
supplement the CTC.19  The MC requirement establishes the maximum value of non-originating 
materials allowed in the final product, expressed as a percentage of the ex-works price of the product;  
this maximum value is normally 50%, but different thresholds (ranging from 15 to 60%) may apply. 
33. Article 3 of Annex I allows for "bilateral cu mulation" between the Parties, but with an 
exception to the AAs.  The "tolerance rule" (Article 5.2) which applies to all products except textiles 
and clothing (HS Chapters 50-63) permits the use of  non-originating material s which would otherwise 
not be accepted, provided that (i) their total valu e does not exceed 10% of the ex-works price of the 
product, and (ii) any of the percentages provided fo r in Appendix 2 to Annex I are not exceeded.  A 
"special tolerance rule" allows the use of non-originat ing materials in textiles and clothing if the total 
weight of the non-originating basic textile material used does not exceed 10% of the total weight of all the basic textile materials used. 
34. A list of non-qualifying operations or processes carri ed out in the territory of the Parties does 
not confer origin, as provided for in Article 6 of Anne x I.  Paragraph 2 of this Article states that all 
operations carried out in the Parties on a given product are to be considered when determining 
whether the working or processing is above these non-qualifying operations.  Articles 7-11 define 
qualification, and treatment/valuation of certain materials (accessories, spare parts or tools;  sets;  neutral elements;  and identical a nd interchangeable originating and non-originating materials) when 
determining the origin of the goods. 
35. Articles 12-14 of Annex I contain conditions relate d to territoriality.  In principle, outward 
processing is not authorized, only operations n eeded to preserve the product’s good condition are 
permitted.  However, Article 13 and Appendix 4 of Annex I provid es exemptions from the principle 
of territoriality if: the total added value does not  exceed 10% of the ex-works price of the final 
product for which originating status is claimed;  and the materials exported from the Party concerned 
are wholly obtained in that Party or have unde rgone working or processing beyond the insufficient 
operations prior to being exported.  Further, for products in Appendix 4 that are exported from and 
subsequently re-imported to a Party
20, the acquisition of originating status shall not be affected by 
working or processing in an area, such as an industr ial zone, outside the territory of a Party, provided 
that (a) the total value of non-or iginating input does not exceed 40% of  the ex-works price of the final 
product for which originating status is claimed;  and (b) the value of originating materials exported 
from the Party is not less than 60% of the tota l value of materials used in manufacturing the 
re-imported product.  The Parties shall review the implementation of Appendix 4 in the third year 
after the entry into force of the Agreement and revise it if need be. 
36. In the absence of direct transport, transport through the territories of non-parties is allowed, 
provided that there is no operation besides unloading , reloading, splitting-up of consignments or to 
preserve the product's good condition. 
3. Export duties and charges, and quantitative restrictions 
37. Article 2.5 of the Agreement provides for th e elimination of all export prohibitions or 
restrictions on trade in goods between the Parties, other than customs duties and taxes, whether made 
effective through export licenses or other measures, except as specified in Annex V.  No new export 
prohibitions or restrictions are allowed. 
                                                      
19 Column 3 of Appendix 2 to Annex I describes the specific rule.  When a rule appears in column 4, 
either rule can be applied. 
20 These are 267 products in HS Chapters 39-40, 42, 61-62, 64, 70-71, 73, 81-85, 87, 90-91, and 96 at 
the HS 6-digit level, such as articles of apparel and clot hing accessories;  clocks and watches and parts thereof;  
and nuclear reactors, boilers, machinery and mechanical app liances and parts thereof. WT/REG217/2/Rev.1 
Page 20 
 
 
  B. REGULATORY PROVISIONS  ON TRADE IN GOODS  
1. Standards 
38. The Parties regulate standards under two provi sions on sanitary and phytosanitary measures 
and five rather detailed provisions  on technical barriers to trade. 
(a) Sanitary and phytosanitary measures 
39. The Parties reaffirm their existing rights and obligations under the WTO Agreement on 
Sanitary and Phytosanitary Measures (SPS) (Article 2.7.1). 
40. Article 2.7.2 provides for the Parties to exch ange names and addresses of contact points on 
SPS measures for facilitating technical consu ltations and exchanging information. 
(b) Technical barriers to trade 
41. The Parties reaffirm their existing rights and obligations under the WTO Agreement on 
Technical Barriers to Trade (TBT) in respect of technical regulations, standards and conformity 
assessment with a view to increasing mutual unders tanding of each other's systems and facilitating 
access to each other's markets.   
42. Further, the Parties recognise that a broad ra nge of mechanisms exist to facilitate the 
acceptance in a Party's territory of the results  of conformity assessmen t procedures conducted in 
another Party's territory, including: i) mutual accep tance agreements on the results of conformity 
assessment under specified regulations conducted by bodies located in the territory of the other Party;  
ii) accreditation procedures for qualifying conformity  assessment bodies;  iii) government designation 
of conformity assessment bodies;  iv) recognition by one Party of the results of conformity assessment 
performed in the other Party's territory;  v) vol untary arrangements between conformity assessment 
bodies in each Party's territory;  and vi) the importing Party's acceptance of a supplier's declaration of 
conformity. 
43. The Parties can hold expert consultations to  address any matter that may arise from TBT 
issues that create or are likely to create an obstacl e to trade between the Parties.  The Parties shall 
inform the Joint Committee of such consultations (Ar ticle 2.8.5).  At the latest three years after the 
date of entry into force of the Agreement, th e Parties shall assess progress on the acceptance of the 
results of conformity assessment between them and, if necessary, agree on further steps (Article 2.8.4). 
44. Switzerland and Korea have declared that they intend to continue exploring a possible 
arrangement with a view to facilitating the accepta nce of conformity assessment results for medical 
devices. 
2. Safeguard mechanisms 
(a) Global safeguards 
45. The Agreement does not contain a provision on gl obal safeguards.  According to the Parties, 
in the case of the application of a global safeguard measure by any of the Parties to the Agreement, 
the measure is inclusive of the imports of the other Parties to the Agreement.  WT/REG217/2/Rev.1 
 Page 21 
 
 
  (b) Bilateral safeguards 
46. Article 2.11 sets out ten provisions that apply to bilateral safeguard measures.  The Parties are 
free to invoke emergency measures (the Article uses both "emergency measures" and "emergency 
action" to mean bilateral safeguards.  For c onsistency purposes, the Factual Presentation uses 
"emergency measures" only), though only with cl ear evidence that increased imports have caused or 
are threatening to cause serious injury (Article 2.11.2). 
47. As a result of the elimination or reduction of import duties, if a product originating in one 
Party is imported into the other Party in such in creased quantities, in absolute or relative terms to 
domestic production, and under such conditions that the imports constitute a "substantial" 
(the Agreement does not define the word substantial) cause of serious injury, or threat thereof, to a 
domestic industry of like or directly competitiv e products in the importing Party, it may apply 
emergency measures.  The measures shall be applie d to the minimum extent necessary to remedy or 
prevent the injury (Article 2.11.1).21  The Article neither defines "ser ious injury", "threat of serious 
injury" or "domestic industry" nor refers to Article 4 of the WTO Agreement on Safeguards. 
48. As in Article 12.2 of the WTO Agreement on Safeguards, Article 2.11 of the Agreement 
details notification requirements by the complaini ng Party to other Parties and the Joint Committee 
when it intends to take emergency measures.  These ar e that the notification: i) be immediate, at the 
latest before taking the measure;  and ii) contai n all pertinent information including evidence of 
serious injury or threat thereof, precise descri ptions of the product involved, proposed measure, 
proposed date of introduction, expected duration and timetable for the progressive removal of the 
measure (Article 2.11.3).  The Agre ement also requires all pertinent information to be supported when 
notification take place at the time the complaining Party intends to take a measure (before taking a 
measure) while Article 12.2 of the WTO Agreemen t on Safeguards requires notification with the all 
pertinent information only once the complaining Party has made a finding;  and takes a decision to 
apply or extend a measure.  The examination by th e Joint Committee must take place within 30 days 
of the date of notification in order to find a mu tually acceptable solution;  if none is found, the 
complaining Party may impose an emergency measure (Article 2.11.6). 
49. The emergency measure may take the form of  (a) suspension of the further reduction of 
import duty on the product; or (b) increased import duty to a level not exceeding the lesser of the 
applied MFN duty when the safeguard is taken or on the day immediately preceding the date of entry 
into force of the Agreement (Article 2.11.4). 
50. Emergency measures cannot be imposed for more than one year (four years in the WTO 
Agreement on Safeguards)22, but can be extended up to a maximum of three years (eight years in the 
WTO Agreement on Safeguards)23, in very "exceptional" circumstances (the Agreement does not 
define exceptional circumstances).  The measure must not be applied to products that have already 
been subject to an emergency measure, for at leas t three years since the expiry of the previous 
measure (Article 2.11.5). 
51. Although provisional measures may be taken in  critical circumstances, where delay would 
cause damage, the provisional measures cannot exceed 200 days within the overall period of the 
safeguard (Articles 2.11.8 and 2.11.9).  Any tari ff increases shall be refunded promptly when the 
investigation finds in favour of the accused Party (Article 2.11.9). 
                                                      
21 An additional objective of Article 5.1 of th e WTO Agreement on Safeguards is adjustment 
facilitation. 
22 Article 7.1 of the WTO Agreement on Safeguards. 
23 Article 7.3 of the WTO Agreement on Safeguards. WT/REG217/2/Rev.1 
Page 22 
 
 
  52. The Article also provides that compensation shall be offered by the Party imposing the 
measure to the affected Party (Article 2.11.3).  In  the absence of mutually agreed compensation, the 
affected Party may take compensatory action.  The action should normally consist of suspension of 
concessions that are substantially equivalent trade effects or concessions substantially equivalent to 
the value of the additional duties expected to result from the emergency measure.  It shall be applied 
only for the minimum period necessary to achieve the substantially equivalent trade effects 
(Article 2.11.6). 
53. Five years after the entry into force of the Agre ement the Parties shall review the necessity of 
maintaining intra-FTA safeguards measures and if n ecessary, thereafter review this matter biennially 
in the Joint Committee (Article 2.11.10). 
54. Although the Parties shall try to avoid imposing restrictive measures for balance of payments 
purposes, if there are serious balance of payments di fficulties or an imminent th reat thereof, the Party 
concerned may adopt restrictive measures.  The me asures shall be in accordance with the conditions 
established under the WTO Agreement, of limited dur ation and non-discriminatory, and may not go 
beyond what is necessary to redress the balan ce of payments situation (Article 2.12). 
(c) Special safeguards 
55. The Agreement has no provision on special safeguards, per se .  However, the bilateral 
safeguards provision above applies mutatis mutandis  to the Agreements on Agriculture between the 
Parties (Article 6 of the Agreements on Agricult ure).  There is also no provision for structural 
adjustment. 
3. Anti-dumping measures 
56. The Parties, while making an effort not to  initiate anti-dumping procedures between each 
other, affirm their rights and obligations under GATT Article VI and the Agreement on 
Implementation of GATT Article VI (WTO Agreemen t on Anti-dumping) (Article 2.10.1).  After a 
Party's decision to initiate an investigation on goods  allegedly being dumped, it shall notify the other 
Party in writing and request consultations to find a mutual solution.  If it decides to impose an 
anti-dumping duty, the lesser-duty principle stated in Article 9.1 shall be app lied (Article 2.10.1.(b)). 
57. As in the case of intra-safeguard measures, the Parties shall review the necessity of 
maintaining intra-anti-dumping measures five years af ter the entry into force of the Agreement.  
Following the review, if the necessity continues, the Parties shall review the matter biennially in the 
Joint Committee (Article 2.10.2). 
4. Subsidies and countervailing measures 
58. Disciplines on subsidies are contained in Article 2.9, under which the Parties' rights and 
obligations are governed by GATT Articles VI, XVI (subsidies) and the WTO Agreement on 
Subsidies and Countervailing Measures (SCM), exce pt paragraph 2 of Artic le 2.9 on the time frame 
for consultations.  The Party considering initiati ng an investigation shoul d notify the Party whose 
goods are subject to investigation in writing.  Unlike Article 9.2 of the WTO Agreement on SCM 
under which there is no time limit within which cons ultations should be conducted, there is a 30-day 
period for consultations to find a mutua lly acceptable solution under the Agreement. 
5. Customs-related procedures 
59. Customs procedures related to rules of origin are found in Section II of Annex I (Article 2.2).  
They detail administrative questions and disciplines regarding proof of origin (Articles 15-22 of the  WT/REG217/2/Rev.1 
 Page 23 
 
 
  Annex) and set out the arrangements for administrati ve co-operation to be followed by the Parties' 
customs authorities, in particular with respect to ve rification of proof of origin (Article 24), dispute 
settlement (Article 25), confidentiality (Artic le 26) and customs co-operation (Article 30) 
(Articles 23-34).  Article 32 of Annex I establis hes a Sub-Committee on Customs and Origin Matters, 
which is to report to the Joint Committee.  The Sub-Committee shall, inter alia , exchange 
information;  review the rules of origin in lig ht of changed circumstances, such as technological 
advances, changes in market conditions or other in ternational development;  co-ordinate positions and 
endeavour to resolve as soon as possible any dispute ar ising in relation to the verification procedures. 
60. Except as otherwise provided in Annex I, when a product does not meet the requirement of 
the Annex, or where the importer, exporter or prod ucer fails to comply with any of the relevant 
requirements of the Annex, the importing Party can deny preferential tariff treatment or recover 
unpaid duties in accordance with its la ws and regulations (Article 28). 
6. Other regulations 
61. The Parties agree to take joint action on nationa l policies on fisheries (Article 5 of Annex V), 
including through co-operation on jointly funded projects, inter alia , through policy dialogue to 
understand common issues and exchange information on policies and activities;  sharing technical 
expertise and experience in sustainable resource management, fisheries and aquaculture;  training 
fishermen and students on Norwegian research ve ssels, in fisheries facilities and distribution 
companies;  and exchanging scientific and technolog ical knowledge, data, statistics, information and 
marine experts.  A Memorandum of Understanding on this matter is e xpected to be concluded no later 
than two years after the entry into force of the Ag reement.  According to the Parties, there has not 
been any development in this regard. 
IV. TRADE IN SERVICES 
A. SCOPE AND DEFINITIONS  
62. Trade in services is mainly governed by  Chapter 3 and five  related Annexes24;  trade in 
financial services is governed by Chapter 4.  The de finitions of the four different modes, "services" 
(except services supplied in the exercise of governme ntal authority) and "a service supplied in the 
exercise of governmental authority" from Article I of the GATS are incorporated into Chapter 3 (Article 3.3.1).  Article XXVIII of the GATS, excep t "service supplier", "natural person of a Party" 
and "juridical person of a Party" is also in corporated into the Chapter (Article 3.3.5).
25 
63. Chapter 3 does not apply to measures affecting ai r traffic rights other than measures affecting 
aircraft repair and maintenance, sales and marketing of air transport services and computer reservation 
systems (Article 3.1.1).  Articles 3.4-3.6 do not  apply to government procurement by government 
agencies of services purchased for governmental purpo ses (Article 3.1.2).  Further, the Agreement 
incorporates the provisions on general and security exceptions mutatis mutandis  from Articles XIV 
and XIV bis of the GATS (Article 3.15). 
64. Like the GATS, the Chapter follows a positive- list approach for the scheduling of market 
access and national treatment commitments. 
                                                      
24 Annex VII (Schedules of Specific Commitments);  Annex VIII (Lists of MFN-exemptions);  
Annex IX (Mutual Recognition);  Annex X (Telecommunica tions Services);  and Annex XI (Co-production of 
Broadcasting Programmes). 
25 The Agreement defines "service supplier"  as any person that supplies, or seeks to supply , a service, 
while, under Article XXVIII (g) of the GATS, it is meant as any person that supplies a service.  WT/REG217/2/Rev.1 
Page 24 
 
 
  B. DENIAL OF BENEFITS  
65. The Agreement contains no specific provisi on with regards to denial of benefits. 
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
66. The Agreement incorporates the provision on market access mutatis mutandis  from 
Article XVI of the GATS (Article 3.5). 
2. National treatment and MFN 
67. The Agreement incorporates the provision on national treatment mutatis mutandis  from 
Article XVII of the GATS (Article 3.6). 
68. Under Article 3.4 the Parties shall accord imme diately and unconditionally, in respect of all 
measures affecting the supply of services, to services and service suppliers of other Parties, treatment 
no less favourable than accorded to like ser vices and service suppliers of any non-Party 
(Article 3.4.1).  The Article specifies that the MF N obligation does not apply to agreements concluded 
and notified under Articles V and V bis of the GATS by one of the Parties (Article 3.4.2).  In the case 
that a Party enters into an economic integration agreement with a non-party,  an adequate negotiation 
opportunity shall be given to the other Parties upon re quest to avail of benef its granted under the other 
agreements (Article 3.4.3).  The Parties reaffirm  their rights and obligations regarding advantages 
accorded to adjacent countries as indicated in Article II.3 of the GATS (Article 3.4.4). 
3. Commercial presence 
69. The Agreement incorporates the definition of commercial presence as contained in 
Article XXVIII of the GATS (Article 3.3.5.(d)).  In addition, for the non-services sectors, an 
Investment Agreement has been concluded betw een the Parties except Norway (see Section on 
Investment below). 
4. Movement of natural persons 
70. The Parties reaffirm their rights and obliga tions under the GATS Annex on Movement of 
Natural Persons Supplying Services and incorporat e the Annex into Chapter 3 (Article 3.10).  
Table IV.1 shows the breakdown of the moveme nt of natural persons between Korea and  each EFTA 
State in 2003-2006. 
Table IV.1 
Korea: Movement of natural persons vis-à-vis  each EFTA State 
A. By country (per person) 
  2003 2004 2005 2006 
  To Korea 
 From Korea 
 To 
Korea From 
Korea To 
Korea From 
Korea To 
Korea From 
Korea 
Switzerland 6,160 17,428 6,645 18,131 7,642 18,275 8,408 17,306 
Norway 5,487 1,103 5,993 1,163 6,507 1,672 7,325 1,000 
Iceland 120 9 182 23 201 33 224 12 
Liechtenstein 20 7 42 17 31 3 27 3 
Source:   Data provided by Korea. 
 
  
  WT/REG217/2/Rev.1 
 Page 25 
 
 
  B. By length of stay (per person) 
 2003 2004 2005 2006 
Length of stay EFTA States Total Individual Total Individual Total Individual Total Individual 
Less than 30 days Switzerland 225 252 291 380 
 Norway 252 257 288 367 
 Iceland 3 4 7 8 
 Liechtenstein 481 
1 514 
1 588 
2 756 
1 
Less than 60 days Switzerland 217 213 299 334 
 Norway 250 286 302 416 
 Iceland 2 9 5 4 
 Liechtenstein 469 
0 508 
0 607 
1 755 
1 
Less than 3 months Switzerland 74 89 152 158 
 Norway 139 142 156 222 
 Iceland 1 0 3 5 
 Liechtenstein 214 
0 231 
0 311 
0 385 
0 
Less than 6 months Switzerland 31 31 81 114 
 Norway 76 75 102 181 
 Iceland 1 2 0 4 
 Liechtenstein 108 
0 109 
1 183 
0 299 
0 
Less than 1 year Switzerland 433 604 954 1,072 
 Norway 591 648 1,170 1,367 
 Iceland 2 3 32 30 
 Liechtenstein 1,026 
0 1,256 
1 2,158 
2 2,473 
4 
Source:  Data provided by Korea. 
 
5. Transparency 
71. The Agreement incorporates transparency provisions mutatis mutandis  from paragraphs 1 and 
2 of Article III and III bis of the GATS (Article 3.18). 
D. LIBERALIZATION COMMITMENTS  
72. The schedules of commitments are contained in Annex VII with one individual schedule for 
each party.  They are modelled on the GATS schedul es.  The schedules include a) terms, limitations 
and market access conditions;  b) national treatment  conditions and qualificati ons;  c) undertakings 
relating to additional commitments;  and d) where appropriate the time-fram e for implementation of 
such commitments (Article 3.16.1).  Article 3.17 provides that upon written request the Parties will 
hold consultations to consider any modification or withdrawal of commitments within three months 
from the date of such a request.  During the consul tations, the Parties shall aim to ensure a general 
level of mutually advantageous commitments wh ich are not less favourable for trade than that 
provided for in the original schedules of commitments .  Modifications of the schedules are subject to 
the procedures set out in Article 8.1 (Article 3.17). 
73. No later than three years after the entry into force of the Agreement, the Parties agree to 
review their schedules of specific commitments and lists of MFN-exemptions every two years with a view to further liberalization (Article 3.19). 
74. The MFN-exemptions lists for the EFTA States ar e similar to those at the multilateral level 
(e.g. exclusion of audiovisual services for the preser vation and promotion of cultural identity);  in 
addition, Norway has listed its domestic maritime  transport agreement with Denmark, Finland, 
Iceland, Germany, Sweden and the United Kingdom.   Switzerland has elimin ated the preferential 
treatment provided under its bilateral agreements on distribution services, ba nking and other financial 
services, computer reservation systems and sales and marketing of air transport services, and road 
transport services (passenger and freight) but has ad ded preferential treatment for Liechtenstein and 
the EC on the movement of all categorie s of natural persons supplying services. WT/REG217/2/Rev.1 
Page 26 
 
 
  75. Each party has complex commitments in different services, thus common trends across the 
Parties' schedules cannot be described.  However, a ll the Parties have not committed in health related 
and social services under the Agreement.  Each pa rty scheduled its services liberalization as below. 
1. Korea 
(a) Horizontal commitments 
76. Korea has provided greater market access unde r mode 3 on market access by permitting the 
acquisition of outstanding26 stocks in two existing domestic companies (in energy and aviation) 
subject to restrictions, in contrast to its GATS schedule which prohibits acquisition of outstanding 
stocks of existing domestic companies, with the ex ception of foreign portfolio investment.  Mode 4 
commitments on market access match those in its  GATS schedule except that the Agreement adds 
contractual service suppliers (employees of juridical  persons) for 11 service-supplying activities, with 
a maximum period of stay of one year.  The commitment may be subject to numerical ceilings.  In 
addition, national treatment is unbound for this new category of suppliers. 
(b) Sector- specific commitments 
77. For business services, Korea has undertaken commitments in sub-sectors uncommitted to its 
GATS schedule in legal services;  veterinary services;  research and development (R&D) services in 
natural sciences;  interdisciplinary research and de velopment services;  real estate services;  leasing or 
rental services for personal or household goods;  other management services under other business 
services;  testing and analysis services for integrated mechanical and electrical systems;  services 
incidental to manufacturing (consulting services related to manufacturing technologies of new 
products);  placement services of personnel;  surface  surveying services (excluding cadastral survey);  
map-making services (excluding cadastral maps);  bu ilding cleaning services;  publishing (excluding 
newspapers and periodicals);  and specialty design services.  In a number of other sub-sectors, where 
it had GATS commitments, Korea has improved the level of treatment bound in: research and 
development services in social sciences and humanities;  rental/leasing services without operator 
relating to ships;  market research and public op inion polling services;  consulting services related to 
agriculture and animal husbandry;  services incidental  to forestry excluding aerial fire fighting and 
disinfection;  services incidental to mining;  and packaging services.  For these services, Korea provides full commitments, which for modes 1 a nd 2, are unbound under market access in its GATS 
schedule. 
78. For communication services, like at the multilateral level Korea undertakes no commitments 
in postal services;  motion picture projection;  ra dio and television services;  radio and television 
transmission services.  However, it has taken commitments in courier services, a sector uncommitted 
to in its GATS schedule.  Korea has replicated its GATS commitments in telecommunications in the 
Agreement with some improvements in mode 3: it has abolished the requirement for each service 
supplier to be a licensed Korean juridical pe rson and relaxed the fore ign ownership ceiling. 
79. For construction services, the scope of commitments was broadened by the inclusion of 
renting services related to equipment for constructio n or demolition of buildings or civil engineering 
works with operator (CPC 518).  Some market acce ss limitations under mode 3 have been withdrawn 
(i.e. time limit on the validity of new licenses;  limitations on the value of contracts;  and a 
requirement to form joint ventures with licensed local companies). 
80. Under distribution services, Korea took GATS plus commitments in mode 1 for market 
access by limiting its unbound commitments only to pharmaceuticals, medical goods, functional 
                                                     
 
26 According to Korea, "outstanding" means "publicly issued and sold".  WT/REG217/2/Rev.1 
 Page 27 
 
 
  foods, and wholesale trade in used cars and in gaseous  fuels and related products.  In addition, mode 2 
which was unbound for market access has been bound and the requireme nt of an economic needs test 
under mode 3 have been removed for four services27 with an indication of the main criteria for the 
test. 
81. For educational services, for which Korea h as no commitments in the GATS, it has taken 
commitments in certain higher and adult education services with a number of limitations.  The 
institutions that are allowed to provide these ser vices pursuant to the commitments are listed in 
attachments 1 and 2 to its services schedule under the Agreement. 
82. For environmental services, Korea has taken commitments in sewage, refuse disposal as well 
as certain other environmental services.  These go furt her than its GATS commitments in so far as an 
economic needs test and quantitative rest rictions under mode 3 are not listed. 
83. For financial services, like in the GATS Kor ea has commitments across a broad range of 
insurance and banking services.  Commitments are typically unbound in modes 1 and 2, except for 
reinsurance-retrocession and for so me insurance services. Mode 3 limitations under market access 
include restrictions on recruitment and employment  of insurance professionals, residency requirement 
for top executive personnel, and pre-notification for representative offices. 
84. For tourism and travel related services, it has replicated its GATS commitments (i.e. on travel 
agencies and tour operators services) while adding beverage serving services without entertainment 
(CPC 6431) under the sub-sector of hotels and restau rant and abolishing mode  3 limitations on market 
access for tourist guide services.  For recreati onal sporting services which are uncommitted to under 
its GATS schedule, it has taken commitments in en tertainment services provided by individual artists 
or groups such as musical, theatre, live bands and opera, etc. 
85. In transport services, various commitments ha ve been taken in international maritime 
transport, maritime auxiliary services, air, rail, ro ad, and pipeline transport, and services auxiliary to 
all modes of transport, storage and warehouse services other than those in ports.  Sub-sectors in which 
commitments were taken and are uncommitted to in the GATS include: renting of vessels with crew;  
pushing and towing services;  tally, measuring and survey services;  maintenance and repair of 
aircraft;  rail transport of passengers and freight;  and pipeline transport (o f oil products excluding 
LPG).  No commitments were made for internal wa terways transport;  and space transport services as 
under its GATS schedule.  For some sectors in wh ich Korea has GATS commitments, better treatment 
is guaranteed: for example, under maritime transpor t, the cargo preference system in mode 1, and 
additional limitations under mode 3 have been removed.  For a number of maritime auxiliary services, 
improvements have been made under mode 3 with respect  to the type of legal entity required.  Further 
improvements under modes 1 or 3 have been made in computer reservation system services;  selling and marketing under air transport services;  and freight forwarding for rail transport. 
2. Iceland 
(a) Horizontal commitments 
86. Iceland's horizontal limitations on market access for all sectors are similar to its GATS 
schedule, except that its GATS commitments requ ire that all foreign investment and currency 
transfers be reported to the Central Bank of Icela nd, while the Agreement requires this only for the 
latter.  In contrast to the GATS schedule whic h contains equity ceilings for investment by 
non-residents in certain sectors unless an exemption is  granted, the Agreement merely requires service 
                                                     
 
27 These are: wholesale markets with  floor space of more than 3,000m2;  large stores with floor space of 
more than 3,000m2;  wholesale trade centres;  and foreign trade services. WT/REG217/2/Rev.1 
Page 28 
 
 
  providers to inform the Ministry of Commerce of such investment.  Limitations on the acquisition of 
real estate by non-residents have been lifted under the Agreement as has the requirement in Iceland's 
GATS schedule that non-resident natural persons th at are self-employed or part of a business 
enterprise with unlimited liability obtain a concession from the Ministry of Commerce. 
87. As regards horizontal limitations on national tr eatment, in contrast to in the GATS, the 
Agreement may extend treatment accorded to subsid iaries of third-country companies to branches or 
agencies established in an EEA or EFTA Member Stat e.  The Agreement requires that a majority of 
the founders of limited liability companies (except citizens of EEA and EFTA States) must be resident in Iceland unless exempted by the Mi nistry of Commerce.  This limitation is not listed in Iceland's 
GATS commitments.  Managers and the majority of the members of the board of directors and 
auditors must also be residents, as unde r the GATS, except EEA and EFTA citizens. 
88. Under mode 4, horizontal commitments and limit ations taken by Iceland for intra-corporate 
transferees (including executives, managers, specialis ts and service sellers), are the same as under the 
GATS.  The same applies to subsidies. 
(b) Sector-specific commitments 
89. In general, there are few changes in Icela nd’s sector-specific commitments under the GATS. 
90. For business services, the commitments are uncha nged except for R&D services in natural 
sciences and printing and publishing services where r esearch permit/nationality requirements are not 
required under the Agreement.  Unlike Norway and Switzerland Iceland does not provide preferential 
treatment for Korean architects. 
91. Iceland has replicated its GATS commitments in  communication, distribution, environmental 
and tourism and travel related services and like in  the GATS, took no commitments in educational 
services. 
92. For financial services, under the Agreement the scope has not been modified except that 
EFTA States will enjoy the same treatment given to EEA Member States.  The requirement in 
Iceland's GATS schedule that branch offices of non -EEA insurance undertakings be managed by a 
resident agent, has been lifted while the reside ncy requirement for insurance brokers in mode 3 
limitations on national treatment ha s been relaxed.  As regards ba nking and other financial services, 
commitments under the Agreement match Iceland's GA TS commitment except the authority in charge 
of credit institutions and undertakings in securiti es services has been changed from the Ministry of 
Commerce to the Financial Supervisory Authority. 
93. In contrast with the other Parties, for recreational, cultural and sporting services, under both 
the Agreement and the GATS schedule, all four sub- sectors are covered.  Both schedules are the same 
except that the Agreement distinguishes between professional and amateur bo xing, with the latter 
being allowed under the Agreement. 
94. For transport services, there are no changes in commitments but limitations on sales and 
marketing for air transport services have been lifted.   Like in the GATS schedule, internal waterway, 
space, road, and pipeline transport services are not bound.  WT/REG217/2/Rev.1 
 Page 29 
 
 
  3. Liechtenstein 
(a) Horizontal commitments 
95. Liechtenstein's horizontal commitments on market access match those found in its GATS 
schedule.  Mode 4 limitations on national treatment are same as those in its GATS schedule.  For 
modes 1-3 commitments on national treatment, the Ag reement does not have li mitations except those 
unbound in its GATS schedule.  In particular under mode 3, a specific government-recognized 
professional qualification for an indi vidual or a juridical person (including branches) to establish a 
commercial presence was not inscribed in the Agreement, whereas the GATS requires the 
qualification.  According to Liechtenstein, the prof essional qualification is still  required.  However, 
due to discussions in the framework of the GATS ne gotiations, Liechtenstein found that it was not 
necessary to list this requirement explicitly. 
(b) Sector- specific commitments 
96. For business services, commitments under th e Agreement match Liechtenstein's GATS 
commitment including for some professional services,28 real estate services, rental/leasing services 
relating to ships and aircraft;  and some othe r business services that continue to be unbound.29  Like 
Iceland, Liechtenstein does not provide preferentia l treatment for Korean architects whereas Norway 
and Switzerland do.  For communication services, there are no commitments in postal and courier services either in the GATS or under the Agre ement.  However, seven different basic 
telecommunication services have been bound under the Agreement and except mode 4 are fully 
liberalized.  Commitments under th e Agreement in enhanced/value -added telecommunication services 
match those under the GATS.  Commitments in educa tional, environmental, recreational, cultural and 
sporting, and transport services are unchanged as ar e construction and related engineering services 
which are not liberalized. 
97. The Agreement lifts some requirements for mode 3, for example, sales area limitations in 
wholesale trade and retailing services;  and econo mic needs test and examination for hotel and 
restaurants services.  Limitations on insurance and insurance related services have been relaxed 
including that: the board of directors and administrato rs are no longer required to be citizens but to be 
resident;  the economic needs test for accident insura nce services is not required;  the requirement that 
foreign insurance companies be supervised by the Swiss insurance authority in order to establish has 
been lifted;  and the authorization required by th e country of origin also has been eliminated. 
4. Norway 
(a) Horizontal commitments 
98. Norway has lifted authorization requirements for acquisition/leasing of real estate for 
registered corporations (where more than one-third  of the voting rights are held by non-nationals or 
foreign controlled companies or where the chairman and the majority of the board members are non-
nationals), and foreigners and fo reign controlled companies.  Both the Agreement and the GATS 
provide for the possibility of not extending treatme nt accorded to subsidiaries of third-country 
companies to branches or agencies es tablished in an EEA Member State.   Residency requirements for 
the formation of legal entities are unchanged.  Ho wever, in contrast to its GATS schedule which 
                                                     
 
28 Medical and dental services;  veterinary serv ices;  services provided by midwives, nurses, 
physiotherapists and para-medical personnel. 
29 Services incidental to energy  distribution;  placement and supp ly services of personnel;  and 
investigation and security. WT/REG217/2/Rev.1 
Page 30 
 
 
  requires residency for at least two years prior to  forming the legal entity, Norway has exempted 
founders of companies as well as citizens of EEA Member States from this requirement. 
99. Horizontal commitments taken by Norway on subsidies are unchanged except that under the 
Agreement national treatment for education servic es (leading to the conferring of State recognized 
exams and/or degrees) is unbound.  According to Norway, this limitation is necessary as different 
treatment may exist between public and private institutions. 
100. Norway's horizontal commitments on the move ment of personnel are unchanged except for a 
longer period of stay for intra-corporate transfer ees (managers, executives, and specialists) from two 
years in the GATS schedule to four years. 
(b) Sector-specific commitments 
101. For business services, Norway has taken commitments in services incidental to mining, 
convention services, and translation and interp retation services (except government authorized 
translators), sectors uncommitted to in its GAT S schedule.  It has broadened the scope for 
rental/leasing services relating to other machinery and equipment, related scientific and technical 
consulting services, maintenance and repair of equipment services, and printing and publishing 
services.  No commitments were made in R&D se rvices in natural sciences, interdisciplinary R&D 
services, and real estate services involving own or leased property.  Unlike its GATS commitments, it permits the supply of architectural services by Kore an architects through joint contracts with licensed 
architects in Norway.  Mode 1 and 3 limitations, fo rbidding labour placement and hiring have been 
relaxed.  In contrast, on real estate agency and ag ent services, Norway has full discretion in its mode 1 
commitments compared to the full commitment in its GATS schedule. 
102. For communication services, there are no cha nges including that postal services are not 
bound.  Norway's GATS commitments in constructi on and related engineering services are unchanged 
except lifting residency requirements for buildi ng contractors and supervisors under mode 4 
limitations on national treatment. 
103. For distribution services, Norway added co mmission agents' services and retail sales of 
electricity to its commitments.  Further, wholesal e trade services for grain have been fully opened 
(except mode 4).  For retailing services, prior r esidency requirements for branch managers of a 
foreign company and for the majority of the boa rd members of a foreign controlled company for 
national treatment in modes 3 and 4 of have been lifted. 
104. For educational services, there are no changes w ith the exception that limitations on financial 
assistance to educational institutions or to students have been lifted. 
105. Norway has taken commitments in remediati on and cleanup of soil and water services, a 
sector uncommitted to in its GATS schedule.  Advisory services in sewage services and 
solid/hazardous waste management services are permitted under mode 1.  Further, full commitments 
in modes 1-3 have been bound for services to reduce exhaust gases and other emission, noise 
abatement, nature and landscape protection, and other environmental protection services. 
106. For financial services, under the Agreement Norw ay has committed, subject to approval, a 
higher ceiling for acquisition of share capital in a No rwegian insurance company in contrast to its 
mode 3 commitments in the GATS schedule.  On banking and other financial services, the requirement that the manager, at least half the members of the board of directors and half the 
members of the corporate assembly be permanen t residents has been removed from its mode 3 
limitations under the Agreement.  WT/REG217/2/Rev.1 
 Page 31 
 
 
  107. GATS commitments in tourisms and travel re lated services and recreational, cultural and 
sporting services have been replicated.  Like at the multilateral level, entertainment services;  libraries, 
archives, museums and other cultural services;  and sporting and other recreational services are not bound under the Agreement. 
108. For transport services, Norway added some domestic freight transportation services
30, 
domestic maritime towing and pushing services, gr ound handling under air transport services, pipeline 
transportation services, cargo-handling services, and storage and warehouse services under the 
Agreement.  The scope of international transport (freight and passengers) services has been broadened 
and some criteria for these services, for exampl e mode 3 ownership and headquarter requirements 
have been relaxed.  Further, main tenance and repair services for airc raft and rail transport equipment 
have been fully opened for mode 1. 
5. Switzerland 
(a) Horizontal commitments 
109. Switzerland's horizontal commitments under m odes 1-3 concerning limitations on market 
access and national treatment are along the lines of wh at it committed to in the GATS, with some 
improvement under mode 3.  Its mode 4 commitment s are generally similar;  however, the Agreement 
provides some further liberalization, for example, i)  foreign service suppliers are authorized to enter 
and stay in Switzerland subject to the overall numbers  of work permits allocated;  ii) the period of 
stay for intra-corporate transferees, initially for th ree years (as in the GATS schedule) can be extended 
to a maximum of five years (four years in the GATS schedule);  iii) the minimum period of related experience for contractual service suppliers is th ree years compared to five years in the GATS 
schedule;  iv) fifteen sub-sectors of contractual ser vice suppliers are covered by the Agreement, as 
opposed to three under the GATS
31;  and v) mode 4 commitments are extended to 'installers and 
maintainers'. 
110. For modes 1 and 2 commitments on national treatment, the Agreement removes limitations 
except those unbound in its GATS schedule while m ode 4 commitments on national treatment are 
unchanged.  Mode 3 commitments on national treatment are the same as in the GATS schedule except 
that the Agreement does not require the majority of  the board of directors of joint stock companies 
and the administrators of a "co-operative society" to be Swiss citizens.  
(b) Sector-specific commitments 
111. For business services, under the Agreement Switzer land has taken new commitments in some 
professional computer services32;  real estate services;  leasing or rental services concerning personal 
                                                      
30 Transport feeder services related to interna tional cargo, transport of empty containers for 
international trade, and maritime transport servic ing offshore petroleum exploration and production. 
31 In addition to the three in the GATS (engineering services (CPC 8672), consultancy services related 
to the installation of computer hardware (CPC 841);  and software implementation services (CPC 842)) the 
other 12 are: legal advisory services (in CPC 861);   auditing services, excluding auditing of banks (in 
CPC 86211);  accounting review services (CPC 86212);  business tax planning and consulting services 
(CPC 86301);  business tax preparation and review services (CPC 86302);  architectural services (CPC 8671);  
urban planning services (CPC 86741);  research and development services (CPC 851-853);  management 
consulting services (CPC 865);  technical testing and an alysis service (CPC 8676);  related scientific and 
technical consulting services (CPC 8675);  and aircraft maintenance and repair (in CPC 8868). 
32 Training services for staff of clients;  web-site  design services;  integrated consulting services on 
computerized systems and networks; ot her professional computer services  foreseen under Swiss law without 
market access or national treatment limitation. WT/REG217/2/Rev.1 
Page 32 
 
 
  and household goods;  security consultati on services;  and some other business services33, which are 
uncommitted to in its GATS schedul e.  Switzerland also has further committed in services incidental 
to fishing and manufacturing by expanding the scope  of the services covered in its GATS schedule.  
No commitments were made (as in the GATS) on services provided by midwives, nurses, 
physiotherapists and para-medical personnel;  ser vices incidental to energy distribution;  and 
personnel placement and supply services. 
112. The Agreement has listed details of the four typ es of legal services contained in Switzerland's 
GATS schedule.  The nationality requirement to pr actice in the canton of St. Gall has been lifted 
under the Agreement, whereas national treatment fo r legal advisory services on Swiss fiscal law is 
limited to commercial fiduciaries for all modes. 
113. There has been some relaxation of limitations  in auditing services (excluding auditing of 
banks);  architectural services;  engineering servi ces;  rental/leasing services for internal waterway 
transport on the Rhine;  and maintenance and re pair of equipment (excluding maritime vessels, 
aircraft or other transport equipment).  For exampl e, the requirement of prior professional practice in 
Lucerne has been lifted for architectural services.   Further, the Agreement permits the supply of 
architectural services by Korean  architects through joint contract s with Swiss architects without 
licensing (except in mode 3).  The mode 1 require ment of Swiss nationality for survey activities for 
official public purposes in engineering services has been reduced to a licensing requirement. 
114. In communication services, Switzerland has take n full commitments under modes 1 to 3 in 
express delivery services, a sector uncommitted to in its GATS schedule.  It has also taken commitments across the full range of basic and value-added telecommunication services, with no 
limitations under modes 1 to 3 but no commitments  in audiovisual services, like in the GATS. 
115. Under construction and re lated engineering services, special trade construction work services 
and renting services related to equipment for c onstruction or demolition of buildings or civil 
engineering works as well as five sub-sectors under general construction work for civil engineering 
have been added.
34  Mode 3 limitations on national treatment for installation and assembly work 
services have been lifted except for gas, water and electricity meters, gas pipelines, electricity and 
main water lines, which are reserved exclusively fo r cantons or municipalities or specific operators. 
116. For distribution services Switzerland lifted mode 3 market access restrictions on sales areas 
maintained by some cantons.  However, cantons a nd/or municipalities may still not authorize large-
scale distribution facilities in wholesale trade services and retailing services. 
117. For education services Switzerland has fully liber alized (except as indicated in the horizontal 
commitments for mode 4) foreign languages a nd cooking services which are not contained in its 
GATS schedule. 
118. Mode 1 limitations on market access and national treatment were abolished in environmental 
services sub sectors sanitation and similar services and other environmental services. 
 
                                                      
33 Telephone answering services;  duplication services ;  translation and interpretation services;  mailing 
list compilation and mailing services;  specialty design services;  agency services on behalf of individual 
performers;  design services for ergonomy of working place;  and other business consulting services n.e.c. 
34 For waterways, harbours, dams and other waterworks (CPC 5133);  for long distance pipelines, 
communication and power lines (cables)  (CPC 5134);  for local pipelines and cables (CPC 5135);  for 
constructions for mining and manufacturing (CPC 5136);  and for constructions for sport and recreation 
(CPC 5137).  WT/REG217/2/Rev.1 
 Page 33 
 
 
  119. There has been no change in the scope of fina ncial services.  However, existing commitments 
have been improved, for example, the commerc ial presence requirement for the underwriting of 
aircraft liability insurance and for Swiss franc denom inated issues;  and investment limits in real 
estate for foreign or foreign-controlled insurance companies have been lifted. 
120. For tourism and travel related services, limita tions have been eased such as economic needs 
tests and residency requirement for licence holders (except in the canton of Jura) for the commercial 
presence of hotels and restaurants.  National treatme nt limitations on ski instructors have also been 
lifted. 
121. There are no changes in commitments in r ecreational, cultural and sporting services. 
122. Under transport services, Switzerland added maritime transport services;  selling and 
marketing of air transport services;  computer reservation system services (under air transport services);  ground-handling services;  airport manageme nt services;  freight tr ansportation (excluding 
cabotage);  and other supporting services for road tr ansport.  It has also abolished commercial 
presence requirements for passenger and freight tran sportation;  and rental of vessels with crew 
services.  Further, mode 1 and 2 limitations on market  access and national treatment for aircraft repair 
and maintenance services have been lifted.  Like at  the multilateral level, the Agreement does not bind 
pipeline transport services.  
123. Switzerland also made additional commitments in washing, cleaning and dyeing services;  
hairdressing and other beauty services;  pet-caring services;  and saunas and spas services by opening 
them fully except in mode 4 where, for example,  commercial presence is required for hairdressing and 
other beauty services. 
E. R
EGULATORY PROVISIONS ON TRADE IN SERVICES  
1. Domestic regulation  
124. The Agreement incorporates provi sions on domestic regulations mutatis mutandis  from 
Article VI of the GATS (Article 3.8). 
2. Recognition 
125. Annex IX on mutual recognition applies, inter alia , to education or experience, qualifications, 
licenses, certification or accreditation of service suppliers  (Article 3.9.3 of Annex IX).  It encourages 
the Parties to develop mutually acceptable sta ndards and criteria on authorization, licensing, 
accreditation, operation and certification of service supp liers, in particular for professional services.  
The Parties are also encouraged to develop pr ocedures for the temporary licensing of professional 
service suppliers from each other (Article 3.9.2 of An nex IX).  They shall periodically report progress 
on and impediments to mutual recognition to the Jo int Committee.  Based on the review by the Joint 
Committee, the Parties shall be encouraged to de termine measures for fac ilitating mutual recognition 
(Articles 1 and 3 of Annex IX). 
126. Where a Party recognises education or experien ce obtained, requirements met or licenses or 
certificates granted by a non-Party, it shall accord adequate opportunity to negotiate the non-Party's 
accession to such an existing or fu ture agreement or arrangement, or to negotiate a comparable 
agreement or arrangement with it.  Where a Pa rty accords autonomous recognition, it shall afford 
adequate opportunity to another Party to demons trate that the education or experience obtained, 
requirements met or licenses or certification granted in its territory Party should also be recognized 
(Article 3.9.1).  Such an agreement, arrangeme nt or autonomous recognition shall conform to the 
relevant provisions of the WTO Agreement, partic ularly Article VII of the GATS (Article 3.9.2). WT/REG217/2/Rev.1 
Page 34 
 
 
  3. Monopolies and exclusive service suppliers 
127. Provisions on monopolies and exclusive service suppliers incorporate Article VIII of the 
GATS in the Agreement (Article 3.11).  The Pa rties confirm their rights and obligations on 
paragraphs 1, 2 and 5 of this Article.   The Parties reaffirm their rights and obligations under Article 
IX of the GATS (Article 3.12). 
4. Safeguard measures 
128. The Parties reaffirm their rights and obligations under paragraphs 1 to 3 of Article XII of the 
GATS.  However, in the event of serious balance of payments and external financial difficulties or 
threat thereof, Article 3.14 encourages them to a void the imposition of restrictions to safeguard the 
balance of payments in trade in services. 
F. SECTOR -SPECIFIC PROVISIONS ON TRADE IN SERVICES  
1. Financial services 
129. A separate Chapter (Chapter 4) applies to measur es affecting trade in financial services.  As 
for other services, MFN, national treatment and market access provisions (Articles 4.4-4.6) do not apply to government procurem ent of financial services purchased for governmental purposes 
(Article 4.1.2).  Article 3.2, inco rporating provisions from the GATS, also applies to financial services 
(Article 4.2).  The Chapter follows definitions in the GATS on "trade in services" and "services";  and 
in the GATS Annex on Financial Services on "ser vices supplied in the exercise of governmental 
authority", "a financial service", "financial servi ce supplier" and "public entity" (Article 4.3). 
130. Chapter 4 mainly maintains th e same structure and contents as Chapter 3, with some 
differences.  While the provision on national treatme nt incorporates Article XVII of the GATS (like 
Article 3.6 on services), it requires each Party to gran t to financial services suppliers of another Party 
established in its territory, access to payments and clearing systems operated by public entities and to 
official funding and refinancing facilities availabl e in the normal course of ordinary business.  
However, this does not confer access to the Party's lender of last resort facilities (Article 4.6.2).  
Where membership or participation in, or access to, a self-regulatory body, securities or futures 
exchange or market, clearing agency, or any othe r organization or association is required by a Party 
for financial service suppliers of any other Party to  supply financial services on an equal basis with its 
own financial services suppliers, or where the Party provides directly or indirectly such entities with 
privileges or advantages in supplying financial se rvices, it shall ensure th at such entities accord 
national treatment to financial service suppliers of any other Party established in its territory 
(Article 4.6.3). 
131. The Chapter's domestic regulation (Article 4.8) an d recognition (Article 4.9) provisions are in 
line with the relevant paragraphs in the GATS A nnex on Financial Services.  However, prudential 
measures can be extended to policy-claimants and any similar financial market participants in addition 
to those provided for in the GATS Annex on Financial Services (2.(a)) (Article 4.8.2). 
132. In addition to transparency provisions in Chapte r 3, Article 4.18 binds the Parties to promote 
regulatory transparency in financial services, taking into account: their work in the GATS and other 
fora relating to trade in financial services. 
133. For the implementation and operation of Chapter 4, a Sub-Committee on Financial Services is 
established (Article 4.20).  Korea and one of the EFTA States jointly chair the Sub-Committee, which 
acts by consensus (Article 4.20.4).  WT/REG217/2/Rev.1 
 Page 35 
 
 
  134. Financial services are governed by the relevant  Articles in Chapter 9 on dispute settlement 
which applies to financial services as well, but with some modifications (Article 4.21).  In particular, 
Article 9.4 on the establishment of an arbitrati on panel requires that, where the disputing Parties 
agree, the panel should meet qualifications in fina ncial services law or practice possibly including the 
regulation of financial institutions (Article 4.21.3. (a)).  If the disputing Parties do not agree, each 
Party to the dispute may select individuals meeting such qualifications.  Further, if the Party 
complained against invokes domestic regulation provisi ons (Article 4.8), the chair of the panel must 
meet both the qualifications provided in Article 9.5. 5 (see paragraph 155) and the qualification above.  
Under Article 9.10.5 the suspension of benefits must be related to the sector affected.  If the dispute 
affects: a) only financial services, the complaining Pa rty shall first seek to suspend benefits only in the 
financial services;  b) financial services and any ot her sector, the Party shall first seek to suspend 
benefits in the respective sectors with an effect e quivalent to the effect of the measure complained 
against in each sector;  or c) sectors other than  financial services, the Party shall seek to avoid 
suspending benefits in the financia l service sector (Article 4.21.5). 
2. Telecommunications services 
135. Annex X of the Agreement applies to teleco mmunications services (Article 3.16 of the 
Agreement).  It contains obligations on issues touched upon in the WTO Reference Paper on Basic 
Telecommunications.  Among other things, the Annex bi nds the Parties to ensure that its regulatory 
authority is separate from, and not accountable to , any supplier of basic telecommunication services 
(Article 2).  It also contains  obligations on licensing procedures (Article 3), the use of scarce 
resources (Article 4), the prevention of anti-compe titive behaviour by major suppliers (Article 5), 
interconnection (Article 6), and universal service (Article 7). 
3. Co-production in broadcasting services 
136. Annex XI of the Agreement relates to coopera tion on co-production of programmes such as 
animation and documentary productions, for broadcas ting, including new media services (Article 1 of 
the Annex).  Broadcasting programmes for televi sion are recognized as national production of the 
Parties involved in that co-production, subject to th eir national legislation in force (Article 2 of the 
Annex).  Restrictions on impor t, distribution and exhibition are not permitted for co-produced 
broadcasting, except those contained in the legislatio n and regulations in force in each of the parties 
involved (Article 3 of the Annex).  Subject to the le gislation and regulations in force, the Parties shall 
facilitate the temporary entry into their territories,  of creative and technical personnel and performers 
engaged in the production (Article 4 of the Annex).  When a co-pr oduction is exported to a country 
with a quota regime, it is counted in the quota of the Party of the majority co-producer or may be 
included in the quota of the Party that has the best export facilities (Article 7 of the Annex).  Rules of procedure on co-production may be established after the first Joint Committee meeting (Article 8 of 
the Annex). 
V. INVESTMENT 
137. A separate Investment Agreement (IA) between Iceland, Liechtenstein and Switzerland, on 
the one hand, and Korea, on the other (Article 1.4 of the Agreement), forms a part of the Agreement 
(Preamble of the IA).  Norway is not a party.
35  As long as the IA is in fo rce or remains effective, it 
replaces and suspends the "Agreement between the Government of the Swiss Confederation and the 
Government of Republic of Korea concerning th e Encouragement and Reciprocal Protection of 
Investments" of 7 April 1971 (Article 27 of the IA). 
                                                      
35 According to Article 24 of the IA, Norway ma y accede to the Agreement, once the terms and 
conditions established by the Committee of the IA ar e agreed between Norway, and the existing Parties. WT/REG217/2/Rev.1 
Page 36 
 
 
  138. The IA contains 28 provisions and five annexes indicating national treatment reservations by 
each Party.  It applies to investors of a Part y, and to their existing and future investments. 36  Non-
discriminatory measures of general a pplication taken by public entities for monetary and related credit 
policies or exchange rate policies are excluded from the IA (Article 7 of the IA) except for necessary 
measures which are listed in Article 20 (including to  protect public morals or to maintain public 
order).  A Committee for the Agreement was est ablished for: supervis ing and reviewing its 
implementation;  endeavouring to resolve possible disputes;  and considering any other operational 
matter (Article 21 of the IA).  Rules of proce dure will be established by the Committee of the IA 
(Article 21.7 of the IA), which is currently pending. 
139. National and MFN treatment shall be ensured:  each Party accords to investors of another 
Party and their investments, in relation to the establishment, acquisition, expansion, management, conduct, operation, liquidation, sale, transfer, or othe r disposition, of investments, treatment that is no 
less favourable than to its own investors and their i nvestments or to investors of any third State and 
their investments, whichever is more favourable (Article 4.1 of the IA).
37  Article 4 does not apply to 
measures affecting trade in services, provided that the sector concerned is covered by Chapters 3 
(trade in services) or 4 (financial services) of the Agreement (Article 2.2 of the IA).  There is no 
obligation to extend advantages to investors from anot her Party and their investment that have been 
granted to a third Party and their investments under a free trade agreement, customs union, or similar 
agreement that also provides for substantial liber alization of investments.  However, upon request 
from another Party, an adequate opportunity shall be  given for negotiation of the benefits granted to 
the third Party (Article 4.2 of the IA). 
140. National treatment does not apply in the case of subsidies based on a Party's social or 
economic development policy, even if they, directly or indirectly, favour local enterprises or entrepreneurs.  However, sympathetic considerati on will be given upon request  for consultations, in 
the case of a seriously distortive effect on the investment opportunities of its own investors 
(Article 4.4 of the IA).  The IA assures free transfer of all payments (Article 5 of the IA) and 
guarantees against unlawful expropriation or natio nalization or measures having the same effect, 
against investments by investors of a Party.  Ho wever, such measures are permitted if taken in the 
public interest, on a non-discriminatory basis a nd under due process of law, and provided that 
provision is made for prompt, effective and adequa te compensation (Article 13 of the IA).  This 
provision does not apply to compulsory licenses gran ted in relation to intellectual property rights in 
accordance with the TRIPS Agreement, or to the revocation, limitation, or creation of intellectual 
property rights which is consistent with the Chapter on intellectual property of the Agreement 
(Footnote 2 of the IA). 
141. Recognizing the inappropriateness of encouragi ng investment by relaxing domestic health, 
safety or environmental measures, the Parties are entitled to adopt, maintain or enforce any measure 
that is in the public interest, such as health, safety or environmental concerns.  If a Party considers that 
another Party has encouraged investment in an inappropriate way, it may request consultations 
(Article 9 of the IA). 
142. Articles 4.8.2 (prudential measures), 10.1 (trans parency), and Chapter 9 (dispute settlement) 
of the Agreement apply mutatis mutandis  to the Investment Agreement.  
143. In the case of a dispute an investor of a Pa rty can request consultations with the Party 
concerned with the guarantee of interim measures of  protection (Articles 16.1 and 16.5 of the IA).  
Any matter, which is not resolved within si x months from the date of written request for 
                                                     
 
36 Article 1.4 and 1.2 of the IA respectively define "investor of a Party" and "investment".  Disputes 
arising out of events which occurred prior to the entry into force of  the IA are excluded. 
37 The provision does not include the condition of likeness (e.g. "in like circumstances").  WT/REG217/2/Rev.1 
 Page 37 
 
 
  consultations, may be referred to e ither the domestic courts or administrative tribunals of the Party 
concerned;  or to international arbitration, such as the ICSID or UNCITRAL (Article 16.2 of the IA).  
Once the complaining Party has chosen the forum to se ttle the dispute, that forum shall be used to the 
exclusion of the others (exclusive forum clause) (Artic le 16.4 of the IA).  The arbitral award is final, 
binding and shall be executed without delay under th e law of the Party concerned (Article 16.9 of the 
IA).  The arbitral panel is constituted in accordance with dispute settlement provisions of Chapter 4 on 
financial services (Article 17.3 of the IA). 
144. No later than three years after th e entry into force of the IA and at regular intervals thereafter, 
the Parties shall review the legal framework, climate and flow of investment be tween their territories.  
The review shall reflect the aim of progressive liber alization of investment and consistency with the 
Parties' commitments in international investment agre ements (Article 19 of the IA).  According to the 
Parties, there has been a review at  the Joint Committee in this regard. 
145. For investments prior to the date of any withdr awal from, or the termination of, the IA, the 
major parts of the Agreement (Articles 1 to 18 and Article 20) will be effective for ten years from the 
date of withdrawal or termina tion (Article 26.5 of the IA). 
146. Reservations by the Parties are listed under separate Annexes.  They can be modified with a 
view to reducing the reservations or removing th em and a Party may, at any time, either upon the 
request of another Party or unilaterally, remove in  whole or in part its reservations through written 
notification to the other Parties.  A Party may also, at any time, add a new reservation;  in this case, 
the other Parties may request consultations whic h must be honoured by the Party making the new 
reservation (Article 12 of the IA).  See Annex II for a more detailed description of the investment 
reservations under the Agreement. 
VI. GENERAL PROVISIONS OF THE AGREEMENT 
A. TRANSPARENCY  
147. Article 10.1 requires the Parties to publish or ma ke publicly available their laws, regulations 
and administrative rulings judicial decisions of ge neral application of the Agreement as well as their 
respective international agreements that may affect  the operation of the Agreement.  The Parties are 
also obliged to respond to each other promptly on sp ecific questions.  When any inconsistency occurs 
between this provision and transparency provisions in other Chapters, the latter shall prevail to the 
extent of the inconsistency. 
B. EXCEPTIONS AND RESERVATIONS  
148. General exceptions for trade in goods incorporate the provisions of Articles XVII (including 
Understanding on the Interpretation of the Article), XX and XXI of the GATT 1994. 
C. ACCESSION AND WITHDRAWAL  
149. The Agreement is open to accession only for any new EFTA member, following the terms 
and conditions negotiated among the Parties (Article 10.4.1).  Any Party may withdraw from the 
Agreement six months after written notification to the Depositary (Article 10.5.1).  If an EFTA State 
withdraws from the EFTA Convention, it will al so cease to be a Party to the Agreement 
(Article 10.5.3). WT/REG217/2/Rev.1 
Page 38 
 
 
  D. INSTITUTIONAL FRAMEWORK  
150. Chapter 8 established a Joint Committee compo sed of Government representatives from the 
Parties to, inter alia , supervise and review the implementation of the Agreement;  keep under review 
the possibility of further removal of trade barriers and other restrictive measures on trade between the 
Parties;  endeavour to resolve disputes on the inte rpretation or application of the Agreement;  and 
supervise the work of Sub-Committees and working groups established under the Agreement 
(Article 8.1.2).  The Committee normally meets ever y two years, but also whenever necessary upon 
mutual agreement;  it shall establish its ow n rules of procedure (Article 8.1.5).   The first meeting of 
Joint Committee took place on 28 May 2008. 
151. The EFTA Secretariat has been designated th e Secretariat for the EFTA States and the 
Ministry of Foreign Affairs and Trade for Korea (Artilce 8.2.1).  Article 8.1.7 provides for the possibility of amendments by a decision of the Join t Committee.  The depository of the Agreement is 
the Government of Norway (Article 10.7). 
E. D
ISPUTE SETTLEMENT  
152. While the Parties endeavour to agree on the inte rpretation and application of the Agreement at 
all times, Chapter 9 sets out arrangements that apply to the avoidance and settlement of disputes.  The 
Chapter takes into account disput e settlement provisions in Article 4.21 on financial services and 
Article 25 of Annex I on verification procedures.  Ar ticle 9.1.2 provides that for disputes on the same 
matter arising both under the Agreement and the WT O Agreement, the complaining Party may choose 
where the dispute is to be settled ("forum election clause");  once dispute settlement procedures have 
been initiated under one forum, that forum shall be used to the exclusion of the other ("exclusive 
forum clause"). 
153. The Parties are required to make every attempt to resolve disputes through co-operation and 
consultations.  If a Party considers that a measure ap plied by another Party or Parties is inconsistent 
with the Agreement;  or that any benefit accruing to it directly or indirectly under the Agreement is 
impaired or nullified by such a measure, it may re quest consultations in writing.  The consultation 
shall normally be conducted in the Joint Committee within 30 days of the date of receipt of the 
request (15 days for urgent matters in cluding for perishable agricultural goods). 
154. If a dispute is not resolved within 60 days (30 days for urgent matters) of the receipt of the 
request for consultations, arbitrati on may be invoked by the complaining Party in writing.  The rules 
on the constitution and procedures of the arbitrati on panel are laid down in Articles 9.5 and 9.6, 
respectively.  If there is no agreement on the three members of the arbitration panel, the 
Director-General of the WTO shall designate them  at the request of any Party to the dispute 
(Article 9.5.4).  The Chair of the panel shall not be a national of any of the Parties, nor have his usual 
place of residence in the territory of any of the Pa rties, nor be employed or previously have been 
employed by any of the Parties, nor have dealt with the case in any capacity (Article 9.5.5).  The 
Model Rules of Procedure of the panel are to be adopted at the first meeting of the Joint Committee 
(Article 9.6.1).   Unlike the WTO Understanding on Rules and Procedures Governing the Settlement 
of Disputes (DSU), the Agreement allows any member  of the arbitration panel to deliver a separate 
opinion on matters on which there is no unanimous agreement (Article 9.6.6). 
155. The voluntary good offices, conciliation and mediation procedures can be started and 
terminated at any time (Article 9.2.1) and a compla ining Party may also withdraw its complaint at any 
time, but before the issuance of the initial arbitr al report, and without prejudice to its right to 
reintroduce a complaint on the same issue at a later st age (Article 9.7).  The detailed steps to be taken 
in the process for dispute settlement are described be low in Table VI.1.  The time period for the stages  WT/REG217/2/Rev.1 
 Page 39 
 
 
  in a dispute is subject to modification by mutu al agreement between the Parties involved in the 
dispute (Article 9.11). 
Table VI.1 - Synopsis of Dispute Settlement Provisions under the Agreement 
30 days 
(15 days for urgent matters including 
perishable agricultural goods – Art. 
9.3.3) 
30 days or immediately in urgent 
cases (Art. 9.4.1) 
composition within 45 days 
(Art. 9.5.4) 
90 days (Art.9.8.1) 
15 days (Art. 9.9.2) 14 days (Art.9.8.3)  
Written re quest for 
consultations 
(Art. 9.3.2) 
Consultation  
(Art. 9.3.3) 
Written request for the 
establishment of arbitral 
panel (Art. 9.4.1)  
Establishment of arbitral 
panel  (Art. 9.5.8) 
Model Rules of procedure  
(Art. 9.6.1)  
Issuance of arbitral 
tribunal's initial report  
(Art. 9.8)   
Issuance of arbitral panel's 
final report (Art. 9.9)  
Final and binding (Art.9.10.1) Publication of the final arbitral panel 
report (Art. 9.9.2)
Agreement on the reasonable 
period of time to solve the 
dispute (Art. 9.10.2.(b)) 
Failure to agree on the 
reasonable period of time – 
refer to the original arbitral 
panel (Art. 9.10.2.(b)) 
Consultation for mutuall y 
acceptable compensation 
(Art. 9.10.4)
Possibility to submit 
written comments 
(Art. 9.8.3) 
30 days (Art.9.9.1) No indication of the reasonable period of time  
Agreement on the 
means to solve the 
dispute (Art. 9.10.2.(a))  
Failure 
to agree 
on  
a means 
(Art. 
9.10.4)Failure to implement 
the means within 30 
days following the 
expiration of the 
reasonable period of 
time– 
Non implementation 
(Art. 9.10.4 )
20 days (Art. 
9.10.4) 
No agreement 
(Art. 9.10.4) 
Notification of intention 
to suspend the 
application of benefits 
granted under the 
Agreement  – no later 
than 60 days before the 
date of the effective 
suspension (Art. 9.10.6 )
15 days  
(Art. 9.10.6) The original arbitration 
panel reconvened upon 
request from any of the 
Parties to the dispute 
(Art. 9.10.6) 
45 days 
(Art. 9.10.6) 
Arbitration panel rulin g 
(Art. 9.10.6) 
Binding (Art. 9.10.9) 
Request by a Party to the 
original arbitration panel to 
rule whether the suspension 
of benefits should be 
terminated or modified (Art. 
9.10.8) 
30 days (Art. 9.10.8) 
Arbitration panel rulin g 
(Art. 9.10.8) 
Binding (Art. 9.10.9) 30 days 
(Art. 9.10.4) 
 
 WT/REG217/2/Rev.1 
Page 40 
 
 
  F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
156. The Agreement is without prejudice to the rights and obligations of the Parties under the 
WTO Agreement and any other international agreement to  which they are party (Article 1.5).  Further, 
it shall not prevent the Parties from maintaining or establishing customs unions, free trade areas, 
arrangements for frontier trade38 and other preferential agreements to the extent that these do not 
adversely affect trade between the Part ies under the Agreement (Article 1.7). 
157. Table VI.2 lists all other regional trade agreem ents (RTAs) notified and not notified to the 
GATT/WTO and in force to which the EFTA States (collectively or individually) and Korea are 
parties. 
Table VI.2 
EFTA States and Korea:  Participatio n in other RTAs (notified and non-no tified in force), as of December 2008  
Partner / Agreement GATT/WTO Notification 
 Date of 
entry  
into force Type of 
agreement Year WTO Provision 
EFTA  STATES  - COLLECTIVELY 
SACU 01.05.08 Goods 2008 GATT Art. XXIV 
Egypt 01.08.07 Goods 2007 GATT Art. XXIV 
Lebanon 01.01.07 Goods 2006 GATT Art. XXIV 
Tunisia 01.06.05 Goods 2005 GATT Art. XXIV 
Chile 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Singapore 01.01.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
EFTA 01.06.02 Services 2002 GATS Art. V 
Croatia 01.01.02 Goods 2002 GATT Art. XXIV 
Jordan 01.01.02 Goods 2002 GATT Art. XXIV 
FYROM 01.01.01 Goods 2000 GATT Art. XXIV 
Mexico 01.07.00 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Morocco 01.12.99 Goods 2000 GATT Art. XXIV 
Palestinian Authority 01.07.99 Goods 1999 GATT Art. XXIV 
Israel 01.01.93 Goods 1992 GATT Art. XXIV 
Turkey 01.04.92 Goods 1992 GATT Art. XXIV 
INDIVIDUAL  EFTA  STATES 
     
Iceland – Faroe Islands 01.11.06 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Faroe Islands – Switzerland 01.03.95 Goods 1996 GATT Art. XXIV 
European Economic Area (EEA) 01.01.94 Services 1996 GATS Art. V 
Faroe Islands – Norway 01.07.93 Goods 1996 GATT Art. XXIV 
EC-Norway 01.07.73 Goods 1973 GATT Art. XXIV 
EC-Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
EC-Switzerland and Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
KOREA 
Singapore 02.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Chile 01.04.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Table VI.2 (Cont'd )
                                                      
38 The Agreement does not elaborate what arrangement s for frontier trade mean.  WT/REG217/2/Rev.1 
 Page 41 
 
 
  Partner / Agreement GATT/WTO Notification 
 Date of 
entry  
into force Type of 
agreement Year WTO Provision 
GSTP 19.04.89 Goods 1989 Enabling Clause 
APTA 17.06.76 Goods 1976 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
ASEAN 01.06.07 Goods Not Notified 
Source: WTO Secretariat.  
EFTA: European Free Trade Association 
SACU: Southern African Customs Union APTA: Asia Pacific Trade Agreement 
GSTP: Global System of Trade Preferences 
PTN: Protocol relating to Trade Ne gotiations among deve loping countries 
 
G. GOVERNMENT PROCUREMENT  
158. Chapter 6 reaffirms the Parties' rights and oblig ations in respect of government procurement 
under the WTO Agreement on Government Procurem ent (GPA) of which they are all Members 
(Article 6.1.1).  Any liberaliza tion concluded bilaterally between the Parties of their respective 
government procurement markets in the negotiatio ns on the GPA, including provisions from the 
agreement amending the main part of the GPA in so far as they are relevant, shall be included in the 
Agreement.  The Joint Committee shall take a deci sion to this effect within three months after 
conclusion of these bilateral negotiatio ns.  This decision shall be subject to ratification or acceptance 
by the Parties (Article 6.3).  The Parties provide fo r the possibility of entering into negotiations in the 
case that after the entry into force of the Agreem ent, a Party grants additional market access on 
government procurement to a non-Party.  The nego tiations shall be conducted on a reciprocal basis 
(Article 6.3.2).  Annex XII lists contact points of  the Parties providing information on the rules and 
regulations on the respective government procurement regimes.39 
H. INTELLECTUAL PROPERTY RIGHTS  
159. Recognizing the growing importance of intellect ual property rights as a factor in social, 
economic and cultural development, Chapter 7 on inte llectual property consists of three Articles and 
related Annex XIII containing seven Articles.  Th e Parties reaffirm their obligation under the 
WTO TRIPS Agreement40, the Paris Convention for the Protection of Industrial Property and the 
Berne Convention for the Protection of Literary a nd Artistic Works (Article 1.1, Annex XIII).  The 
Chapter restates national and MFN treatment obligati ons referring explicitly to Articles 3-5 of the 
TRIPS Agreement (Articles 7.1.2 and 7.1.3).  The Pa rties that are not party to certain multilateral 
agreements (see Table VI.3) must ratify or accede to , or apply the substantive standards of these 
agreements, at the latest by 2008 (Article 1.2, A nnex XIII).  Korea plans to ratify or accede to those 
agreements by the end of 2008. 
                                                      
39 For the EFTA States: Iceland – the Ministry of Finance;  Liech tenstein – the Office of Foreign 
Affairs;  Norway – the Ministry of Modernization;  and Switzerland – the State Secretariat for Economic 
Affairs.  For Korea: the Mini stry of Strategy and Finance.  
40 The Chapter specifically mentions the referen ce of the TRIPS Agreement Article 3 (national 
treatment);  Article 4 (MFN treatment);  Article 5 (m ultilateral agreements on acquisition or maintenance of 
protection);  Articles 27.1 and 27.2 (patent);  Artic le 39 (undisclosed information);  Articles 41 and 61 
(enforcement of intellectual property rights);  and Article 62 (acquisition and maintenance of intellectual 
property rights). WT/REG217/2/Rev.1 
Page 42 
 
 
  Table VI.3 
 WIPO Performances and 
Phonograms Treaty WIPO Copyright Treaty Intern ational Convention for the 
Protection of Performers, Producers 
of Phonograms and Broadcasting 
Organizations (Rome Convention) 
Iceland Not party yet Not party yet Entered into force on 15 June 1994 
Liechtenstein Entered into force on 30 April 
2007 Entered into force on 30 April 2007 Entered into force on 12 October 1999 
Norway Not party yet Not party yet Entered into force on 10 July 1978 
Switzerland Entered into force on 1 July 2008 Entered into force on 1 July 2008 Entered into force on 24 September 1993 
Korea Not party yet Entered into force on 24 June 2004 Not party yet 
Source : WTO Secretariat based on information at http://www.wipo.int . 
 
160. The Agreement covers copyright, including com puter programmes;  compilations of data and 
related rights;  trademarks for goods and services;  geographical indications including appellations of 
origin;  industrial designs;  patents;  plant varieti es;  layout-designs/topographies of integrated circuits 
as well as undisclosed information (Article 7.2). 
161. As regards patentable subject matter, th e Agreement reiterates Article 27 of the 
TRIPS Agreement (Article 2.(a), Annex XIII).  In  addition to exclusions from patentability under 
Article 27.2 of the TRIPS Agreement (including for protecting ordre public  or morality), Iceland, 
Liechtenstein, Switzerland, and Korea may also ex clude from patentability: i) diagnostic, therapeutic 
and surgical methods (not products) for the treatme nt of humans or such methods practised on the 
animal body, in particular substances or compositions  for use in any of these methods;  and ii) plant or 
animal varieties or essentially biological processes for the production of plants or animals, although 
this provision shall not a pply to microbiological processes or the products thereof.  Plant varieties 
shall be protected either by patents or by an effective sui generis  system or by any combination 
thereof.  Norway, applies patent protection at a level corresponding to that in the Agreement on the 
European Economic Area of 2 May 1992, as implemen ted in national law.  In addition to providing 
adequate and effective patent protection, the Parties shall ensure in their national laws: i) protection of 
up to five years for pharmaceutical and plant pate nts to compensate for a reduction in the effective 
patent term as a result of the marketing approval pr ocess (Article 2.(b) of Annex XIII);  and ii) any 
granting of compulsory licenses is in compliance wi th the TRIPS Agreement and the Declaration on 
the TRIPS Agreement and Public Health adopted  at the Doha Ministerial on November 2001 
(Article 2.(c) of Annex XIII). 
162. Undisclosed information is to be protect ed in accordance with Article 39 of the 
TRIPS Agreement.  In addition, applicants for marketing approval of pharmaceuticals and agricultural 
chemical products utilizing new chemical entities, ma y not rely on undisclosed test or other data, 
which involved a considerable effort by the origin al applicant, for “an adequate number of years”  
from the date of approval.41  This is not applicable when a pplicants seek approval for original 
products.  The Parties may allow in their national legi slation subsequent applicants to rely on such 
data if the first applicant is adequately comp ensated;  Korea does not have such a system of 
compensation (Article 3, Annex XIII). 
163. In comparison with Article 26.3 of the TRIPS Agreement, which protects industrial designs 
for ten years, the Agreement extends protection to 15 years from registration.  A shorter period of 
protection is provided for designs of component part s used for the repair of a product (Article 4, 
Annex XIII). 
                                                      
41 For Switzerland, "an adequate number of years" are ten years.  WT/REG217/2/Rev.1 
 Page 43 
 
 
  164. The Parties provide adequate and effective protection for geographical indications (GIs) 
including appellations of origin42 for all goods and services (Article 5 of Annex XIII).  They shall 
provide adequate and effective nati onal legislation for GIs in services so  that they do not mislead the 
public or constitute an act of unfair  competition (Article 5.2, Annex XIII).43  All except Norway44 also 
commit to initiate negotiations after three years from the entry into force of the Agreement, to reach 
an agreement on the mutual protection of GIs (Artic le 5.3, Annex XIII).  No  negotiations to this 
purpose have been initiated so far. 
165. Co-operation in intellectual property is emphasised in i) programmes for personnel 
interchange including for examiners, between the Parti es;  ii) information systems;  iii) the promotion 
of mutual understanding of each Party's policies, ac tivities and experiences;  and iv) the promotion of 
education on intellectual prope rty and invention awareness. 
I. COMPETITION POLICY  
166. Chapter 5 governs rules of competition for en terprises.  Anti-competitive business conduct is 
recognized as being incompatible with the proper functioning of the Agreement and the Parties’ 
competition laws are to aim at removing anti-comp etitive business conduct (Articles 5.1.1 and 5.1.4).  
While it is not obligatory to disclose confidential in formation, the Parties must notify each other of 
relevant enforcement activities and exchange informa tion (Article 5.1.4).  Consultations between the 
competition authorities and/or other relevant authorities of the Parties are to take place upon request.  
Further, if a Party considers that an anti-competit ive practice in another Party continue to affect 
bilateral trade, it may request the Joint Committee to  host consultations.  Where appropriate, the Joint 
Committee can re-establish the balance of rights and obligations under the Agreement (Articles 5.1.5 
and 5.1.6). 
 
 
                                                      
42 According to the Parties, "appellations of origin" are separately mentioned in order to express the 
agreement of the Parties that "a ppellations of origin" are GIs. 
43 According to Switzerland, Swiss banking is an example of GIs for services.  Korea does not have 
any relevant domestic laws for the protection of GIs for service. 
44 According to Norway, Norwegian domestic legislatio ns do not provide for protection of GIs to the 
extent of the intended agreement. WT/REG217/2/Rev.1 
Page 44 
 
 
  ANNEX I 
 
Indicators of Trade Liberalization under the Agreement and the AAs  
 1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the MFN rates applied by the EFTA Stat es and Korea is shown in Tables AI.1 to AI.4 
below, by total products, agricultural products and non-agr icultural products. 
Table AI.1 
Norway: Indicators of MFN tariff rates a nd preferential rates for imports from Korea 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines  
(%) 
MFN 2006 1.6 24.1 83.9 11.0 71.3 38.9 0.6 9.9 94.3 
Korea 2006 1.0 81.2 90.2 8.8 81.2 48.6 0.0 0.0 99.9 
 2007 1.0 80.8 90.3 8.6 80.8 49.3 0.0 0.0 99.9 
 a WTO Definition. 
Note: Calculations exclude specific and in-quota rates and include the ad valorem  part of alternate rates. 
 
Source:  WTO Secretariat estimates based on data provided by Norway and the WTO-IDB. 
 
2. Norway's average applied MFN rate in 2006 was 1.6%;  the average applied tariff on 
agricultural products was roughly 18 times higher than  that applied to non-agricultural products.  
Duty-free tariff lines account for 83.9% of all tariff lines.  Korean exporters enjoyed an absolute 
margin of preference of 2.2% for agricultural goods vis-à-vis the prevailing average MFN tariff in 
2006, and 0.6%  for non-agriculturl goods.  Overall, Korean exporters enjoyed an absolute margin of 
preference of 0.6% vis-à-vis the prevailing average applied MFN tariff, as well as an increase 
(to 90.2%) in the share of Norway's duty-free lines. 
Table AI.2 
Switzerland: Indicators of MFN tariff rates and preferential rates for imports from Korea 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines  
(%) 
MFN 2006 n.a n.a 17.5 n.a n.a 15.3 n.a n.a 18.0 
Korea 2006 n.a n.a 84.0 n.a n.a 34.8 n.a n.a 99.98 
 a WTO Definition. n.a. Not available;  a majority of Switzer land's tariff contains sp ecific duties for which ad valorem  equivalents were not available. 
Note: Calculations exclude specific and in-quota rates.  
Source:  WTO Secretariat estimates based on data provided by Switzerland and the WTO-IDB. 
 
3. As the majority of tariff lines in Switzerland's MF N tariff consists of specific duties, the tariff 
analysis presented above is not possible.  As of en try into force of the Agreement, Korea benefits 
from 84% of Switzerland's tariff schedule being duty free as compared to 17.5% on an MFN basis.  The share of duty free lines on industrial goods is 99.98% compared to 18% on an MFN basis and 
34.7% on agricultural goods compared to 15.2% on an MFN basis. 
 
 
 
   WT/REG217/2/Rev.1 
 Page 45 
 
 
  Table AI.3 
Iceland: Indicators of MFN tariff rates a nd preferential rates for imports from Korea 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) 
MFN 2006 4.0 14.2 70.9 10.0 26.0 59.3 2.49 9.6 74.0 
Korea 2006 1.3 35.1 94.9 6.5 35.1 76.3 0.0 0.0 100.0 
 a WTO Definition. Note:  Calculations exclude specific rates and include the ad valorem part of compound rates. 
 
Source: WTO Secretariat estimates based on data provided by Iceland. 
 
4. Iceland's average applied MFN rate in 2006 is 4% on all goods, with a higher average tariff 
applied to agricultural goods (10%) than to non-ag ricultural products (2.49%).  Duty-free tariff lines 
account for 70.9% of all lines.  As of entry into fo rce of the Agreement, Korea benefits from 94.9% of 
Iceland's tariff schedule being duty free as compared  to 70.9% on an MFN basis.  The share of duty 
free lines on industrial goods is 100% compared to 74% on an MFN basis and 76.3% on agricultural 
goods compared to 59.3% on an MFN basis. 
Table AI.4 
Korea:  Indicators of MFN tariff  rates and preferential rates for imports from EFTA States 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) 
MFN 2006 12.8 14.8 13.3 52.0 53.0 2.0 6.7 7.9 15.2 
Iceland 2006 7.6 37.3 79.7 50.1 63.9 21.4 0.9 8.1 89.0 
 2007 7.4 36.6 79.7 50.1 63.8 21.4 0.7 6.5 89.0 
 2008 7.3 35.8 79.7 50.1 63.8 21.4 0.5 4.9 89.0 
 2009 7.1 42.2 83.1 50.0 63.9 21.6 0.4 5.2 93.0 
 2010 7.0 41.6 83.1 50.0 63.9 21.6 0.3 3.7 93.0 
 2011 6.9 52.1 86.7 50.0 64.1 22.0 0.2 5.4 97.1 
 2012 6.9 51.9 86.7 49.9 64.1 22.0 0.1 4.3 97.1 
 2013 6.9 56.9 87.9 49.9 64.1 22.0 0.1 6.3 98.5 
 2014 6.8 56.7 87.9 49.9 64.1 22.0 0.1 5.1 98.5 
 2015 6.8 56.6 87.9 49.9 64.0 22.0 0.1 4.0 98.5 
 2016 6.8 62.0 89.0 49.9 65.1 23.3 0.04 9.8 99.6 
Norway 2006 7.6 37.1 79.5 50.4 62.9 19.8 0.9 8.1 89.0 
 2007 7.4 36.4 79.5 50.4 62.9 19.8 0.7 6.5 89.0 
 2008 7.3 35.6 79.5 50.3 62.9 19.8 0.5 4.9 89.0 
 2009 7.1 41.9 82.9 50.3 63.0 20.0 0.4 5.2 93.0 
 2010 7.0 41.4 82.9 50.3 63.0 20.0 0.3 3.7 93.0 
 2011 7.0 51.4 86.4 50.3 63.0 20.1 0.2 5.4 97.1 
 2012 6.9 51.2 86.4 50.3 63.0 20.1 0.1 4.3 97.1 
 2013 6.9 56.0 87.6 50.2 62.9 20.1 0.1 6.3 98.5 
 2014 6.9 55.9 87.6 50.2 62.9 20.1 0.1 5.1 98.5 
 2015 6.9 55.7 87.6 50.2 62.9 20.1 0.1 4.0 98.5 
 2016 6.8 61.0 88.7 50.2 63.9 21.4 0.04 9.8 99.6 
Switzerland 2006 7.6 36.5 79.1 50.3 60.9 17.3 0.9 8.1 89.0 
 2007 7.4 35.7 79.1 50.3 60.9 17.3 0.7 6.5 89.0 
 2008 7.3 35.0 79.1 50.3 60.8 17.3 0.5 4.9 89.0 
 2009 7.1 41.0 82.6 50.2 60.9 17.5 0.4 5.2 93.0 
 2010 7.0 40.5 82.6 50.2 60.9 17.5 0.3 3.7 93.0 
 2011 6.9 50.0 86.1 50.2 60.9 17.6 0.2 5.4 97.1 
 2012 6.9 49.8 86.1 50.1 60.9 17.6 0.1 4.3 97.1 
 2013 6.9 54.3 87.3 50.1 60.8 17.6 0.1 6.3 98.5 
 2014 6.9 54.2 87.3 50.1 60.8 17.6 0.1 5.1 98.5 
 2015 6.8 54.0 87.3 50.0 60.8 17.6 0.1 4.0 98.5 
 2016 6.8 59.4 88.5 50.0 62.3 19.6 0.04 9.8 99.6 
a WTO Definition. 
Note: Calculations exclude specific and in-quota rates and include the ad valorem  part of alternate rates. 
Source:  WTO Secretariat estimates based on data provided by Korea and the WTO-IDB. WT/REG217/2/Rev.1 
Page 46 
 
 
  5. Korea's average applied MFN rate in 2006 w as 12.8%;  the average applied tariff on 
agricultural products was roughly eight times higher th an that applied to non-agricultural products.  
Duty-free tariff lines account for 13.3% of all tariff  lines.  The EFTA States' exporters enjoyed an 
absolute margin of preference of 5.8% for non-agri cultural goods.  For agricultural goods, exporters 
from Iceland, Norway and Switzerland, respectively enjoyed absolute margins of preference of 1.9%, 
1.6%, and 1.7%.  Overall, the EFTA States enjoye d an absolute margin of preference of 5.2% 
vis-à-vis  the prevailing average applied MFN tariff.  They also enjoyed an increase to 79.7% 
(Iceland), 79.5% (Norway) and 79.1% (Switzerland), respectively in the share of Korea's duty-free lines. 
Table AI.5 – Norway:  Market access opportuniti es under the Agreement fo r Korea's top 25 exports 
Access Conditions to Norway's import markets  
MFN (2006)  Korea's top export products in 2003-2005  
Number of tariff lines  
HS number and description of the product  Share in global exports 
(%) Average MFN 
applied rate 
(%) Duty-free Dutiable 
852520 - Transmission apparatus 
incorporating reception apparatus 7.2 0.0 2  
854221 -- Monolithic integrated circuits: 
digital 6.6 0.0 1  
870323 -- Motor vehicles of a cylinder 
capacity >1,500cc but <=3,000cc 4.9 0.0 3  
847330 - Parts and accessories of 
machines of heading 84.71 3.7 0.0 1  
271019 -- Petroleum oils: other 3.5 0.0 20  
852990 - Other 3.3 0.0 5  
890120 - Tankers 3.0 0.0 4  
847160 - Input or output units, whether or 
not containing storage units in the same housing. 2.7 0.0 6  
890190 - Other vessels for the transport of 
goods and/or persons 2.2 0.0 4  
870899 -- Parts of motor vehicles of 
headings 87.01-87.05: other 1.8 0.0 2  
854229 -- Monolithic integrated circuits: 
other than digital 1.5 0.0 1  
870324 -- Motor vehicles of a cylinder 
capacity >3,000cc 1.4 0.0 3  
870322 -- Motor vehicles of a cylinder 
capacity >1,000cc but <=1,500cc 1.3 0.0 3  
852812 -- Reception apparatus for 
television:  colour 1.1 0.0 8  
870332 -- Motor vehicles of a cylinder 
capacity >1,500cc but <=2,500cc 1.0 0.0 3  
901380 - Other devices, appliances and 
instruments 0.9 0.0 1  
271011 -- Petroleum oils: Light oils and 
preparations 0.8 0.0 11  
901390 - Parts and accessories 0.8 0.0 1  
847170 - Storage units 0.8 0.0 1  
291736 -- Terephthalic acid and its salts 0.6 0.0 1  
847989 -- Machines and mechanical 
appliances: other 0.6 0.0 4  
710813 -- Non-monetary gold: other semi-
manufactured forms 0.6 0.0 1  
390330 - Acrylonitrile-butadiene-styrene 
(ABS) copolymers 0.5 0.0 1  
842952 -- Mechanical shovels, excavators 
and shovel loaders with a 360° revolving superstructure 0.5 0.0 2  
870333 -- Motor vehicles of a cylinder 
capacity >2,500cc 0.5 0.0 3  
Total of above 51.8  92 0 
 
Source:  WTO estimates based on data provided by No rway, WTO-IDB, and UNSD, Comtrade data. 
  WT/REG217/2/Rev.1 
 Page 47 
 
 
  6. Table AI.5 shows the market access conditions in Norway for Korea's top 25 exports, which 
in 2003-2005 accounted for 51.8% of its global expor ts.  All top 25 exports of 92 tariff lines were 
already duty-free on an MFN basis. 
Table AI.6 – Switzerland: Market  access opportunities under the Agre ement for Korea's top 25 exports 
Access Conditions to Switzerland's import markets  
MFN (2006)  Korea's top export products in 2003-2005  Number of tariff 
lines  
HS number and description of the 
product  Share in global 
exports (%)  Average 
MFN applied 
rate 
(%) Duty-
free Dutiable Duty-free in 
2006  Remain 
Dutiable 
852520 - Transmission apparatus 
incorporating reception apparatus 7.2 0.0 1    
854221 -- Monolithic integrated 
circuits: digital 6.6 0.0 1    
870323 -- Motor vehicles of a 
cylinder capacity >1,500cc but <=3,000cc 4.9 --  3 3  
847330 - Parts and accessories of 
machines of heading 84.71 3.7 0.0 1    
271019 -- Petroleum oils: other 3.5 0.0 9    
852990 - Other 3.3 0.0 1 1 1  
890120 - Tankers 3.0 --  1 1  
847160 - Input or output units, 
whether or not containing storage units in the same housing. 2.7 0.0 1    
890190 - Other vessels for the 
transport of goods and/or 
persons 2.2 --  1 1  
870899 -- Parts of motor vehicles of 
headings 87.01-87.05: other 1.8 --  4 4  
854229 -- Monolithic integrated 
circuits: other than digital 1.5 0.0 1    
870324 -- Motor vehicles of a 
cylinder capacity >3,000cc 1.4 --  2 2  
870322 -- Motor vehicles of a 
cylinder capacity >1,000cc 
but <=1,500cc 1.3 --  1 1  
852812 -- Reception apparatus for 
television:  colour 1.1 --  1 1  
870332 -- Motor vehicles of a 
cylinder capacity >1,500cc 
but <=2,500cc 1.0 --  3 3  
901380 - Other devices, appliances 
and instruments 0.9 0.0 1 1 1  
271011 -- Petroleum oils: Light oils 
and preparations 0.8 0.0 6    
901390 - Parts and accessories 0.8 0.0 1 1 1  
847170 - Storage units 0.8 0.0 1    
291736 -- Terephthalic acid and its 
salts 0.6 --  1 1  
847989 -- Machines and mechanical 
appliances: other 0.6 0.0 1 2 2  
710813 -- Non-monetary gold: other 
semi-manufactured forms 0.6 --  1 1  
390330 - Acrylonitrile-butadiene-
styrene (ABS) copolymers 0.5 --  1 1  
842952 -- Mechanical shovels, 
excavators and shovel loaders with a 360° revolving superstructure 0.5 0.0 2    
870333 -- Motor vehicles of a 
cylinder capacity >2,500cc 0.5 --  2 2  
Total of above 51.8  27 26 26 0 
 
Note:   -- Specific duty.  
Source:  WTO estimates based on data provided by Swit zerland, WTO-IDB, and UNSD, Comtrade data. WT/REG217/2/Rev.1 
Page 48 
 
 
  7. Table AI.6 shows the market access conditions in Switzerland for Korea's top 25 exports, 
which in 2003-2005 accounted for 51.8% of its global  exports.  Twenty-seven tariff lines were already 
duty-free on an MFN basis.  Twenty-six tariff lin es which were dutiable all became duty-free upon the 
entry into force of the Agreement.  Thus all top 25 exports to Switzerland from Korea are to be given 
duty free access immediately as a result of the Agreement. 
Table AI.7 – Iceland: Market a ccess opportunities under the Agr eement for Korea's top 25 exports 
Access Conditions to Iceland's import markets  
MFN (2006)  Korea's top export products in 2003-2005  Number of tariff 
lines  
HS number and description of the 
product  Share in global 
exports (%)  Average 
MFN applied 
rate 
(%) Duty-
free Dutiable Duty-free in  
2006  Remain 
Dutiable 
852520 - Transmission apparatus 
incorporating reception 
apparatus 7.2 0.0 3    
854221 -- Monolithic integrated 
circuits: digital 6.6 0.0 1    
870323 -- Motor vehicles of a 
cylinder capacity >1,500cc 
but <=3,000cc 4.9 0.0 6    
847330 - Parts and accessories of 
machines of heading 84.71 3.7 0.0 1    
271019 -- Petroleum oils: other 3.5 0.6 8 1 1  
852990 - Other 3.3 3.8 1 1 1  
890120 - Tankers 3.0 0.0 1    
847160 - Input or output units, 
whether or not containing storage units in the same housing. 2.7 0.0 1    
890190 - Other vessels for the 
transport of goods and/or persons 2.2 0.0 2    
870899 -- Parts of motor vehicles of 
headings 87.01-87.05: other 1.8 7.5  1 1  
854229 -- Monolithic integrated 
circuits: other than digital 1.5 0.0 1    
870324 -- Motor vehicles of a 
cylinder capacity >3,000cc 1.4 0.0 3    
870322 -- Motor vehicles of a 
cylinder capacity >1,000cc 
but <=1,500cc 1.3 0.0 3    
852812 -- Reception apparatus for 
television:  colour 1.1 5.6 1 3 3  
870332 -- Motor vehicles of a 
cylinder capacity >1,500cc but <=2,500cc 1.0 0.0 6    
901380 - Other devices, appliances 
and instruments 0.9 0.0 2    
271011 -- Petroleum oils: Light oils 
and preparations 0.8 0.0 6    
901390 - Parts and accessories 0.8 0.0 1    
847170 - Storage units 0.8 0.0 1    
291736 -- Terephthalic acid and its 
salts 0.6 0.0 1    
847989 -- Machines and mechanical 
appliances: other 0.6 2.5 1 2 2  
710813 -- Non-monetary gold: other 
semi-manufactured forms 0.6 0.0 2    
390330 - Acrylonitrile-butadiene-
styrene (ABS) copolymers 0.5 0.0 2    
842952 -- Mechanical shovels, 
excavators and shovel loaders with a 360° 
revolving superstructure 0.5 0.0 1    
870333 -- Motor vehicles of a 
cylinder capacity >2,500cc 0.5 0.0 3    
Total of above 51.8  58 8 8 0 
 
Source:   WTO estimates based on data provided by  the Iceland, and UNSD, Comtrade data.  WT/REG217/2/Rev.1 
 Page 49 
 
 
  8. Table AI.7 shows the market access conditions in  Iceland for Korea's top 25 exports, which in 
2003-2005 accounted for 51.8% of its global exports.  Fifty-eight tariff lines were already duty-free 
on an MFN basis.  Eight tariff lines which were dutia ble became duty-free upon th e entry into force of 
the Agreement.  Thus all top 25 exports to I celand from Korea are to be given duty free access 
immediately as a result of the Agreement. 
Table AI.8 – Korea: Market access opportunities under the Agreement for Iceland's top 25 exports 
Access conditions to Korea's import markets Iceland's top export products in 2003-2005 
MFN 2006  
Number of tariff lines  Duty-free in 
HS number and description of the 
product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  Duty-
free Dutiable 2006 2009 2011 2013 2016 Remain 
dutiable 
760110 Aluminium, not alloyed 18.4 3.0  1 1      
030420 Fish fillets, frozen 15.9 10.0  8 1 1 1  5  
030562 Cod, salted 6.4 20.0  1 1      
030410 Fish fillets , fresh or chilled 5.7 20.0  6 3  1  2  
230120 Flours, meals and pellets, of 
fish or of crustaceans, molluscs or other aquatic invertebrates 5.6 5.0  2  1 1    
160520 Shrimps and prawns, prepared 
or preserved 5.1 20.0  4 2 1 1    
030379 Fish, frozen, excluding livers 
and roes, other 3.5 10.0  26 1  9 1 11 4 
720221 Ferro-silicon, containing by 
weight more than 55% of silicon 3.1 3.0  1 1      
030530 Fish fillets, dried, salted or in 
brine, but not smoked 2.8 20.0  2 2      
300490 Medicaments, other 2.1 8.0  7 3  3 1   
030490 Fish meat, frozen 2.0 10.0  3    1 2  
150420 Fats and oils and their 
fractions, of fish, ot her than liver oils 1.8 3.0  1  1     
030331 Halibut, frozen  1.7 10.0  1 1      
880240 Airplanes and other aircraft, 
of an unladen weight >15,000 kg 1.5 0.0 4        
030551 Cod, dried but not smoked 1.3 20.0  1 1      
300390 Medicaments, other 1.3 8.0  8 3 4  1   
030269 Fish, fresh or chilled, 
excluding livers and roes, other 1.3 20.0  13 1  1 1 10  
902139 Artificial part of the body, 
other than artificial joints 1.2 0.0 1        
030380 Fish livers and roes, frozen 1.1 10.0  3  1   2  
030250 Cod, fresh or, excluding livers 
and roes 0.9 20.0  1 1      
030262 Haddock, fresh or chille d 0.9 20.0  1 1      
890200 Fishing vessels; factory ships 
and other vessels for processing or 
preserving fishery products. 0.7 0.0 6        
842320 Scales for continuous 
weighing of goods on conveyors 0.7 8.0  3 2 1     
843850 Machinery for the preparation 
of meat or poultry 0.7 8.0  2 2      
271019 Petroleum oils, not crude, 
other than light oils and preparations 0.6 6.6  41 32     9 
Total of above 86.3  11 136 59 10 17 5 32 13 
 
Source: WTO estimates based on data provided by Kore a, the WTO-IDB, and UNSD, Comtrade data. 
 
9. Table AI.8 shows the market access conditions in  Korea for Iceland's top 25 exports, which in 
2003-2005 accounted for 86.3% of its global exports.  Eleven tariff lines were already duty-free on an 
MFN basis while 136 tariff lines are subject to duties.   Of the dutiable lines, 59 became duty-free on 
entry into force of the Agreement;  10, 17, 5 and 32 lines are to be liberalized in by 2009, 2011, 2013 and 2016, respectively.  The 13 lines remaining du tiable at the end of implementation relate to 
petroleum and fish. WT/REG217/2/Rev.1 
Page 50 
 
 
  Table AI.9 – Korea: Market access opportunities  under the Agreement for Norway's top 25 exports 
Access conditions to Korea's import markets Norway's top export products in 2003-2005 
MFN 2006  
Number of tariff lines  Duty-free in  
HS number and description of the 
product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  Duty-free Dutiable 
2006 
2009 
2011 
2016 
Remain dutiable  
270900 Petroleum oils/oils obtained 
from bituminous minerals, crude. 44.5 5.0  10     10 
271121 Natural gas 14.1 1.0  1     1 
760120 Aluminium alloys 2.9 3.7  3 3     
271011 Light oils and preparations, 
other than crude 2.0 3.7  6 1    5 
271019 Petroleum oils, other than 
light oil and preparations, other than crude 1.7 6.6  41 32    9 
030212 Pacific, Atlantic and Danube 
salmon, fresh or chilled 1.4 20.0  1 1     
750210 Nickel, not alloyed 1.2 3.0  2 2     
271112 Propane, liquefied 1.0 5.0  1   1   
271113 Butanes, liquefied 0.6 5.0  1 1     
890190 Other vessels for the transport 
of goods and other vessels for the transport of both persons and goods 0.5 0.0 2       
030420 Frozen fish fillets 0.5 10.0  8 1 1 1 5  
292429 Cyclic amides and their salts, 
other 0.5 6.3  6 3 1 2   
890120 Tankers 0.5 0.0 1       
480261 Paper and paperboard, in rolls 0.5 0.0 4       
030374 Mackerel, frozen 0.4 10.0  1     1 
271600 Electrical energy. 0.4 5.0  1 1     
890520 Floating or submersible 
drilling or produc tion platforms 0.4 5.0  3 3     
030551 Cod, dried not smoked 0.4 20  1 1     
760110 Aluminium, not alloyed 0.3 3  1 1     
030350 Herrings, frozen, excluding 
livers and roes 0.3 10  1 1     
851750 Other apparatus, for carrier-
current line systems or for digital line systems 0.3 0.0 17       
283650 Calcium carbonate 0.3 5.5  1  1    
720230 Ferro-silico-manganese 0.3 8.0  1 1     
760612 Aluminium plates of a 
thickness >0.2mm, of aluminium alloys 0.3 8.0  1 1     
280469 Silicon, containing by weight 
less than 99.99% of silicon 0.3 5.5  1   1   
Total of above 75.6  24 92 53 3 5 5 26 
 
Source: WTO estimates based on data provided by Kore a, the WTO-IDB, and UNSD, Comtrade data. 
 
10. Table AI.9 shows the market access conditions in Korea for Norway's top 25 exports, which 
in 2003-2005 accounted for 75.6% of its global exports.  Twenty-four  tariff lines were already duty-
free on an MFN basis while 92 are subject to duties.   Of the dutiable lines, 53 lines became duty-free 
upon the entry into force of the Agreement;  rates on the remaining 39 lines are to be progressively 
eliminated except for 26 lines relating to petroleum and light oils, natural gas and mackerel which will 
remain subject to duty. 
 
 
 
  WT/REG217/2/Rev.1 
 Page 51 
 
 
  Table AI.10 – Korea: Market access opportunities u nder the Agreement for Switzerland's top 25 exports 
Access conditions to Korea's import markets Switzerland's top export products in 2003-2005 
MFN 2006  
Number of tariff lines  Duty-free in  
HS number and description of the 
product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  Duty-free Dutiable 
2006 
2009 
2011 
2013 
Remain dutiable  
300490 Medicaments, other 8.9 8.0  7 3  3 1  
300210 Antisera and other blood 
fractions and modified immunological products 3.9 0.0 7       
910221 Wrist-watches, other,  with 
automatic winding 2.5 8.0  3 2 1    
910211 Wrist-watches, other with 
mechanical display only 2.1 8.0  4 2  2   
711319 Jewellery of other precious 
metals 2.0 8.0  3 2 1    
271600 Electrical energy 1.7 5.0  1 1     
293399 Other heterocyclic 
compounds 1.4 6.5  2  1 1   
300420 Medicaments containing other 
antibiotics. 1.2 8.0  6  5 1   
294190 Antibiotics, other 1.1 6.5  6 1 4  1  
910121 Wrist-watches, with 
automatic windings 1.1 8.0  1 1     
300439 Medicaments containing 
hormones, other 1.0 8.0  9  6 3   
711011 Platinum, unwrought or in 
powder form 1.0 3.0  1 1     
841199 Parts of gas turbines 1.0 5.5  2 1  1   
710239 Non-industrial diamonds, 
other 1.0 5.0  1 1     
902150 Pacemakers for stimulating 
heart muscles, excl. accessories/parts 0.9 0.0 1       
847989 Machines and mechanical 
appliances, other 0.8 5.4 8 18 1 12 4 1  
293719 Hormones, other 0.8 3.3 1 1 1     
293499 Nucleic acid and its salts, 
other 0.8 6.9  4 2  2   
880230 Airplanes and ot her aircraft of 
an unladen weight >2,000kg  but 
<=15,000kg 0.7 0.0 4       
292429 Cyclic amide and its salts, 
other 0.7 6.3  6 3 1 2   
880240 Airplanes and ot her aircraft of 
an unladen weight >15,000kg 0.6 0.0 4       
330290 Odoriferous mixtures other 
than of a kind used in the food or drink industries 0.6 8.0  1   1   
902110 Orthopaedic or fracture 
appliances 0.6 0.0 1       
910111 Wrist-watches, with 
mechanical display only 0.6 8.0  1   1   
970110 Paintings, drawings and 
pastels 0.6 0.0 3       
Total of above 37.6  29 77 22 31 21 3 0 
Source: WTO estimates based on data provided by Kore a, the WTO-IDB, and UNSD, Comtrade data. 
 
11. Table AI.10 shows the market access conditions  in Korea for Switzerland's top 25 exports, 
which in 2003-2005 accounted for 37.6% of its glob al exports.  Twenty-nine tariff lines were already 
duty-free on an MFN basis while 77 were subject to duties.  Of the dutiable lines, 22 became 
duty-free upon the entry into force of the Agreemen t;  rates on all the remaining 55 lines are to be 
progressively eliminated in three stages: 2009, 2011 and 2013.  Thus all top 25 exports to Korea from 
Switzerland are to be gradually given duty  free access as a result of the Agreement. WT/REG217/2/Rev.1 
Page 52 
 
 
  ANNEX II 
 
Investment Reservations by the Parties  
 1. As discussed, investment reservations exist be tween the Parties.  The tables below are 
designed to describe these reservations, main tained by the Parties with each other. 
Table AII.1 
Reservations by Korea 
Sector Description 
All Foreigner intending to make/modify  foreign direct investment (FDI) must report to the Minister of 
Knowledge Economy.  FDI may be pr ohibited or restricted when it  threatens national safety and 
public order such as public hygiene, the preser vation of the environment, Korean morals and 
customs or violates any relevant Korean Act. 
All Right to prohibit or restrict ownership of exis ting state-owned or governme nt entity industries such 
as electricity and gas. 
All Right to maintain or adopt any m easures on land acquisition by foreigners. 
All Right to restrict capital transactions by non-residents. 
All Right to restrict activities to purchase non-voting stocks in services to protect inter alia , cultural 
diversity and identity. 
Agriculture, forestry, livestock and related manufacturing Only Korean citizens and legal entities are perm itted to own and mange enterprises engaging in 
rice or barley cultivation and farming beef cattle in  Korea.  However, foreign nationals and legal 
entities can hold shares or stocks in legal entities up to a limit as indicated in the relevant laws. 
There is no restriction for forestry , whereas cultivation of rice and barl ey is restricted.  In case of 
less than 50% of foreign investment, livestock is permitted.  Further reservation on any measures 
necessary for food security, public health, enviro nmental conservation and resources in the sector 
(excluding metal and machinery manufacturing). 
Air transport services (air transport services, rental services of aircraft with operator) Reservation on five criteria, ( inter alia , nationality requirements and maximum 50% of the stocks 
or shares or de-facto control), to provide  domestic or international services  
Air transport services (aircraft use 
business) Reservation on five criteria, ( inter alia , nationality requirements and maximum 50% of the stocks 
or shares or de-facto control), to operate an aircraft-use business. 
Defence industry Permission required for foreign investors intending to acquire the outstanding shares (possession of 
more than 10% of shares or less than 10% with the purpose of management) of companies in the 
defence industry. 
Electric energy Reservation on privatization of the el ectric power industry including generation, transmission, 
distribution and sales.  A maximum 40% of shares or stocks of Korea Electric Power Corporation 
(KEPCO) may be held by foreign investors.  The largest shareholder of KEPCO must be Korean.  
Permission required for foreign i nvestment in power transmission,  distribution and sales to hold 
shares or stocks of less than 50%. 
Financial services Investment in the Korea Developm ent Bank and the Korea Export-Import Bank is prohibited. 
Financial services Restrictions on in vestments in financial products and cap ital transactions through new financial 
services. 
Firearms, swords, explosives Restrictions on the manufacture, us e, sale, storage, transport, import, export and possession of 
firearms, swords, explosives, etc. 
Fishing industry Restrictions on foreign individual or corporate control of fi sheries-related activities in the waters 
under Korea's jurisdiction.  Prior consultation with the Minister of Maritime Affairs & Fisheries for 
investment by a foreign i ndividual or corporation. 
Gas industry Limitation on foreign holdings of Korea Ga s Corporation (KOGAS) stocks.  One foreign national 
cannot possess more than 15% of shares and forei gners cannot possess more than 30% of shares 
due to the national energy security. 
Nuclear industry Prohibition to operate nuclear power generation – i.e. manufact uring and supply of nuclear fuel for 
nuclear power plants, business related to the ope ration of nuclear plants, and radioactive waste 
management. 
 
Source :  Annex I, the Investment Agreement between Ic eland, Liechtenstein, Sw itzerland;  and Korea. 
 
    WT/REG217/2/Rev.1 
 Page 53 
 
 
  Table AII.2 
Reservations by Iceland 
Sector Description 
All Residency requirement (in Icel and or another European Economi c Area (EEA) Member States) for 
the majority of the founders/the manager(s) and at l east half the board of directors of a private or 
public limited company. 
All Nationality requirement (either Icelandic or EEA Member States citizens/legal entities) to own real 
estate in Iceland unless the ownership and use is linke d to an investment in real estate pertaining to 
the business activity of the investor.   
All Collective copyright or neighbour ing rights' management system;  royalties, levies, grants and 
funds, designed to preserve and prom ote linguistic and cultural diversity.1 
Fisheries (fishing and whaling) Nationality requirement (Icelandi c citizens and legal entities) fo r fishing and whaling in the 
Icelandic economic zone. 
Fisheries (fish processing) Nationality re quirement (Icelandic citizens and legal en tities) for owning and managing enterprises  
engaged in fish processing (freezi ng, salting, drying and any other pr ocess used to initially preserve 
fish and fish products, including melting and meal processing)) in Iceland.  The requirement does 
not apply to secondary fish processing.  
Fisheries (fish auctioning) Nati onality requirement (Icelandic citizens and legal entities) for owning and managing enterprise 
engaged in fish auctioning in Iceland. 
Aviation Nationality requirement (either Icelandic or  EEA Member States citizens/legal entities) for 
minimum 49% of the shares of an enterprise engaged in air transport. 
Energy Nationality requirement (either  Icelandic or EEA Member States citizens/legal entities) for owning 
the right to harness hydroelectric and geothermal  power and investing in enterprises engaged in 
power production and power distributi on except the personal home usage. 
 
Source :  Annexes II and V, the Investment Agreement between  Iceland, Liechtenstein, Switzerland;  and Korea. 
  
Table AII.3 
Reservations by Liechtenstein 
Sector Description 
All Given the geographic situation of the country, its  limited resources and the small labour market, the 
establishment of a commercial presence by a juridi cal person (including branches) is subject to the 
requirement of balanced development of the economy. 
All For the establishment of commercial presence  by an individual/a juri dical person (including 
branches), inter alia , minimum prior residency requirement and permanent domicile requirement. 
All Measures to ensure the benef its from the EEA Agreement are not automatically acco rded to third 
countries. 
All Acquisition of real estate for domestic a nd business use must be authorized.  Residency 
requirement for the acquisition of real estate. 
All Collective copyright or neighbour ing rights' management system;  royalties, levies, grants and 
funds, designed to preserve and prom ote linguistic and cultural diversity. 
Power and energy sector Right to maintain or adopt any measure for investments in th e power and energy sector. 
Air transport (air registration) Only airc raft wholly owned by Liechtenstein citizen s or by foreign nationals who reside in 
Liechtenstein and use the aircraft mainly for travel  originating in Liechtenstein or Switzerland, or 
by companies based and registered in Liechte nstein may be registered in Liechtenstein. 
Air transport (holdings in 
Liechtenstein air transport 
companies)  Foreign firms may be granted concessions to operat e certain commercial transport routes if they, 
inter alia , have a legal residence in Liechtenstein.  They may hold a maximum of 40% of the air 
transport company's share capital. 
Air transport (assistance services)  Airport authorities may limit the number of providers for cer tain services by permanent li mitations 
or temporary measures. 
 
Source :  Annexes III and V, the Investment Agreement between  Iceland, Liechtenstein, Switzerland;  and Korea. 
  
 
  
 
  
 
  
 
 
                                                      
1 Reservation by the EFTA States in Annex V of the IA.  Korea did not list this reservation. WT/REG217/2/Rev.1 
Page 54 
 
 
  Table AII.4 
Reservations by Switzerland 
Sector Description 
All For corporations of the major ity of the members of the board of directors must be Swiss citizens 
residing in Switzerland.  For limited liability co mpanies a minimum of one managing officer must 
be a Swiss resident.  For branch offices, a mi nimum of one representative should be a Swiss 
resident. 
All Investment in the residential property market a nd agricultural real estate for foreign nationals not 
residing in Switzerland and companies established,  or controlled from, abroad is prohibited. 
All Collective copyright or neighbour ing rights' management system;  royalties, levies, grants and 
funds, designed to preserve and prom ote linguistic and cultural diversity. 
Energy (oil prospecting and 
exploitation) Grant of concessions to companies with mini mum 75% Swiss ownership (agreement between 
10  cantons). 
Energy (nuclear energy) Authorization to construc t and operate nuclear facilities is gr anted only to Swiss citizens domiciled 
in Switzerland and legal persons that are subject to Swiss law, headquartered in Switzerland and 
Swiss-owned. 
Energy (hydroelectric power) Granting of concessions on hydr oelectric power, subject to public interest considerations. 
Energy (pipelines) Foreign-owned or controlled companies mu st have a registered office and management presence.  
Air transport (aircraft registration) Aircra ft wholly owned by Swiss citizens or by foreign nationals residing in Switzerland a nd using 
the aircraft mainly for travel or iginating in Switzerland, or by companies based and registered in 
Switzerland must be registered. 
Air transport (holdings in Swiss 
air transport companies) Foreign firms may be granted conc essions to operate certain commer cial transport routes of they 
inter alia , have legal residence in Switzerland.  A ma ximum of 40% of an air transport company's 
share capital may be owned by foreign firms. 
Air transport (assistance services) Airport authorities may limit th e number of providers for certa in services by permanent lim itations 
or temporary measures. 
 
Source :  Annexes IV and V, the Investment Agreement betw een Iceland, Liechtenstein, Switzerland;  and Korea. 
 
__________