WORLD TRADE  
ORGANIZATION   
WT/REG298/1 
26 June 2012 
 (12-3398) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between  
Peru and the Republic of Korea 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considera tion of the Free Trade Agreement between 
Peru and the Republic of Korea has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation w ith the Parties.  The report has been 
drawn up in accordance with the rules and procedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Mr. Peter Milthorp (tel: +41 22 739 5016).  WT/REG298/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I.  TRADE ENVIRONMENT 1  
A.  MERCHANDISE TRADE  2  
B.  TRADE IN SERVICES AND INVESTMENT  5  
1.  Trade in services 5  
2.  Foreign direct investment 6  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 8  
A.  BACKGROUND INFORMATION  8  
III.  PROVISIONS ON TRADE IN GOODS 9  
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  9  
1.  General provisions 9  
2.  Liberalization of trade and tariff lines 10  
3.  Liberalization schedule 12  
(a)  Peru's tariff liberalization 12  
(b)  Korea's tariff liberalization 12  
4.  Tariff rate quotas 14  
5.  Import restrictions 14  
B.  RULES OF ORIGIN  14  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  16  
D.  REGULATORY PROVISIONS ON TRADE IN GOODS  16  
1.  Standards 16  
(a)  Sanitary and phytosanitary measures 16  
(b)  Technical barriers to trade 17  
2.  Safeguard mechanisms 18  
(a)  Global safeguards 18  
(b)  Bilateral safeguards 18  
(c)  Agricultural safeguards 19  
(d)  Safeguards for balance of payments 20  
(e)  Price band system 20  
3.  Anti-dumping and countervailing measures 20  
4.  Subsidies and State-aid 21  
5.  Customs-related procedures 21  
6.  Other regulations 22  
(a)  Competition 22  
E.  SECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  22  
IV.  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 23  
A.  SCOPE AND DEFINITIONS  23  
B.  DENIAL OF BENEFITS  23  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  23  
1.  Market access 23  
2.  National treatment and MFN 24  
3.  Local presence 24  
4.  Senior management and performance requirements 24  
5.  Other measures on Investment 25  
6.  Movement of natural persons 26  
D.  LIBERALIZATION COMMITMENTS  28  
1.  Korea 28  WT/REG298/1 
Page iv  
 
  2.  Peru 30  
E.  REGULATORY PROVISIONS  36  
1.  Domestic regulation 36  
2.  Recognition 36  
3.  Subsidies 36  
4.  Safeguards 36  
5.  Other 37  
F.  SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  37  
1.  Professional Services 37  
2.  Financial Services 37  
3.  Telecommunications 39  
V.  GENERAL PROVISIONS OF THE AGREEMENT 40  
A.  TRANSPARENCY  40  
B.  CURRENT PAYMENTS AND CAPITAL MOVEMENTS  40  
C.  EXCEPTIONS  41  
D.  ACCESSION AND WITHDRAWAL  41  
E.  INSTITUTIONAL FRAMEWORK  41  
F.  DISPUTE SETTLEMENT  42  
G.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  44  
H.  GOVERNMENT PROCUREMENT  45  
I.  INTELLECTUAL PROPERTY RIGHTS  46  
J.  OTHER  47 
1.  Electronic Commerce 47  
2.  Co-operation 47  
3.  Labour 48  
4.  Environment 48  
ANNEX I 49 
 
  WT/REG298/1 
 Page 1 
 
 
   
 
 
Key Facts 
 
Parties to the Agreement:  Peru and the Republic of Korea 
 
Date of Signature:   21 March 2011  
 
Date of Entry into Force:  1 August 2011  
 
Date of Notification:   9 August 2011  
 
Full implementation:   2026 (Korea) and 2027 (Peru)  
 
  
 
 
I. TRADE ENVIRONMENT1 
1. The Agreement between the Republic of Korea a nd the Republic of Peru for a free trade area 
for goods and services ("the Agreement") was notifie d to the WTO pursuant to Article XXIV:7(a) of 
the GATT and Article V:7 of the GATS.2 
2. The parties to the Agreement have very diffe rent economies in terms of size, profile and 
development.  In 2011 Korea's GDP was es timated at US$1,116 billion, and Peru's at 
US$176.6 billion.   
3. In terms of trade, Korea's total merchandise exports and imports tota led US$466.4 billion and 
US$425.2 billion respectively, making it the world's fifth largest exporter and sixth largest importer in 2010 (excluding intra-EU trade).  Peru's to tal merchandise exports and imports totaled 
US$35.8 billion and US$30.0 respectively, making it the world's 42
nd largest exporter and 41st largest 
importer (excluding intra-EU trade).  In commercial services, in 2010 Korea was ranked eighth in 
exports (US$81.5 billion) and seventh  in imports (US$92.9 billion), excl uding intra-EU trade.  Peru's 
exports of commercial services in 2010 totaled USD 3.8 billion, ranking it 49th, with imports totaling 
US$5.8 billion, ranking it 45th globally.  While manufacturing domin ates Korea's trade (88.2% of total 
exports and 56.4% of total imports), it is a significan t importer of agricultural products (36.9% of total 
imports).  Peru is much more dependent on fu els and mining products, including gold, for export 
earnings (70.5% of total exports), while its imports  are dominated by manufactures (74.9% of total 
imports).3  The trade to GDP ratios of the Parties are c onsiderably different, 105.8 for Korea and 48.8 
for Peru during 2008-10. 
                                                      
1 Unless otherwise indicated, the source of data for this section is the UNSD Comtrade database and 
the WTO Trade Profiles. 
2 WT/REG/298/N/1 and S/C/N/598 on 10 August 2011.   
3 Figures on shares of Peru's export and im port earnings are provided by the authorities. WT/REG298/1 
Page 2  
 
  A. M
ERCHANDISE TRADE  
4. Trade between the Parties has been growi ng steadily.  In 2010, Peru was Korea's 44th largest 
export market (exports of US$943 million) and 32nd largest source of imports (imports valued at 
US$1.04 billion).  In the same year Peru's exports  to Korea were US$895 million while imports were 
US$1.04 billion, ranking it Peru's 9th largest export market and 11th largest source of Peru's imports.  
5. Recent developments in global and intra-party trad e are presented in Charts I.1 and I.2.  Over 
much of the period 2000-2010, both parties have run a surplus in their global trade which was 
substantially reduced in 2008 in Peru while Korea m oved into a deficit briefly before returning to a 
surplus in subsequent years.  In bilateral tr ade, while the figures reported by the Parties are 
considerably different for some years, it appears th at for the period since 2006 Peru has maintained a 
surplus with Korea.  
0.00.51.01.52.02.53.0
0510152025303540
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$ billion US$ billionChart I.1 - Peru: Merchandise imports fr om and exports to world and Korea, 
2001-2010
Source : UNSD, Comtrade database.Imports from Korea
Exports to KoreaTotal imports
Total exportsLeft hand scale: Right hand scale:
  WT/REG298/1 
 Page 3 
 
 
  0.00.51.01.52.02.53.03.54.04.55.0
0100200300400500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$  billion US$ billionChart I.2 - Korea: Merchandise imports from and exports to world and Peru, 
2001-2010
Source : UNSD, Comtrade database.Imports from Peru
Exports to PeruTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
6. Chart I.3 shows the composition of global and bilateral trade between the Parties during the 
three year period preceding the entry into force of  the Agreement (2008-10) by HS Section.  Korea's 
three largest categories of global exports (machiner y, vehicles, and base metals which accounted for 
65.4% of its global exports in 2008-10) are also among Peru's four largest categories of imports from Korea (vehicles, machinery, plastics and base meta ls which accounted for 75.7%  of its imports during 
this period).  In contrast, almost 90% of Korea' s imports from Peru in 2008-10 were minerals, while 
Peru's global exports also include precious stones, base metals and prepared foods. WT/REG298/1 
Page 4  
 
  Chart I.3
Peru and Korea: product composition of merchandise trade, annual average 
(2008-2010)
Peru's imports from Korea Korea's imports from Peru
Source:  UNSD, Comtrade database.Per cent
Total:  US$ 831 million Total:  US$ 956 million
Total:  US$ 27 billion Total: US$ 394 billion
Total:  US$ 31 billion Total:  US$ 418 billionPeru's global exportsKorea's global exportsPeru's global imports Korea's global importsOther
2.8
Vehicles
34.8
Plastics 13.3Base metals 
10.7Minerals 9.1Chemicals 9.0Textiles 3.5
Minerals
89.5Other
2.0Base metals 1.6
Prepared foods 2.5
Minerals
33.3
Chemicals 
7.7Other 
10.2
Base metals 
12.0Textiles 3.8Textiles 2.2
Machinery 25.5Optical 3.4Plastics 2.7
Vehicles 3.1Other 
6.6
Base metals 
9.5Optical 1.7
Machinery
24.5
Plastics 6.8Prepared foods 3.4
Vehicles 9.9 Chemicals 10.0Minerals 
16.3Wood pulp 2.7
Vegetables 4.8
Other 
4.0
Prepared foods 
7.9Chemicals 5.8
Vehicles 21.8Minerals 7.7Machinery 
34.6
Optical 7.7
Base metals 9.0Textiles 3.1Live animals 1.8
Minerals
36.6 Vegetables 5.9
Precious stones 22.8Textiles 5.5Other 
5.1Machinery 
16.9Vegetables 2.7Live animals 1.8
Plastics 6.3
Base metals 
12.4Chemicals 2.1
 
  WT/REG298/1 
 Page 5 
 
 
  B. TRADE IN SERVICES AND INVESTMENT  
1. Trade in services 
7. Charts I.4 and I.5 show Peru and Korea's total commercial services trade during 2000 and 
2010.  Both Parties have maintained a steady trade deficit during this period, with Peru running a 
significantly larger trade and especially since 2006 a growing deficit.  Transportation and travel 
services account for Peru's main traded sectors, w ith transportation services accounting for the largest 
share of export while travel services are the larges t imported service.  Korea also trades mainly 
transportation and travel services, with other bus iness services accounting for a significant share of 
imports and other business services and constructio n services also key services exports.  Bilateral 
trade data are unavailable and according to Korea not significant.  
0246
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.4
Peru, total commercial services trade, 2000-2010
Exports Imports
Transportation services
Travel
Source : UNCTADStat (2000-2007) and Peruvian authorities (2008-2010).Communications servicesUS$ billion
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational 
servicesUS$ billion
Insurance services0246
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 WT/REG298/1 
Page 6  
 
  0102030405060708090100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.5
Korea, total commercial services trade, 2000-2010
Exports Imports
Transportation services
Travel
Source : UNCTADStat (2000-2007) and Korean authorities (2008-2010).Communications servicesUS$ billion
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational 
servicesUS$ billion
Insurance services0102030405060708090100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010  
 
2. Foreign direct investment 
8. Charts I.6 and I.7 show trends in foreign direct  investment in Peru and Korea respectively.  
Chart I.6 shows that Peru is a net recipient of FDI with inward investment growing substantially more 
rapidly during this period especially since 2004 than  outward investment.  Korea, while also a net 
recipient of FDI until 2007 has since inward invest ment decline substantially especially in 2008, 
recovering subsequently, while outward FDI has con tinued to grow steadily.  Bilateral FDI relations 
in Chart I.8 show that while Peruvian investment in Korea during 2007-2009 has grown strongly, it remains significantly smaller than Korean investment in Peru.  WT/REG298/1 
 Page 7 
 
 
  051015202530354045
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 inward outward
Source: UNCTADStat.Chart I.6
Peru, inward and outward foreign in vestment stock with world, 2000-2010
US$ billion
 
 
  
020406080100120140160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010inward outward
Source: UNCTADStat.Chart I.7
Korea, inward and outward foreign in vestment stock with world, 2000-2010
US$ billion
 WT/REG298/1 
Page 8  
 
  0100200300400500600700800900
2007 2008 20090100200300400500600700800900
2008 2009 2010Chart I.8
Korea, inward and outward foreign direct investment stock with Peru
Inward (2007-2009) Outward (2008-2010)
US$ million US$ billion
Source: Korean authorities. 
 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
9. The Agreement was signed by the Parties on 21 March 2011 and entered into force on 1 
August 2011.  The text of the Agreement, and its  Annexes are available fro m the following websites: 
Korea: 
http://www.fta.go.kr/new/pds/fta_korea/peru/eng.pdf 
 
Peru: http://www.acuerdoscomerciales.gob.pe/inde x.php?option=com_content&view=category&layou
t=blog&id=id=82&Itemid=105 
 
10. The Agreement is composed of 24 Chapters and their Annexes.   
Box I.1:  Outlin e of the Agreement  
Chapters, Annexes  Title/description  
Preamble 
Chapter 1   Initial Provisions and Definitions 
Chapter 2   National Treatment  and Market Access for Goods  
Box I.1 (cont'd) 
  WT/REG298/1 
 Page 9 
 
 
  Chapter 3   Rules of Origin 
Chapter 4   Orig in Procedures  
Chapter 5   Customs Administration and Trade Facilitation Chapter 6   Sanitary and Phytosanitary Measures  
Chapter 7   Technical Barriers to Trade 
Chapter 8   Trade Remedies Chapter 9   Investment 
Chapter 10   Cross-Bord er Trade in Services 
Chapter 11   Temporary Entry for Business Persons Chapter 12   Financial Services 
Chapter 13   Telecommunications 
Chapter 14   Electronic Commerce Chapter 15   Competition Policy 
Chapter 16   Government Procurement 
Chapter 17   Intellectual Property Rights  Chapter 18   Labour 
Chapter 19   Environment 
Chapter 20   Co-operation 
Chapter 21  Transparency 
Chapter 22  Administration of the Agreement Chapter 23  Dispute Settlement 
Chapter 24  Exceptions 
 Annex I  Schedule of Korea (Services) 
Annex I Schedule of Peru  (Services) 
Annex II Schedule of Korea (Services) Appendix II-A Improvements to Korea's GATS Schedules  
Annex II Schedule of Peru (Services) 
Annex III Financial Services Non- Conforming Measures Schedule of Korea Appendix III-A - Certain Measures not Inconsistent with Article 12.4 or Subject to 12.10.1 
Annex III Financial Services Non- Conforming Measures Schedule of Peru 
 Source: WTO Secretariat, based on the Agreement.  
 
III. PROVISIONS ON TRADE IN GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
11. Each Party accords national treatment to the other per Article III of the GATT 1994 
(Chapter 2, Section A, Article 2.2 paragraph 1)4.  Paragraph 2 of Article 2.2 provides that national 
treatment shall not apply to the measures set out in Annex 2A to Chapter 2.  Section B of Chapter 2 
provides that neither party shall increase any exis ting customs duty, or a dopt any new customs duty 
on an originating good.  Paragraph 2.3.2 provides that each party shall eliminate customs duties on 
originating goods in accordance with its Schedule contained in Annex 2B to the Chapter.   
12. The Parties may deny preferential tariff tr eatment under the Agreement for used goods 
(Chapter 2, paragraph 2.3.3).  Upon the request of a Party the Parties shall consult to consider 
accelerating the elimination of customs duties set out  in their Schedules contained in Annex 2B.  Any 
such agreement will supersede any duty rate or st aging category determined under Annex 2B for that 
good, when approved by the Parties through pro cedures established by th e Joint Commission.  A 
Party may raise a customs duty to that established in the Schedule following a unilateral reduction for 
                                                      
4 Chapter 2 Article 2.2 paragraph 1 additionally provi des "… Article III of GA TT 1994, including its 
interpretative notes are incorporated into and ma de part of this Agreement, mutatis mutandis." WT/REG298/1 
Page 10  
 
  the respective year or maintain or increase a cust oms duty as authorized by the DSB of the WTO or 
under Chapter 23 on dispute settlement. 
13. Special regimes under Section C forbid any new waivers of customs duties or expand waivers 
to recipients or to new recipi ents where the waiver is cond itioned on a performance requirement; 
permit duty free temporary admission for certain go ods including professional equipment, for display 
or demonstration, commercial samples and for sports purposes as well as for commercial samples of 
negligible value and printed adve rtising materials;  forbid application of customs duty to a good 
regardless of origin that re-enters the Party's terr itory after temporary export to the other Party for 
repair or alteration. 
14. Tariff liberalization under the Agreement is due  to be completed over 17 years by 2027.   
2. Liberalization of trade and tariff lines 
15. Trade in goods under the Agreement is classifi ed under the Harmonized System (Chapter 1. 
Article 1.4 and Annex 2 to Chap ter 2).  Annex 2B, paragraph 1 contains a Headnote setting out 
staging categories for the elimination of customs duties.  In addition to tariffs that are to be eliminated 
at entry into force of the Agre ement, there are 15 different categories of tariff liberalization each 
relating to the number of equal a nnual reductions in tariff.  Thus while tariffs on goods in category 
EIF are to be eliminated on the date of entry into force of the Agreement, tariffs in category 17-A and 
17-B shall remain at the base rate during 9 and 7 ye ars respectively, following which they are to be 
reduced in annual equal stages, before being complete ly eliminated on 1 January of year 17 (2027).  
In addition, there are two categories of products th at are subject to tariff reductions depending on 
when in the year they are imported:  for produc ts in category S-A, all imports between 1 May and 
31 October are subject to base rates of tariff, while  imports between 1 November and 30 April are to 
be reduced in five equal annual reductions before  becoming duty free on 1 January of year 5 (2015);  
for products in category S-B imports between 1 Nove mber and 30 April will remain subject to base 
rates of tariff, while imports between 1 May and 30 October will be redu ced over 10 equal annual 
installments before becoming duty free on 1 January of  year 10 (2020).  Moreover, tariffs in category 
16 are to be reduced in annual equal stages, before being eliminated on 1 January of year 16 (2026). 
Finally products in category E are not subject to any reductions and the parties maintain no 
obligations for products in category X. 
16. Table III.1.A sets out customs duty elimination (t ariff lines and trade) as applied by Peru.  
Table III.2.B sets out customs duty elimination (tariff lines and trade) as applied by Korea.  In 2011, 
when the Agreement entered into force, 4,084 out of  7,370 tariff lines at the HS 10-digit level (55.4%) 
were duty free on an MFN basis, corresponding to 64.5% of Peru's average annual imports from 
Korea during 2008-10.
5  Upon entry into force of the Agreement Peru liberalized a further 1,054 tariff 
lines (14.3%) as a result of which 5,033 lines (69.8%) became duty free for imports from Korea in 2011, corresponding to 68.5% of its average imports from Korea during 2008-10.  Further liberalization is to take place in stages up to 2 027.  Following 10 years of implementation of the 
Agreement tariffs on all but 31 lines are scheduled to be  eliminated;  the remaining 31 tariffs are to be 
eliminated in 2022, 2025 and 2027.  Once the Agreem ent is fully implemented 5 lines are to remain 
subject to duties.
6   
 
 
                                                      
5 All of Peru's tariff carries ad valorem  rates. 
6 According to Annex 2B of the Agreement (paragraph 1, subparagraph (q)), no obligations regarding 
customs duties in the Agreement shall apply with  respect to items in staging category "X".  WT/REG298/1 
 Page 11 
 
 
  Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. Peru 
Duty phase-out period Number of 
lines % of total lines 
in Peru's tariff 
schedule Value of Peru's imports from 
Korea  
(2008-2010) in million US$ % of Peru's total imports 
from Korea 
2008-2010 
MFN duty free (2011) 4,084 55.4 510.0 64.5 
2011 1,054 14.3 31.3 4.0 
2013 48 0.7 0.5 0.1 
2014 2 0.0 0.1 0.0 
2015 877 11.9 142.5 18.0 
2017 40 0.5 1.7 0.2 
2018 11 0.2 0.9 0.1 
2020 1,218 16.5 103.4 13.1 
2022 14 0.2 0.0 0.0 
2025 4 0.1 0.0 0.0 
2027 13 0.2 0.0 0.0 
Remain dutiable 5 0.1 0.0 0.0 
Total 7,370 100.0 790.4 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data provided by Peru. 
 
17. Korea is to implement its commitments under the Agreement by 2026 but will not eliminate 
all its tariffs.  In 2011, 1,930 out of 11,900 tariff lines (16.2%) were duty free on an MFN basis corresponding to 90.4% of its average imports from Peru during 2008-10.
7  The Agreement 
liberalized immediately an additional 8,133 lines for imports from Peru, corresponding to 3.2% of Korea's imports from Peru during 2008-10.  By 2 020 (10 years of implementation) Korea will have 
eliminated tariffs on 11,589 lines (97.4%) corresponding to 100% of its imports from Peru during 
2008-10.  Another 3 lines will be eliminated in 2022 and 2025 followed by 199 lines in 2026.  Once 
the Agreement is fully implemented 109 lin es are to remain subject to duties. 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Korea 
Duty phase-out period Number of 
lines % of total lines in 
Korea's tariff schedule Value of Korea's imports from 
Peru  
(2008-2010) in million US$ % of Korea's total 
imports from Peru 
2008-2010 
MFN duty free (2011) 1,930 16.2 862.7 90.4 
2011 8,133 68.3 30.6 3.2 
2013 223 1.9 0.6 0.1 
2015 609 5.1 22.0 2.3 
2017 170 1.4 8.7 0.9 
2020 524 4.4 29.2 3.1 
2022 2 0.0 0.0 0.0 
2025 1 0.0 0.0 0.0 
2026 199 1.7 0.0 0.0 
Remain dutiable/ 109 0.9 0.0 0.0 
Total 11,900 100.0 953.9 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data pr ovided by Korea and WTO-IDB. 
 
                                                      
7 Korea's tariff in 2011 had 11,900 lines of which 87 had mixed rates of duty;  the remainder are subject 
to ad valorem  rates of duty. WT/REG298/1 
Page 12  
 
  3. Liberalization schedule 
(a) Peru's tariff liberalization 
18. Further details of Peru's liberalization under the Agreement according to HS Section is 
provided in Table III.2 below.  The bulk of its lib eralization takes place in 2011, 2015 an d in 2020, 
when tariffs on 1,054, 877 and 1,218 lines respectivel y are eliminated.  By 2020, the remaining tariffs 
are to be found mainly in Sections I, II and IV ( live animals and animal products, vegetable products 
and prepared foods).  In 2027 13 tariff lines are to be eliminated.
8 
Table III.2 
Peru: Tariff elimination under the Agreement, by HS section 
HS section and description  MFN 
avg. %  Total 
No. of 
lines  Number of duty-free lines  MFN 
2011 
2011 
2013 
2014 
2015 2017 
2018 
2020 
2022 
2025 
2027 
I Live animals and animal 
products 2.3 308 207 42 4  14 2  23 6 3 7 
II Vegetable products 4.6 384 123 219   31   5 6   
III Animal or vegetable fats and oils 2.6 64 36 12 3  11   2    
IV Prepared food etc. 3.7 301 126 70   77   20 1 1 6 
V Minerals 1.8 214 150 13   51       
VI Chemicals and chemical 
products 2.0 1,465 970 182 15  148 9 2 138 1   
VII Plastics and rubber 2.3 312 195 8 4  36 4  65    
VIII Hides and skins 5.3 79 9 20   28   22    
IX Wood and articles 4.4 107 28  1  48 5  25    
X Pulp, paper etc. 3.7 246 93 45   73 2  33    
XI Textiles and textiles 
articles 10.6 966 63 50   154   699    
XII Footwear, headgear 9.9 56  2   30   24    
XIII Articles of stone 2.3 174 106 3   37  2 26    
XIV Precious stones, etc. 3.5 57 24 14   11 7 1     
XV Base metals and base 
metals products 1.0 700 581 22   40 11 5 41    
XVI Machinery 1.2 1,195 991 108 16 2 29   49    
XVII Transport equipment 1.2 226 181 8   3   34    
XVIII Precision equipment 2.4 290 175 105   10       
XIX Arms and ammunition 6.0 69  64 5         
XX Miscellaneous manufactured articles 4.8 150 31 60   46  1 12    
XXI Works of art, etc. 6.0 7  7          
Total 3.4 7,370 4,089 1,054 48 2 877 40 11 1,218 14 4 13 
 Note Based on the HS 2007 nomenclature.  
Source :   WTO estimates based on data provided by Peru. 
 
 
(b) Korea's tariff liberalization 
19. Further details of Korea's libe ralization under the Agreement according to HS Section and by 
HS Chapter is provided respectively in Table III.3 and Chart III.1 below.  Most of Korea's 
liberalization took place at the entry into force of th e Agreement in 2011.  Further stages of significant 
liberalization are in 2015 and 2020.  Once the Agreem ent is fully implemented Korea will maintain 
duties on 109 lines all of which are in HS Sections  I, II and IV.  The average final tariffs facing 
imports of these products range from 71.9% to 292.2%.  Chart III.1 show s that for those HS Chapters 
                                                      
8 Five tariff lines under Category X for which Peru  has made no obligations under the Agreement are 
already duty free on an MFN basis and have therefor e not been included by the Secretariat in its tariff 
liberalization calculations.  WT/REG298/1 
 Page 13 
 
 
  where tariffs are to remain in force after implem entation, the highest rates are to be found in 
HS Chapters 13, 21 (754.3%) and 12 (545.5%);  ther e is no liberalization of these tariff lines in the 
Agreement as there is no difference between the av erage preferential and average MFN rates for these 
lines. 
Table III.3 
Korea: Tariff elimination under the Agreement, by HS section 
HS section and 
description  MFN 
avg %  Total 
No. of 
lines  Number of duty-free lines  
No. of lines 
remaining 
dutiable  
Avg. Final 
Tariff 
(Dutiable %  MFN 
2011 
2011 
2013 
2015 
2017 
2020 
2022 
2025 
2026 
I Live animals and 
animal products 20.9 586 19 100 82 97 61 152 2  43 30 71.9 
II Vegetable 
products 98.6 590 26 63 29 159 9 165   77 62 292.2 
III Animal or vegetable fats and oils 15.4 102  41 4 31  18   8   
IV Prepared food etc. 24.2 516 3 55 52 194 25 111  1 58 17 112.2 
V Minerals 3.5 345 49 296          
VI Chemicals and chemical products 7.5 2,310 171 2,103  14  9   13   
VII Plastics and 
rubber 6.7 381 10 371          
VIII Hides and 
skins 7.9 242  242          
IX Wood and articles 5.7 314 43 36 56 68 50 61      
X Pulp, paper etc. 0.0 291 291           
XI Textiles and textiles articles 9.7 1,303 31 1,215   32 25       
XII Footwear, 
headgear 10.1 100  100          
XIII Articles of 
stone 7.8 343 1 335  7        
XIV Precious stones, etc. 5.2 118 5 113          
XV Base metals and base metals 
products 4.3 1,023 397 612  7  7      
XVI Machinery 5.7 2,038 555 1,483          
XVII Transport equipment 5.8 333 80 253          
XVIII Precision 
equipment 6.6 593 98 495          
XIX Arms and ammunition 3.7 87 47 40          
XX Miscellaneous 
manufactured 
articles 5.4 270 89 180    1      
XXI Works of art, 
etc. 0.0 15 15           
Total 12.6 11,900 1,930 8,133 223 609 170 524 2 1 199 109 203.5 
 
Note: Based on the HS 2007 nomenclature.  
Source :  WTO estimates based on data provided by Korea. WT/REG298/1 
Page 14  
 
  0100200300400500600700800
02 03 04 07 08 09 10 11 12 13 16 18 19 20 21Chart III.1
Korea: Average of dutiable rates, by HS Chapter
Average rate of duty (%)  
HS Chapter
Source :  WTO Secretariat estimates based on data provided by Korea.MFN Preferential
 
 
4. Tariff rate quotas 
20. There are no TRQs specified in the Agreement.   
5. Import restrictions 
21. Article 2.8 requires the Parties to not adopt or  maintain any non-tariff measures that prohibit 
or restrict the import of any good from the othe r Party except in accordan ce with Article XI of 
GATT 1994 and its interpretative notes which are incor porated into and made part of the Agreement 
mutatis mutandis.   Under Article 2.9 neither Party shall adopt or maintain measures that are 
incompatible with the Agreement on Import Licensing which is also incorporated into and made part 
of the Agreement mutatis mutandis.  Any existing import licensing procedures are to be notified by 
the Parties to each other promptly after the entry into force of the Agreem ent including information 
specified in Article 5 of the Agreement on Import Licensing and be without prejudice to whether the 
procedures are consistent with the Agreement.  Th e Parties are also required by the Agreement to 
publish any new procedures or modifications to exis ting procedures on an official government website 
or in a single official journal at least 20 days before the new procedure or modification takes effect. 
B. RULES OF ORIGIN  
22. Chapter 3 of the Agreement, Articles 3.1-3.16 c oncern Rules of Origin.  Definitions used in 
the Chapter are established in Article 3.16.   
23. Paragraph 3.1.1 provides that a good shall be treated as originating in a Party where the good 
is wholly obtained or produced (as defined by Article 3.2(a)-(j)) in the territory of one or both Parties;  
produced entirely in the territory of one or both Parties exclusively from originating materials or from  WT/REG298/1 
 Page 15 
 
 
  non-originating materials satisfying the requirements of Annex 3A to the Chapter (on product specific 
rules of origin). 
24. In general, goods produced using non-origina ting materials must undergo a change in tariff 
classification (CTC) either at the Chapter, Headi ng or sub-heading levels (Annex 3) in order to 
qualify as originating goods.  In  certain cases, a regional value content (RVC) of not less than 
35%-55% is specified as an alternative rule to  the CTC.  Article 3.3 defines RVC per paragraph 1 
either by the build-down method or the build-up method.9  Article 3.3, paragraph 3 provides that the 
values used in determination of the regional va lue content of a good shall be determined in 
accordance with the WTO Customs Valu ation Agreement.  When an intermediate material which is 
an originating good is used in the production of another good, no account is to be taken of the 
non-originating materials contained in that originat ing good for determining the originating status of 
the final good (Article 3.4).  However, when non- originating intermediate materials are used to 
produce a final good, to calculate the value of the non-originating materials of the final good, only the value of the non-originating materials contained in the non-originating intermediate good shall be 
taken into account;  and to calculate the value of th e originating materials in the final good, the value 
of the originating materials contained in the non- originating  intermediate good shall be taken into 
account.   
25. Non qualifying operations to confer the status of  originating goods are set out in Article 3.5 
and include simple operations such as to preserve  products in good condition during transport and 
storage, packaging, washing cleaning etc.. Article 3.6 concerns accumulation.   Paragraph 1 provides 
that originating goods or materials incorporated into a good in the territory of the other Party shall be 
considered to be originating in th e territory of the other Party.  Paragraph 2 provides that production 
carried out by one producer in the territory of a Party may be accumulated with the production of other producers in the territory of that or the other Party, provided that the good satisfies the requirements of Article 3.1 and Chapter 3.   
26. Article 3.7 on de minimis , paragraph 1 provides that a good that does not undergo a CTC as 
per Annex 3A shall still be consider ed to be originating if the valu e of all non-originating materials 
used in its production and that do not undergo the applicable CTC does not exceed 10% of the value 
of the final product as per Article 3.3, if the value of non-originating materials is not included in the 
RVC.  The de minimis  provision does not apply to goods in HS Chapters 1-14 and  for chapters 50-63 
shall be considered an originating good if the total weight of all non-originating fibers or yarns 
used in the production of the component that determines the tariff classification of that good, that 
do not undergo the applicable change in tariff classification, does not exceed 10 percent of the 
weight of the good.  
27. The treatment of fungible goods or materials  set s as well as accessories, spare parts and tools 
in the determination of origin is set out respectivel y in Articles 3.8, 3.9 and 3.10.  Fungible goods or 
materials shall be distinguished by physically separ ating or by using any internationally recognized 
inventory management method.  Se ts shall be regarded as origina ting when all their components are 
originating;  a set that contains originating and no n-originating goods  shall be regarded as originating 
provided that the value of non-originating goods do es not exceed 15% of the total value of the set.  
The origin of accessories, spare parts or tools is to  be disregarded if the good is subject to a CTC 
requirement and shall be counted as originating or  non-originating, as the case may be in calculating 
the RVC of the good, if that is a requirement.  The origin of packaging materials and containers for retail sale and packing for shipment are set out in  Article 3.11 and 3.12 respectively.  Indirect 
materials such as fuel, energy, catalysts, solvents (a s described in Article 3.13) are not be included in 
any calculation to determine origin of a good.  Ar ticle 3.14, paragraph 1 provides that originating 
                                                      
9 The build-down method is based on the value of non-originating materials while the build-up method 
is based on the value of originating materials. WT/REG298/1 
Page 16  
 
  goods must be directly transported between the pa rties in order to retain originating status. 
Nevertheless, goods transiting one or  more non-parties can be considered originating if they do not 
enter into trade or commerce in the third party or  undergo any operation there other than unloading 
and reloading, repacking or any operation required to keep them in good condition.  The Agreement 
maintains the principle of territoriality in Article  3.15 although an originating good exported to a 
non-party, when returned to the Party is consid ered non-originating unless it can be demonstrated 
satisfactorily to the Customs authorities of the impor ting Party that the returning good is the same as 
that exported and has not undergone any operatio n beyond that necessary to preserve it in good 
condition when exported.
10   
28. Origin procedures are set out in Chapter 4 of  the Agreement.  Article 4.1 paragraph 1 
provides that each party shall grant preferential tari ff treatment under the Agreement on the basis of a 
Certificate of Origin.11  Paragraph 2 requires that an importer must request preferential tariff treatment 
at the time of import of a good.  Paragraph 3 sets out the requirements for a Certificate of Origin, by reference to the specimen Certificate contained in Annex 4B to Chapter 4.  Paragraph 4(a) requires 
that each Party must require exporters to provide Ce rtificates of Origin for goods that could receive 
preferential treatment when imported into the terr itory of the other Party. Article 4.2 provides a 
waiver of the obligation to produce a certificate of or igin in certain circumstances (when the shipment 
is of a value less than USD 1000, or the good does not  require submission of a certificate of origin).  
Origin certificates are valid for one year from the ti me of issue, per Article 4.3 paragraph 1.   
29. Articles 4.4 ("Claims for Preferential Tariff Treatment"), 4.5 ("Post Importation Claims for 
Preferential Tariff Treatment"), 4.6 ("Record Ke eping Requirements") 4.7 ("Formal Errors"), 
4.8 ("Verification") concern origin procedural requirements.  Article 4.11 provides that an importing 
Party may deny preferential tariff treatment where the good does not meet the requirements of Chapter 3 or Chapter 4.   
30. Annex 4A on "Proofs of Origin" sets out rules governing determination of origin during the 
first five years from the entry into force of the Ag reement, after which Articles 4.1 and 4.6 will apply 
(Article 4.13).    
C. E
XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
31. Export taxes are prohibited by Article 2.11 unless the duty or tax or charge is also adopted or 
maintained on the good when destined for domestic consumption. 
32. Article 2.8 prohibits the Parties from adopting or maintaining any non-tariff measures that 
prohibit or restrict the export or sale for export of any good to the other Party, except in accordance 
with Article XI of the GATT 1994 and its interpreta tive notes which are incorporated into and made 
part of the Agreement mutatis mutandis .   
D. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and phytosanitary measures 
                                                      
10 Notwithstanding this requirement, goods in Anne x 3B shall be considered to be originating in 
accordance with that Annex even if they have undergon e operations and processes outside of the Parties. 
11 Article 4.13.1 provides that for 5 years following entry into force of the Ag reement, Annex 4A shall 
apply in lieu of Articles 4.1 and 4.6.    WT/REG298/1 
 Page 17 
 
 
  33. Chapter 6, Articles 6.1-6.8 of the Agreement concerns sanitary and phytosanitary measures 
(SPS).  The objectives of the Chapter are set out in  Article 6.1 and focus on protecting human, animal 
and plant life and health in a manner that does not constitute a disguised restriction on international 
trade.  The Chapter applies to all SPS measures that may affect trade between the parties (Article 6.2).  
In Article 6.3 the parties affirm their existing rights and obligations under the SPS Agreement.   
34. The Parties agree to accept the equivalence of th e SPS measures of an exporting Party even if 
these are different if the exporting Party objectivel y demonstrates to the importing Party that its 
measures achieves the latter's level of SPS protection pu rsuant to Article 6.4.  Article 6.5, on Risk 
Assessment, is without prejudice to Article 5 of  the WTO SPS Agreement and encourages the Parties 
to give consideration to a request for risk assessment by the other Party.   
35. Article 6.6 concerns regional conditions.  Pa ragraph 1 requires the Parties to recognize pest- 
or disease-free areas in accordan ce with the SPS Agreement.  The exporting Party asserting pest or 
disease free status is required to substantiate th e assertion pursuant to paragraph 2 and shall give 
reasonably access, upon request, to the importing Part y for inspection, testing and other relevant 
procedures. 
36. A Committee on SPS is established pursuant to Article 6.7, paragraph 1.  The objectives of 
the Committee are described in paragraph 2 of Article 6.7 and include enhancing each Party's 
implementation of the Agreement on SPS, protect hum an, animal and plant life and health, enhance 
co-operation on SPS matters and facilitate trade betw een the parties.  The Committee has not met as 
of May 1, 2012. 
37. Article 6.8 provides that the Parties may not have recourse to Chapte r 23 (Dispute Settlement) 
for any matter under Chapter 6.   
(b) Technical barriers to trade 
38. The objectives of Chapter 7 of the Agreement,  on Technical Barriers to Trade ("TBT") are to 
improve the implementation of the TBT Agreement, to  ensure that standards, technical regulations 
and conformity assessment procedures do not create unnecessary obstacles to tr ade and to enhance co-
operation between the parties. 
39. In Article 7.2 the Parties affirm their existing rights and obligations under the 
TBT Agreement and to that end the TBT Agre ement is incorporated into the Agreement 
mutatis mutandis .  Article 7.3 paragraph 1 provides that th e Agreement applies to the preparation, 
adoption and application of all st andards, technical regulations and conformity assessment procedures 
of the Parties that may affect trade in goods between  the parties.  The Chapter does not apply to SPS 
measures (Paragraph 7.3.2).   
40. Under paragraph 1 of Article 7.4 of the Agreem ent  the Parties are required to use relevant 
international standards, guides and recommendations to  the extent provided in Articles 2.4 and 5.4 of 
the TBT Agreement.  Pursuant to paragraph 7.4.2, each party must apply the Decision of the 
Committee on Principles for the Development of International Standards, Guides and 
Recommendations with relation to Artic les 2, 5 and Annex 3 of the Agreement (Annex 4 to G/TBT/9) 
adopted by the WTO Committee on Te chnical Barriers to Trade.   
41. Article 7.5 paragraph 1 requires each Part y, upon written request, to give positive 
consideration to accepting as equivalent technical regulations of the other Party, provided the 
regulations adequately fulfill the objectives of its own regulations.  Article 7.6, requires the Parties to 
accept, whenever possible, the results of each othe rs' conformity assessment procedures, even when 
these are different, provided that they offer a satis factory assurance of conformity with applicable WT/REG298/1 
Page 18  
 
  technical regulations or standards equivalent to the Party's own procedures.  Where a Party does not 
accept the results of conformity assessment in the othe r Party, it shall, upon request by the other Party, 
explain the reasons for its decision.  The Parties may accredit or otherwise recognize conformity assessment bodies in the other Party’s territory on terms no less favourable than granted to its own 
bodies.  The Parties are also required to positively cons ider any request by the other Party to negotiate 
mutual recognition agreements (MRA) of the r esults of their respective conformity assessment 
procedures;  any such request, if declined, shall be explained upon request by the other Party.  The 
Parties also agree to work together to implemen t any MRAs to which both Parties are party.  
Article 7.7, on Transparency, establishes simultan eous electronic notification requirements to the 
Party’s representatives to the Committee on TBT under the Agreement at the same time as a 
notification is made to the WTO Central Registry  of Notifications under the TBT Agreement of 
proposed or urgently adopted technical regula tions and conformity assessment procedures.  
Paragraphs 2-9 establish particular transparency ob ligations in respect of proposed regulations and 
conformity assessment procedures including allo wing a period of comment of at least 60 days 
following notification as well as action taken on importe d goods for failure to comply with a technical 
regulation. 
42. Article 7.8, on Technical Co-operation, comm its the Parties to cooperate and provide 
technical assistance to, inter alia, encourage implem entation of the Chapter, the TBT Agreement and 
to variously strengthen agencies and increase co-operation between the Parties on TBT measures.   
43. Article 7.9 establishes a Committee on Technical  Barriers to Trade whose objectives include 
monitoring the implementation of the Chapter, promptly addressing any issue arising from the 
development, adoption, application or enforcement of  standards, technical regulations or conformity 
assessment procedures, and exchange of informa tion on TBT.  The Committee is required to meet 
every two years unless the parties agree otherwise.   
2. Safeguard mechanisms 
44. Chapter 8 of the Agreement concerns Trade Remedi es.  Section D, Article 8.11 of the Chapter 
establishes Co-operation Mechanisms on Trade Remedies.   
(a) Global safeguards 
45. Chapter 8, Section A, Article 8.1, paragraph 1 provides that the Parties retain their rights and 
obligations under Article XIX of GATT 1994 and the Safeguards Agreement.  Paragraph 2 states that 
the Agreement does not confer any additional rights or obligations on the Parties with regard to 
actions undertaken in accordance with Article XIX of the GATT 1994 and the Safeguards Agreement, 
except that a Party taking a global safeguard may exclude imports of an originating good of the other 
Party if such imports are not a substantial cause of serious injury or threat thereof.  Paragraph 3 
provides that neither Party shall apply to the same  good at the same time both a bilateral safeguard 
measure and a measure under Article XIX of GATT and the Safeguards Agreement. 
(b) Bilateral safeguards 
46. The Parties may take bilateral safeguards unde r Section B of Chapter 8.  Article 8.2, 
paragraph 1 permits a Part y to apply a measure during the transition period
12 if as a result of the 
                                                      
12 Article 8.8, Definitions, provides that the " transition period  means the 10-year period following the 
date of entry into force of this Agr eement, except that for any good for which the Schedule set out in Annex 2B 
(Elimination of Customs Duties) of the Party applying the bilateral safeguard measure provides for the Party to eliminate its customs duties on the good over a period of 10 years or more, transition period  means the 
customs duty elimination period for the good set out in that Schedule plus five years".  WT/REG298/1 
 Page 19 
 
 
  reduction or elimination of customs duty an origina ting good is being imported into the territory of the 
other Party in such increased quan tities in absolute terms or relativ e to domestic production and under 
such conditions as to constitute a substantial cause of  serious injury, or threat thereof, to a domestic 
industry producing a like or directly competitive good.   Paragraph 2 provides that if so, a Party may 
apply a bilateral safeguard measure which suspends  the further reduction of the applicable customs 
duty or increases the rate of customs duty to a leve l not to exceed the lesser of the MFN applied rate 
of duty and the base rate of customs duty as provide d in the schedule of duty elimination set out in 
Annex 2B.   
47. Article 8.3 paragraph 1 provides that neither Pa rty shall apply a safeguard measure except to 
the extent necessary to prevent or remedy serious injury and to facilitate adjustment, for a period 
longer than 2 years - unless determined to be necessary per sub paragraph 8.3.1(b) or beyond the 
transition period.  To facilitate adjustment during th e transition for measures in force for over one year 
they shall be progressively liberalized at regular  intervals during the period of application.  
Paragraph 3 provides that upon the termination of the bilateral safeguard measure the rate of duty 
applicable shall revert to the rate applicable  under Annex 2B, as if the measure had never been 
applied.  Bilateral measures ca nnot be applied more than once on the same good until a period of time 
equal to the duration of the previous bilateral measu re (including any extension) has elapsed, provided 
that the period of non-application is at least one year.   
48. Article 8.4 describes the bilateral safeguard inv estigation procedure which shall be carried out 
in accordance with Articles 3, 4.2(a) and 4.2(c) of the WTO Safeguards Agreement;  these articles are 
incorporated into and made part of the Agreem ent mutatis mutandis.  Investigations must be 
completed within one year of initiation.  Article 8.5 permits the applicati on of provisional bilateral 
safeguard measures in critical circumstances, wh ich should not exceed 180 days in duration.  
Article 8.6 establishes notification and consultation requirements.  No  later than 30 days of imposition 
of the safeguard, the Party applying the measure sh all afford an opportunity to the other Party to 
consult on appropriate trade liberalizing compen sation through concessions having substantially 
equivalent trade effects or equivalent to the value of the additional duties expected from the measure.  
Such compensation shall be provided as agreed mutu ally.  If there is no agreement following 30 days 
of consultations the Party against whose origina ting good the measure is applied may suspend the 
application of concessions on the originating goods of the Party taking the measure that have trade 
effects that are substantially equivalent to the saf eguard.  The obligation to provide compensation and 
the right to suspend concessions shall be te rminated upon termination of the safeguard. 
(c) Agricultural safeguards 
49. Under Section E of Chapter 2, notwithstanding Ar ticle 2.3 (tariff liberalization), a Party may 
raise import duties on originating agricultural produc ts included in its Schedule under Annex 2C.  The 
products listed include poultry (c hicken and duck), dairy products (evaporated milk and cheddar 
cheese), honey, beans and mandarins.  Peru does not  have any listed products subject to special 
safeguards .  The transition period during which the safegua rds may be used range from between 10 
years for most products and 16 years for natural honey and mandarins.  The safeguards may not be 
applied following these transition periods (see Table III.4 below). 
50. The duty applied may not exceed the lesser of the prevailing MFN rate;  the MFN duty in 
effect on the day immediately preceding the date of entry into force of the Agreement;  the base rate 
in the Schedules under Annex 2B;  or the duty set out in the Schedule in Annex 2C.  The safeguards 
may not be applied or maintained at the same  time as a bilateral safeguard, a measure under 
Article XIX of the GATT and the Safeguards Agreem ent or a special safeguard under Article 5 of the 
WTO Agreement on Agriculture.  Paragraph 4 of Ar ticle 2.14 furthermore requires the Parties to 
implement the safeguards in transparent manner a nd to notify the other Party in writing within 
60 days of imposition of the safeguard  with relevant details.  Consu ltations will be held upon request WT/REG298/1 
Page 20  
 
  and safeguard measures may be reviewed by th e Committee on Trade in Goods established under 
Article 2.17. 
Table III.4 
Korea:  Agricultural safeguard measures  
Product HS Code Timeframe Trigger Level  
(metric tonnes per year) Duty 
Chicken 0207.11.1000 
0207.11.9000 
0207.13.1010 0207.13.1020 0207.13.1030 11 years (2021) 4,361,  rising each year to 5,212 by year 
10 (2020) before being phased out 18% in Year 1-5;   
13.5% in Year 6-10 
Zero in Year 11 
Duck 0207.33.0000 
0207.36.1000 11 years (2021) 810, rising to 968 in year 10 (2020) 
before being phased out 18% in Year 1-5 
13.5% in Year 6-10 Zero in Year 11 
Evaporated 
milk 0402.91.1000 
0402.91.9000 11 years (2021) 65 rising to 78 in year 10 (2020) before 
being phased out 89% in Year 1-5; 
66.8% in Year 6-10 Zero in Year 11 
Cheddar cheese 0406.90.1000 11 years (2021) 730, rising to 872 in year 10 (2020), 
before being phased out 36% in Year 1-5; 
27 in Year 6-10; Zero in Year 11 
Natural honey 0409.00.0000 17 years (2027) 266, rising to 358 in year 16 (2026) 
before being phased out 243% in Year 1-10; 
182.3% in Year 11-17; Zero in Year 18 
Beans 0713.31.9000 11 years (2021) 64, rising to 76 in year 10 (2020) before 
being phased out 607.5% in Year 1-5; 
455.6% in Year 6-10; Zero in Year 11 
 0713.32.9000  296, rising to 354 in year 10 (2020) 
before being phased out 420.8% in Year 1-5; 
315.6% in Year 6-10; 
Zero in Year 11 
Mandarins 0805.20.9000 17 years (2027) 7,040, rising to 9,475 in year 16 (2026) 
before being phased out 144% in Year 1-10; 
108% in Year 11-16; Zero in Year 17 
 
Source:  Annex 2C of the Agreement. 
 
(d) Safeguards for balance of payments 
51. Article 24.5 concerns Balance of Payments Excep tions.  It provides that if a Party is in a 
serious balance-of-payments and external financia l difficulties it may adopt or maintain restrictive 
measures with regard to trade in goods and services.  Paragraph 2 notes that the Parties will endeavour 
to avoid applying such restrictive measures, but that if applied such measures shall be 
non-discriminatory and of limited duration and no more than is necessary to remedy the balance-of-payments and external financial situation.   The measures taken shall be in conformity with 
the Articles of Agreement of the International Monetary Fund , as applicable.  Paragraphs 3-4 set out a 
consultation mechanism in the event that such measures are applied. 
(e) Price band system 
52. Under the Agreement Peru may maintain its pr ice band system established under its Supreme 
Decree No. 115-2001-EF and amendments.  The produc ts on which it may apply the price band are 
listed in Annex III and include dair y products, cereals, sugar and gluco se syrup and dextrins and other 
modified starches.  The ad valorem duty on th ese products is to be eliminated for these products 
according to Peru's schedule in Annex 2B  Products  subject to price bands are the same as those 
included in Annex 2D of the Agreement, 
(maize, dairy products, rice and sugar).  
3. Anti-dumping and countervailing measures 
53. Section C of Chapter 8 concerns Anti-Dumping and Countervailing Measures.  Article 8.9, 
paragraph 1 notes that each Party retains its ri ghts and obligations under Article VI of GATT 1994,  WT/REG298/1 
 Page 21 
 
 
  the AD Agreement and the SCM Agreement rega rding the application of anti-dumping and 
countervailing measures.  Paragraph 2 requires that  in any investigation involving the Parties 
concerning the possible application of such measures,  all notifications, questionnaires and information 
requirements shall be exchanged in English.  Para graph 3 provides that should a Party decide to 
impose an anti-dumping or countervailing duty the amount of the duty should not exceed the margin 
of dumping or subsidization, and the Party concer ned should endeavor to impose a lesser duty, if 
lesser duty would be adequate to remove the injury to the domestic industry.  Paragraphs 4-6 describe 
particular procedural requirements for inves tigations.  Before initiating a countervailing duty 
investigation the Party is required to afford the ot her Party a meeting to consult with regards to the 
application for the investigation as provided for in Article 13 of the WTO SCM Agreement.  In 
addition to the notification requirements of the Anti-Dumping and SCM Agreements written 
notification shall be provided to the other Party of  the investigation procedure along with a copy of 
the exporter/producer questionnaire and the list of th e known main exporters or producers.  The Party 
receiving the notification will endeavor to provide  the list of producers and exporters of the good 
under investigation to the investigating authority w ithin 30 days and to inform the exporters or 
producers or relevant trade or industrial associati ons of the information received from the competent 
investigating authority of the other Party.  It  may collect and send responses to the competent 
investigating  by the date specified on the questionnaire. 
54. Under Section D co-operation mechanisms may be formed on trade remedies between the 
relevant investigating authorities and relevant  agencies of each Party to promote a better 
understanding of their respective laws, their applica tion and any other aspect of trade policy regarding 
trade remedies. 
4. Subsidies and State-aid 
55. The Agreement contains no provisions per se on subsidies and State-aid.  Article 2.15 
however prohibits the introduction or reintroduction of  export subsidies on agricultural goods destined 
for the territory of the other Party.  Under Article 2.12, the Parties retain their rights and obligations 
with respect to State trading enterprises under Ar ticle XVII of GATT 1994, its interpretative notes, 
and the Understanding on the Interpretation of Ar ticle XVII of GATT 1994, which are incorporated 
into and made part of the Agreement mutatis mutandis .  
5. Customs-related procedures 
56. Chapter 5 of the Agreement deals with customs administration and trade facilitation.  Section 
A deals with trade facilitation.  Its objectives are to simplify and harmonize customs procedures, 
ensure predictability, consistency and transparency  in the application of customs laws, including 
administrative procedures, ensure efficient and expeditious clearance of goods and movement of 
means of transport, facilitate trade between th e Parties and promote co-operation between their 
customs administrations within the scope of the Chapter.  To implement these goals the Parties' 
competent authorities are to establish one or more contact points13 to be notified to the other Party.  
57. To maintain transparency each Pa rty is to ensure that its customs procedures and practices are 
predictable, consistent and transparent and where possible and if permitted by their relevant customs 
laws, conform with trade related instruments of the World Customs Organization (WCO).  Clearance 
of goods will be facilitated through a minimum requirement of documentation and the use of 
electronic systems.  Each Party shall endeavor to provide a focal point through which its traders submit all regulatory information re quired to facilitate clearance and release of goods.  Article 5.6 
furthermore requires the Parties to ensure that a ll persons concerned shall have access to a level of 
                                                      
13 Korean Contact Point: Korea Customs Service / Peruvian contact Point: Associated National 
Customs Superintendency National of the Superi ntendency of Tax Administration – SUNAT.  WT/REG298/1 
Page 22  
 
  administrative review independent of the employee or office that issued a determination on customs 
matters and judicial review of the determination. 
58. Advance rulings shall be available on matters c oncerning tariff classification, rules of origin 
and other matters that the Parties agree on.  Adva nce rulings shall be issued within a maximum of 
120 days or a shorter period as established by the Party of all information being provided to the 
authority and upon written request of importers expor ters or producers, advance rulings on customs 
matters shall be issued in writing.  Procedures fo r advance rulings will also include conditions for 
their validation, revocation and publi cation and sanctions (Article 5.7). 
59. Section B provides for co-operation between the Parties' customs authorities including to 
assist each other is their areas of competence to ensu re that customs legislation is correctly applied 
particularly by preventing, detecting and inves tigating operation in breach of the legislation. 
60. Requests for assistance must be in writing a nd include documents necessary to ensure 
compliance with the request.  Assistance may be re fused in certain circumst ances, notably where the 
assistance would be likely to prejudice sovereignty, public policy, security or other essential interest, 
involve currency or tax regulations other than custom s legislation or violate an industrial, commercial 
or professional secret.  Any information provided must  be treated confidentiall y.  Consultations may 
be requested at any time on any matter arising from the operation or implementation of the Chapter.  A Committee on Customs, Origin and Trade facilitatio n is established to ensure its proper functioning 
as well as that of Chapters 3 and 4 on rules of origin and origin procedures. 
6. Other regulations 
(a) Competition 
61. Chapter 15 of the Agreement concerns Compe tition.  Article 15.1 sets out the objectives of 
the Chapter.  Article 15.2 requires the Parties to maintain and implement competition laws by 
proscribing anti-competitive business conduct.  Ar ticle 15.3 declares the Parties commitment to 
co-operation on issues of competition law enforcement and its development.  Article 15.4 requires the 
Parties to notify, in English, an enforcement activity regarding anti-competitive business conduct.  
Article 15.5 mandates consultations on the subject at th e request of the other Party.  Confidentiality of 
information in an investigation or enforcement action is governed by Article 15.6.  Article 15.7 
provides for technical assistance between the Parti es including exchange of experiences and capacity 
building.  Article 15.8 enjoins the Parties to coopera te and coordinate on matte rs related to consumer 
protection.   
62. Article 15.9 on State Enterprises and Designate d Monopolies provides that nothing in the 
Chapter shall be construed to prevent a Party fro m establishing or maintaining state enterprises or 
designated monopolies, ensuring that they are subj ect to their respective competition laws and do not 
adopt or maintain any anti-competitive practices that affect trade between the Parties.    
63. Article 15.10 provides that the Chapter is not  subject to Chapter 23 on Dispute Settlement.  
Definitions used in the Chapter are set out in Article 15.11. 
E. S
ECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  
64. There are no sector-specific provisions on trade in goods.  WT/REG298/1 
 Page 23 
 
 
  IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
65. Chapter 10 of the Agreement concerns Cross Bo rder Trade in Services and Chapter 9 covers 
Investment.  Article 10.1 defines the scope of appli cation of cross border trade in services, and mirrors 
Article I of the GATS.  It provides that the Chapte r applies to measures adopted or maintained by a 
party affecting cross-border trade in services by servi ce suppliers of the other party.  A non-exclusive 
list of such measures is set out in Article 10.1 paragraph 1 sub paragraphs (a)-(e).  Article 10.1 
paragraph 2 which defines the "measures adopted or ma intained by a Party" mirrors Article I.3 of the 
GATS.14  
66. Section A, Article 9.1, paragraph 1, applies to measures adopted or maintained by Parties 
related to investors of the other Party, covered inv estments, and all investments in the territory of the 
Party, subject to Articles 9.7 and 9.9.  Paragraph 3 of Article 9.1 states that the obligations of a Party 
apply to non-governmental bodies that exercise any regulatory, administrative or other governmental authority delegated to them by th at Party such as expropriation,  grant of licences, approval of 
commercial transactions, imposition of quotas, fees or charges.   
67. Article 10.1 paragraph 3 of the Agreement lis ts the sectors that are not covered by the 
Agreement:  certain financial services
15 (sub-paragraph 3(a)); air services16 (sub-paragraph 3(b));  
procurement (sub-paragraph 3(c));   and "subsidies or grants provided by a Party, including 
government-supported loans, guarantees a nd insurance (sub-paragraph 3(d)).17  Explanatory note 5 to 
Annex II expressly notes that each party retains the right  to adopt or maintain any measure in relation 
to betting and gambling services, in accordance with  its respective laws and regulations.    
B. DENIAL OF BENEFITS  
68. Article 10.11 and 9.14 provide that subject to pr ior notification and consultations a Party may 
deny the benefits of Chapter 10 and 9 respectively to the service provider or investor that is an 
enterprise (or its investments) of the other Party on the basis that the service su pplier is an enterprise 
owned or controlled by persons of a non-Party or of the denying party and the enterprise has no 
substantial business activities in the territory of the other Party.  
C. GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
1. Market access 
69. Article 10.4 of the Agreement concerns Market Access.  It provides that neither Party shall 
adopt or maintain, either on the basis of a regional subdivision or on the basis of its entire territory, measures that impose limitations on the number of  service suppliers, the total value of service 
transactions or assets in the form of numerical quot as, the total number of service operations or the 
total quantity of services out put, or the total number of natural persons that maybe employed in a 
                                                      
14 Although Article 10.1(3)(a) exclud es subsidies; footnote 2 mirrors paragraph 2 of Article XV of the 
GATS.  Footnote 2 to Article 10 provides as follows: 
"Notwithstanding paragraph 3(d) of Article 10.2, the Party which considers that it is adversely affected 
by a subsidy or grant of the other Party may request consultations with the other Party on such matters.  Such 
requests shall be accorded sympathetic consideration.  The term "consultations" referred to in this footnote does 
not mean "consultations" in accordance with Article 23.4 (Consultations)."   
15 The list of financial services contained in Article 12.20 is identical to the GATS Annex on Financial 
Services.   
16 Except the three auxiliary services covere d by the Air Transport Annex of the GATS. 
17 See also footnote 2 to Chapter 10 of the Agreement.   WT/REG298/1 
Page 24  
 
  particular service sector or that a service supplier may employ and who are necessary for, and directly 
related to, the supply of a specific service.
18  The Parties may also not restrict or require specific types 
of legal entity or joint venture through which a service supplier  may supply a service.   
70. The Agreement establishes market access on the basis of a negative list.  Sectors excluded 
from market access are set out in Annex II to the Agreement. 
2. National treatment and MFN 
71. Articles 10.2 and 9.3 of the Agreement require that each Party accord to service suppliers, 
investors and covered investments of the other Part y treatment no less favourable than it accords, “in 
like circumstances”, to its own service providers, and investors and investments in its territory of its own investors with respect to the establishment,  acquisition, expansion,  management, conduct, 
operation and sale or other disposition of investments.   
72. Articles 10.3 and 9.4 of the Agreement require that each Party accord to service suppliers, 
investors and covered investments of the other Part y treatment no less favourable than it accords, “in 
like circumstances”, to service suppliers of non-Parti es, and investors and investments in its territory 
of investors with respect to the establishmen t, acquisition, expansi on, management, conduct, 
operation and sale or other disposition of investments, of non-parties.  
73. Article 10.6 paragraphs 1 a nd 2 on Non-Conforming Measures provides that Articles 10.2 
through 10.5 shall not apply to non-conforming measur es maintained by a Party at the central level of 
government as listed in Annex I or at a local leve l of government, or any measure in Annex II to the 
Agreement, as renewed or  amended in compliance with Article 10.6(b) and (c).  With respect to 
investment, Articles 9.3, 9.4, 9.6 and 9.7 do no t apply to any existing non-conforming measure 
maintained by the Parties at the Central level of gove rnment as set out in Annex I or at a local level of 
government level, or any measure in Annex II.  
3. Local presence 
74. Article 10.5 prohibits either Party from requiring a services supplier to establish a 
representative office or to be resident as a condition for cross border supply of a service.   
4. Senior management and performance requirements 
75. Article 9.6 of the Agreement prohibits either Pa rty to require that an enterprise that is a 
covered investment appoint to senior management  positions natural persons of any particular 
nationality.  However, it may impose nationality or  residence requirements on the majority of the 
board of directors or any committee thereof, of an en terprise of that Party that is a covered investment, 
provided that the requirement does not materially impa ir the ability of the investor to exercise control 
over its investment. 
76. Neither Party may impose or enforce require ments or commitments or undertakings in 
connection with the establishment, acquisition, expa nsion, management, conduct, operation or sale or 
other disposition of an investment in  its territory of an investor of a Party or a non-party:  (a) to export 
a given level or percentage of goods or services;  (b) to achieve a given level or percentage of 
domestic content;  (c) to purchase, use or accord  preferences to goods or services produced or 
provided in its territory or to purchase goods or servi ces from persons in its territory;  (d) to relate in 
any way the volume or value of imports to that of  exports or to the amount of foreign exchange 
inflows associated with the investmen t;  (e) to restrict sales of goods or services in its territory that 
                                                      
18 Note the non-conforming measures set out an d reserved in Annex I to the Agreement.  WT/REG298/1 
 Page 25 
 
 
  such investment produces or provides by relating such sales in any way to the volume or value of its 
exports or foreign exchange earnings;  (f) to transfer technology, a production process or other 
proprietary knowledge to a person in its territory19;  or (g) to supply exclusively from its territory the 
goods or services that such investment produces or provides (Article 9.7). 
77. With respect to (b) - (e) above, neither Party may condition receipt (or continued receipt) of 
an advantage in connection with the establishmen t, acquisition, expansi on, management, conduct, 
operation or sale or other disposition of an investment in its territory of an investor of a Party or a 
non-party. However, this will not prevent the Pa rties from conditioning the receipt (or continued 
receipt) of an advantage in connection with an inv estment by an investor of the other Party or a 
non-party with a requirement to locate production,  provide a service, train or employ workers, 
construct or expand part icular facilities or carry out research and development in its territory 
(paragraph 4(a)). 
5. Other measures on Investment 
78. Article 9.12 concerns expropriation.   Paragraph 1 provides that neither Party shall directly or 
indirectly expropriate or nationalize a covered inv estment, except for a "public purpose" (as defined), 
in a non-discriminatory manner, on payment of compensation20 and in accordance with due process of 
law and the requirements of Article 9.5.   
79. Article 9.13 sets requirements on transfers (into or out of the territory of a Party) related to 
covered investments.  Article 9.14 on Denial of Bene fits, permits the denial of the benefits of the 
Chapter if it is established that an investor is in  fact owned and controlled by persons of a non-Party 
and has no substantive business operations in the territory of the other Party.   
80. Section B of Chapter 9 concerns Settlement of Di sputes between Investors and the Host Party.  
Article 9.16 concerns Investor-State Dispute Settle ment.  Paragraphs 1-12 set out the mechanism for 
private investors to bring a dispute, following in itial consultations under para graph 2.  Paragraph 3 
provides that disputes that are not settled within 6 months may be submitted to the courts or 
administrative tribunals of the Party concerned,  or to arbitration under the ICSID Convention21, 
ICSID Additional Facility Rules, UNCITRAL Arbitrati on Rules or any other agreed arbitration rules.  
Paragraph 5 and 6 set conditions to each Party's con sent to binding arbitration.  Paragraphs 7-11 
concern procedure and awards by an arbitral tribunal.   
81. Article 9.17 concerns cessation of the existing Bilateral Investment Treaty upon entry into 
force of the Agreement.  Section C of Chapter 9, Article 9.18, contains the definitions used in the 
Chapter.  Annex 9A contains a supplement to th e definition of "most-favoured-nation treatment".  
Annex 9B concerns Expropriation.  Its sets out a series of understandings between the Parties 
concerning the interpretation of the te rm and actionability under Chapter 9. 
                                                      
19 This does not apply in certain conditions includ ing where a Party authorizes use of an IPR in 
accordance with Article 31 of the TR IPS Agreement and to measures requ iring disclosure of proprietary 
information that fall within the scope of and are consiste nt with Article 39 of the TRIPS Agreement or where the 
requirement is imposed by a court, administrative tri bunal or competition authority to remedy an alleged 
violation of competition laws or to act in a manner not inconsistent with other provisions of the Agreement 
(paragraph 4(b) of Article 9.7). 
20 Such compensation to be of "fair market value" per paragraphs 2, 3 and 4 of Article 9.12.   
21 International Centre for Settlement of Investment Disputes, Convention on the Settlement of 
Investment Disputes between States and Nationals of other States.   WT/REG298/1 
Page 26  
 
  6. Movement of natural persons 
82. Chapter 11 of the Agreement deals with Tempor ary Entry of business persons, and is broader 
than the GATS Annex on the Movement of Natural Persons.  Article 11.1 states that the objective of 
the Chapter is to facilitate temporary entry for business persons on a reciprocal basis, per the 
requirements of Annex 11A ("Categories for Tempor ary Entry"), whilst ensu ring border security and 
protection of the domestic labour force and employment in the parties territories.   
83. Article 11.2 paragraph 1 provides that each Pa rty shall expeditiously apply measures under 
the Chapter to avoid unduly impacting trade in  goods or services or investment activities under the 
Agreement.  Article 11.2 paragraph 2 mirrors Artic le 4 of the GATS Annex on Movement of Natural 
Persons Supplying Services under the Agreement and its footnote, and permits the Parties to apply 
measures regulating the entry of natural persons into its territory, provided the measures are not 
applied in a way that unduly impairs or delay trad e in goods or services or investment activities under 
the Agreement.  Article 11.3 paragraph 1 provides th at nothing in the Agreement shall be construed to 
impose any obligation in respect of immigr ation measures, save Chapter 11, Chapter 1 
(Initial Provisions and Definitions), 21 (Transpa rency), 22 (Administration of the Agreement), 
23 (Dispute Settlement), 24 (Exceptions) and 25 (Final Provisions).   
84. Paragraph 1 of Article 11.4 re quires each Party to grant temporary entry to business persons 
who comply with immigration measures such as rela ted to public health, safety and national security 
in accordance with Chapter 11, Annex 11A and Appendix 11A-3.  Article 11.4(2) describes 
circumstances in which a party may refuse to issu e an immigration document authorizing employment 
to a temporary entrant when the entry of that pers on might impact upon a labour dispute.  In such 
cases, it should provide its reasons for refusal in  writing.  Fees for processing applications for 
temporary entry of business persons  should not be burdensome or exceed normal administrative costs 
(Article 11.4, paragraph 4).  Recognizing the impor tance of transparency, Article 11.5 requires the 
Parties to provide each other with relevant mate rials concerning its measures on temporary entry and 
publish no later than six months following the entry into force of the Agreement explanatory material 
on their procedures relating to temporary entry.  Transparency is also required when responding to 
inquiries from interested persons regarding appli cations and procedures relating to the temporary 
entry of persons, including information on the status of or decisions regarding applications (Article 
11.8).  Article 11.6 establishes a working group to monitor the implementation of the Chapter.  Any 
refusal to grant temporary entry may not be ta ken up under the Dispute settlement mechanism in 
Chapter 23 of the Agreement unless the matter involv es a pattern of practice and local remedies have 
been exhausted.   
85. Annex 11A sets out the categories of temporary entry for four categories of natural persons:  
business visitors, traders and investors, intra-comp any transferees and professionals.  Appendix 11A-1 
sets out and describes the business activities covered under Section A of Annex 11A.  
Appendix 11A-2 lists the 66 Professions c overed under Section D of Annex 11A.   
86. For business visitors Section A of Annex 11A re quires that each party grant temporary entry 
to business persons seeking to engage in a busin ess activity set out in Appendix 11A-1, without 
requiring an employment authorization upon presentati on of (a) proof of nationality, (b) engagement 
in a business activity and (c) evid ence that the business activity is international in scope.  The 
business person may satisfy the requirements of (c) if it can be demonstrated that the primary source 
of remuneration is outside the territory and that  the business person's principal place of business and 
the actual place of accrual of profits remain outside the territory of the Party granting temporary entry.   
87. For traders and investors Paragraph 1 of Secti on B of Annex 11A requires the Parties to grant 
temporary entry to a business person acting in a supe rvisory or executive role and who is seeking to 
carry on substantial trade in goods and services betw een the territory of the parties or seeking to  WT/REG298/1 
 Page 27 
 
 
  establish, develop or administer an investment i nvolving a substantial amount of capital.  For business 
visitors, the Parties are prohibited from requiring that temporary entry be conditioned upon prior 
approval procedures, labour certification, or procedur es of similar effect, or imposing or maintaining 
any numerical restrictions on temporary entry (paragraph 3 of Section A). For traders and investors, the Parties are prohibited from requiring that tempor ary entry be conditioned upon labour certification 
tests, or other procedures of similar effect, or im posing or maintaining any numerical restrictions on 
temporary entry (paragraph 2 of Section B).  
88. Section C of Annex 11A concerns Intra-Company Transferees.  Parties are required to grant 
temporary entry to business persons seeking temp orary entry who have been employed by their 
enterprise for a period of no less than one year i mmediately preceding the date of application for 
temporary entry and of their transfer to an establis hment of the enterprise as an executive, manager or 
specialist provided that immigration requirements are met.
22   
89. Section D of Annex 11A concerns Professionals.  Parties must grant temporary entry to a 
business person seeking to engage in a professional ac tivity in accordance with Appendix11A-2, as an 
independent professional or as a contractual service provider on the presentation of supporting 
documentation as for business visitors above.  Para graph 2 provides that a Party may require the 
business person to comply with specific legislati on concerning the practic ing of a profession or 
activity.   
90. Appendix 11A-3 concerns the length of stay fo r business visitors which ranges from 6 months 
to 1 year for Peru and between 90 days and 2 years for Korea (Table IV.1A and B).   
Table IV.1A:  Peru length of stay for business visitors 
Category Migratory Condition Length of Stay 
Business Visitor Business Up to 183 days 
Investor (in process of committing 
investment) Business Up to 183 days 
Trader Business Up to 183 days 
Investor (independent) Investor Up to 1 year , renewable, provided conditions for issue are 
maintained 
Intra-corporate transferees Worker Up to 1 year, renewable, provided conditions for issue are 
maintained 
Professionals (independent) I ndependent professional Up to 1 year, rene wable, provided conditions for issue are 
maintained 
Professional (contractual service provider)  Appointed worker Up to 6 months 
 
Table IV.1B:  Korea 
Category Migratory Condition Length of Stay 
Business Visitor (section A of Annex 11A 
of the Agreement) Business 90 days.  If a Business vis itor from Peru  seeks to remain 
after 90 days the visitor must register as an alien with the 
competent immigration office 
Traders and Investors (section B of Annex 11A of the Agreement) Traders and Investors Up to 2 years, which may be extended provided that the 
conditions for issue are maintained 
Intra Company Transferees (section C of Annex 11A of the Agreement).   Intra company transferees Up to 2 years,  which may be extended provided that the 
conditions for issue are maintained 
Professionals (section D of Annex 11A of the Agreement).  Professional services Up to one year or the period of the contract, whichever is 
less.   
 
Source : Appendix 11A-3 of the Agreement. 
 
                                                      
22 Where establishment is defined as the constitution,  acquisition or maintenance of a juridical person 
(including capital participation in a juridical person with  a view to establishing or maintaining lasting economic 
relations) or the creation or maintenance of a branch or re presentative office within the territory of the Party to 
perform an economic activity (paragraph 3 Section C). WT/REG298/1 
Page 28  
 
  D. L
IBERALIZATION COMMITMENTS  
91. The Agreement grants access to the services sector s of either party on the basis of a negative 
list. The sectors excluded from market opening are set out in Annexes I and II to the Agreement.   
92. Article 10.4(a) and (b) on market access pa rallels Article XVI.2(a)-(e) of the GATS and 
provides that neither party shall maintain (regionally  or over its entire territory) measures that impose 
any limitations on the number of services suppliers, th e total value of service transactions (numerical 
quotas or economic needs test), the total number of service operations or quantity of services 
(numerical quotas or economic needs test), or th e total number of natural persons that may be 
employed in a sector or employer.  Article 10.4(b) provides that neither party shall restrict or require specific forms of legal entity or joint venture for a service supplier to provide a service.   
1. Korea 
93. Annex I contains Korea's reservations in respect of market access, local presence or national 
treatment.  Korea's entry under Annex I lists 44 reservations, all taken at the Central Level of 
Government, and which concern the grandfatheri ng of existing Central Government laws and 
regulations. 
94. Annex II to the Agreement lists 42 specific sect ors, sub-sectors or activities for which Korea  
may maintain existing or adopt new or more restri ctive measures that do not conform with obligations 
imposed by Article 9.3, 9.4, 9.6, 9.7, 10.2, 10.3, 10.4 and 10.5 of the Agreement. 
95. Appendix II-A contains Sector or sub-sector liberalization commitments in addition to 
Korea's GATS commitments in research and deve lopment services, market research and public 
opinion polling services, services incidental to mi ning, packaging services, convention services other 
than convention agency services and tourism and travel related services. 
96. Annex III sets out non-conforming measures in fina ncial services.  Pursuant to Article 12.9 
(Non-Conforming Measures) Section A sets out Korea's existing measures that do not conform with obligations imposed by Articles 12.2 (National Tr eatment), 12.3 (Most-Favoured Nation Treatment), 
12.4 (Market Access for Financial Institutions),  12.5 (Cross Border Trade) and 12.8 (Senior 
Management and Boards of Directors).  There ar e 15 such non-conforming measures in the insurance 
sector and Banking and other financ ial services (excluding insurance).  Section B sets out, pursuant to 
Article 12.9, the sectors, sub-sectors or activities in respect of which Korea can maintain existing or 
adopt new or more restrictive measures that do no t conform with Articles 12.2, 12.3, 12.4, 12.5 and 
12.8.  Section B contains 3 non-conforming measures.   
97. Appendix III-A describes measures that the Parties agree are not inconsistent with 
Article 12.4.  They cover insurance, currency se ttlements for cross border financial services, provision 
of loans to small and medium enterprises, mini mum equity capital for open positions in foreign 
exchange banks, restrictions on securities credit ex tensions, credit card lending limits, regulation of 
banking business activity, restrictions on real estate speculation in banking, an d the right of the state 
to regulate interest rates in banking.  It also  lists measures that are subject to Article 12.10, 
paragraph 1 which cover existing me asures and any future changes thereto in respect of the treatment 
of capital in respect of a branch  and the head office's capital, and minimum asset requirements for 
foreign insurance branches in Korea.    
98. Table IV.2 below summarizes Korea's commitments under the Agreement in comparison to 
the GATS.  WT/REG298/1 
 Page 29 
 
 
  99. In the sector of Education services, as a result of the negative list approach, Korea has opened 
up the sector with additional commitments, in contrast to its nil commitments under the GATS. The opening of the sector is subject to certain curre nt and potential limitations.  These comprise Annex I 
reservations 27 on education services for seafarers, 31 on higher education (priva te institutions), 32 on 
Adult education, which permits the establishment of  hag won (private voca tional teaching institutes 
for adults) and lifelong adult education facilities bot h of which do not offer the course approved for 
credits, and 33 requires local establishment for supplying vocational competency development 
training services.  Korea has retained the right in  Annex II to adopt any measure with respect to 
education services in respect of the pre-primary, pr imary, secondary, higher, adult and other education 
sub-sectors.    
100. In Business Services, Korea improved its commitm ents in some professional Services such as 
legal, veterinary services in which there are no co mmitments in the GATS, and its commitments in 
accounting, taxation, integrated engineering, a nd urban planning services are equivalent to those 
under the GATS.  
101. Regarding the sector of Recreational, cultura l and sporting services,  Annex II Reservation 34 
permits Korea to adopt or maintain  any measure with respect to motion picture promotion, advertising 
or post production services.  
102. In respect of Environmental Services, the level of liberalization is greater than Korea's GATS 
commitments.  Under its GATS commitments for Environmental Services subsector A had a maximum number of service suppliers of 25 for mode 3, and subsector B's mode 3 commitment 
contained an economic needs and prior approval re quirement.  No commitment was undertaken for 
subsector C.  Subsector D was limited in scope a nd contained an economic needs test under mode 3 in 
environment testing and assessment services.  Under the Agreement the sector is liberalized subject to a reservation in Annex I reservation 3 (limitation on disposal of automobiles services).  Reservation 
35 requires that persons operating in the sector estab lish an office in Korea.  Korea has retained the 
right in Annex II reservation 11 to adopt or main tain any measure with respect to the following 
environmental services: treatment and supply of pota ble water; collection and treatment of municipal 
sewage; collection, transportation, and disposal of  municipal refuse: sanitation and similar services; 
and nature and landscape protection services (except for environmental impact assessment services). 
103. The agreed reservations for Korea in relation to Financial Services (Insurance and banking 
and other Services) differ from those under the GA TS.  Section A reservation 3 of Appendix III-A 
describes the limitation of bank ownership in compar ison to a similar limitation in sector 7 Section B 
(Banking and Other Financial Services) of Korea’ s GATS commitments.   The reservation contained 
in no. 4 of Section A of Annex III to the Agreem ent is not reflected in Korea's GATS schedule.  
Reservations no. 6-14 (inclusive) of Section A of Annex III to the Agreement are not reflected in 
Korea's GATS schedule.   
104. For Tourism, the commitment on the Touris t Guide subsector improves upon Korea's 
commitments under the GATS.  Subsector "other" pr ovides a partial improvement in comparison to 
the absence of commitments by Korea under the GA TS.  In relation to Recreational Cultural and 
Sporting Services subsectors entertainment service s, newsagency services, libraries museums and 
other cultural services and "other" services offer partia l improvements in comparison to the absence of 
commitments by Korea under the GATS.  The sub sector sporting and other recreational services offer 
partial improvement of a subsector in respect of  which Korea had not undertaken commitments under 
the GATS.   
105. In respect of sector 11, Transport Services,  A, subsectors (a) and (b) provide reduced 
commitments under the Agreement in comparis on to Korea's GATS commitments.  Korea's 
commitments under the Agreement for subsectors (c ), (e) and (f) provide full liberalization in WT/REG298/1 
Page 30  
 
  comparison to Korea's absence of commitments u nder the GATS.  Subsector (d) provides full 
liberalization in comparison to Korea's commit ments under the GATS.  Under C, Air Transport 
Services, Korea's commitments under the Agreement provide a partial improvement in comparison to 
Korea's GATS commitments.  Subsector G, Pipeline Tr ansport, provides full liberalization for a sector 
that is not the subject of commitments by Korea un der the GATS.  Subsector H, Services auxiliary to 
all modes of transport, provide improvements in comparison to Korea's GATS commitments.   
2. Peru 
106. Annex I contains Peru's reservations in respect  of market access, local presence or national 
treatment.  Peru's entry under Annex I lists 25 reservations, all taken at the Central Level of 
Government, and which concern the grandfatheri ng of existing Central Government laws and 
regulations.   
107. Annex II to the Agreement lists 16 specific sect ors, sub-sectors or activities for which Peru 
may maintain existing or adopt new or more restri ctive measures that do not conform with obligations 
imposed by Article 9.3, 9.4, 9.6, 9.7, 10.4 and 10 .5 of the Agreement.  Peru has no Annex II-A entry 
in the Agreement. 
108. Annex III sets out Financial Se rvices non-conforming measures.  Pursuant to Article 12.9 
(Non-Conforming Measures) Section A sets out existi ng measures of Peru that do not conform with 
obligations imposed by Articles 12.2 (National Tr eatment), 12.3 (Most-Favoured Nation Treatment), 
12.4 (Market Access for Financial Institutions),  12.5 (Cross Border Trade) and 12.8 (Senior 
Management and Boards of Directors).  Secti on A of Annex III sets out 6 non-conforming measures 
in the insurance sector.  Section B sets out, purs uant to Article 12.9 (Non- Conforming Measures) the 
sectors, sub-sectors or activities in respect of which Peru can maintain or in troduce new measures that 
do not conform with Articles 12.2, 12.3, 12.4, 12.5 and 12.8.  Section B contains 2 non-conforming 
measures for Peru. 
109. Table IV.3 below summarizes Peru's commitmen ts under the Agreement in comparison with 
its GATS commitments.   
110. Under the GATS, Peru undertook no commitme nts on sector 3 Construction and related 
services.  Under the Agreement Peru has undertaken fu ll liberalization with no particular reservations.  
However, like all sectors Peru's commitments are subject to several "All Sectors" reservations under 
Annexes I and II.  Annex I, reservation 1 proscribes th e ownership of land within 50 kilometres of the 
border, subject to the possibility of an exempt ion only to be granted by Executive Decree.  
Reservation 6 under Annex I covering "All Sectors", requires that services suppliers give preferential 
treatment to Peruvian nationals when hiring, with , inter alia, a cap of 20% on the number of foreign 
natural persons employed by a service provider.  
111. For Sector 4, Distribution Services, subsector s A, D and E contain additional commitments 
which represent an improvement from no GATS commi tments by Peru.  Peru had undertaken 
commitments in subsectors B and C.  The commitments undertaken by Peru for subsectors B and C 
are subject to reservation 16 in Annex II, restricti ng the operation of customs warehouses to natural or 
juridical persons domiciled in Peru.  
112. In respect of Sector 6 Environment services, Peru had undertaken no commitments under the 
GATS.  Peru's commitments under the Agreement reco rd additional liberalization in subsectors A and 
D, and full liberalization in relation to B and C.  Subsector A is subject to reservation 11 in Peru's 
Annex II to the Agreement.  Peru reserves the right to adopt or maintain any reservation in relation to 
public sewage services.  Subsector D is subject to reservation 10 in Annex II, which permits Peru to 
adopt or maintain any measures in relation to the public supply of potable water.    WT/REG298/1 
 Page 31 
 
 
  113. Under the GATS Peru undertook partial commitme nts in relation to subsectors A and B of 
sector 7 on Financial services, subject to the requi rement that financial services institutions be 
constituted in Peru.  Under the Agreement Peru has granted full liberalization, subject to the list of 
non-conforming measures set out in Annex III to the Agreement.  Section A of Annex III contains 
reservations corresponding to capital requirements fo r financial institutions (Annex III Section A 1);  
and insurance providers (Annex III Section A 2)23; mandatory requirements for credit ratings of 
financial institutions and debt securities by Peruvi an credit rating companies (Annex III Section A3); 
the right to grant advantages or exclusive rights to named financial entities that are partially or fully 
owned by the State (Annex III A 4)24 an explicit exclusion of foreign financial entities (including 
branches and agencies) from the securities, commoditi es, or asset management (Annex III A 5).  Peru 
also retains a restriction granting priority to Per uvian domiciled creditors in  the case of liquidation of 
a financial institution in Peru. 
114. Under the GATS Peru undertook no commitments in relation to Sector 8 Health Services.  
The sector is fully liberalized under the Agreement in  respect of subsectors A and B.  Subsector C is 
subject to reservation 9 in Annex II of the Agreem ent, where Peru reserves the right to adopt or 
maintain any measure with respect of social servi ces provided for a public purpose;  income security 
and insurance, social security, social welfare, public  education, public training, health and childcare.  
Subsector D is subject to reservation 10 of Annex II, on supply of potable water.   
                                                      
23 Sections A1 and A2 of Annex III are broader than Peru's GATS commitment, establishing that a 
branch (which is not established in Peru) may provide financial services on the condition that some capital is 
located in Peru. 
24 Section A4 of Annex III permits the grant of subsid ies to some institutions that are partially or fully 
owned by the State.    
  WT/REG298/1 
Page 32 Table IV.2:  Korea: Sector liberalization under the Agreement  
Sectors (CPC Classification) GATS FTA    
Commitments   Commitments Annex I 
reservations Annex II 
reservations 
All sectors - 1,2,5,6,8 Appendix II-A 
Additional 
liberalization above 
GATS Annex III Financial 
Services non-
conforming measures 
1. Business services  partial Additional commitments partial partial   
A. Professional Services  √ Additional commitments 18,19, 20, 21, 22, 
23,24,25,34,38  37,38,39   
B. Computer and Related Services  √ Additional commitments     
C. Research and Development Services  √ Additional commitments 17  Additional 
liberalization  
D. Real Estate Services   - Additional commitments 14    
E. Rental/Leasing Services without Operators  √ Additional commitments 2    
F. Other Business Services  √ Additional commitments 5, 17, 26, 27, 28, 
29, 36, 39, 
40,42,43, 3,4,7,9,24,25,27,28,2
9,30,31,40,41 Additional 
liberalisation  
2. Communication services  partial Additional commitments  partial  partial   
A. Postal services                                           √ None  19   
B. Courier services                                           √ Additional commitments 12    
C. Telecommunication services  √ None 13    
D. Audiovisual services √ Additional commitments 41,44 10,21,22,23,26,34   
E. Other  - Full 37,41 10,13,14,20,22,23,26,
31,34,35   
3. Construction and related engineering services  partial Additional commitments Partial No reservation   
A. General construction work for buildings                    √ Additional commitments 1,    
B. General construction work for civil engineering            √ Additional commitments 1,2,    
C. Installation and assembly work                           √ Additional commitments     
D. Building completion and finishing work                     √ Additional commitments     
E. Other                                                  √ Additional commitments     
4. Distribution services  partial Additional commitments  Partial  Partial   
A. Commission agents' services                                √ Additional commitments     
B. Wholesale trade services                                   √ None 4,7    
C. Retailing services                                                                          √  4,6,7,8,15    
D. Franchising                                                                                   √ Full     
E. Other  - None 29 15   
5. Education services  No commitments Additional commitments Partial Partial 
32   
A. Primary education services                                 - None     
B. Secondary education services                               - None     
C. Higher education services                                  - Additional Commitments 31    
D. Adult education                                            - Additional commitments 27,32,    
E. Other education services                                   - None 33 32   
6. Environmental services  partial Additional commitments Partial Partial   
A. Sewage services                                           √ None 35    
B. Refuse disposal services                                  √ None 3,35    
C. Sanitation and similar services                           - Additional     
D. Other √ Additional 35 11   
Table IV.2 (cont'd)  
   WT/REG298/1
 Page 33Sectors (CPC Classification) GATS FTA    
Commitments   Commitments Annex I 
reservations Annex II 
reservations 
All sectors - 1,2,5,6,8 Appendix II-A 
Additional 
liberalization above 
GATS Annex III Financial 
Services non-
conforming measures 
7. Financial services partial Additional commitments No reservations Partial  
7   
A. All insurance and insurance-related services              √ Additional     Section A 1-15; 
Section B 1-3.   
B. Banking and other financial services √ Additional     
C. Other  √ Additional     
8. Health related and social services none Additional commitments No reservations Partial   
A. Hospital services - None     
B. Other Human Health Services                               - None  33   
C. Social Services                                            - None  7   
D. Other - None  7   
9. Tourism and travel related services  partial Additional commitments  No reservations Partial   
A. Hotels and restaurants (including cater ing)                   √ Additional commitments   Additional 
liberalisation  
B. Travel agencies and tour operators services               √ Additional commitments   Additional 
liberalisation  
C. Tourist guides services                                   √ Additional commitments   Additional 
liberalisation  
D. Other            - Additional Commitments  36   
10. Recreational and cultural and sporting services No commitments Additional commitments Partial Partial   
A. Entertainment services  - Additional commitments 36    
B. News agency services                                       - Additional commitments 37    
C. Libraries, archives, museums and other cultural services    - Additional commitments  35   
D. Sporting and other recreational services                   - Additional commitments     
E. Other  - Additional commitments  7   
11. Transport services  Partial Additional commitments Partial Partial    
A. Maritime Transport Services  √ Additional commitments 9 
 42   
B. Internal Waterways Transport  - None 42   
C. Air Transport Services  √ Additional commitments 10,11, 30    
D. Space Transport                                            - None  17   
E. Rail Transport Services  - None  16   
F. Road Transport Services √ None 3, 16 16   
G. Pipeline Transport  - Full     
H. Services auxiliary to all modes of transport  √ Additional commitments  18   
I. Other Transport Services √ Additional commitments  9,18   
12. Other services not included elsewhere  No commitments Additional commitments  7,9   
 
Source: The Agreement, GATS Sche dules of the Parties. 
  
  WT/REG298/1 
Page 34 Table IV.3:  Peru: Sector liberalization under the Agreement 
Sectors (CPC Classification) GATS FTA    
Commitments   Commitments Annex I 
reservations 
 
All Sectors 
1,6 Annex II 
reservations 
 
All Sectors 
1,2,16 Appendix II-A 
 
 
NIL ENTRY 
FOR PERU Annex III 
Financial 
Services non-
conforming 
measures 
1. Business services  partial Additional commitments     
A. Professional Services  √ Additional commitments     
B. Computer and Related Services                            - Additional commitments     
C. Research and Development Services                           - Full     
D. Real Estate Services                                        - Full     
E. Rental/Leasing Services without Oper ators                  √ Additional commitments     
F. Other Business Services  √ Additional commitments 2,7,8,9,10,13,25 3   
2. Communication services  partial Additional commitments     
A. Postal services                                           - Full     
B. Courier services                                           - Full     
C. Telecommunication services  √ Additional commitments 3,5,17 12   
D. Audiovisual services - Add itional commitments 3,4,5 6,8   
E. Other  - None 15    
3. Construction and related engineering services  No commitments Additional commitments     
A. General construction work for buildings                    - Full     
B. General construction work for civil engineering            - Full     
C. Installation and assembly work                           - Full     
D. Building completion and finishing work                     - Full     
E. Other                                                  - Full     
4. Distribution services  partial Additional commitments     
A. Commission agents' services                                - Additional commitments     
B. Wholesale trade services                                   √ Additional commitments     
C. Retailing services                                                                   √ Additional commitments     
D. Franchising                                                                             - Additional commitments     
E. Other  -  16    
5. Education services  No commitments Additional commitments  13   
A. Primary education services                                 - Additional commitments     
B. Secondary education services                               - Additional commitments     
C. Higher education services                                  - Additional commitments     
D. Adult education                                            - Additional commitments     
E. Other education services                                   - Additional commitments     
6. Environmental services  No commitments Additional commitments     
A. Sewage services                                           - Additional commitments  11   
B. Refuse disposal services                                  - Full     
C. Sanitation and similar services                           - Full     
D. Other - Additional commitments  10   
Table IV.3 (cont'd)  
   WT/REG298/1
 Page 35Sectors (CPC Classification) GATS FTA    
Commitments   Commitments Annex I 
reservations 
 
All Sectors 
1,6 Annex II 
reservations 
 
All Sectors 
1,2,16 Appendix II-A 
 
 
NIL ENTRY 
FOR PERU Annex III 
Financial 
Services non-
conforming 
measures 
7. Financial services Partial Additional commitments    Section A 6, 
Section B 1 
A. All insurance and insurance-related services              √ Full    Section A 2, Section 
B2 
B. Banking and other financial services √ Full    Section A 1,3,4,5 
C. Other  - Full    1,3,4,5 
8. Health related and social services No commitments Additional commitments     
A. Hospital services - Full     
B. Other Human Health Services                               - Full     
C. Social Services                                            - Additional commitments  9   
D. Other - Additional commitments     
9. Tourism and travel related services  Partial Additional commitments     
A. Hotels and restaurants (including cater ing)                   √ Additional commitments     
B. Travel agencies and tour operators  services               √ Additional commitments     
C. Tourist guides services                                   - Full     
D. Other            - Full 21    
10. Recreational and cultural and sporting services Partial Additional commitments  4,5,7   
A. Entertainment services  √ Additional commitments 11,12,14 8   
B. News agency services                                       - Additional commitments     
C. Libraries, archives, museums and other cultural services    - Full     
D. Sporting and other recreational servi ces                   √ Full     
E. Other  - None     
11. Transport services  Partial Additional commitments     
A. Maritime Transport Services  √ Additional commitments 19,20    
B. Internal Waterways Transport  √ Additional commitments    
C. Air Transport Services  √ Additional commitments 18    
D. Space Transport                                            - Full     
E. Rail Transport Services  - Full     
F. Road Transport Services - Additional commitments 23,24 16,14,15   
G. Pipeline Transport  - Additional commitments     
H. Services auxiliary to all modes of tr ansport  - Additional commitments 23    
I. Other Transport Services √ None 22    
12. Other services not included elsewhere  No commitments full liberalization     
 
Source: The Agreement, GATS Sche dules of the Parties. 
 
. 
. WT/REG298/1 
Page 36  
 
  E. R
EGULATORY PROVISIONS  
1. Domestic regulation 
115. Like Article VI:3 of the GATS, Article 10.8 pa ragraph 1 of the Agreement provides that when 
a party requires authorization for the provision of a service, the responsible authorities shall determine 
the application within a reasonable period of time of  the completed application.  Upon request the 
applicant shall be provided with information on the st atus of the application.  Sectors listed by a party 
in Annex II are specifically excluded from this requirement.  
116. Article 10.8 paragraph 2 mirrors Article VI:4  of the GATS.  Article 10.8 paragraph 2 
sub-paragraphs (a)-(c) provide that  in order to ensure that measures related to qualification 
requirements, procedures, technical standard s and licensing requirements do not constitute 
unnecessary barriers to trade in services, each party sha ll endeavour to ensure that such measures are 
based on objective criteria, no more burdensom e than necessary, and in the case of licensing 
procedures are not a restriction on the supply of services.  
117. Article 10.8 paragraph 3 requires that any nego tiations which enter into effect pursuant to 
Article VI:4 of the GATS (or any other multilateral negotiations in which both Parties participate) 
shall result in consultations and amendmen ts to the Agreement as appropriate.   
118. The Agreement does not contain any provision equivalent to GATS VI.5 (Nullification and 
Impairment).   
2. Recognition 
119. Article 10.9 paragraph 1 of the Agreement is e ffectively identical to Article VII.1 of the 
GATS.  Article 10.9 paragraph 2 provides that  when a party recognizes (autonomously, by 
arrangement or agreement) the experience or qualifi cations granted in the territory of a non-party, 
nothing in Article 10.9 paragraph 3 shall require th e party to accord such recognition to the territory 
of the other party.   
120. Article 10.9 paragraph 3, cross refers to Article  10.9.1 of the Agreement and closely parallels 
Article VII.2 of the GATS.  Article 10.9 paragraph 3 provides that if a Party concludes an agreement 
on recognition with another party, it shall afford th e other Party an opportunity to negotiate accession 
to that other Agreement.  Article 10.9.4 mirrors GATS Article VII.3.   
121. Article 10.9 paragraph 5 provides that Anne x 10A ("Professional Services") applies to 
measures adopted by a party related to licensing or certification of professional services.  
3. Subsidies 
122. Article 10.1, subparagraph 3 (d) provides that Chapter 10 shall not apply to subsidies or 
grants provided by a Party, including govern ment-supported loans, guarantees and insurance, 
although its footnote provides that a Party adversely affected by such a subsidy or grant may request 
consultations on the matter with the other Party.   
4. Safeguards 
123. Safeguards are permitted under Chapter 24 of th e Agreement to safeguard the balance of 
payments (see Section D.2(f) above). Annex 9C of the Agreement (on Investment) concerns 
Temporary Safeguard Measures, in paragraphs 1 a nd 2 to that Annex.  Paragraph 1 provides that 
nothing in Chapters 9, 10 (Cross-Border Trade in  Services) or 12 (Financial Services) shall be  WT/REG298/1 
 Page 37 
 
 
  construed to prevent a Party from adopting or ma intaining temporary safeguard measures.  Such 
measures shall be permitted in relation to payments  and capital movements in the event of serious 
balance of payments or external financial difficulti es or threat thereof;  or where, in exceptional 
circumstances, payments and capital movements ca use or threaten to cause serious difficulties for 
macroeconomic management (such as the operation of monetary policy or exchange rate policy) in 
either Party.  Paragraph 2 sets out additional conditions to the implementation of Temporary 
Safeguard Measures.  Paragraph 3 provides that no thing in Chapters 9, 10 (Cross-Border Trade in 
Services) or 12 (Financial Services) shall be cons trued to affect the rights and obligations of the 
Parties under the Articles of Agreement of the International Monetary Fund.   
5. Other 
124. Article 10.10 of the Agreement provides that the Parties shall consult annually (by any 
technological means available) to review the impl ementation of Chapter 10 of the Agreement.  
Article 10.12 concerns Payments and Transfers.  Article 10.12 paragraph 1 provides that payments 
and transfers shall be freely permitted by the Parties,  and paragraph 2 requires that it be permitted to 
be made in freely usable currency.  Article 10. 12 paragraph 3 contains circumstances under which a 
party may prevent or delay a payment or transfer.   
125. Article 10.7 of the Agreement contains a tran sparency obligation (further to Chapter 21 on 
Transparency) that obliges the Par ties to maintain or establish mech anisms to respond to enquiries in 
relation to its regulations concerning services.   
F. SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  
1. Professional Services 
126. Annex 10A on Professional Services provides in Ar ticle 1 that the relevant bodies in each 
party shall be encouraged to develop mutually acceptable standards and criteria for licensing and 
certification of professional services.  Article 2 of Annex 10A sets out the topics upon which such 
standards and criteria could be developed.  Artic le 4 of Annex 10A concerns the development of 
procedures for temporary licensing of service suppliers  in the other territory.  The Joint Commission 
is required to at least once every 3 years review the implementation of Anne x 10A, pursuant to Article 
5 of Annex 10A. 
2. Financial Services 
127. Chapter 12 of the Agreement concerns Financ ial Services.  Article 12.15 provides that 
Annex 12C sets out commitments  on Financial Services.   
128. Paragraph 12.1 paragraph 1 defines "financial  services for the purposes of Chapter 12 by 
providing that the Chapter applies to measures adopt ed or maintained by a party related to (a) 
financial institutions of the other party, (b) investor s and investments by investors in the territory of 
the party, and (c) cross border trade in financial services.  Article 12.1 paragraph 2 provides that 
Chapters 9 (Investment) and 10 (Cross border trad e in Services) do not apply financial services as 
defined in paragraph 1, except when the terms of t hose Chapters are incorporated into Chapter 12.  
Sub-paragraphs (a)-(c) expressly incorporate by refere nce certain provisions from Chapters 9 and 10.   
129. Paragraph 12.1 paragraph 325 provides that Chapter 12 does not apply to measures adopted by 
a Party related to public retirement, statutory so cial security, or activities or services conducted for the 
account or with the guarantee of financial resources of the party, including its public entities.  The 
                                                      
25 See also Annex 12A "Understanding concerning Article 12.1.3(a)" WT/REG298/1 
Page 38  
 
  paragraph also provides that the Chapter applies to  the extent that any of the activities listed in 
paragraph 12.1 paragraph 3 are permitted to be undertaken by its  financial institutions in competition 
with a public entity or financial institution.   
130. Article 12.2 concerns national treatment in financial services.  Article 12.3 describes the 
obligation of most-favoured-nation treatment.  Article  12.4, concerning Market Access for Financial 
Institutions, provides that a Party shall not adopt or maintain measures that limit the number of 
financial institutions, the value of such transactions , the number of operations or the number of natural 
persons that may be employed or impose limitations upon the type of investors of the other party 
through which a financial institution may deliver a financial service.  Article 12.5 requires that the 
Parties permit cross border trade in financial servi ces as defined in Annex 12B to the Agreement and 
that Parties be permitted to consume those services from suppliers located in the other party's 
territory.   
131. Article 12.6 concerns "New Financial Services".  It requires that the Parties grant a financial 
institution of the other party the same rights to en gage in supply of a new financial service that it 
would accord to its own financial in stitutions in like circumstances.   Article 12.7 concerns nationality 
requirements for Senior Management and Boards of Directors. 
132. Article 12.9 concerns non-conforming measures.  Paragraph 1 provides that Articles 12.2 
through 12.5 and Article 12.8 do not apply to existing non-conforming measures maintained or 
continued by a party at a central government level and set out in Section A of the Schedule in Annex 
III, or maintained by a local level of government.  Article 12.9 paragraph 2 provides that Articles 12.2 
through 12.5 and Article 12.8 shall not apply to any measure that a party adopts or maintains in 
respect to sectors, sub-sectors or activities set out in  Section B of the Schedule in Annex III.  Article 
12.9 paragraph 3 provides that any non-conforming meas ure listed in a Part's Schedule in Annex I or 
II shall be treated as a non-conforming measure not subject to Articles 12.2 or 12.3 to the extent that the measure is covered by Chapter 12.   
133. Article 12.10 concerns exceptions.  Article 12.10  paragraph 1 provides that nothing contained 
in Chapter 9 (Investment), 12 (Financi al Services), 13 (Telecommunications) or 
14 (Electronic Commerce)
26 shall prevent a party from adopti ng measures in relation to financial 
services in its territory for prudential reasons.  Ar ticle 12.10 paragraph 2 provides that nothing in 
Chapter 9 (Investment), 11 (Temporary Entry of Business Persons), 12 (Financial Services), 13 
(Telecommunications) or 14 (Electronic Commerce) shall prevent a party from adopting measures in 
relation to financial services in its territory by an y public entity in pursuit of monetary and related 
credit policies or exchange rate policies.   
134. Paragraph 12.10(3) provides that notwithsta nding Articles 9.13 (Transfers) and 10.12 
(Payments and Transfers) as incorporated into Chap ter 12, a party may prevent or limit transfers by a 
financial institution or cross border financial ser vice provider through equitable, non-discriminatory 
and good faith application of measures related to the safety, soundness, integrity and financial 
responsibility of such institutions.  The paragraph al so expressly does not prejudice any other right in 
the Agreement to restrict transfers.  Article 12.10 paragraph 4 reiterate s that nothing in the 
Chapter shall be construed to prevent a Party fro m adopting or enforcing measures necessary to secure 
compliance with laws or regulations that are not in consistent with the Chapter, provided they are not 
applied in a discriminatory manner.   
135. Article 12.11, on Transparency, sets out requireme nts on regulatory transp arency in the area 
of financial services.  Article 12.11 paragraph 1 co mmits the Parties to the promotion of transparency 
                                                      
26 Defined in footnote 6 as including "the maintenance of the safety, soundness, integrity, or financial 
responsibility of individual financial transactions  or cross-border financial service suppliers.    WT/REG298/1 
 Page 39 
 
 
  in regulation of financial services.  Article 12.11 paragraph 2 commits the Parties to ensure that such 
regulations in a transparent and objective manner,  and describes requirements for publication of 
regulations prior to their entry into force and oppor tunities for interested Parties to become familiar 
with them.   
136. Article 12.14 permits a party to recogni ze the prudential measures of a non-party, 
autonomously, through harmonization, or based on an ag reement or arrangement with the other party.  
Article 12.16 establishes a Committee on Financial Se rvices, which will supervise the implementation 
of Chapter 12.  The Committee is required to meet annually, or as otherwise agreed, to supervise and 
assess the functioning of the Agreement as it applies to Financial Services, as well as to participate in 
dispute settlement pursuant to Article 12.19 (Inve stment Disputes in Financial Services).  The 
Committee has not met as of May 1, 2012. 
137. Article 12.20 contains definitions used in th e Chapter.  Chapter 12 also contains an 
Understanding Regarding Financial Se rvices and Services Measures.   
138. Annex C sets out the specific commitments of the Parties on Financial Services.   
3. Telecommunications 
139. Chapter 13 of the Agreement concerns Telecommunications.  The scope of the measures 
covered in the Chapter is set out in Article 13.1 pa ragraph 1, and applies to public telecommunication 
networks and services and value added services.  Article 13.1 paragraph 2 provides (in the case of 
broadcast and cable systems access to public te lecommunications networks and services ) that the 
Chapter does not apply to any measure  related to broadcast or cable di stribution of radio or television 
programming.  Article 13.1 paragraph 3 provides that  the Chapter shall not be construed to require a 
party to compel enterprises operating in the area of  telecommunications and broadcast to create, make 
available, or prohibit use of its networks or servi ces.  Article 13.2 gives Chapter 13 priority over any 
other Chapter to the extent of any inconsistency.   
140. Section A of Chapter 13 is entitled "Access to and Use of Public Telecommunications 
Networks and Services".  Article 13.3 paragraph 1 provides that service suppliers of the other party 
shall be given access to public telecommunicati ons networks on reasonabl e and non-discriminatory 
terms and conditions.  Article 13.3 pa ragraph 2 requires Parties to ensure that service suppliers of the 
other Party have access to telecoms networks and in frastructure.  Article 13.3 paragraphs (3) and (4) 
require a Party to permit service suppliers of the other Party to use the telecommunications networks 
and services to store as well as for movement of information in and out of the territory subject to necessary confidentiality and privacy requirements th at do not operate as a disguised restriction on 
trade in services.  Article 13.3 paragraphs (5) and (6) establish limitations on restrictions of access to 
public telecommunications networks and services.   
141. Section B of Chapter 13 is entitled "Additional Obligations Related to Major Suppliers of 
Public Telecommunications Services".  Article 13.4  provides that Parties must ensure that major 
suppliers in its territory accord suppliers from th e other Party treatment no less favourable than it 
accords to its own subsidiaries or affiliates in resp ect of the availability and pricing of like public 
telecommunications networks or services and the av ailability of technical interfaces required for 
interconnection.  Article 13.5 requires Parties to ma intain measures to prevent suppliers of public 
telecommunications services engaging in anti-compe titive practices, which are inclusively defined in 
sub-paragraphs 13.5(2)(a)-(c).  Article 13.6 requires Parties to ensure that a major supplier provides 
interconnection at any feasible point in the network, under non-discriminatory terms, in a timely 
manner and upon request at additional points, subject to  charges reflecting the cost of adding the extra 
facilities.  Article 13.6 paragraph 2 requires that the procedures for obtaining connection must be WT/REG298/1 
Page 40  
 
  publicly available.  Article 13.6 paragraph 3 requir es that interconnection agreements or a reference 
model be publicly available.   
142. Section C of Chapter 13 concerns "Other Measur es".  Article 13.7 requires Parties to establish 
independent telecommunications regulatory bodies.  Ar ticle 13.8 permits the Parties to define their 
obligations of "universal service", which shall be administered in a transparent, non-discriminatory, 
and competitively neutral manner.  Article 13.9 re quires the publication of licensing requirements and 
the process for obtaining a licence, concession or aut horization, as well as a statement of reasons for 
denial of permission.  Article 13.10 concerns the non-discriminatory allocation of telecommunications 
resources and frequencies, whilst permitting the rete ntion of such resources for specific government 
uses.  Article 13.10 paragraph 3 notes that alloca tion of resources and frequencies shall not be subject 
to the obligations set out in Ar ticle 10.4 (Market Access) as applied to Chapter 9 (Investment) or 10 
(Cross Border Trade in Services).   
143. Article 13.11 concerns resolution of Telecomm unications Disputes, in addition to the 
requirements of Articles 21.3 (Administrative Pr oceedings) and 21.4 (Review and Appeal).  
Article 13.12 sets out obligations on Transparency  in relation to regulation, advance notice and 
transparency of measures related to public telecommunications.   
144. Section D contains definitions of terms used in the Chapter. 
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. T
RANSPARENCY  
145. Chapter 21 concerns Transparency in Articl es 21.1-21.5.  Article 21.1 provides that each 
party shall ensure that its laws, regulations and administrative regulations of general application 
related to any matter under this Agreement are pub lished or otherwise made publicly available.  
Article 21.2 concerns notification a nd provision of information to the other Party that might materially 
affect the operation of the Agreement or substant ially affect the other Party's interests under the 
Agreement.  Article 21.3 sets out transparency and participation requirements for interested Parties in 
administrative proceedings.  Article 21.4 requires that  the Parties establish or maintain judicial or 
administrative tribunals or procedures to review fi nal administrative actions.  Paragraph 2 of that 
Article describes procedural requirements for those bodies.     
B. CURRENT PAYMENTS AND CAPITAL MOVEMENTS  
146. Article 9.13 sets requirements on transfers (into or out of the territory of a Party) related to 
"covered investments"27.   
147. As noted above, Article 12.10 paragraph 3 provides that notwithstanding Articles 9.13 
(Transfers) and 10.12 (Payments and Transfers) as in corporated into Chapter 12, a party may prevent 
or limit transfers by a financial institution or cr oss border financial service provider.  Any such 
regulation of transfers must be equitable, non-discr iminatory and a good faith application of measures 
related to the safety, soundness, integrity and financial responsibility of such institutions.   
148. The paragraph also expressly does not prejudice a ny other right in the Agreement to restrict 
transfers.  Article 12.10 paragraph 4 reiterates th at nothing in the Chapter shall be construed to 
prevent a Party from adopting or enforcing measur es necessary to secure compliance with laws or 
regulations that are not inconsistent with the Chapter, provided they are not applied in a 
discriminatory manner.   
                                                      
27 See "Investment" above.    WT/REG298/1 
 Page 41 
 
 
  C. EXCEPTIONS  
149. Chapter 24 of the Agreement concerns Exceptions .  Article 24.1 paragraph 1 provides that for 
the purposes of Chapters 2 (National Treatment and Market Access for Goods), 3 (Rules of Origin), 4 
(Origin Procedures), 5 (Customs Administra tion and Trade Facilitation), 6 ((Sanitary and 
Phytosanitary Measures), 7 (Technical Barriers to Trade) and 8 (Trade Remedies), Article XX of 
GATT 1994 and its Interpretative Not es are incorporated into and ma de part of the Agreement, 
mutatis mutandis .   
150. Article 24.1 paragraph 2 provides that for the pur poses of Chapters 9 (Investment), 10, (Cross 
Border Trade in Services), 11 (Temporary Entry fo r Business Persons), 13 (Telecommunications), and 
14 (Electronic Commerce), Article XIV of GATS, in cluding its footnotes is incorporated into and 
made part of the Agreement mutatis mutandis .  
151. Article 24.2 notes that nothing in the Agreement shall require a Party to (a) provide 
information that would be contrary to what it determ ines to be its national security interests, or (b) to 
preclude a Party from applying measures that it consider s necessary to its national security interests.   
152. Under Article 24.4 nothing in the Agreement sh all affect the rights and obligation of the 
Parties under any tax convention.  In the event of any inconsistency with the Agreement, the 
convention shall prevail to the extent of the incons istency.  For tax conventio ns between the Parties, 
the competent authorities under the convention will be responsible for determini ng any inconsistency.  
Notwithstanding this, Article 2.2 on national treatment  and other provisions necessary to give effect to 
Article 2.2 shall apply to taxation measures to the same extent as Article III of GATT 1994 and 
Article 2.11 on export taxes shall apply to taxatio n measures.  Paragraphs  4-6 detail further the 
provisions of the Agreement for which taxation measures apply.  
D. ACCESSION AND WITHDRAWAL  
153. Chapter 25 contains Final Provisions for th e Agreement.  There are no provisions on 
Accession.  Article 25.4 concerns termination.  Ei ther Party may terminate the Agreement effective 
upon the expiry of 6 months written notice to the other Party., except in respect of tariff concessions 
which continue for 12 months from the date of written notice to the other Party unless otherwise 
agreed.    
E. INSTITUTIONAL FRAMEWORK  
154. Article 22.1 establishes a Joint Commission comp rising the Minister of Foreign Trade and 
Tourism of Peru and of Trade of Korea.  Paragra ph 2 of Article 22.1 establishes the functions of the 
Joint Commission which include overseeing the im plementation and the application of the 
Agreement; overseeing the achievements in the appli cation of the Agreement;  overseeing its further 
elaboration;  seeking to resolve disputes under Chapte r 23 of the Agreement;  supervising the work of 
all the committees, working groups and othe r bodies established under the Agreement;  and 
considering any other matter that may affect its operati on or that is entrusted to it by the Parties.  The 
Commission may establish and delegate responsib ilities to committees, working groups and other 
bodies.  As of May 1st, the Joint Commission has not met.   All its decisions are to be taken by 
consensus.  It shall meet at least once a year in  regular session and upon request by either Party in 
extraordinary session.  Article 22.2 establishes Ag reement Coordinators and contact points.   
155. As noted above, the Agreement establishes Committees on SPS pursuant to Article 6.7, 
paragraph 1, on Technical Barriers to Trade pursuant to Article 7.9, on Financial Services per Article 
12.16, and on Procurement by Article 16.19.   WT/REG298/1 
Page 42  
 
  F. D
ISPUTE SETTLEMENT  
156. Chapter 23 of the Agreement and Annex 23A (M odel Rules of Procedure) concern Dispute 
Settlement.  Under Article 23.2 the Chapter applies w ith respect to the avoidance or settlement of all 
disputes between the Parties regarding the interpreta tion or application of the Agreement when a Party 
considers that a measure of the other Party is incons istent with the Agreement or that the other Party 
has not complied with its obligations under the Agreement.   
157. If a dispute arises under the Agreement and anot her Agreement to which both the Parties are 
party, including the WTO Agreement, the complaini ng Party may select the forum.  Once the forum is 
selected and unless otherwise agreed by the Parties, it shall be to the exclusi on of the other forum in 
respect of that matter. 
158. Article 23.4 describes the consultation mechanism applicable to disputes under Article 23.2.  
Consultations are required to be requested in writi ng and the written request must state the reasons for 
the request and identify the measure at issue and the legal and factual basis for the complaint.  Upon 
failure of consultations, the requesting Party can ch oose to refer the matter to the Joint Commission 
pursuant to Article 23.5.   
159. If the consultation period expires or the Joint Commission fails to settle the dispute, the 
complaining Party may request the establishment of a panel, pursuant to Article 23.6.  Article 23.7 sets out the required qualifications of the panel members.  The process for selection of panel members and appointment of a Chair of the pane l are described in Article 23.8.   
160. Model rules of procedure are to be used by the panel (except in the case of joint agreement to 
the contrary by the Parties) and are set out in Anne x  23A.  Expert evidence may be used by the panel 
under Article 23.11.  Article 23.13 sets out requirements for the report of the panel.  Article 23.15 
permits suspension and termination of the panel.  The Panel report is final and binding on the Parties 
unless otherwise agreed.  If it determines that the measure does not conform to the obligations under 
the Agreement, the Party complained against must  eliminate the non-conformity.  The Parties shall 
agree on a resolution of the dispute and a reasonable period of time to eliminate the measure.  Non-
implementation will result in negotia tions to agree on appropriate compensation.  Failure to agree on 
compensation or if the complaining Party considers that the Party complained against has failed to 
observe the terms of the agreement on compensati on, the complaining Party may suspend benefits 
under the terms and procedures of Article 23.19.  The level of benefits to be  suspended should have 
equivalent effect to the adverse trade effect of the measure taken by the Party complained against and 
the Party should seek to suspend benefits in the same sector or sectors affected by the measures.  
 
    
 
 
 
 
 
   WT/REG298/1 
 Page 43 
 
 
  Chart V.1. Dispute Settlement  Mechanism of the Agreement  
 
 
    
 
     
 
    
 
     
 
    
 
    
 
     
 
    
 
    30 days  
(15 days for urgent matters/ 
perishable goods) 
Consultations 
60 days  
(25 days for urgent matters/ 
perishable goods) 
Request for establishment of Panel 
30-50 days 
Panel Established 
15 days for agreement on means to 
resolve the dispute/a reasonable 
period of time 
Implementation (within 
reasonable period of time) Non-implementation + 
compensation 
Request for review of 
implementation 
Suspension of benefits 
30 days after notification 
Request for Panel to review 
level of suspension of benefits 
45 days  
(15 days to convene, 
30 days to decide)  120 days 
(80 days for urgent matters/ 
perishable goods) Panel reconstituted  
15 days after request  
Panel report 
within 30 days 
Report by Panel to Parties -  
Binding and Final 
Decision of Panel Request for Consultations WT/REG298/1 
Page 44  
 
  G. R
ELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
161. Article 1.2 paragraph 1 of the Agreement provid es that the Parties affirm their existing rights 
and obligations with respect to each other under th e WTO Agreement.  If any provision of the WTO 
Agreement is amended and accepted by the Parties at the WTO, such amendment will be deemed 
incorporated automatically into th e Agreement.  The status of ot her agreements concluded by the 
Parties (notified and non-notified) is shown in Table V.1 below. 
Table V.1 
Peru and the Rep. of Korea:  Participation in other RTAs  (notified and non-notified in force), as of 1 June 2012 
Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
PERU * 
Panama 01.05.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Japan 01.03.12 Goods & Services 2012  GATT Art. XXIV & GATS Art. V 
Mexico 01.02.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
EFTA 01.07.11 Goods 2011 GATT Art. XXIV 
China 01.03.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Singapore 01.08.09 Goods & Services 2009  GATT Art. XXIV & GATS Art. V 
Canada 01.08.09 Goods & Services 2009  GATT Art. XXIV & GATS Art. V 
Chile 01.03.09 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
United States 01.02.09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
CAN 25.05.88 Goods 1990 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73  Goods 1971 Enabling Clause 
Thailand 31.12.11 Goods  Not notified  
Andean Community 14.12.06 Services Not notified  
MERCOSUR (AAP.CE N°58) Janua ry.06 Goods Not notified  
Cuba (AAP.CE N°50) 09.03.01 Goods Not notified  
LAIA (except Mexico) - Seeds  
(AAP.AG N°2) [21.08.95] Goods Not notified  
REP. OF KOREA  
United States 15.03.12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V 
European Union 01.07.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
ASEAN 01.06.07 
01.05.09 Goods 
Services 2010 
2010 Enabling Clause & GATT Art. XXIV 
GATS Art. V 
India 01.01.10 Goods & Services 2010 Enabling Clause, GATT Art. XXIV 
& GATS Art. V 
EFTA 01.09.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
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 
APTA - Accession of China 01.01.02 Goods 2004 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
APTA 17.06.76 Goods 1976 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
 
Source: WTO Secretariat.   WT/REG298/1 
 Page 45 
 
 
  CAN: Andean Community 
LAIA: Latin American Integration Association 
EFTA: European Free Trade Association APTA: Asia Pacific Trade Agreement 
GSTP: Global System of Trade Pref erences among developing countries 
PTN: Protocol on Trade Negotiations  
*
 For those agreements negotiated under the LAIA framework, th e LAIA reference is included in brackets. Details of these 
agreements can be found at:  http://www.aladi.org   
"Partial scope" agreements are those RTAs not  providing for the establishment of a free-trade area and/or providing for a limit ed coverage. 
 
AAP.CE: Economic Complementarity Agreements. 
AAP.AG: Agreements under Article 12 of th e Montevideo Treaty on Agricultural Goods. 
 
H. GOVERNMENT PROCUREMENT  
162. Korea is a Party to the Agreement on Governme nt Procurement (GPA).  Peru is neither a 
Party nor an Observer to the GPA. 
163. Chapter 16 of the Agreement concerns Governme nt Procurement, in Articles 16.1-16.20.   
164. Article 16.1 paragraph 2 defines "covered proc urement" for the purposes of the Chapter.  
Paragraph 3 notes that build-opera te-transfer ("BOT") and public works contracts are subject to 
Annex 16B.  Paragraph 4 states that the Chapter will not apply to (a) non-contractual agreements or 
any assistance that a Party (or its entities) provid es, (b) to procurement or acquisition of certain 
services for regulated financial institutions or servi ces related to public debt.  The Chapter does not 
apply to procurement of banking, financial or specia lized services related to (i) the incurring of public 
indebtedness, (ii) public debt management, (iii)  purchases funded by international grants or other 
assistance and the hiring of government employees and related employment measures.  
165. The valuation of procurement is governed by Artic le 16.1, paragraphs 5- 8.  Article 16.2 lists 
exceptions to the Chapter.  Paragr aph 1 concerns essential security interests.  Paragraph 2 concerns 
measures that are not used in a manner that operates as an arbitrary or disguised measure against trade 
between the Parties, provided that such measures ar e (a) necessary to protect public morals, order or 
safety, (b) necessary to protect human, animal or plant life or health28, (c) necessary to protect 
intellectual property, or are (d) related to goods or services of persons with disabilities, philanthropic 
institutions or prison labour. 
166. Article 16.3 sets out General Principles on procur ement.  Paragraph 1 and 2 concern National 
Treatment and Non-Discrimination29.  Paragraph 3 sets out requirements for solicitation of 
procurement and receipt of bids.  Paragraph 4 requires transparent and impartial conduct of 
procurement.  Paragraph 5 requires that the Parties apply to covered procurement the rules of origin 
that would normally apply to the same goods or ser vices from the other Party.  Paragraph 6 prohibits 
offsets.   
167. Article 16.4 sets out requirements for publicati on of procurement information.  Article 16.5 
concerns publication of notices for intended and planned procurement.  Article 16.6 concerns 
conditions for participation set by the procuring entity.  Information requirements on intended 
procurements are detailed in Article 16.7.  Article 16.8 sets out mandatory time periods for 
procurements.  Tendering procedures are describ ed in Article 16.9.  Article 16.10 sets out 
requirements for the holding of procurement through  the means of electronic auctions.  Article 16.11 
                                                      
28 Article 16.2, paragraph 3 provides that sub-paragr aph (b) includes environmental measures necessary 
to human, animal, or plant life or health.   
29 Article 16.3 paragraph 7 provides that paragraphs 1 and 2 do not apply to customs duties and 
charges, the method for application of such duties, other import regulations or formalities, measures affecting 
trade in services other than measures governing covered procurement.   WT/REG298/1 
Page 46  
 
  describes procedural requirements for the opening of te nders and awarding of contracts.  Article 16.12 
contains transparency requirements.  Article 16.13  sets out information disclosure and non-disclosure 
requirements, including on the determination of the successful bidder.  Article 16.14 requires the 
establishment of domestic review processes for suppliers to challenge an apparent breach of the Chapter.  Articles 16.15 and 16.16 concern modification and rectifications by the Parties to the sectors 
covered by the Chapter.   
168. Article 16.18 restates the Parties commitment to  co-operation on procurement.  A Committee 
on Procurement is established by Article 16.19.  Ar ticle 16.20 contains definitions used in the 
Chapter.   
169. The Parties Schedules on Government Procurement are set out in Annex 16A to the 
Agreement.  Annex 16A Section A contains the Parties commitments and covered Central 
Government entities are set out in Annex 16A.  Annex 16A Section B contains the Parties 
commitments and covered Sub-Central Government  entities.  Annex 16A Section C contains the 
Parties commitments and other covered entities.  Annex 16A Section D specifies that the Chapter 
shall apply to goods procured by the entities listed in  Sections A-C.  Annex 16A Section E, for Peru, 
specifies that the Chapter applies to procurement of  all services by the entities listed in Annex 16A-C 
and Section G, except for the services excluded by Peru's Schedule, which lists CPC 8221 
(Accounting and auditing services), CPC 8321 (Architectural Services), CPC 8334 (Engineering and design services), CPC 8335 (Engineering Services dur ing construction and in stallation phase), CPC 
82191 (Arbitration and conciliating services).  Korea's Section E Schedule provides that only financial 
services are excluded from Sections A and B.  In th e case of services in Section C, services listed in 
the revised GPA shall be included (with others excluded).  Section F on Construction Services, 
applies to the procurement of all construction services under CPC 51 procured by procuring entities 
listed in Sections A-C unless otherwise specified.  Annex 16A Section G contains General Notes on 
the interpretation of Annex 16A. 
170. Annex 16B concerns the Parties commitmen ts on BOT Contracts and Public Works 
Concession Contracts.  It establishes a threshold of SDR 15,000,000
30 for BOT Contracts and public 
works concession contracts.  For Korea the Anne x covers BOT contracts of the procuring entities 
listed in Sections A and B of Annex 16A.  For Pe ru the Annex covers BOT contracts and public 
works concession contracts of the entities listed in Sections A and B of Annex 16A.  
171. Korea's procurement commitments under the Ag reement are more liberal than Korea's 
Government Procurement Agreem ent (GPA) commitments.  In respect of purchases of goods or 
services at the Central level of government, Ko rea's threshold for goods and services in the 
Agreement is lower (SDR 95,000, in comparison to SDR 130,000 under the GPA Annex 1).  The list 
of entities is identical to that under the revised GPA.  Korea's commitments under the Agreement in 
respect of other covered entities have . the threshol ds of SDR 400,000 for goods and SDR 15,000,000 
for construction services while the thresholds under the GPA are SDR 450,000 and SDR 15,000,000 
for goods and construction services respectively.  In regard with the other covered entities, Korea did 
not make any commitment as to the procurement of services.  Korea's commitments under Section E of Annex 16A on Services are defined by referen ce to Korea's commitments under the revised GPA 
(not yet in force).   
I. I
NTELLECTUAL PROPERTY RIGHTS  
172. Chapter 17, Articles 17.1-10 concern Intellectual Property Rights.  The objectives of the 
Chapter are to increase the benefits from trade and i nvestment, to foster creation and innovation in the 
                                                      
30 Annex 16C provides a methodology for calculation and conversion of SDR into national currencies 
of the Parties.    WT/REG298/1 
 Page 47 
 
 
  territories of the Parties, to enhance producti on and commercialization of innovative and creative 
products, and facilitate and promote technology tran sfer between the Parties (Article 17.1).   
173. Article 17.2 affirms the rights and obligations of the Parties under the TRIPS Agreement as 
well as other multilateral agreements related to intell ectual property, including those administered by 
the World Intellectual Property Organization (WIPO) .  Article 17.3 expressly permits the Parties to 
afford more extensive protection to  intellectual property, provided th at more extensive protection does 
not contravene the Chapter.  Article 17.4 sets out , in paragraphs (1)-(6), General Principles and 
includes according treatment to nationals of the othe r Party no less favourable than provided to its 
own nationals subject to the exceptions in Articles 3 and 5 of the TRIPS Agreement.  
174. Article 17.5 concerns Genetic Resources and Traditional Knowledge establishing that the 
Parties shall have the authority to determine acc ess to their genetic resources in accordance 
with their domestic legislati on. It also states that the Pa rties will endeavour to create 
conditions to facilitate transp arent access to genetic resources and seeks ways to share 
information on patent appl ications based on genetic resources or  traditional knowledge by providing a 
publicly accessible database with relevant informati on  and opportunities to file prior art to the 
appropriate examining authority in writing.  Ar ticle 17.6 concerns Recognition and Protection of 
Geographical Indications (GIs).  Paragraph 1 re quires the Parties to provide a system for the 
protection of GIs in accordance with Section 3 of Pa rt II of the TRIPS Agreement.  Paragraph 2 refers 
to the geographical indications of the Parties (in Section A and B of Annex 17A for Peru and Korea 
respectively), and requires them to provide protecti on for those names.  The parties shall consult to 
add new GIs to the list. 
175. Article 17.7 describes specific protection for co pyright and related rights.  Paragraph 2 sets 
out the term of protection for a work (including a photographic wo rk), performance, or 
phonogram .  The rights of broadcasting organizations are set out in paragraphs 4-9 of that Article 
and extend protection for no less than 50 years after transmission. 
176. Article 17.8 contains obligations on enforcement of intellectual property rights.  Article 17.9 
concerns special requirements rela ted to border measures.  Article  17.10 concerns co-operation and 
technology transfer.   
J. OTHER  
1. Electronic Commerce 
177. Chapter 14 of the Agreement concerns Electronic Commerce, in Articles 14.1-14.10. 
178. Article 14.1, paragraph 1 provides that th e Parties recognize the economic growth and 
opportunity that electronic commerce provides and the applicability of the WTO Agreement to measures affecting electronic commerce.  Article 14.4, paragraph1 provides that neither Party shall apply customs duties, fees or charges on or in co nnection with the importation or exportation of 
digital products by electronic means.  Paragraph 2 notes that a Party may impose internal taxes or 
other charges on digital products de livered electronically, provided that those taxes or charges are 
consistent with the Agreement.  Article 14.6 prov ides that Parties shall endeavour to make trade 
administration documents available in electronic form and try to ensure that they are considered the 
legal equivalent of paper versions.   
2. Co-operation 
179. Chapter 20 of the Agreement concerns Co-opera tion.  Article 20.1 sets out the objectives 
under the Chapter.  Articles 20.3-13 enjoin the Pa rties to cooperate on ec onomic matters, small and WT/REG298/1 
Page 48  
 
  medium enterprises, fisheries and aquaculture co- operation, tourism, forestry, energy and mineral 
resources, science and technology, information and communications technology, maritime transport, 
cultural co-operation and agriculture. 
180. Article 20.14 establishes a Committee on Co-operation as well as contact points.  The 
Committee on Co-operation's functions are set out in  paragraph 2 of that Article.  Article 20.15 
provides that Chapter 20 is not subject to Chapter 23 on Dispute Settlement.   
3. Labour 
181. Chapter 18 of the Agreement concerns labour.  Article 18.1 as preamble to the Chapter 
provides that the Parties, in accordance with their obligations as members of the International Labour 
Organization (ILO) and the ILO Declaration on Fund amental Principles and Rights at Work and its 
Follow-Up, shall endeavour to adopt and maintain t hose principles in their legislation and practices. 
Article 18.3 concerns the guarantee of access to tr ibunals for enforcement of labour laws and the 
promotion of public awareness of such laws and the enforcement of rights.  Article 18.4 establishes a 
Labour Affairs Council which is mandate d to meet within one year from the date of entry into force of 
the Agreement and thereafter as n ecessary.  Article 18.5 requires th e Parties to initiate cooperative 
activities as described in Annex 18A.  Article 18.7 provides that Chapter 23, on Dispute Settlement, 
shall not apply to Chapter 18. 
4. Environment 
182. Chapter 19, Articles 19.1-19.14 concern Environment.  Article 19.1 sets out the objectives of 
the Chapter.  Article 19.2 set out the ambitions of the Parties to respect high levels of environmental 
protection.  Article 19.3 concern multilateral environm ent agreements and the Parties, and the Parties 
commit to comply with their obligations under any su ch treaties in paragraph 2 of that Article.   
183. Articles 19.5-9 set out the Parties aspira tions on application and enforcement of 
environmental law, biological diversity, environmen t and enterprise, climate change and technology.  
Article 19.10 creates an Environmental Affairs Council that shall meet within one year from the date 
of entry into force of the Agreement and thereafter as necessary.  Article 19.11 requires the Parties to 
initiate cooperative activities on environmenta l co-operation as described in Annex 19A.  
Article 19.14 provides that that Chapter 23, on Di spute Settlement, shall not apply to Chapter 19. 
  WT/REG298/1 
 Page 49 
 
 
  ANNEX I 
 
Market access under the Agreement 
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and MFN average rates in force on the date of entry into force of the Agreement is shown 
below in Tables AI.1 (for Peru) and A1.2 (for Kor ea).  The figures are shown for total, agricultural 
and non-agricultural products. 
2. Table AI.1 shows that in 2011 around 55.4% of  Peru's tariff was duty free, of which 38.7% 
for agricultural products and 58% for non-agriculture.  The overall average MFN tariff was 3.4%; the 
average tariff on agricultural products was double that for non-agriculture (6.6% compared to 3.3%).  
As a result of the entry into force of the Agreemen t an additional 14.3% of the tariff became duty free 
for imports from Korea, providing Korean exporters  with an average margin of preference of 26.5% 
of which 62.5% for agricultural and 18.2% fo r non-agricultural products.  After 10 years of 
implementation by 2020 the share of duty free lines  for imports from Korea is expected to rise to 
99.5% of which 100% for non-agriculture and 96 .8% for agricultural products.  By the end of 
implementation 100% of all tariff lines are to be lib eralized (excluding 5 lines which are already at 
zero rates of duty on an MFN basis). 
Table AI.1 
Peru:  Indicators of MFN tariff rates a nd preferential rates for imports from Korea 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 3.4 7.7 55.5 4.0 6.6 38.7 3.3 7.9 58.0 
Korea 2011 2.5 8.4 69.8 1.5 6.5 77.2 2.7 8.6 68.7 
 2012 2.4 7.9 69.8 1.4 6.1 77.2 2.6 8.1 68.7 
 2013 2.0 6.9 70.4 1.1 5.0 77.2 2.2 7.1 69.4 
 2014 1.6 5.4 70.5 0.8 3.7 77.2 1.7 5.6 69.4 
 2015 1.1 6.5 82.4 0.5 6.6 91.8 1.2 6.4 80.9 
 2016 0.9 5.2 82.4 0.5 6.1 91.8 1.0 5.1 80.9 
 2017 0.7 4.0 82.9 0.4 5.2 91.8 0.7 3.9 81.6 
 2018 0.5 2.7 83.1 0.3 4.1 91.8 0.5 2.6 81.7 
 2019 0.2 1.4 83.1 0.2 2.9 91.8 0.2 1.3 81.7 
 2020 0.0 4.4 99.6 0.1 4.4 96.8 0.0 0.0 100.0 
 2021 0.0 3.7 99.6 0.1 3.7 96.8 0.0 0.0 100.0 
 2022 0.0 5.5 99.8 0.1 5.5 98.2 0.0 0.0 100.0 
 2023 0.0 5.2 99.8 0.1 5.2 98.2 0.0 0.0 100.0 
 2024 0.0 4.6 99.8 0.1 4.6 98.2 0.0 0.0 100.0 
 2025 0.0 3.8 99.8 0.1 3.8 98.7 0.0 0.0 100.0 
 2026 0.0 1.9 99.8 0.0 1.9 98.7 0.0 0.0 100.0 
 2027 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 
a WTO Definition. Note: Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Peru. 
 
3. According to Table AI.2 in 2011 16.22% of Korea's tariff was duty free on an MFN basis, of 
which 3.92% for agriculture and 18.1% for non-ag ricultural products.  The average applied MFN 
tariff was 12.59% with average applied tariffs in ag riculture considerably higher at 52.5% compared 
to 7.9% for non-agriculture.  As a result of the Agreement, the share of duty free lines for imports 
from Peru rose to 84.56% providing Peruvian exporters an average margin of preference of 82.5%;  a 
significantly lower share of tariff lines were lib eralized in agriculture however, compared to 
non-agricultural products (26.1% compared to 93. 5%).  The average margin of preference for WT/REG298/1 
Page 50  
 
  agriculture for Peruvian exporters as a result wa s 10.3% compared to 89.7% for non-agriculture.  
After ten years of implementation in 2020 the total number of tariff lines liberalized is to rise to 97.4%, of which 80.59% in agriculture and 99.96% in non-agriculture. 
Table AI.2 
Korea:  Indicators of MFN ta riff rates and preferential rates for imports from Peru 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 12.59 15.02 16.22 52.51 54.66 3.92 6.47 7.90 18.10 
Peru 2011 6.90 44.67 84.56 47.59 64.41 26.11 0.66 10.13 93.52 
 2012 6.31 40.87 84.56 44.21 59.83 26.11 0.50 7.67 93.52 
 2013 5.72 42.19 86.44 40.83 58.94 30.72 0.34 6.73 94.97 
 2014 5.22 38.49 86.44 37.70 54.41 30.72 0.24 4.79 94.97 
 2015 4.72 55.84 91.55 34.55 75.71 54.36 0.14 5.14 97.26 
 2016 4.35 51.56 91.55 32.10 70.33 54.36 0.10 3.68 97.26 
 2017 3.99 56.91 92.98 29.64 67.76 56.26 0.06 4.42 98.61 
 2018 3.67 52.27 92.98 27.30 62.41 56.26 0.04 3.19 98.61 
 2019 3.34 47.60 92.98 24.95 57.04 56.26 0.03 1.96 98.61 
 2020 3.01 115.33 97.39 22.61 116.49 80.59 0.01 26.35 99.96 
 2021 2.82 107.97 97.39 21.16 109.05 80.59 0.01 25.40 99.96 
 2022 2.63 101.28 97.40 19.72 102.28 80.72 0.01 24.50 99.96 
 2023 2.44 93.87 97.40 18.28 94.79 80.72 0.01 23.55 99.96 
 2024 2.25 86.49 97.40 16.84 87.32 80.72 0.01 22.60 99.96 
 2025 1.46 63.56 97.41 11.16 64.18 80.78 0.01 21.65 99.96 
 2026 1.86 203.49 99.08 13.97 206.52 93.24 0.01 41.50 99.98 
 2027 1.86 203.49 99.08 13.97 206.52 93.24 0.01 41.50 99.98 
 2028 1.86 203.49 99.08 13.97 206.52 93.24 0.01 41.50 99.98 
 a WTO Definition.  
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Korea. 
 
4. Tables AI.3 and AI.4 below show market acc ess opportunities respectively for Korea's top 
25 exports to Peru and for Peru's top 25 exports to  Korea.  The tables show how many of the top 
25 exports have improved market access to the partne r's market as a result of the Agreement.  Table 
AI.3 shows that Korea's top 25 exports which a ccounted for 53.2%% of its global exports during 
2008-10 were covered by 101 tariff lines.  Of these, 85 lines were already duty free on an MFN basis in 2011 while 16 were subject to tariffs.  As a resu lt of liberalization under the Agreement 3 lines each 
are liberalized for imports from Korea in 2011 and 2015 and the remaining 10 in 2020.  At the end of 
implementation all of Korea's top 25 exports will have duty free market access in Peru. 
Table AI.3 – Peru: Market access opportunities  under the agreement for Korea's top 25 exports 
Korea's top export products in 2008-2010  Access Conditions to Peru's import markets  
MFN (2011)Duty-free in  
MFN 
average  No. of tariff lines
HS number and description of the product  Share in 
global 
exports Duty-
free Dutiable 2011 2015 2020 
271019 -- other 5.8 0.0 28     
901380 - other devices, appliances and instruments 5.7 0.0 2     
890120 - tankers 4.9 0.0 3     
851712 -- telephones for cellular networks or for 
other wireless networks 4.4 0.0 1     
870323 -- of a cylinder capacity exceeding 1,500 
cc but not exceeding 3,000 cc 4.0 6.0  4  1 3 
890190 - other vessels for the transport of goods 
and other vessels for the transport of both 
persons and goods 3.8 0.0 3     
Table AI.3 (cont'd)  WT/REG298/1 
 Page 51 
 
 
  Korea's top export products in 2008-2010  Access Conditions to Peru's import markets  
MFN (2011)Duty-free in  
MFN 
average  No. of tariff lines
HS number and description of the product  Share in 
global 
exports Duty-
free Dutiable 2011 2015 2020 
854232 -- memories 3.7 0.0 1     
854231 -- processors and controllers, whether or 
not combined with memories, converters, 
logic circuits, amplifiers, clock and timing 
circuits, or other circuits 3.0 0.0 1     
870899 -- other 2.7 0.0 12     
851770 - parts 2.3 0.0 1     
890590 - other 1.6 0.0 1     
852990 - other 1.6 0.0 3     
847330 - parts and accessories of the machines of 
heading 84.71 1.5 0.0 1     
271011 -- light oils and preparations 1.2 0.0 18     
870332 -- of a cylinder capacity exceeding 1,500 
cc but not exceeding 2,500 cc 0.9 6.0  4  2 2 
870322 -- of a cylinder capacity exceeding 1,000 
cc but not exceeding 1,500 cc 0.8 6.0  4   4 
291736 -- terephthalic acid and its salts 0.7 0.0 2     
870324 -- of a cylinder capacity exceeding 3,000 
cc 0.7 6.0  4 3  1 
852851 -- of a kind solely or principally used in an 
automatic data processing system of heading 84.71 0.6 0.0 1     
853400 Printed circuits. 0.6 0.0 1     
390330 - acrylonitrile-butadiene-styrene (abs) 
copolymers 0.6 0.0 1     
842952 -- machinery with a 360° revolving 
superstructure 0.5 0.0 1     
854140 - photosensitive semiconductor devices, 
including photovoltaic cells whether or not 
assembled in modules or made up into panels; light emitting diodes 0.5 0.0 2     
843149 -- other 0.5 0.0 1     
840810 - marine propulsion engines 0.5 24.0 1     
 Total of above  53.2  85 16 3 3 10 
 
Source :  WTO estimates based on data provided by Peru and UNSD, Comtrade database. 
 
5. With regard to Peru's top 25 exports to Kor ea which in 2008-10 accounted for over 80% of its 
global exports, 10 lines were already duty free on an  MFN basis in 2011 while 77 lines were subject 
to duties.  As a result of the Agreement 62 lines w ill be liberalized immediately for imports from Peru 
in 2011 followed by 2 in 2013, 11 lines in 2015 and 1 line in 2020.  One tariff line relating to fresh grapes is subject to seasonal duty (from 1 May to  31 October) for imports from Peru once the 
Agreement is fully implemented. 
Table AI.4 – Korea: Market acce ss opportunities under the agreeme nt for Peru's top 25 exports 
Peru's top export products in 2008-2010  Access Conditions to Korea's import markets  
MFN (2011)Duty-free in  
Remain 
Dutiable MFN 
average  No. of tariff lines
HS number and description of the product  Share in 
global  
exports Duty-
free Dutiable 
2011 
2013 
2015 
2020 
710812 -- other unwrought forms 21.5 3.0  2 2     
260300 Copper ores and concentrates. 16.1 0.0 1       
740311 -- cathodes and sections of  cathodes 7.6 3.0  1   1   
230120 - flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 4.8 5.0  2   2   
260800 Zinc ores and concentrates. 4.2 0.0 1       
271019 -- other 3.4 6.6  41 41     
Table AI.4 (cont'd) WT/REG298/1 
Page 52  
 
  Peru's top export products in 2008-2010  Access Conditions to Korea's import markets  
MFN (2011)Duty-free in  
Remain 
Dutiable MFN 
average  No. of tariff lines
HS number and description of the product  Share in 
global  
exports Duty-
free Dutiable 
2011 
2013 
2015 
2020 
271011 -- light oils and preparations 3.2 3.3 2 4 4     
260700 Lead ores and concentrates. 3.2 0.0 1       
090111 -- not decaffeinated 2.3 2.0  1 1     
261390 - other 2.0 0.0 1       
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 1.6 3.0  10 10     
610910 - of cotton 1.4 13.0  2   2   
710691 -- unwrought 1.1 3.0  2 2     
260111 -- non-agglomerated 1.0 0.0 3       
150420 - fats and oils and their fractions, of 
fish, other than liver oils 1.0 3.0  1   1   
800110 - tin, not alloyed 1.0 3.0  1 1     
070920 - asparagus 0.8 27.0  1  1    
740811 -- of which the maximum cross-
sectional dimension exceeds 6 mm 0.8 8.0  1 1     
610510 - of cotton 0.7 13.0  1   1   
261610 - silver ores and concentrates 0.6 0.0 1       
790111 -- containing by weight 99.99% or 
more of zinc 0.5 3.0  1    1  
200599 -- other 0.5 20.0  3   3   
200560 - asparagus 0.4 20.0  1  1    
080610 - fresh 0.4 45.0  1     1 
610610 - of cotton 0.4 13.0  1   1   
 Total of above  80.4  10 77 62 2 11 1 1 
 
Source : WTO estimates based on data provided by  Korea and UNSD, Co mtrade database. 
 
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