Posting Date 30/08/2007
                                                       ASEAN-Republic of Korea FTA (AKFTA)

As a commitment to the realization of the AKFTA, at the November 2004 Summit, Leaders agreed that ASEAN-6 and Korea shall eliminate tariffs for 80% of all products by 2010.

Negotiations for the AKFTA commenced in 2005. The Trade in Goods (TIG) chapter of the AKFTA entered into force in June 2007, while negotiations for the Trade in Services chapter are still ongoing.

Commitments under the AKFTA

The AKFTA Trade In Goods (TIG) Agreement entered into force on 1 June 2007 . With the exception of Thailand*, tariff reduction/elimination is categorised under four different lists. They are -  

1. Normal Track 1 - Tariffs to be eliminated by 1 Jan 2010 for ASEAN 6 & Korea

2. Normal Track 2 - Tariffs to be eliminated by 1 Jan 2012 for ASEAN 6 ONLY

3. Sensitive List - Tariffs to be reduced to not more than 20% by 1 Jan 2012 for ASEAN 6 & Korea

4. Highly Sensitive List - Products split into five groups with different commitments:

 Group A: Tariff rate to be not more than 50% by 1 Jan 2016

Group B: Tariff rate to be reduced by not less than 20% by 1 Jan 2016

Group C: Tariff rate to be reduced by not less than 50% by 1 Jan 2016

Group D: Application of tariff-rate quotas

Group E: Products excluded from granting any concessions (capped at 40 tariff lines at HS 6-digit level)

Rules of Origin (ROO)

The general ROO is Change in Tariff Heading (CTH) or 40% regional value-added content. Some products are subject to Product Specific Rule (PSR)

*Please note that Thailand is not a Party to the ASEAN-Korea FTA.

 

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