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Asean-Korea Free Trade Agreement

Parties

Parties to the ASEAN-Korea FTA are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, The Philippines, Singapore, Thailand, Vietnam and Korea. 

Entry into Force

Three major Agreements under the ASEAN-Korea FTA have been entered into force and implemented by ASEAN andKorea.

  1. The ASEAN-Korea Trade in Goods Agreement entered into force in June 2007
  2. The ASEAN-Korea Trade in Services Agreement entered into force in May 2009
  3. The ASEAN-Korea Investment Agreement entered into force in June 2009

Framework Agreement on Comprehensive Economic Cooperation Among the Governments of the Member Countries of the Association of Southeast Asian Nations and the Republic of Korea

Kuala Lumpur, Malaysia, 13 December 2005

Asean-Korea Free Trade Agreement

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Preamble 
 
Chapter 1:General Provision
 
Chapter 2:Liberalization
 
Chapter 3:Economic Cooperation
 
Chapter 4:Other Areas
 
Chapter 5:Final Provisions

Annex of the Framework Agreement on Comprehensive Economic Cooperation Among the Governments of the Member Countries of the Association of Southeast Asian Nations and the Republic of Korea

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Article 1:
Article 1 
Customs Procedures

The Parties, recognising that cooperation among authorities on customs matters is an important means of facilitating international trade, shall, subject to their respective domestic laws and consistent with their own policies and procedures:

  1. share expertise on ways to streamline and simplify customs procedures;
  2. exchange information on best practices relating to customs procedures, enforcement and risk management techniques with the exception of confidential information;
  3. facilitate cooperation and exchange of experiences in the application of information technology and improvement of monitoring and inspection systems in customs procedures; and
  4. ensure, as they deem fit, that their customs laws and regulations are published and publicly available, and their customs procedures, where necessary, are exchanged among customs contact points.
Article 2:
Article 2 
Trade and Investment Promotion
  1. The Parties shall cooperate in promoting trade and investment activities through government agencies and/or other bodies.
  2. Such cooperation shall include:
    1. launching a feasibility study on the establishment of an ASEAN-Korea Centre based in Korea;
    2. organising trade and investment promotion activities, such as trade and investment missions, regular business seminars and fora, and database sharing through electronic linkages (electronic business-matching); and
    3. assisting the development of the legal system, especially for the new ASEAN Member Countries, through professional training programmes and joint seminars to disseminate knowledge and experiences in law practices, and conducting projects to improve trade and investment-related laws.
Article 3:
Article 3 
Small and Medium Enterprises
  1. The Parties, recognising the fundamental role of small and medium enterprises (hereinafter referred to as “SMEs”) in maintaining the dynamism of their respective national economies, shall cooperate in promoting close cooperation among SMEs as well as the relevant agencies of the Parties.
  2. Such cooperation shall include:
    1. establishing networking opportunities for SMEs of the Parties to facilitate collaboration and/or sharing of best practices, such as in the field of management skill development, technology transfers, product quality improvements, supply-chain linkages, information technology, access to financing as well as technical assistance;
    2. facilitating the investment flows by Korean SMEs in the ASEAN Member Countries, and vice versa; and
    3. encouraging their relevant agencies to discuss, cooperate and share information and experiences in the development of SMEs policy and programmes.
Article 4:
Article 4 
Human Resource Management and Development

The Parties, recognising that sustainable economic growth and prosperity largely depend on people’s knowledge and skills, shall:

  1. encourage exchanges of their scholars, teachers, students, members of educational institutions and other persons engaging in scientific or educational activities; and
  2. encourage their relevant agencies to discuss and cooperate in upgrading competency and skills of their workers.
Article 5:
Article 5 
Tourism

The Parties, recognising that tourism will contribute to the enhancement of mutual understanding among the Parties and that tourism is an important industry for their economies, shall:

  1. explore the possibility of undertaking joint research on tourism development and promotion to increase inbound visitors to each Party, as well as consider setting up linkages and networks between the websites in the ASEAN Member Countries and Korea;
  2. encourage tourism agencies of the Parties to strengthen cooperation in tourism training and education, particularly in the Korean language and culture for tourist guides of the ASEAN Member Countries, to ensure high-quality services for Korean tourists in the territories of the ASEAN Member Countries;
  3. cooperate in joint campaigns to promote tourism in the territories of the Parties through workshops and seminars among tourism authorities and professional tourism agencies in the territories of the Parties;
  4. collaborate to promote the sustainable development of tourism in the territories of the Parties; and
  5. exchange information on relevant statistics, policies and laws in tourism and related sectors.
Article 6:
Article 6 
Science and Technology

The Parties, recognising that science and technology will contribute to the continued expansion of their respective economies in the medium and long term, shall:

  1. explore establishment of training programmes and exchange of scientific and technology information;
  2. consider undertaking joint research and development projects, especially in high-end sciences in key technology areas such as nano-technology, material technology, electronic technology, space technology, biotechnology and technology management, and other forms of science and technology cooperation;
  3. encourage linkages between their research institutions; and
  4. encourage the mutually beneficial joint use of research and development facilities and scientific equipment.
Article 7:
Article 7 
Financial Services

The Parties shall cooperate in the field of financial services with a view to:

  1. promoting regulatory cooperation and development, including exchange of information and experiences on market trends;
  2. facilitating the development of financial markets and infrastructure, including capital markets;
  3. providing technical assistance for human resource and institutional capacity development and exchanging experiences in the area of risk management;
  4. assisting in mitigating the adverse implications of financial services liberalisation; and
  5. providing capacity building in developing the capital market.
Article 8:
Article 8 
Information and Communication Technology
  1. The Parties, recognising the rapid development, led by the private sector, of information and communication technology (hereinafter referred to as “ICT”) and of business practices concerning ICT-related services both in the domestic and international contexts, shall cooperate to promote the development of ICT and ICT-related services with a view to obtaining the maximum benefit of the use of ICT for the Parties.
  2. The areas of cooperation shall include:
    1. promotion of electronic commerce;
    2. promotion of the use by consumers, the public sector and the private sector, of ICT-related services, including newly emerging services and next generation networks;
    3. human resource development relating to ICT;
    4. undertaking of joint research and development projects; and
    5. promotion of anti-SPAM efforts.
  3. The forms of cooperation may include:
    1. exchanging information and expertise on ICT policies, creation of ICT-related services, provision of e-government services, content development, network security and protection of privacy;
    2. undertaking technical cooperation in areas such as network infrastructure, creative and multimedia industries and ICT infrastructure development;
    3. encouraging and facilitating investment by private and/or public enterprises in ICT industries in the territories of the Parties; and
    4. providing technical assistance in the development of ICT-related projects.
Article 9:
Article 9 
Agriculture, Fisheries, Livestock, Plantation Commodities and Forestry
  1. The Parties, recognising that there remain opportunities for collaboration and technical cooperation in agriculture, fisheries, livestock, plantation commodities and forestry, including the field of ecosystem agroforestry and ecotourism, shall establish cooperation for mutual benefits of the Parties.
  2. The areas of cooperation shall include, but not limited to:
    1. information exchange;
    2. capacity building and human resource development;
    3. joint research and development; and
    4. technical assistance in sustainable development.
  3. The forms of cooperation shall be
    1. promoting exchange of information and sharing experiences related to the areas described in paragraph 1 including new technologies;
    2. promoting joint research projects;
    3. exchanging experts;
    4. providing technical assistance including post-harvest;
    5. conducting seminars, training and workshops;
    6. encouraging study visits to farms and related production centers;
    7. strengthening technology, capacity and know-how of laboratory; and
    8. cooperating in other fields as may be identified and mutually agreed upon by the Parties.
Article 10:
Article 10 
Intellectual Property
  1. The Parties, recognising the growing importance of intellectual property (hereinafter referred to as “IP”) as a factor of economic competitiveness in the knowledge-based economy, shall enhance their cooperation in the field of IP.
  2. The cooperation shall include, but not limited to:
    1. exchanging information and sharing experiences on the creation and utilisation of IP;
    2. exchanging information, sharing experiences and encouraging training of each Party’s personnel in the field of IP;
    3. conducting international search and international preliminary examination under the Patent Cooperation Treaty administered by the World Intellectual Property Organisation subject to a Party’s membership;
    4. promoting education and awareness on protection of intellectual property rights;
    5. providing assistance in facilitating the enhancement and modernisation of IP databases including patents and trademarks in the territories of the ASEAN Member Countries; and
    6. strengthening mutually beneficial cooperation in the protection of IP.
Article 11:
Article 11 
Environmental Industry
  1. The Parties, recognising that economic development, social progress and environmental protection are key pillars of sustainable development, shall explore ways to promote closer cooperation among their respective interested government entities, industries, organisations and research institutions.
  2. To this end, the Parties shall pursue the following environmental cooperation activities on a mutually agreed basis:
    1. cooperation in environmental technologies and policies, such as compressed natural gas technology and policy;
    2. cooperation in environmental capacity building of industries and exchanges of information and experiences of environmental industries;
    3. cooperation in exchanges and education of human resources related to the environment; and
    4. other forms of environmental cooperation as mutually agreed.
Article 12:
Article 12 
Broadcasting
  1. The Parties consider the significance of broadcasting in the digital economy as well as its role as an avenue for cultural exchanges across national boundaries, and recognise the advancement of broadcasting technology as both a challenge and an opportunity for the Parties to derive mutual benefits. To this end, various ASEAN Member Countries and Korea, as may be interested, shall develop and promote cooperative activities in the field of broadcasting on a bilateral basis.
  2. Subject to the Parties’ laws and regulations governing the broadcast sectors, the areas of cooperation shall include:
    1. exchanging information on statistics, as mutually agreed, policies and laws and regulations on broadcasting and related sectors;
    2. undertaking joint research and development of newly emerging broadcasting technologies;
    3. promoting exchanges aimed at educating and training of broadcasting related personnel; and
    4. encouraging mutual exchanges of re-transmission of broadcast as appropriate.
Article 13:
Article 13 
Construction Technology

The Parties shall cooperate, where appropriate, in the following areas:

  1. manpower and construction development;
  2. construction technology;
  3. international project collaboration; and
  4. infrastructural construction design.
Article 14:
Article 14 
Standards and Conformity Assessment and Sanitary and Phytosanitary Measures
  1. The Parties, recognising the important role of technical regulations, standards and conformity assessment procedures on industry, agriculture and plantation commodities in facilitating trade, shall cooperate in the areas such as:
    1. exchange of views and information on standards, technical regulations and conformity assessment procedures in areas of mutual interests;
    2. exchange of laws and regulations on standards and conformity assessment procedures as mutually agreed;
    3. exchange of experts and staff in areas of mutual interests;
    4. explore possible mutual recognition arrangements and agreements to facilitate trade flows among the Parties;
    5. development and implementation of technical cooperation and capacity building programmes on standards, technical regulations, metrology and conformity assessment, which include, among others, seminars, training and training attachments, exchange of staff and regulatory dialogues on agreed areas;
    6. strengthening of cooperation among the Parties at relevant international and regional fora on standards and conformity assessment and promotion of the use of international standards and conformity assessment guidelines, as appropriate, as a basis for the development of national technical regulations;
    7. development of testing laboratories and accreditation network as well as testing programmes, as appropriate, among the Parties;
    8. exploration of technical assistance in the development of industrial standards in areas of mutual interests; and
    9. other areas of cooperation as may be identified and mutually agreed upon by the Parties.
  2. Recognising the importance of sanitary and phytosanitary (hereinafter referred to as “SPS”) measures in minimising their negative effects on trade in agricultural, fishery, animal and food products, and plantation commodities, the Parties, on the basis of mutual benefits, shall cooperate in:
    1. exchange of information concerning SPS measures;
    2. exchange of information on any occurrences of SPS incidents;
    3. improvement of the distribution and packaging systems;
    4. human resource development in the concerned area that would be promoted, among others, by organising training and exchange of specialists;
    5. development and promotion of new technologies; and
    6. other areas of cooperation as may be identified and mutually agreed upon by the Parties.
Article 15:
Article 15 
Mining

The Parties, recognising that cooperation in the mining sector will contribute to the economic development, shall:

  1. explore possibilities for the joint development of energy and mineral resources and cooperate in the improvement of technology on exploration and extraction of energy and mineral deposits, mine waste disposal and rehabilitation of closed mines;
  2. encourage enhancement of trade and investment in the mining sector;
  3. cooperate in the promotion of environmentally sound and socially responsible mineral development practices in sustainable management and optimum utilisation of mineral resources;
  4. encourage exchange of information on issues related to the mining policy and technology;
  5. promote and develop business alliances between the private sectors; and
  6. conduct trainings, seminars, workshops and exchange of experts geared towards development and promotion of mining.
Article 16:
Article 16 
Energy

The Parties, recognising that energy demand in their territories, shall expand in the future given the rapid pace of economic development, shall:

  1. exchange information on the improvement of efficiency in energy use;
  2. cooperate in the development and use of alternative and renewable energy sources such as, but not limited to, compressed natural gas technology and policy;
  3. cooperate in infrastructure development, resource development, investment promotion and application of new energy saving technologies;
  4. encourage exchange of experts; and
  5. promote and develop business alliances between the private sectors.
Article 17:
Article 17 
Natural Resources

The Parties, recognising that proper management and efficient utilisation of natural resources will contribute to the continued expansion of their respective economies, shall cooperate in:

  1. development and utilisation of appropriate mathematical models to simulate and predict groundwater containment and transport, assessment of risk posed by waste storage/disposal and agro-industrial activities on groundwater quality, and setting-up of groundwater protection zones;
  2. improvement of technology on exploration, extraction and utilisation of energy and mineral deposits, mine waste disposal and rehabilitation of closed mines;
  3. investment promotion activities; and
  4. comprehensive management of water resources, including ground and surface water, and the application of information technology in this area.
Article 18:
Article 18 
Shipbuilding and Maritime Transport
  1. Recognising the important role of maritime transport in trade and development, the Parties, through their relevant entities, shall cooperate in the areas of shipbuilding and maritime transport.
  2. Such cooperative activities shall include:
    1. undertaking information exchange and sharing experiences; and
    2. promoting exchange of experts.
Article 19:
Article 19 
Film
  1. Recognising the potential of the film industry as means to promote understanding and cultural exchanges among the Parties and the rapid development of this industry in their respective economy, interested Parties, through their relevant entities, shall endeavour, subject to their respective laws and regulations, to promote cooperation in the areas of mutual interests.
  2. The forms of cooperation shall be:
    1. exchange of experts on film;
    2. exchange of information; and
    3. cooperation in holding and participating in film festivals

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