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Korea - Chile Free Trade Agreement

Area of Cooperation

Goods, Services (including: Telecommunications, Professional and Health. EXCLUDING: Core Air transport and Financial Services) Government Procurement, Investment, Competition Policy, Intellectual Property, Dispute Settlement, Trade Facilitation, Labor

Sign Date

January 1, 2003

In Force Date

December 31, 1969

Summary

After six rounds of negotiation, the Korea-Chile Free Trade Agreement was concluded in 2003. The KCFTA was the first free trade agreement entered into by Korea. It provides Korea with an opening into other Latin American economies as Chile has numerous agreements with other countries in the region. Both countries are to eliminate tariff on 96 percent of goods in 10 years. The combination of the two countries compliments each other because while Chile is competitive in raw materials and agricultural products, Korea’s strength lies in industrial products.
http://docsonline.wto.org/DDFDocuments/t/WT/REG/169-1.doc

Scope

                    
i.     
Cross-Continental Bilateral

 
Rules of Origin

                                                               i.      Tariff heading change

                                                             ii.      45% build down, 30% build up

                                                            iii.      No specific process required

 
Contingency

                                                               i.         Anti - Dumping : Subject to GATT Art VI

                                                             ii.         Countervailing Duties : Subject to GATT Art VI

                                                            iii.         Safeguards : Subject to GATT Art XIX

 
News/Studies

                                                               i.      “The Korea-Chile FTA: Significance and Implications”  

                                     http://www.ieas.or.kr/vol15_1/15_1_5.pdf

                                                             ii.      “A Strategy for the Successful Conclusion of the South Korea-Chile Free Trade Agreement”                             http://www.commercialdiplomacy.org/pdf/ma_projects/sunyoung_kim.pdf

                                                            iii.      Korea’s FTA Developments” Experiences and Perspectives with Chile, Japan, and the U.S.                   http://www.pecc.org/trade/papers/bangkok-2001/sohn.pdf

                                                           iv.      “3 Years After trade deal, S.K.-Chile trade deficit skyrocketing”                           http://english.hani.co.kr/arti/english_edition/e_business/197552.html

                                                             v.      “Korea-Chile FTA a Resounding Success: KITA”               http://english.chosun.com/w21data/html/news/200503/200503280038.html

 
Additional Links

                                                               i.      http://www.sice.oas.org/Trade/Chi-SKorea_e/ChiKoreaind_e.asp

                                                             ii.      http://www.mofat.go.kr/me/me_a002/me_b005/1134362_973.html