Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and the Republic of Korea

str. 5The Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Repubiic of Singapore, the Kingdom of Thailand' and the Socialist Republic of Vietnam, MemberCountriesof theAssociationof SoutheastAsianNations and the Republic of Korea,

RECALLING the Framework Agreement on Comprehensive Economic Cooperation among the Govermments of the Member Countries of the Association of Southeast Asian Nations and the Republic of Korea signed in Kuala Lumpur, Malaysia on the thirteenth dayofDecember2005;

FURTHERRECALLINGArticles1.3and2.1oftheFramework Agreement, which reflect their commitment to establish the ASEANKorea Free Trade Area covering trade in goods;

REAFFIRMING their commitment to eliminate duties and other restrictive regulations of commerce on substantially all trade in goods among the ASEAN Member Countries and the Republic of Korea within the specified time frames, while allowing flexibility to them to address their sensitive areas as provided in the Framework Agreement; and

RECOGNISING the different stages of economic development among the ASEAN Member Countries and the need for flexibility to be given to the new ASEAN Member Countries, in particular the need to facilitate their increasing participation in the economic cooperation of the Parties and the expansion of their exports, including, inter alia, through strengthening of their domestic capacity, efficiency and competitiveness,

HAVEAGREEDasfollows:

' For the purposc of this Agrecment the Kingdom of Thailand is included in the referencc of this term only aftcr the rclevant signaturc on her bchalf has becn appcnded.

Article 1 Definitions

applied MFN tariff rates:

Article2 National Treatment on Internal Taxation and Regulation

str. 5Each Party shall accord national treatment to the goods of all the other Parties in accordance with Article II of GATT 1994.To this end, the provisions of Article Ill of GATT 1994 shall, mutatis mutandis, be incorporated into and form an integral part of this Agreement.

' For thc purposc of this Agreement the Kingdom of Thailand is included in the referencc of this term only aftcr the rclevant signature on hcr bchaif has becn appcnded

Article3 Tariff Reduction and Elimination

str. 51. The tariff reduction or elimination programme of the Parties shall require the applied MFN tariff rates on goods under listed tariff lines to be gradually reduced and, where applicable, eliminated in accordance with this Article. 2. programme under this Agreement and shall be categorised as follows:
3. (a) Normal Track: tariff lines placed in the Normal Track by each Party on its own accord shall have their respective applied MFN tariff rates gradually reduced and eliminated in accordancewith themodalities setout inAnnex1with the objective of achieving the targets prescribed in the thresholds therein; and
4. (b) Sensitive Track: tariff lines placed in the Sensitive Track by each Party on its own accord shall have their respective applied MFN tariffratesreducedoreliminated in accordancewith the modalities set out in Annex 2. 3. Subject to Annexes 1 and 2, all commitments undertaken by each Party under this Article shall be applied to all the other Parties.

Article 4 Transparency

str. 5Article X of GA'TT 1994 shall, mutatis mutandis, be incorporated into and form an integral part of this Agreement.

Article5 Rules of Origin

str. 5The Rules of Origin and the Operational Certification Procedures applicable to the goods covered under this Agreement are set out in Annex 3 and its Appendices.

Modification of Concessions

str. 51. The Parties shall not nullify or impair any of the concessions under this Agreement, except in cases provided for in this Agreement. 2. Nothing in this Agreement shall preclude any Party from negotiating and entering gintoarrangementstoacceleratethe eimplementationof concessions made under this Agreement or to incorporate new goods into such concessions, provided that such arrangements are mutually agreed upon and applied to all the other Parties. 3. Any Party may, by negotiation and agreement with any other Party to which it has made a concession, modify or withdraw such concession made under this Agreement. In such negotiations and agreement, which may include provision for compensatory adjustment with respect to other goods, the Parties concerned shall maintain a general level of reciprocal and mutually advantageous concessions not less favourable to trade than that provided for in this Agreement prior to such agreement. 4. Any agreement by the Parties to modify or withdraw concessions made in the tariff reduction or elimination programme in accordance with paragraph 3,or to accelerate the elimination of tariffs in such programme or to incorporate goods into such programme in accordance with paragraph 2, shall supersede any tariff rate or track determined pursuant to the tariff reduction or elimination programme for that good as set out in Annexes 1 and 2, shall be treated as an amendmenttotherelevantAnnexes andshall enter intoforcein accordance with the procedure under Article 17.

Article 7 WTODisciplines

str. 5Subject to the provisions of this Agreement and any future agreements as may be agreed pursuant to the reviews of this Agreement by the Parties under Article 15, the Parties^ hereby agree and reaffirm their commitments to abide by the provisions of the WTO disciplines as set out in Annexes lA and 1C to the WTO Agreement, which include, ainong others, non-tariff measures, technical barriers to trade (hereinafter referred to as "TBT"), sanitary and phytosanitary (hereinafter referred to as "SPS") measures, subsidies and countervailing measures, anti-dumping measures and intellectual property rights. 2 Non-WTO Members of ASEAN shall abide by the WTO provisions in accordance with their accessioncommitmentstothewTO.

Quantitative Restrictions and Non-Tariff Barriers and Sanitary andPhytosanitaryMeasures

str. 61. quantitative restriction on the importation of any goods of the other Parties or on the exportation of any goods destined for the territory of the other Parties, except in accordance with its WTO rights and obligations or other provisions in this Agreement. 2. Each Party shall ensure the transparency of its non-tariff measures that they are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to trade among the Parties. The Parties shall identify non-tariff barriers other than quantitative restrictions for elimination timeframe for elimination of these non-tariff barriers shall be mutually agreed uponbyall theParties. 3. The Parties recognises the importance of transparency of TBT and SPS regulations as in the WTO Agreements on TBT and SPS, including notification procedures on preparation for regulations and standards on TBT and on any occurrences of SPS incident to reduce their negative effect on trade as well as to protect human, animal or plant life or health. Each Party shall designate its contact point for the purpose of responding queries related to this Article. 4. A working group on TBT and SPS (hereinafter referred to as the "WG on TBT and SPS") under the Implementing Committee shall be established to deal with issues relating to the implementation of thisAiticle and to facilitate trade and protect human, animal or plant life or health through mutual cooperationandbilateralconsultations. The WG on TBT and SPS shall compriseof government officials from agriculture,fisheries,livestock and industry agencies and other related agencies. The WG on TBT and SPS shall develop its scope of work and meet at least once a year or as mutually agreed upon by the Parties.

Article9 Safeguard Measures

str. 61. Each Party which is a WTO member retains its rights and obligations under Article XIX of GATT 1994 and the WTO Agreement on Safeguards.

str. 7Actions taken pursuant 'o Article XIX of GATT 1994 and the WTO Agreeiment on Safeguards shall not be subject to the Agreement on Dispute SettlementMechanismunder theFrameworkAgreement.

and Articles 9, 13, and 14 of the WTO Agreement on Safeguards. As such, all other provisions of the WTO Agreement on Safeguards shall, mutatis mutandis,beincorporated into andform anintegralpart of thisAgreement. 7. An ASEAN-Korea FTA safeguard measure shall not be applied against a good originating in the territory of a Party, so long as its share of imports of the good concerned in the importing Party does not exceed 3% of the total importsfromtheParties. 8. a Safeguards -for an ASEAN-Korea FTA safeguard measure, the Parties concerned shall seek the good offices of theImplementing gCommitteeto determine the substantially equivalent level of concessions to that existing under this Agreement between the Party taking the safeguard measure and the exporting Parties which would be affected by such a measure prior to any good offices shall be completed within ninety (90) days from the date on which the ASEAN-Korea FTA safeguard measure was applied. 9. On a Party's termination of an ASEAN-Korea FTA safeguard measure on a good, the tariff rate for that good shall be the rate that, according to that Party's tariff reduction and elimination programme as provided in Annexes 1 and 2, would have been in effect but for the measure. 10. Notwithstanding the provisions of this Article, no Party may impose an ASEAN-Korea FTA safeguard measure on a good to which actions are being applied pursuant to Article XIX of GATT 1994 and the WTO Agreement on Safeguards. When a Party intends to apply, pursuant to Article XIX of GATT 1994 and the WTO Agreement on Safeguards, an action on a good to which ASEAN-Korea FTA safeguard measure is being applied, it shall terminate the ASEAN-Korea FTA safeguard measure prior to the imposition of the action to be applied pursuant to Article XIX of GATT 1994 and the WTO Agreement onSafeguards. 11.

str. 8Allofficialcommunicationsanddocumentationsexchangedamongthe Parties and to the Implementing Committee relating to any ASEAN-Korea FTA safeguard measures shall be in writing and shall be in the English language.

Article10 Measures to Safeguard the Balance of Payments

str. 8Where a Party is in serious balance of payments and extermal financial difficulties or threat thereof, it may, in accordance with GATT 1994, which includes the Understanding on Balance-of-Payments Provisions of GATT



2. With regard to ASEAN-Korea FTA safeguard measures, a Party shall have the right to initiate such a measure on a good within the transition period for that good. The transition period for a good shall begin from the date of entry into force of this Agreement and end seven (7) years from the date of completion of tariff reduction/elimination for that good. 3. Subject'to the following paragraphs of this Article, a Party shall be free totakeASEAN-KoreaFTAsafeguardmcasuresifas aneffectof the obligations incurred by the Party under this Agreement, including tariff concessions, or, if as a result of unforeseen developments and of the effects of the obligations incurred by the Party, a good is being imported from the other Parties to which tariff concession was made for that good in such increased quantities, absolute or relative to domestic production, and under such conditions so as to substantially cause or threaten to cause serious injury to the domestic industry of the importing Party that produces like or directly competitive goods in its territory. 4. If an ASEAN-Korea FTA safeguard measure is taken, a Party taking suchameasuremay:
4. (a) suspend the further reduction of any rate of tariff provided for under this Agreement for the good; or
5. (b) increase the tariff rate on the good concerned to a level not to exceed thelesser of:
6. (i) the applied MFN tariff rate on the good in effect at the time theaction is taken; and
7. (ii) the applied MFN tariff rate on the good in effect on the day immediately preceding the date of entry into force of thisAgreement. 5.

str. 9Any ASEAN-Korea FTA safeguard measure may be maintained for an initial period of up to three (3) years and may be extended for a period not exceeding one year if it is determined pursuant to the procedures referred to in paragraph 6 that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the domestic industry is adjusting. Notwithstanding the duration of an ASEANKorea FTA safeguard measure on the good, such a measure shall terminate at the end of the transition period for that good. 6. In applying ASEAN-Korea FTA safeguard measures, the Parties shll adcpt the rules for the application of safeguard measures, including provisional measures, as provided under the WTO Agreement on Safeguards, with the exception of the quantitative restriction measures set out in Article 5,



1994, adopt restrictive import measures. In adopting such measures, the Party shall immediately consult with the other Parties.

Article11 GeneralExceptions

str. 10Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination among the Parties where the same conditions prevail, or a disguised restriction on intermational trade, nothing in this Agreement shall be construed to'prevent the adoption or enforcement by aPartyof measures:

- (a) necessary to protect public morals;
- (b) necessary to protect human, animal or plant life or health;
- (c) relating to the importations or exportations of gold or silver;
- (d) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Agreement, including thoserelating to customs enforcement，the enforcement of monopolies operated under paragraph 4 of Article II and Article XVIl of GATT 1994, the protection of patents, trademarks and copyrights, and the prevention of deceptive practices;
- (e) relating to the products of prison labour;
- (6) imposed for the protection of national treasures of artistic, historic orarchaeologicalvalue;
- (g) relating to the conservation of exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption;
- (h) undertaken in pursuance of the obligations under any intergovernmental commodity agreement which conforms to criteria submitted to the WTO and not disapproved by it or which is itself so submitted and not so disapproved;
- (i) involving restrictions on exports of domestic materials necessary to ensure essential quantities of such materials to a domestic processing industry during periods when the domestic price of such materials is held below the world price as part of governmental stabilisation plan, provided that such restrictions shall not operate to increase the exports of or the



protection afforded to such domestic industry, and shall not depart from the provisions of this Agreement relating to nondiscrimination; and

- (G) essential totheacquisitionordistributionofproductsingeneral or local short supply, provided that any such measures shall be consistent with the principle that all Parties are entitled to an equitable share of the intermational supply of such products, and that any such measures, which are inconsistent with the other provisions of this Agreement shall be discontinued as soon as the conditions giving rise to them have ceased to exist.

Article 12 Security Exceptions

str. 10Nothing in this Agreement shall be construed:

- (a) to require any Party to furnish any information the disclosure of which it considers contrary to its essential security interests;
- (b) to prevent any Party from taking any action which it considers necessary for the protection of its essential security interests, including but not limited to:
- (i) action relating to fissionable materials or the materials fromwhich they arederived;
- (i) actionrelating to the traffic in arms,ammunition and implements of war and to such traffic in other goods andmaterialsasis carriedondirectlyorindirectlyfor the purpose of supplying a military establishment;
- (ii) actiontakensoastoprotectcriticalcommunications infrastructurefromdeliberateattemptsintendedto disable or degrade such infrastructure;
- (iv) action taken in time of war or other emergency in domestic orinternational relations; or
- (c) to prevent any Party from taking any action in pursuance of its obligationsundertheUnitedNationsCharterforthe maintenance ofintermational peace and security.

Article13 Regional and Local Government

str. 11In fulfilling its obligations and commitments under this Agreement, each Party shall ensure their observance by regional and local govermments and authorities in its territory as well as their observance by non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities within its territory.

Article 14 InstitutionalArrangements

str. 11The institutions as provided for in Article 5.3 of the Framework Agreement shall oversee, supervise, coordinate and review, as appropriate, the implementation of this Agreement.

Article 15 Review

str. 111. The AEM+Korea or their designated representatives shall meet within one year of the date of entry into force of this Agreement and then biennially or otherwise as appropriate to review this Agreement for the purpose of considering further measures to liberalise trade in goods as well as develop disciplines and negotiate agreements on matters referred to in Article 7 or any other relevant matters as may be agreed. 2. The Parties shall, taking into account their respective experiences in the implementation of this Agreement, review the Sensitive Track in 2012 and every three years thereafter with a view to improving the market access condition of sensitive goods, including the further possible reduction of the number of goods in the Sensitive Track and the conditions goverming the reciprocal tariff rate treatment of goods placed by a Party in the Sensitive Track.

Article16 Annexesand FutureLegal Instruments

str. 111. The Annexes and Appendices shall form an integral part of this

str. 12Agreement.

2. The Parties may adopt legal instruments in the future pursuant to the provisions of this Agreement. Upon their respective entry into force, such instrumentsshallformpart of thisAgreement.

Article17 Amendments

str. 12The provisions of this Agreement may be modified through amendmentsmutually agreed uponinwritingby theParties.

Article 18 RelationstoOtherAgreements

str. 12Except as otherwise provided in this Agreement, this Agreement or any action taken under it shall not affect or nullify the rights and obligations of a Party under the existing agreements to which it is a party.

Article 19 DisputeSettlement

str. 12Unless otherwise provided in this Agreement, any dispute concerming the interpretation, implementation or application of this Agreement shall be resolved through the procedures and mechanism as set out in the Agreement on Dispute Settlement Mechanism under the Framework Agreement.

Article 20 Depositary

str. 12For the ASEAN Member Countries, this Agreement shall be deposited with the Secretary-General of ASEAN, who shall promptly furnish a certified copy thereof, to each ASEAN Member Country.

Article21 EntryintoForce

str. 121. This Agreement shall enter into force on 1 July 2006, provided that at least one ASEAN Member Country and Korea are among the Signatory Countries that have by then notified all the other Parties in writing of the completion of their intemal procedures.

str. 13In the event this Agreement does not enter intoforce on1 July2006,it shailenter intoforce on thefirstdayof the second month following the latter date on which at least one ASEAN Member

Country and Korea have notified all the oiher Parties in writing of the completion of their intemal procedures.

str. 132. A Party shall, upon the completion of its intemal procedures for the entry into force of this Agreement, notify all the other Parties in writing. 3. Where a Party is unable to complete its internal procedures for the entry into force of this Agreement by the date as set out in paragraph 1, this Agreement shall come into force for that Party upon the date of notification of the completion of its internal procedures. The Party concermed, however, shall be bound by the same terms and conditions of this Agreement, including any further commitments that may have been undertaken by the other Parties under this Agreement by the time of such notification, as if it had notified all the other Parties in writing of the completion of its internal procedures before the date of entry intoforce of this Agreement. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Agreement on Trade in Goods under the Framework AgreementonComprehensive EconomicCooperation namong the Govemments of theMember Countriesof theAssociation of SoutheastAsian Nations? and the Republic of Korea. DONE at Kuala Lumpur, Malaysia, on this rwenty fourth day of August 2006 in duplicate copies in the English language. 3 The Partics agrce that the Kingdom of Thailand may sign this Agrecment at a later datc providcd that she complics with ail conditions required of a Party ard submit all ncccssary documcntsrcquiredofaParty toKorca andASEANSecrctariat.

str. 14For the Govermment of Brunei Darussalam

LIM JOCK SENG

str. 14Second Minister of Foreign Affairs and Trade

For the Royal Govermment of Cambodia

CHAM PRASIDH Senior Minister and Minister of Commerce

For the Govermment of the Republicof Indonesia

M

str. 15ARIELKA PANGESTU Minister of Trade



For the Govemment of the Lao People's Democratic Republic







U SOE THA

Minister for National Planning and Economic Development



NAM VIYAKETH Minister of Industry and Commerce

For the

str. 16Govermment cf Malaysia

RAFIDAHAZIZ Minister of intennational Trade and Industry

For the Govermment of theUnion of Myanmar

U SOE THA

For the Government of the Republic of the Philippines

PETER B.

str. 17FAVILA Secretary of Trade and Industry



For the Govemment of the Republic of Singapore



LIM HNG KIANG Minister for Trade and Industry



For the Governmfent of the Socialis Republic of Vietnam

TRUONG DINHTUYEN Minister of Trade



For the Govermment of the Republic of Korea



KIMHYUN-CHONG Minster for Trade

str. 18Annex 1:

ModalitiesforTariff ReductionandEliminationforTariff Lines Placed in the Normal Track. Annex 2:

Modalitiesfor Tariff Reduction and Elimination for Tariff LinesPlaced in theSensitiveTrack. Annex 3:

Rules of Origin