Korea - India Comprehensive Economic Partnership Agreement

Country / jurisdiction: Korea · Year: 2010 · Status: In force · Level: International · Type: Voluntary

The Korea - India Comprehensive Economic Partnership Agreement is an agreement between Korea and India that aims to foster economic cooperation between the two signatory states through fostering trade of both good and services through lowering of tariffs and other regulatory barriers; as well as setting out agreements on other aspects of economic cooperation including foreign direct investment.

The Agreement covers, among others, the elimination of tariffs for the following goods:

Electric generation equipment

Mechanical equipment including pumps, appliances, and other advanced machinery

Electric motors, transformers, batteries, and capacitors

Motor vehicles (for import into Korea only)

Mineral ore and processed products including graphite, manganese, copper, aluminum, and nickel

Various products manufactured using above minerals and metals such as sheets, powders, bars, and plates

Photovoltaic cells

The Agreement also includes rules of origin and local content provisions. Goods are counted as originating from each country if:

wholly produced or obtained in the country

there was a change to the HS code applicable to the good at the six-digit level (CTSH)

the good has a regional value content (RVC) over 35%

the good satisfy product-specific rules detailed in the agreement.

The Investment provisions of the Agreement forbids performance requirements that require, as a condition of investment, export quotas, domestic content quotas, technology transfer, and other non-tariff barriers. It also carries national treatment and most-favored nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or those from any other nations.

However, it does allow either party to provide additional benefits or advantages tied to such conditions. It also does not prevent either party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances. The Agreement also includes provisions that provide for national security exceptions; and that such actions will not be subject to judicial judgement or arbitration.

Official source: https://www.customs.go.kr/download/ftaportalkor/_down/trty/Kor-IN-00-Eng.pdf