Korea - Colombia Free Trade Agreement

Country / jurisdiction: Korea · Year: 2016 · Status: In force · Level: National · Type: Voluntary

The Korea - Colombia Free Trade Agreement aims to foster stronger economic ties between the two nations by eliminating tariffs and customs duties per the terms of the Agreement.

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

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 (applicable to minerals, raw materials, and waste and scrap materials)

meeting requirements included as provisions to the agreement, mainly through having undergone manufacturing processes that warrant a change in the HS code or meet regional value content requirements (applicable to manufactured goods)

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 the following conditions:

Location of production in its territory

Supply of a specific service

Training and employment of workers

Construction or expansion of certain facilities

R&D activities

It also does not prevent either party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.

Official source: https://fta.go.kr/main/situation/kfta/lov5/co/1/1/