Korea - Israel Free Trade Agreement

Country / jurisdiction: Korea · Year: 2022 · Status: In force · Level: International · Type: Voluntary

The Korea - Israel Free Trade Agreement provides for the elimination of border tariffs on most energy sector products, including:

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, aluminium, 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 which state the following conditions for products to benefit from preferential tariff treatment:

wholly produced or obtained in the country (applicable largely to minerals, raw materials, and waste and scrap materials) or

having undergone manufacturing processes that warrant a change in the HS code or

meeting regional value content requirements.

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

The Agreement however 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/il/2/