Title
Comprehensive Economic Partnership Agreement between Korea and the United Arab Emirates
Preamble
PREAMBLE
The Governments of the United Arab Emirates (hereinafter referred to as the “UAE”) and the Republic of Korea (hereinafter referred to as “Korea”);
hereinafter being referred to individually as a “Party” and collectively as “the Parties”;
RECOGNIZING the strong economic and political ties between the UAE and Korea, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
DETERMINED to build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalization and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
DETERMINED to develop and strengthen their economic and trade relations through the liberalization and expansion of trade in goods and services in their common interest and for their mutual benefit;
AIMING to promote cooperation in technology and expand trade;
CONVINCED that the establishment of a free trade area will provide a more favorable climate for the promotion and development of economic and trade relations between the Parties;
AIMING to establish clear and mutually advantageous rules governing their trade and investment and to reduce or eliminate the barriers to trade and investment between their territories;
DETERMINED to support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
AIMING to establishing a clear, transparent, and predictable legal and commercial framework for business planning, that supports further expansion of trade and investment;
DESIRING to strengthen mutually beneficial cooperation to foster creativity and innovation, and promote stronger linkage in and between sectors of their economies;
RECOGNIZING their inherent right to regulate and resolved to preserve the flexibility of the Parties to set legislative and regulatory priorities, and protect legitimate public welfare objectives.
HAVE AGREED, in pursuit of the above, to conclude the following Agreement (hereinafter referred to as “this Agreement”):
Chapter ONE. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. General Definitions
For the purposes of this Agreement:
Agreement on Agriculture means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
customs authority means any authority that is responsible under the law of each Party for the administration and enforcement of its customs laws and regulation;
for the UAE, the Federal Authority for Identity, Citizenship,
Customs & Port Security, or its respective successors; and
for Korea, the Ministry of Economy and Finance (including the Korea Customs Service), or its respective successors;
Customs duty refers to any duty or charge of any kind imposed in connection with the importation of a product, including any form of surtax or surcharge in connection with such importation, but does not include any:
charge equivalent to an internal tax imposed in conformity with Article III of GATT 1994;
anti-dumping, countervailing, or safeguard duty that is applied in accordance with Article VI of GATT 1994, the Anti-Dumping Agreement, the SCM Agreement, Article XIX of GATT 1994, and the Safeguards Agreement;
fee or other charge in connection with importation commensurate with the cost of services rendered; or
duty imposed consistently with Article 5 of the Agreement on Agriculture.
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
days means calendar days, including weekends and holidays;
DSU means the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement;
GATS means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
Harmonized System or HS means the Harmonized Commodity Description and Coding System, including its General Rules for the Interpretation, Section Notes, Chapter Notes and Subheading Notes;
Import Licensing Agreement means the Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement;
Joint Committee means the Joint Committee established pursuant to Article 17.1(Joint Committee) of this Agreement;
measure means any measure, whether in the form of a law, regulation, rule, procedure, decision, practice, administrative action, or any other form;
Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, on 15 April 1994.
Article 1.2. Establishment of the Free Trade Area
The Parties hereby establish a free trade area, in accordance with Article XXIV of GATT 1994 and Article V of GATS and to promote opportunities for market access and trade liberalization for goods, services and investments; strengthen the development of the digital economy; and deepen economic cooperation between the Parties.
Article 1.3. Objectives
The objectives of this Agreement are to liberalize and facilitate trade and investment between the Parties in accordance with the provisions of this Agreement.
Article 1.4. Geographical Scope
This Agreement shall apply:
For the UAE, its land territories, internal waters, including its Free Zones, territorial sea, including the seabed, and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which the UAE has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law.
For Korea, the land, maritime, and air space over which Korea exercise sovereignty, and those maritime areas, including the seabed and subsoil adjacent to and beyond the outer limit of the territorial seas over which it may exercises sovereign rights or jurisdiction in accordance with international law and its domestic law.
Article 1.5. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which both Parties are party.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
Article 1.6. Regional and Local Government
1. Each Party shall take such reasonable measures as may be available to it to ensure observance of the provisions of this Agreement by the regional and local governments and authorities and by non-governmental bodies in the exercise of governmental powers delegated by central, regional and local governments and authorities within its territories.
2. This provision is to be interpreted and applied in accordance with the principles set out in paragraph 12 of Article XXIV of GATT 1994 and paragraph 3 of Article I of GATS.
Article 1.7. Transparency
1. Each Party shall publish or otherwise make publicly available their laws, regulations, and administrative rulings of general application as well as their respective international agreements which may affect the operation of this Agreement.
2. Without prejudice to Article 1.8, each Party shall respond with reasonable period of time to specific questions and provide, upon request, information to each other on matters referred to in paragraph 1.
Article 1.8. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of any economic operator.
Chapter TWO. TRADE IN GOODS
Article 2.1. Definitions
For purposes of this Chapter:
duty-free means free of customs duty; and
import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.
Article 2.2. Scope and Coverage
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.3. National Treatment on Internal Taxation and Regulation
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes. To this end, Article III of GATT 1994 and its interpretative notes are incorporated into and form part of this Agreement, mutatis mutandis.
Article 2.4. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, including as explicitly set out in each Party’s Schedule included in Annex 2-A, neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party.
2. Upon the entry into force of this Agreement, Korea shall reduce or eliminate its customs duties applied on goods originating from the UAE inaccordance with Annex 2-A-1 and the UAE shall reduce or eliminate its customs duties on goods originating from Korea in accordance with Annex 2-A-2.
3. Where a Party reduces its most-favored-nation (hereinafter referred to as “MFN”) applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate for such good as set out in each Party’s Schedule included in Annex 2-A.
Article 2.5. Acceleration or Broadening of Tariff Commitments
1. Upon request of a Party, the Parties shall consult to consider accelerating or broadening the scope of tariff commitments as set out in each Party’s Schedule included in Annex 2-A.
2. Further commitments between the Parties pursuant to paragraph 1 shall supersede any duty rate or staging category determined pursuant to their respective Schedules included in Annex 2-A when approved by each Party in accordance with its applicable legal procedures.
3. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating or broadening the scope of tariff commitments set out in its Schedule included in Annex 2-A on originating goods. Any such unilateral acceleration or broadening of the scope of tariff commitments will not:
(a) permanently supersede any duty rate or staging category determined pursuant to its respective Schedule to Annex 2-A; or
(b) serve to waive that Party’s right to raise the customs duty back to the level established in its respective Schedule included in Annex 2-A following a unilateral reduction.
Article 2.6. Classification of Goods and Transposition of Schedules
1. The classification of goods in trade between the Parties shall be in conformity with the HS and its amendments.
2. The Parties shall consult whether it is necessary to update each Party’s Schedule included in Annex 2-A to reflect periodic amendments of the HS.
3. Each Party shall ensure that any transposition of its Schedule included in Annex 2-A is carried out without impairing the tariff commitments as set out in its Schedule included in Annex 2-A, which includes not affording less favorable treatment to an originating good of the other Party than set out in its Schedule included in Annex 2-A, and is in accordance with the agreed transposition guidelines, which are to be adopted by the Committee on Trade in Goods.
Article 2.7. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party shall adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. In the event that a Party introduces a measure that imposes a prohibition or restriction otherwise justified under the relevant provisions of the WTO Agreement with respect to the exportation of goods to the other Party, the Party imposing the measure shall publish the measure in a timely manner. Upon the request of the other Party, the Parties shall enter into consultations with the aim of resolving any problem that may arise due to that measure.
Article 2.8. Import Licensing
1. Neither Party shall adopt or maintain a measure that is inconsistent with the Import Licensing Agreement (1), which is hereby incorporated into and made a part of this Agreement, mutatis mutandis.
2. Before applying any new or modified import licensing procedure, a Party shall publish it in such a manner as to enable governments and traders to become acquainted with it, including through publication on an official government Internet site.
Article 2.9. Customs Valuation
Each Party shall determine the customs value of goods traded between the Parties in accordance with the provisions of Article VII of GATT 1994 and the Customs Valuation Agreement, mutatis mutandis.
Article 2.10. Export Subsidies
1. Neither Party shall adopt or maintain any export subsidy on any good destined for the territory of the other Party, in accordance with the SCM Agreement and the Agreement on Agriculture.
2. Notwithstanding paragraph 1, the Parties reaffirm that a Party may maintain an export subsidy on an agricultural good only in accordance with its commitments made in the WTO Ministerial Conference Decision on Export Competition (WT/MIN (15)/45, WT/L/980) adopted in Nairobi on 19 December 2015, including the elimination of scheduled export subsidy entitlements for agricultural goods.
Article 2.11. Measures to Safeguard the Balance-of-Payments
1. The Parties shall endeavor to avoid the imposition of restrictive measures for balance-of-payments purposes.
2. Any measures taken for balance-of-payments purposes for trade in goods shall be in accordance with Article XII of GATT 1994 and the Understanding on the Balance-of-Payments Provisions of GATT 1994, which are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.12. Administrative Fees and Formalities
1. Each Party shall ensure that all fees and charges imposed in connection with importation and exportation shall be consistent with its obligations under Article VIII:1 of GATT 1994 and its interpretive notes.
2. Each Party shall make available and maintain, through the Internet, a current list of the fees and charges it imposes in connection with importation or exportation.
Article 2.13. Non-Tariff Measures
1. Neither Party shall adopt or maintain any non-tariff measure on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its rights and obligations under the WTO Agreement or this Agreement.
2. Each Party shall ensure that its laws, regulations, procedures and administrative rulings related to non-tariff measures are not prepared, adopted or applied with the view to, or with the effect of, creating unnecessary obstacles to trade with the other Party.
3. If a Party considers that a non-tariff measure of the other Party is creating an unnecessary obstacle to trade, that Party may nominate such a non-tariff measure for review by the Committee on Trade in Goods through a written letter of request, which shall be submitted at least 30 days before the date of the next scheduled meeting of the Committee on Trade in Goods. A nomination of a non-tariff measure for review shall include reasons for its nomination, how the measure adversely affects trade between the Parties, and if possible, suggested solutions. The Committee on Trade in Goods shall immediately review the measure with a view to securing a mutually agreed solution to the matter within 90 days from the date of receipt of the request. Review by the Committee on Trade in Goods is without prejudice to the Parties’ rights under Chapter Fifteen (Dispute Settlement).
Article 2.14. State Trading Enterprises
Nothing in this Agreement shall be construed to prevent a Party from maintaining or establishing a state trading enterprise in accordance with Article XVII of GATT 1994, its interpretative notes and the Understanding on the Interpretation of Article XVII of GATT 1994.
Article 2.15. Temporary Admission of Goods (2)
1. Each Party shall grant duty-free temporary admission for the following goods imported from the other Party, regardless of their origin:
(a) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, that are necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) goods intended for display or demonstration;
(c) commercial samples and advertising films and recordings;
(d) goods admitted for sports purposes; and
(e) containers and pallets that are used for the transportation of equipment.
2. Each Party shall, at the request of the importer or person concerned and for reasons deemed valid by its customs authority, extend the time limit for temporary admission beyond the period initially fixed.
3. Neither Party shall condition the duty-free temporary admission of a good referred to in paragraph 1 into its territory, other than to require that the good:
(a) not be sold or leased while in its territory;
(b) be accompanied by a security in an amount no greater than the custom duties and any other tax or charge imposed on imports that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(c) be capable of identification when exported;
(d) be exported within the time period granted for temporary admission in accordance with its domestic law related to the purpose of the temporary admission;
(e) not be admitted in a quantity greater than is reasonable for its intended use;
(f) be used solely by or under the personal supervision of a national or resident of the other Party in the exercise of the business activity, trade, profession, or sport of that person; or
(g) be otherwise admissible into the importing Party’s territory under its law.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, that Party may apply the customs duty, and any other tax or charge that would normally be owed on the importation of the good and any other charges or penalties provided for under its law.
5. Each Party, through its customs authority, shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such a good accompanies a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted.
7. Each Party shall provide that the importer or person concerned, who is responsible for a good admitted under this Article, shall not be liable for failure to export the good on presentation of satisfactory proof to the importing Party that the good has been destroyed within the original period fixed for temporary admission or any lawful extension (3).
Article 2.16. Goods Re-Entered after Repair or Alteration
1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration, except that a customs duty or other taxes may be applied in accordance with each Party’s laws and procedures to the addition resulting from the repair or alteration that was performed in the territory of the other Party.
2. Neither Party shall apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
3. For purposes of this Article, “repair” or “alteration” does not include an operation or process that:
(a) destroys a good’s essential characteristics or creates a new or commercially different good; or
(b) transforms an unfinished good into a finished good.
Article 2.17. Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials (4)
Each Party shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a) such samples be imported solely for the solicitation of orders for goods or services provided from the territory of the other Party or a non-Party; or
(b) such advertising materials be imported in packets, that each contain no more than one copy of each such material, and that neither the materials nor the packets form part of a larger consignment.
Article 2.18. Committee on Trade In Goods
1. The Parties hereby establish a Committee on Trade in Goods (hereinafter referred to as the “Committee”) under the Joint Committee comprising representatives of each Party.