korea-eu fta agricultural products, food & beverage...criteria of wholly obtained products are...

Korea-EU FTAAgricultural Products, Food &

Beverage

Outcome of Negotiations and Implementation Plan

Contents

KoreaKorea--EU EU FTAFTA

Tariff Elimination of Major Items Tariff Elimination of Major Items

Origin of the Agricultural ProductsOrigin of the Agricultural Products

How to Operate TRQHow to Operate TRQ

Overview of Concession: Agricultural Product Overview of Concession: Agricultural Product

Geographical Identification (GI)Geographical Identification (GI)

Overview of Concession: Agricultural ProductOverview of Concession: Agricultural Product

Concession Type

Number of Items Major Items Number %

Immediately 663 34.7Tomato products, black tea, flowering plant, feed, rawhide, wool, coffee beans, instant noodle, wine, grape juice, Bluefintuna (frozen), etc

2~7 years 624 32.7Scotch whiskey, orange juice, cognac, chocolate, pork (other frozen cuts, frozen trotter, packed in airtight containers, etc), ice cream, ascidian (preparation, airtight packed), etc

10 years 396 20.7

Pork (frozen pork belly, refrigerated pork belly, refrigerated shoulder butt), cheese whey, butter, powdered milk, ginseng chicken broth, chicken (refrigerated breast, frozen drumstick), tangerine juice, strawberry juice, milk powder preparation, rockfish (frozen), stingray (frozen), skate (frozen), etc

Longer than 10 years 182 9.5 Beef, sugar, cheese, beer malt/malt, mackerel (frozen), flatfish

(frozen), etc

Excluded 45 2.4 Rice, whole/fat-free dry milk, condensed milk, honey, pepper, garlic, onion, squid (frozen), Alaska pollack (frozen) , etc

Total 1,910 100

KoreaKorea--EU FTA: Tariff Reduction ApproachEU FTA: Tariff Reduction Approach

For a tariff elimination over “n” years, the same amount in the ratio “tariff rate/(n+1)” will be reduced each year for (n+1) times

(Example) For an item on which currently tariff of 30% is imposed, which is to be eliminated over 3 years

(assuming that the Agreement is to go into effect on July 1, 2011)- On the commencement date and its anniversary day thereafter, the tariff

will be cut by 7.5% (=30/4) every year for four times (elimination is to be completed during the course of full 3 years)

22.5%22.5% 15%15% 7.5%7.5% 0%0%

’11.7.1’11.7.1 ’12.7.1’12.7.1 ’13.7.1’13.7.1 ’14.7.1’14.7.1

Tariff Elimination of Major ItemsTariff Elimination of Major Items

Tariff PeriodTariff Elimination Schedule (%)Tariff Elimination Schedule (%)

’11.7.1 ’12.7.1 ’13.7.1 ’14.7.1 ’15.7.1 ’16.7.1 ’17.7.1 ’18.7.1 ’19.7.1 ’20.7.1 ’21.7.1

25% 10yrs 22.7 20.4 18.1 15.9 13.6 11.3 9 6.8 4.5 2.2 0

Tariff Period

Tariff Elimination Schedule (%)Tariff Elimination Schedule (%)

’11.7.1 ’12.7.1 ’13.7.1 ’14.7.1

20% 3yrs 15 10 5 0

Frozen pork bellyFrozen pork belly

Scotch whiskeyScotch whiskey

TariffTariff PeriodPeriodTariff Elimination Schedule (%)Tariff Elimination Schedule (%)

’11.7.1

15% Immediately 0

WineWine

Tariff Elimination Schedule of Main ItemsTariff Elimination Schedule of Main Items

Tariff Period

Tariff Elimination Schedule(%)’11.7.1 ’12.7.1 ’13.7.1 ’14.7.1 ’15.7.1 ’16.7.1 ’17.7.1 ’18.7.1

36%15yrs+TRQ

0 (4,560tons & less),

33.7 (Over 4,560tons)

0 (4,560tons & less),

31.5 (Over 4,560tons )

0 (4,696tons & less),

29.2 (Over 4,696tons )

0 (4,837tons & less),

27 (Over 4,837tons )

0 (4,982tons & less),

24.7 (Over 4,982tons )

0 (5,132tons & less),

22.5 (Over 5,132tons )

0 (5,286tons & less),

20.2 (Over 5,286tons )

0 (5,444tons & less),

18 (Over 5,444tons )

’19.7.1 ’20.7.1 ’21.7.1 ’22.7.1 ’23.7.1 ’24.7.1 ’25.7.1 ’26.7.1

0 (5,608tons & less),

15.7 (Over 5,608tons )

0 (5,776tons & less),

13.5 (Over 5,776tons )

0 (5,949tons & less),

11.2 (Over 5,949tons )

0 (6,128tons & less),

9 (Over 6,128tons )

0 (6,312tons & less),

6.7 (Over 6,312tons )

0 (6,501tons & less),

4.5 (Over 6,501tons )

0 (6,696tons & less),

2.2 (Over 6,696tons )

0

CheeseCheese

Tariff PeriodTariff Elimination Schedule(%)

’11.7.1 ’12.7.1 ’13.7.1 ’14.7.1 ’15.7.1 ’16.7.1

20% 5yrs 16.6 13.3 10 6.6 3.3 0

AscidianAscidian Preparation Preparation

Result of Negotiation: Origin of the Result of Negotiation: Origin of the Agricultural ProductsAgricultural Products

Those products that fail to meet the ‘product of origin’ requirements cannot enjoy the special tariff benefits even though they are exported to FTA partners

Criteria of wholly obtained products are to be applied to the fresh agricultural products under Korea-EU FTA- In case of the meat, fresh fruit, grain, green tea, seeds, ginseng, etc. only those which were bred, grown, and butchered or harvested in the country of origin are subject to the preferential tariff.

Processed agricultural products containing raw ingredients from a third country can enjoy preferential tariff benefit as long as certain conditions are met

Result of Negotiation: Origin of the Result of Negotiation: Origin of the Agricultural ProductsAgricultural Products

Criteria of the Origin by Main ItemCriteria of the Origin by Main ItemItem Rules of Origin Certification

Pork Ingredients classified as type 1 and 2 should be wholly obtained (Should be bred and grown in the territory)

Cheese Ingredients classified as type 4 should be wholly obtained(Obtained from the living animals bred in the territory)

Scotch WhiskeyShould be produced using ingredients that come under any of the paragraphs with an exception of those under paragraph 2207 or 2208. All the grapes used or ingredients from the grapes should be wholly obtained

Wine Should be produced using ingredients that come under any of the paragraph. However, the product itself is excluded. All the grapes used or ingredients from the grapes should be wholly obtained

Ascidian Preparation

Ingredients classified as type 3 should be wholly obtained


Item ConcessionTRQ Amount Management Approach

1st year Annual Increment Agency How to Allocate

Whole/fat-free milk powder,

condensed milk

Current tariff to be maintained 1,000

3%Compound(To be fixed

from 16th yr and onwards)

Korea Agro-Fisheries Trade Corporation

Import right to be put up for public sale (quarterly)

Cheese whey 10yrs 3,350 3%CompoundKorea Dairy Industries Association

Import right to be distributed

Cheese (Cheddar Cheese) 15yrs(10yrs) 4,560 3%Compound

Korea Dairy Industries Association





Powdered milk (for infant) 10yrs 450 3%Compound

Korea Dairy Industries Association


Butter 10yrs 350 3%CompoundKorea Agro-Fisheries Trade Corporation

Import right to be put up for public sale (Auction to be held in the first month when Agreement takes effect)

Honey

Current tariff to be

maintained 503%Compound

(Fixed from 16th yr and onwards)


Import right to be put up for public sale(quarterly)




Supplementary Feed 12yrs 5,500 3%Compound

Korea Feed Ingredients AssociationKorea Feed Milk Replacer Association


Orange Seasonal tariff 20

20tons(Up to 6th yr)40tons(7~11th yr)60tons(12th yr &

onwards)


Up to 11th yr : Import right to be put up for public sale (August every year)From 12th yr: Import right to be distributed




Beer malt/malt 15yrs 10,000

Increase by 800 every yr up to 5th

year,3% compound from

6th year



Denatured starch 12yrs 28,000

Increase by 2,500 every year up to 5th

year,3% compound from

6th year



Frozen flatfish 12yrs 800 Compound 8% First come first served basis

Geographical Identification (GIGeographical Identification (GI))

GI whose right comes in conflict with the existing trademark of Korean is excluded from the list for protection

Agricultural product’sAgricultural product’s GI is to be protected at the same level GI is to be protected at the same level with wine and distilled liquor under WTO/TRIPswith wine and distilled liquor under WTO/TRIPs-- Those with the GI rights protected under the Agreement Those with the GI rights protected under the Agreement should also be protected by the civil law like those with should also be protected by the civil law like those with trademark right trademark right

GI Items protected (agricultural products, wine, distilled liquor) are mutually protected by listing them in the appendix to the Agreement- Number of items listed in the appendix initially is 162 on the EU side and 64 on the Korean side- Even after the Agreement is put into force, additional items can be added to the appendix based on agreement between the two parties

korea-eu fta agricultural products, food & beverage...criteria of wholly obtained products are...

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