Download Agreed Minute

JOINT MINISTERIAL STATEMENT ON THE LAUNCH OF
KOREA-CHINA FREE TRADE AGREEMENT NEGOTIATION
(May 2, 2012, Beijing)
1. BARK Tae Ho, Minister for Trade of the Ministry of Foreign Affairs and Trade of the Republic
of Korea and Chen Deming, Minister of the Ministry of Commerce of the People’s Republic of
China held a meeting in Beijing on 2 May, 2012 and shared the view that the Korea-China FTA is
of significant importance for both countries in further strengthening and broadening the longexisting bilateral economic cooperation and trade relations, and thus deepening Korea-China
Strategic Cooperative Partnership. Building on the objectives, principles and recommendations
recognized in the Joint Feasibility Study of a possible Korea- China FTA, and further exchange of
views undertaken thereafter on how to address the sensitivities in the context of future FTA
negotiation, the Ministers hereby announced the launch of the Korea-China FTA negotiation.
2. The Ministers agreed that the first round of the negotiation will be held soon after the launch of
the negotiation, and the two countries will endeavor to conclude the negotiation at an early date.
3. The Ministers agreed that soon after the launch of the negotiation the two countries will start
negotiation to finalize modalities for Trade in Goods, Services, Investment and Other Areas, which
will be an integral part of the Agreement. The Ministers also agreed that, after the finalization of
the modalities, the two countries will enter into the rest of the negotiation covering all sectors
including goods, services, investment and other issues on the basis of these modalities and
conclude the negotiation as a single undertaking.
4. The Ministers agreed that the level of liberalization for Trade in Goods should go beyond each
country’s commitment in the WTO. To address the sensitivities in the area of Trade in Goods, a
normal track and a sensitive track will be established. The Ministers further envisaged longer
phase-out periods, partial reductions, exclusion, etc. for the possible treatments for sensitive track,
which may include a sensitive list and a highly sensitive list.
5. The Ministers agreed that the level of liberalization for Trade in Services should go beyond
each country’s commitment in the WTO. As for Investment, the Ministers highlighted that the
level of ambition and coverage will be defined to appropriately address the issues related to
bilateral investment flows, while taking into account the current and future investment-related
arrangements involving the two countries.
6. The Ministers confirmed that appropriate provisions to address issues relating to the Outward
Processing Zone (OPZ) designated by both countries will be included in the future Korea-China
FTA.
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