Sung-Jae Chun
Public-Service Advocate of Korea
This article is a news release of the Ministry of Trade, Industry & Energy, Republic of Korea which was distributed on November 10, 2014. It mentions about reaching a consensus on FTA between Korea and China.
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=1...
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□ On November 10, 2014 (Monday), Presidents of Korea and China have declared the substantial settlement of Korea-China FTA during the summit conference in Beijing, China.
○ After the 14th official negotiations on Korea-China FTA during November 4, 2014 (Tuesday) to November 9 (Sunday), two countries have reached a final conclusion on all essential points including opening of goods and services market and Product Specific Rules (PSR).
□ During the summit conference on November 10, 2014 (Monday), Presidents of Korea and China have officially declared the substantial settlement of Korea-China FTA and ordered negotiation teams to finish the technicalities within this year. Ministers of Trade in both countries (Yoon Sang-jick of Korea and Gao Hucheng of China) signed ‘Korea-China FTA Agreement Minute’.
○ Discussions of formulating Korea-China FTA began in 2005 at the joint private research and since the first official negotiations on May 2012, the substantial settlement was achieved in 30 months.
- The technicalities are due to be finished as soon as possible and the initialation is planned to be done by the end of this year.
* 2005 ~ 2006 Joint private research à 2007 ~ 2010 Joint research by the industry, government and academia à 2010 ~ 2012 Prior consultation between the governments à May 2012 The first official negotiation of Korea-China FTA à 14 Official Negotiations
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The following is an attached explanation on the press release written by the Ministry of Agriculture, Food and Rural Affairs, Republic of Korea, around the time of substantial settlement of Korea-China FTA.
I Progress of Korea-China FTA
□ Joint private research (2005 ~ 2006) and joint research by the industry, government and academia (2007 ~ May, 2010) between Korea and China were carried out.
□ Based on the Korea∙China Summit Conference on January 9, 2012, two countries agreed to proceed with the negotiations as soon as domestic procedures are taken care of.
* (Domestic procedures) Public hearings on Korea-China FTA (February 24, 2012), FTA Progress Committee (April 13, 2012), Minister Meeting on External Economic Affairs (April 16, 2012), Reports to the National Assembly (April 23, 2012)
* (External Procedures) Prior negotiations on detailed regulations on negotiation with China (March ~ April, 2012).
□ Based on Korean-Chinese Ministers of Trade Meetings on May 2, 2012, declaration of the beginning of Korea-China FTA negotiations and joint public statement took place.
* Including negotiations in stages, goods categorized into Normal Track, Sensitive List and Highly Sensitive List, Outward Processing Zones
□ After the declaration of the beginning of the negotiations, the first modality negotiation (outline of negotiation) began. Korea-China FTA Modality was settled on the 7th negotiation (September, 2013 in Weifang).
* Settlement of modality on goods, services/investments, other areas (cooperation on agricultural and fisheries products, SPS)
□ Second stage of negotiations began after the 8th negotiation. After six official negotiations, agreement on concession and rule of origin was reached.
* 8th (November, 2013 in Incheon), 9th (January, 2014 in Xian), 10th (March, 2014 in Goyang), 11th (May, 2014 in Meishan), 12th (July, 2014, Daegu), 13th (September, 2014, in Beijing)
□ Based on the APEC Summit on November 10, 2014, Presidents of both countries declared the substantial settlement of Korea-China FTA.
* Presidents of both countries have ordered to finish the remaining technicalities within this year.
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◈ 180 times of meeting for exchanging opinions were held including meetings for particular goods and briefing sessions.
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II Major results
1. Concessions on agricultural products
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Concessions on the Korean side
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A. Introduction
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◈ The agreement is as follows: among the total agricultural goods (1,611 items), highly sensitive list contains 581 items (36.1%), sensitive list 441 (27.4%), normal track 589 (36.6%).
* (normal track) abolished within 10 years, (sensitive list) abolished after 10 years and within 20 years, (highly sensitive list) excluded from concession/TRQ/partial reduction
◈ The percentage of sensitive and highly sensitive list is 63.4% (1,022 items), higher than previous FTAs.
* (United States of America) 12.2%, (EU) 14.5%, (Canada) 18.5%, (Chile) 29.7%, (Australia) 38.5%
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□ (Highly sensitive list) Among 581 items in highly sensitive list, 548 items (94.3%) are excluded from concession, TRQ is applied to seven items (1.2%) and partial reduction is applied to 26 items (4.5%).
○ (Excluded from concession) Most products that are subjected to domestic production are excluded from concession
* (United States of America) 1.0% (16 items), (EU) 2.8% (41 items), (Australia) 10.5% (158 items), (Canada) 14.1% (211 items)
○ (TRQ) Items that are already subjected to high dependence on imports from China due to WTO/TRQ, TRQ is being applied in order to protect domestic industry and stabilization of supply.
* TRQ supplies (fixed): soybeans 10,000 metric tons, sesame 24,000 metric tons, sweet potato starch 5,000 metric tons, red beans 3,000 metric tons, other feed 38,000 metric tons, malt 5,000 metric tons.
○ (Partial reduction) Domestic sensitive list goods with large amount of imports from China have been subjected to partial reduction in order to minimize the opening of the market.
* Partial reduction of tariff (average of 20%) goods: kimchi, composite seasoning, other sauces, prepared peanuts, perilla, starch noodles, prepared red beans, other starches, taro for starch products, tapioca, scotch oats, etc
□ (Sensitive list) Goods that are comparatively less sensitive such as lemon, margarine, etc will be subjected to a long-term tariff elimination schedule in order to prepare for sharp increase in imports
○ Other herbal medicine ingredients, other fruit nuts(prepared), other fruits (jam, jelly) are subjected to 20-year non-linear tariff elimination in order to minimize the influence.
* Other herbal medicine ingredients (tariff 8%) will apply tariff elimination after the 13th year, other fruit nuts (tariff 45 %) and other fruit (30%) will apply tariff elimination after the 11th year.
□ (Normal track) Low-rate tariff goods among fresh agricultural products, import-dependent goods such as raw materials of livestock feeds, goods that do not have domestic demand, etc will be subjected to tariff elimination within 10 years.
B. Concessions for major agricultural products
□ (Rice) Rice and rice-related products (16 tariff headings) are excluded from the subject of negotiations.
* All duties are excluded, including duties other than tariff elimination and any other FTA-related duties.
□ (Animal products) Major animal products in domestic market such as cows, pigs, chickens, ducks and other major animal products such as milk and egg are all excluded from the negotiation.
○ Breeding stocks, goods for low-rate tariff (pig fat 3%), processed livestock product (albumin) etc that have less influence on domestic livestock industry, are partially open.
□ (Fruits) Major products that have large amount of supply and demand in domestic market such as Apple, pear, grapes, tangerines, persimmons, strawberries, watermelons, peaches, etc are excluded from the subjects of negotiation.
○ Oranges, which have high substitution effects on tangerines and major processed fruits such as grapes, peaches, strawberries, tomato juices are excluded from concession.
○ Nuts such as chestnut, walnuts, pine nuts, jujube, gingko nuts are excluded from concession. Goods that are in competition with imported agricultural products such as bananas are opened.
○ (Vegetable∙special production) Seasoning vegetable such as red pepper, garlic, onion, cinnamon, major field crop such as Chinese cabbage, carrot, radish, cucumber, aubergime and ginseng products are excluded from concession.
○ Major vegetable are entirely excluded from concession- regardless whether they are fresh vegetables or products that may be circumvented by being imported in forms such as frozen, dried, prepared, temporarily stored.
○ Among ginseng products, high rate tariff products (222.8% ~ 754.3%) are excluded from concession and only low rate tariff products such as drinks∙teas (8%) are agreed to be subjected to tariff elimination in 20 years.
○ Sesame have high dependency on imports and 24,000 tons will be imported every year under TRQ. Perilla is subjected to decrease the current tariff rate (40%) to 36% in five years.
□ (Processed foods) Traditional foods such as soysauce, soybean paste, hot pepper paste, meju (fermented soybean), soybean oil(for food)∙sugar∙starch that need to maintain domestic production basis are excluded from concession.
○ Tariff rate for kimchi(20%) is to be decreased within 10% (2%p).
* Although the average partial reduction rate is 20%, the percentage of decrease is within 10% in order to minimize the impact to Chinese cabbage, sauce and kimchi industry.
○ Mixed seasoning, other sauces (so-called seasoned red-pepper sauce) are subjected to minimal decrease in tariff reduction because there are possibilities of negative impacts through circumvention.
○ Sweet potato starch have high dependency rate on the Chinese imports and are to be imported on fixed amount of 5,000 tons per year on TRQ.
The result of concessions on agricultural goods in Korea-China FTA
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Type of Concession
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Tariff Heading Number
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Percentage (%)
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Major Items
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Immediate Elimination
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216
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13.4
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Cow(beef cattle, dairy cattle, others), ducks (others, for breeding), pigs (for breeding), soy bean (seed, flour, middling), sorgo molasse (for spirit production), lard (others), poultry fat (others), palm oil and fractions, tomato seed, wool (others/absorbent cotton), variety of cake (common wheat), cabbage seed, mustard seed, fur (others), coconut oil and others, molasse (others/ for spirit production), lard oil, radish seed, coconut oil (crude oil), vegetable seed (others), rye (others)
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Elimination in five years
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209
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13.0
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Sunflower seed oil (crude oil/others), processed food (oatmeal/for infants), ox bezoar, pasta (others), corn gluten feed, sweet rice beverage (sik-hye), musk, beet, hard tack, common wheat (others), cottonseed oil (crude oil/refined oil/others), soybean oil (refind oil/ crude oil), sorgo, spaghetti, brewing vinegar, instant noodle and others
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Elimination in ten years
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164
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10.2
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Cognac, white wine (others), coconut (others/dried/in-shell-endocarp), bakery products (others), saffron, sweet biscuits, cookies and crackers, pine tree (for bonsai), red wine (others), vodka, mayonnaise, almond (shell removed) and others
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Subtotal
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589
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36.6
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Elimination in 15 years
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202
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12.5
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Sunflower seed oil(refined oil), palm kernel oil (refined oil), curry, olive (sugar-processed for storage/processed for storage/processed for temporary storage), ice cream (others), shortening, cider, banana (others/plantain), mangosteen(fresh/dried), margarine (excluding liquefied forms), durian (fresh), guava (fresh/dried), pineapple (processed for storage/ sugar-processed for storage), mango (fresh/dried), popcorn (processed for storage), coffee creamer, mustard(powder/middling), sausages (others), compound feed (cattle/swine/chicken/fisheries/others), tomato paste, sweet corn (processed for storage/sugar-processed for storage/frozen) and others
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Elimination in 20 years
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Reduction from 11th year
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2
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0.1
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Fruit, nuts and others (processed for storage), other fruits (jam, jelly, marmalade, etc)
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Reduction from 13th year
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1
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0.1
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Other herbal medicine ingredients (other plants – perfume, medicine and others)
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Linear Elimination in 20 years
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236
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14.6
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tlatycodon glaucum (thwn berg) narai (fresh/cold-storage), manioc (frozen), dairy spread, soju, beer, peanut oil (crude oil/refined oil/others/fractions), ginseng drinks, other vegetables (sugar-processed for storage), mixture of vegetable, chun-jang, bean (others/sugar-processed for storage), whey (others/feed) and others
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Subtotal
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441
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27.4
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TRQ
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7
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0.4
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Sesame, red beans (dried/others), soy beans (others/for soy sprout), plant by-products for feeds, malt (non-fried), starch (of sweet potato), soy bean (others/others)
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Partial Reduction
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20 % partial reduction (average)
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11
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0.7
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Kimchi (processed for storage), mixed seasoning, other sauces, red bean (shell removed/processed for storage), starch noodle, bracken (dried), perilla, saccharides (others), other peanuts (processed for storage), pine mushrooms (frozen), other vegetables (processed for storage)
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130% reduction
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15
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0.9
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Manioc (fresh/cold-storage/others/dried), manioc chips (dried), manioc pellets (dried), wheat (pellet/crushed/middling), sweet corn (others/dried), corn (seed), scotch oats (pressed flakes/crushed/middling/processed grain), yam-Dioscorea(others), taro- Colocasia (others), American taro- Xanthosoma (others)
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Excluded from Concession
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548
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34.0
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Rice, barley (hulled barley/naked barley), corn for popcorn, potato (food/frozen,dried/chips/potato flour), beef (fresh/cold-storage/frozen/comminuted meat products), pork (frozen pork belly/ cold-storage pork belly/other cold-storage pork/pig trotter/sealed products), chicken (frozen breast meat/ frozen wings/frozen meat/chicken processed products), powdered milk(whole milk powder, condensed milk/ modified milk powder/mixed milk powder), cheese (fresh/processed/others/cheddar), butter, honey (natural/artificial), citrus fruits ∙ oranges(satsuma mandarin/ mandarin/ tangerine/ orange), apple∙pear∙grape∙kiwi, pumpkin, pepper(fresh/cold-storage/dried/frozen), garlic (fresh/cold-storage/temporary storage/dried/frozen), onion (fresh/cold-storage/dried/frozen), ginseng products (root ginseng, other processed products) and others
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Subtotal
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581
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36.1
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TOTAL
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1,611
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100.0
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Concession on the Chinese side
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□ (Highly Sensitive List) 102 Goods that are traditionally sensitive and were excluded from concession in previous FTAs such as rice, sugar, wheat flour, vegetable oil, cigarette and others are excluded from concession.
○ The other 1,029 goods (91%) are subjected to the elimination of tariff in order to maximize the possibility for venturing into the Chinese market.
□ (Sensitive List) Fresh meat such as beef, pork, chicken and others, as well as processed goods of fruits and vegetable, pasta, instant noodle and others will be subjected to tariff elimination in 20 years.
○ Kimchi and other vegetable prepared for storage, prepared coffee and others will be subjected to tariff elimination in 20 years.
□ (Normal Track) Frozen beef, pork, chicken, fresh apple, pear, grape and other fruits will be subjected to tariff elimination in 10 years.
○ Vegetables will be subjected to tariff elimination in 10 years, regardless of whether they are fresh or frozen.
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Types of Concession
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Korea-China FTA
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Major Goods
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Tariff Heading Number
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%
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Normal Track
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Immediate Concession
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221
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19.5
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Processed products for feeds, jam∙fruit jelly, vegetable seed and others
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Concession in 5 years
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54
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5.7
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Protein-type material, wool, animal fur, raw silk, livestock raw hide, frozen orange juice, non-roasted coffee
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Concession in 10 years
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439
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38.8
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Apple∙pear∙grapes∙peach∙strawberry(fresh), beef∙pork∙chicken(frozen), sausage, roasted coffee, water and others
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Subtotal
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725
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64.1
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Sensitive List
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Concession in 15 years
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203
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17.9
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Beef∙pork∙chicken(fresh), pasta, fruit juice, vegetable juice, natural honey, processed cheese and others
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Concession in 20 years
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101
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8.9
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Kimchi, non-alcoholic beverages, other seasonings, instant noodle, coffee products, flour products, soy sauce, fermented alcohol, frozen duck meat and others
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Subtotal
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304
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26.9
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Highly Sensitive List
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Partial Reduction
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1
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0.1
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Other processed foods (20% à 18.4%)
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Excluded from Concession
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101
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8.9
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Rice, sugar, dried ginseng, chestnut (in-shell), vegetable oil, milk and cream, wheat, wheat flour, saccharides
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Subtotal
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102
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9.0
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TOTAL
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1,131
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100.0
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2. Sanitary and Phytosanitary measures (SPS)
□ Taking into consideration the worries from agricultural industry, Sanitary and Phytosanitary measures were agreed at the level of WTO/SPS Agreement.
○ Articles that may violate the quarantine sovereignty such as regionalization are deleted and the dispute resolution process in FTA will not be applied.
○ Both sides agreed that the SPS Committee will be established in order to perform WTO/SPS Agreement and to consult an agreement on SPS issues.
3. Non-Tariff Measures (NTM)
□ Two countries agreed to enhance clarity on non-Tariff Measures – excluding the matters of sanitation, SPS, Technical Barriers to Trade- and to provide opportunities for consultation.
○ Both sides agreed to open a working group on commission of commodity trade on NTM issues that one party has confirmed.
4. Country of origin
□ Fresh agricultural products (1~14 class) are subjected to strict criteria in order to protect the domestic market. Processed foods (15~24) are subjected to eased criteria, considering the possibilities for export.
○ For dairy products, flowers, vegetables, fruits, grain∙grain flour, preferential tariff is applied only when domestic material are used, setting up wholly obtained criterion.
○ For sausage, chocolate, instant coffee, fruit and vegetable products country of origin criteria is being eased to allow the foreign material usage in order to enhance competitiveness in exports.
III Domestic supplement plans
□ Korea-China FTA concludes the previous FTAs and signifies that the Korean agriculture is completely incorporated into the open market system in the FTA
○ Upon the agreement of Korea-China FTA, the percentage of agricultural product import from FTA countries increase from 64% (including the Commonwealth) to 80% (in 2013).
□ Considering the unique characteristic of the agricultural goods trading between Korea and China, the Government of Republic of Korea (“Government”) plans to establish a comprehensive plan in order to improve the fundamentals of the Korean agriculture and to raise it as future growth industry.
○ The Government have considered plans for reaction with farmers, local governments, professionals and others for possible scenarios while progressing with the negotiation.
○ The Government plans to analyze the effects based on the final negotiations and prepare measures to preserve damages, enhance competitiveness and utilize the opportunities for expanding exports to China.
Major contents for comprehensive plans (proposals)
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* (Enhancing competitiveness for field crop) Maintenance of field basis, mechanization of field, ICT convergence
* (Expanding consumption and export basis) Expansion of GAP, raising of agricultural food industry, expansion of export
* (Stabilizing farm household income) Expansion of field direct payment, Introduction of revenue guarantee insurance
* (Manpower, Financial Policies) Raising agricultural manpower, decrease of bank rate policy
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○ A comprehensive plan will be prepared by making a T/F team with Rural Development Administration, Korea Forest Service and local governments.
□ Moreover, the Government will duly listen to opinions from farmers, professionals and others and start working with areas that need proactive action
○ Works that have long-term investments and effects will be actively engaged even before FTA takes effect.
IV Upcoming schedule
□ The Government will carefully cope with the upcoming procedures until the official signing.
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Cooperation on technicalities à Legal scrub à Initialing à Translationà Signing
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□ After the signing, ratification submitted to the National Assembly and the domestic supplements will be submitted simultaneously.
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Analysis on the effect à First draft of countermeasures à Collection of opinions and consultation à Committee for supporting farmers à Domestic countermeasure projects committee on commercial treaties à Economic ministers meeting à Request for ratification of the National Assembly
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○ (Analysis on the effect) Damages occurred by the result of the negotiation of goods will be analyzed.
- The announcement of the analysis will be held by joint research group after collecting and reviewing the data.
○ (First draft of countermeasures) First draft of domestic measures will be prepared based on the aforementioned data.
- Rural Development Administration, Korea Forest Service and local governments will establish and run a joint TF.
○ (Collection of opinions and consultation) Opinions of farmers, local governments, professionals will be collected and consultation will be made between the deparments.
- Various opinions of farmers, local governments and other interested parties will be collected by holding farmers association meeting(nationwide, association per goods), committee for national cohesion, general managers meeting on city and provincial government.
- First draft of countermeasures will be discussed in the Hope Agricultural Forum (희망 농업 포럼).
- Related departments will finalize the analysis on damages and consult on the investment and loan plans.
○ (Legal procedures) The plans for countermeasures will be introduced and discussed in committee for supporting farmers, Domestic countermeasure projects committee on commercial treaties and Economic ministers meeting
○ (Submission at the National Assembly) Ratification and domestic plans will be simultaneously submitted.
Appendix 1 Current situation of Korea-China trade
□ Comprehensive trade trends with China: US $ 228.8 billion (Trade surplus US $ 62.8 billion)
(Unit: US $ billion)
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Classification
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2009
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2010
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2011
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2012
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2013
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Total Amount of International Trade (Percentage of Trade with China)
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Exports
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867
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1,168
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1,342
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1,343
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1,458
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5,596 (26.1%)
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Imports
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542
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716
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864
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808
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830
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5,156 (16.1%)
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Trade Balance
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325
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453
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478
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535
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628
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Total Turnover
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1,409
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1,884
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2,206
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2,151
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2,288
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□ Agricultural and animal products trade trends with China: US $ 5.7 billion (Trade deficit US $ 3.8 billion)
(Unit: US $ million)
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Classification
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2009
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2010
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2011
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2012
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2013
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Export (A)
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Total
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419
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556
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915
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907
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947
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Agricultural products
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327
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447
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816
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654
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675
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Animal products
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18
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23
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37
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131
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145
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Forest products
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74
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86
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62
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122
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127
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Import (B)
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Total
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2,822
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3,227
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3,999
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4,214
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4,714
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Agricultural products
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1,702
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1,946
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2,463
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2,364
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2,747
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Animal products
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42
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53
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60
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138
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142
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Forest products
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1,078
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1,228
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1,476
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1,712
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1,825
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Trade balance
(A – B)
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r2,403
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r2,671
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r3,084
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r3,307
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r3,767
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□ Top 10 agricultural and animal products in trade with China
(Unit: US $ million)
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Rank
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Exports
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Imports
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1
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Sucrose
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128.7
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Granite products
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540.8
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2
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Processed dry milk
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56.4
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Plywood
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288.4
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3
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Processed coffee products
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52.1
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Rice
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284.4
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4
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Composite food preparation
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45.7
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Starch pulp
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224.0
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5
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Paper board
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44.5
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Composite food preparation
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182.6
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6
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Other bakery products
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44.4
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Other forest products
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136.7
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7
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Biscuits
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37.8
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Soybean meal
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131.7
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|
8
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Instant noodle
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37.8
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Kimchi
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117.4
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9
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Other forest products
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36.7
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Other furniture
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113.3
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|
10
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Leather
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33.9
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Pepper
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111.8
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Appendix 2 Comparison of concessions in Korea-China/The United States/European Union/Australia/Canada FTA on major pgricultural products
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Products
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Korea-China FTA
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Korea-US FTA
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Korea-EU FTA
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Korea-Australia FTA
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Korea-Canada FTA
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Rice
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○ Rice and 16 rice-related tariff heading numbers
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Excluded from Concession
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Excluded From Concession
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Excluded From Concession
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Excluded From Concession
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Excluded From Concession
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Barley
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○ Hulled barley (324%), Naked barley (299.7%)
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Excluded from Concession
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15 years + ASG + TRQ
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Excluded From Concession
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Excluded From Concession
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15 years + ASG + TRQ
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○ Malt (269%), Malting barley (513%)
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TRQ/ Excluded from Concession
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15 years + ASG + TRQ
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15 years + ASG + TRQ
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15 years + ASG + TRQ
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12 years + TRQ, 15 years
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Corn
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○ Corn for popcorn (630%)
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Excluded from concession
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7 years + ASG
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13 years
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18 years
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10 years
|
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○ Corn for seeding (328%)
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Reduced to 130% for 10 years
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5 years
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5 years
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18 years
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10 years
|
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Soybean
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○ Soybean for food (487%)
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Current tariff is maintained + TRQ
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Current Tariff is maintained + TRQ
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Excluded From Concession
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Current Tariff is maintained + TRQ
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Current tariff is maintained + TRQ (Immediate application for soy sauce and soybean meal)
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○ Others (487%)
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Excluded from concession (Vegetable oil, For defatted soybean meal, For feeder)
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Immediate Elimination (Vegetable oil, For defatted soybean meal, For feeder)
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5 years (Vegetable oil, For defatted soybean meal), Excluded from concession (For feeder)
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50 % Reduction in 10 years (For defatted soybean meal, feeder)
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10 years (Vegetable oil, defatted soybean meal), Excluded from Concession (Feeder)
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Potato
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○ Potato for food (304%), Freeze drying (27%)
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Excluded from concession
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Current Tariff is maintained + TRQ (Frozen, Dried 5 years, For seed 10 years)
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Excluded from concession (Frozen, dried 5 years, For seed 10 years)
|
Excluded from Concession
|
Excluded from concession(frozen, dried 5 years, For seed 10 years)
|
|
○ Potato for chips (304%)
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Excluded from concession
|
Seasonal Tariff (Immediate / 8 years)
|
Excluded from concession
|
Seasonal tariff (Immediate / 15 years)
|
Seasonal tariff (Immediate / 15 years)
|
|
○ Potato flour (304%)
|
Excluded from concession
|
10 years + ASG
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13 years
|
Excluded from concession
|
10 years + ASG + TRQ
|
|
Starch
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○ Potato starch (455%)
|
Excluded from concession
|
15 years + ASG
|
15 years + ASG
|
50 % Reduction in 10 years
|
Excluded from concession
|
|
○ Manioc starch (455%), Sweet potato starch (241.2%)
|
Excluded from concession
|
15 years + ASG
|
15 years
|
50 % Reduction in 18/10 years
|
11 years
|
|
○ Modified starch (385.7%)
|
Excluded from concession
|
12 years + ASG + TRQ
|
12 years + ASG + TRQ
|
15 years
|
10 years
|
|
Beef
|
○ Fresh meat∙frozen (40%)
|
Excluded from concession
|
15 years + ASG
|
15 years + ASG
|
15 years + ASG
|
15 years + ASG, Excluded from concession
|
|
○ Edible meat offal (18%)
|
Excluded from concession
|
15 years
|
15 years
|
15 years
|
11 years
|
|
Pork
|
○ Frozen pork belly (25%)
|
Excluded from concession
|
Jan 1, 2014 (Frozen pork neck Jan 1, 2016)
|
10 years
|
Excluded from concession
|
13 years + ASG
|
|
○ Cold-storage pork belly, other cold-storage products (22.5%)
|
Excluded from concession
|
10 years + ASG
|
10 years + ASG
|
10 years
|
13 years + ASG
|
|
○ Pork foot (18%), Airtight processed products (30%)
|
Excluded from concession
|
Jan 1, 2014
|
6 years
|
7 / 5 years
|
5 years / 6 years
|
|
○ Other frozen products (25%)
|
Excluded from concession
|
Jan 1, 2016
|
5 years
|
5 years
|
5 years + ASG
|
|
Chicken
|
○ Frozen chicken breast, Frozen chicken wing (20%)
|
Excluded from concession
|
12 years
|
13 years
|
18 years
|
Excluded from Concession
|
|
○ Uncut chicken meat (18-20%)
|
Excluded from concession
|
12 years
|
12 years
|
18 years
|
11 years
|
|
○ Cold-storage meat (18%), processed chicken meat products (30%)
|
Excluded from concession
|
10 years
|
10 years
|
18 / 10 years
|
10 years / Excluded from concession
|
|
Duck meat
|
○ Cold-storage meat (18%), Frozen meat (18%)
|
Excluded from concession
|
10 years/ 12 years
|
11 years/ 14 years
|
15 years/ 18 years
|
10 years / Excluded from concession
|
|
Dry milk
|
○ Whole milk powder (176%)
|
Excluded from concession
|
Current tariff is maintained + TRQ
|
Current tariff is maintained + TRQ
|
Excluded from concession
|
Excluded from concession
|
|
○ Skim milk powder (176%)
|
Excluded from concession
|
Current tariff is maintained + TRQ
|
Current tariff is maintained + TRQ
|
Excluded from concession
|
Excluded from concession
|
|
○ Modified milk powder (36%)
|
Excluded from concession
|
10 years + ASG
|
10 years + ASG
|
15 years + ASG
|
Excluded from concession
|
|
○ Mixed milk powder (36%)
|
Excluded from concession
|
10 years
|
10 years
|
15 years
|
Excluded from concession
|
|
Cheese
|
○ Fresh, processed, other cheese (36%)
|
Excluded from concession
|
15 years + ASG
|
15 years + ASG
|
20 / 18 years + ASG
|
Excluded from concession
|
|
○ Cheddar cheese (36%)
|
Excluded from Concession
|
10 years + ASG
|
10 years + ASG
|
13 years + ASG
|
Excluded from concession
|
|
Honey
|
○ Natural honey (243%)
|
Excluded From concession
|
Current tariff is maintained + TRQ
|
Current tariff is maintained + TRQ
|
Excluded from concession
|
Current Tariff is maintained + TRQ
|
|
○ Artificial honey (243%)
|
Excluded From concession
|
10 years
|
10 years
|
Excluded from concession
|
10 years
|
|
Feeds
|
○ Subsidiary feeder (50.6%)
|
20 years
|
12 years + ASG
|
12 years + ASG
|
15 years
|
10 years + ASG
|
|
○ Corn for feeder (328%)
|
Excluded from concession
|
Immediate Elimination
|
5 years
|
18 years
|
10 years
|
|
Citrus fruits, Orange
|
○ Satsuma mandarin (144%)
|
Excluded from concession
|
15 years
|
Excluded from concession
|
Excluded from concession
|
Excluded from concession
|
|
○ Mandarin, Tangerine (144%)
|
Excluded from concession
|
15 years
|
15 years
|
Seasonal tariff
|
11 years
|
|
○ Orange (150%)
|
Excluded from concession
|
Seasonal tariff + ASG
|
Seasonal tariff + ASG
|
Seasonal tariff + ASG
|
Excluded from concession
|
|
Apple, Pear, Grapes
|
○ Apple (45%)
|
Excluded from concession
|
Fuji-produced 20 years (others 10 years) + ASG
|
Fuji-produced 20 years (others 10 years) + ASG
|
Excluded from concession
|
Fuji-produced excluded from concession (others 10 years ) + ASG
|
|
○ Pear (45%)
|
Excluded from concession
|
Chinese pear 20 years (other variety 10 years)
|
Chinese pear 20 years (other variety 10 years)
|
Excluded from concession
|
Fuji-produced excluded from concession (others 10 years ) + ASG
|
|
○ Grapes (45%)
|
Excluded from concession
|
Seasonal tariff
|
Seasonal tariff
|
Seasonal tariff
|
Excluded from concession
|
|
Pepper
|
○ Fresh, Cold-storage, Dried pepper (270%)
|
Excluded from concession
|
15 years + ASG
|
Excluded from concession
|
Excluded from concession
|
Excluded from concession
|
|
○ Frozen pepper (27%)
|
Excluded from concession
|
15 years
|
15 years
|
18 years
|
11 years
|
|
Garlic
|
○ Fresh, Cold-storage, temporary storage, dried garlic (360%)
|
Excluded from concession
|
15 years + ASG
|
Excluded from concession
|
Excluded from concession
|
Excluded from concession
|
|
○ Frozen garlic (27%)
|
Excluded from concession
|
15 years
|
15 years
|
18 years
|
11 years
|
|
Onion
|
○ Fresh, Cold-storage, Dried onion (135%)
|
Excluded from concession
|
15 years + ASG
|
Excluded from concession
|
Excluded from concession
|
Excluded from concession
|
|
○ Frozen onion (27%)
|
Excluded from concession
|
12 years
|
12 years
|
15 years
|
11 years
|
|
Ginseng
|
○ Root ginseng, seven tariff heading numbers (222.8~754.3%)
|
Excluded from concession
|
18 years + ASG
|
Excluded from concession
|
Excluded from concession
|
Excluded from concession
|
|
○ Other ginseng processed products
|
Excluded From concession
|
10 - 15 years + ASG
|
10 - 15 years + ASG
|
10 – 15th year, Excluded from concession
|
10 years - Excluded from concession
|
|
Noodles
|
○ Instant noodle (5%), pasta (5%)
|
5 years / 10 years
|
Immediate elimination
|
Immediate elimination
|
Immediate elimination/10years
|
Immediate elimination
|
Appendix 3 Result of Korea-China FTA on agricultural goods (in detail)
A. Food crops
|
Products
|
Result of FTA negotiations
|
|
Rice
|
○ Rice and rice related 16 tariff heading number: Excluded from concession
|
|
Soybean
|
○ Soybean for food(487%, for soy sprout, others): Current tariff is maintained + TRQ 10,000 tons
- Vegetable oil and defatted soybean meal: Excluded from concession
- For feeder: Excluded from concession
|
|
Potato, potato flour
|
○ Potato for chips (304%), other potato for food (304%): Excluded from concession
- Potato for chips: Excluded from concession
- Potato for seed (304%): Excluded from concession
- Frozen∙dried: Excluded from concession
○ Potato flour (304%): Excluded from concession
|
|
Barley
|
○ Hulled barley (324%), naked barley (299.7%): Excluded from concession
- Malt (non-fried, 269%): Current tariff is maintained + TRQ 5,000 tons
- Malting Barley (513%): Excluded from concession
- Other barley (299.7%): Excluded from concession
|
|
Corn
|
○ For popcorn (630%), for feeder (328%): Excluded from concession
- For seed (328%): Reduced to 130% (in uniform for 10 years)
- Other corn (328%): Excluded from concession
|
|
Starch
|
○Potato starch (455%), corn starch (226%), other starch (800.3%): Excluded from concession
- Wheat starch (50.9%), manioc starch (455%): Excluded from concession
- Sweet potato starch (241.2%): Current tariff is maintained + TRQ 5,000 tons
|
|
Others
|
○ Sweet potato (385%, Frozen is 45%), other root and tuber crops (385%): Excluded from concession
- Fermented spirits (270%): Excluded from concession
- Red bean seed (420.8%): Excluded from concession
- Other red beans (420.8%): Current tariff is maintained + TRQ 3,000 tons
- Buck wheat (256.1%): Excluded from concession
- Adlay (800.3%), other processed grains (800.3%): Excluded from concession
|
B. Beef
|
Products
|
Result of FTA negotiations
|
|
Beef
|
○ Eight sensitive tariff heading number goods: Excluded from Concession
○ Edible meat offal (Leg, Tail, Tongue and others, 18%), meat and edible meat offal (27%): Excluded from concession
|
|
Pork
|
○ Carcass and carcass in half, thigh, shoulder, pork belly and others (cold-storage/frozen, 22.5%/25%): Excluded from concession
○ Edible meat offal (18%): Excluded from concession
○ Processed pork product (27~30%): Excluded from concession
○ Sausage (18%): Excluded from concession
- Other sausages (30%): Eliminated in 15 years
|
|
Chicken
|
○ Chicken leg∙breast∙wings (cold-storage/frozen, 18/20%): Excluded from Concession
○ Fried chicken (18~20%): Excluded from Concession, Other un-cut chicken mean (18%): Excluded from concession
○ Processed chicken product (30%): Excluded from concession
○ Ginseng-chicken soup (30%): Excluded from concession
|
|
Egg
|
○ Egg (41.6%), Yolk (27%): Excluded from concession
○ Parent egg (27%): Excluded from Concession
○ Other mature eggs (27%): Excluded from concession
|
|
Other meat products
|
○ Duck meat (18~27%): Excluded from concession
○ Goat∙ Sheep meat (22.5%): Excluded from concession
○ Turkey meat (18~27%): Eliminated in 20 years
○ Antler powder (20%): Excluded from Concession
○ Other antler (20%): Excluded from concession
|
C. Dairy products, honey, feeders
|
Products
|
Result of FTA negotiations
|
|
Milk powder,
Condensed milk,
Lactose
|
○ skim milk powder∙whole milk powder (176%)∙condensed milk(89%): Excluded from concession
○ Mixed milk powder (36%): Excluded from concession
○ Modified milk powder (36~40%): Excluded from concession
○ Lactose (49.5%): Excluded from concession
|
|
Cheese
|
○ Cheese (36%): Excluded from concession
|
|
Milk and Cream
|
○ Milk and Cream (36%): Excluded from concession
- Less than 6% fat: Excluded from concession
- More than 6% other fat: Excluded from concession
- More than 6% frozen cream fat: Excluded from concession
|
|
Butter
|
○ Butter (89%): Excluded from concession
|
|
Whey
|
○ Whey for food (49.5%): Excluded from concession
○ Whey for feeder (39.5%): Eliminated in 20 years
|
|
Honey
|
○ Natural honey, artificial honey (243%): Excluded from concession
○ Royal jelly (7%): Excluded from concession
○ Royal jelly∙processed honey products (8%): Excluded from concession
|
|
Feeder
|
○ Root vegetable for feeder (100.5%): Excluded from concession
○ Subsidiary feeder (50.6%), Formula feeder (milk replacer, 71%): Eliminated in 20 years
○ Formula feeder (raising pork/chicken/ fish/ cow/others, 4.2~5%): Eliminated in 15 years
○ Other feeder (46.4%): Current tariff maintained + TRQ 38,000 tons
|
D. Fruit and Fruit Vegetable
|
Products
|
Result of FTA negotiations
|
|
Apple, Pear, Sweet persimmon, Watermelon, Strawberry, Grapes, Peach
|
○ Apple, Pear, Sweet persimmon, Watermelon, Strawberry, Grapes, Peach (45%): Excluded from concession
|
|
Citrus Fruit
|
○ Citrus fruit (144%): Excluded from concession
○ Mandarin (144%): Excluded from concession
|
|
Orange
|
○ Orange (50%): Excluded from concession
|
|
Kiwi
|
○ Kiwi (45%): Excluded from concession
|
|
Melon
|
○ Melon (45%): Excluded from concession
|
|
Other Strawberries
|
○ Berry (Fresh 45%, Frozen 30%): Excluded from concession
○ Herbaceous Strawberries (Temporary Storage, 30%): Excluded from concession
○ Strawberries (Processed for Storage, 45%): Excluded from concession
○ Strawberry juice (50%): Excluded from concession
|
|
Tomato
|
○ Tomato (Fresh∙ Cold-storage, 45%): Excluded from concession
○ Tomato juice (30%): Excluded from concession
○ Processed for Storage (30%): Eliminated in 20 years
○ Tomato ketchup (8%), Tomato sauce (45%): Eliminated in 20 years
- Tomato paste (5%): Eliminated in 15 years
|
|
Cucumber, Pumpkin
|
○ Cucumber (27%): Excluded from concession
○ Pumpkin (27%): Excluded from concession
|
|
Aubergime
|
○ Aubergime (27%): Excluded from concession
|
E. Sauced Vegetable, Ginseng, Special crops
|
Products
|
Result of FTA negotiations
|
|
Pepper
|
○ Fresh pepper, dried pepper, red pepper spice (270%), frozen pepper (27%): Excluded from concession
|
|
Garlic
|
○ Whole garlic∙peeled garlic∙dried garlic∙temporary storage processed (360%): Excluded from concession
○ Frozen garlic (27%): Excluded from concession
○ Processed for storage (30%): Excluded from concession
|
|
Onion
|
○ Fresh and dried onion (135%): Excluded from concession
○ Frozen onion (27%): Excluded from concession
○ Processed for storage (30%): Excluded from concession
|
|
Ginger
|
○ Fresh∙dried∙other ginger (377.3%): Excluded from concession
○ Sugar-processed for storage (30%): Excluded from concession
|
|
Scallion
|
○ Dried scallion (30%), shallot (27%): Excluded from concession
○ Processed shallot for storage (30%): Excluded from concession
|
|
Ginseng
|
○ Major 23 Ginseng products
- Raw ginseng (222.8%) and red ginseng (754.3%)∙white ginseng (222.8%) and other root ginseng: Excluded from Concession
- Red ginseng powder (754.3%)∙white ginseng powder (18%): Excluded from concession
- Red ginseng extract∙red ginseng extract powder (754.3%), White ginseng extract∙white ginseng extract powder (20%): Excluded from Concession
- Red ginseng tablet (754.3%)∙white ginseng tablet (18%): Excluded from concession
- Ginseng leaf∙cane, ginseng seed, red ginseng tea (754.3%): Excluded from concession
○ Ginseng tea (8%): Eliminated in 20 years
○ Ginseng drinks (8%): Eliminated in 20 years
- Extracted oleoresin (white ginseng∙other ginseng 20%, red ginseng 754.3%): Excluded from concession
|
|
Sesame, Sesame oil, Peanut, Perilla, Perilla oil
|
○ Sesame (630%): Maintaining current tariff + TRQ (24,000 tons)
- Perilla (40%): 10% reduced from current tariff (equal reduction for 5 years)
○ Sesame oil (630%), perilla oil (36%): Excluded from concession
○ Peanut (230.5%): Excluded from concession
- Processed for storage (63.9%): 10% reduced from current tariff (equal reduction for 5 years)
- Peanut butter (50%): Eliminated in 20 years
|
F. Leaf and Root Vegetables
|
Products
|
Result of FTA negotiations
|
|
Carrot
|
○ Fresh carrot (30%), Frozen (27%), Dried (30%): Excluded from concession
|
|
Radish
|
○ Fresh radish (30%), Dried (30%): Excluded from concession
○ Fresh turnip (27%): Excluded from concession
|
|
Chinese Cabbage
|
○ Fresh, others (27%): Excluded from concession
|
|
Cabbage
|
○ Fresh (27%), Dried (30%): Excluded from concession
|
|
Others
|
○ East Indian Lotus (sugar-processed for storage, 30%), Taro cane (30%): Eliminated in 20 years
○ Sweet potato cane (30%): Excluded from concession
|
|
Other Vegetables
|
○ Codonopsis lanceolata (Fresh 27%, Dried 30%), Dried tlatycodon glaucum (8%): Excluded from concession
- Fresh/ Cold-storage tlatycodon glaucum (27%): Eliminated in 20 years
○ Sweet corn (Processed for storage/Frozen 30%, Sugar-processed for storage 15%): Eliminated in 15 years
- Sweet corn (Others/Dried 370%): Reduced to 130% (Equal reduction for 10 years)
- Sweet corn (For seed 370%): Excluded from concession
|
|
Other vegetable mix, Homogenized vegetables
|
○ Mixture of vegetables (Dried/frozen 27%): Excluded from concession
- Mixture of vegetables (27%): Eliminated in 20 years
○ Other vegetables (Frozen/Processed for temporary storage 27%, Dried 30%): Excluded from concession
- Other vegetables (Processed for storage 20%): 10% Reduction from the original tariff (Equal reduction for 5 years)
○ Homogenized vegetables (purée corn for infants, 20%): Eliminated in 20 years
|
G. Processed Food
|
Products
|
Result of FTA negotiations
|
|
Kimchi
|
○ Kimchi (20%): Within 10% reduction from the original tariff
|
|
Sugar
|
○ Other saccharides (8%): 10% Reduction from the original tariff (Equal reduction for 5 years)
|
|
Soybean oil, Corn oil
|
○ Soybean oil for food (5%): Excluded from concession
- Soybean for Biodiesel (5%): 5 years
- Soybean and its fractions (8%): Eliminated in 10 years
○ Corn oil and its fractions (8%): Excluded from concession
- Other corn oil/crude oil (5%): Eliminated in 5 years
|
|
Mixed seasoning and sauce
|
○ Mixed seasoning (45%), other sauce (45%)
: Within 10% reduction from the original tariff
|
|
Pastes
|
○ Fermented salty soybean paste (8%), Soy sauce (8%), Red pepper paste (45%), other pastes (45%): Excluded from concession
○ Chun-jang (8%): Eliminated in 20 years
|
|
Confection, bread, Other foods
|
○ Chocolates (8%): Eliminated in 5 years
○ Scotch oat bread, pie, cake and breads (8%), Hard tack (8%): Eliminated in 5 years
○ Biscuit, cookie and crackers (5%), Bakery products (8%): Eliminated in 10 years
- rice cookies (8%): Eliminated in 15 years
○ Coffee (Non-roasted/Not decaffeined (2%)): Eliminated in 10 years
- Coffee (Roasted/Decaffeined (2%)), Coffee husks and skins: Immediate Elimination
- Roasted coffee (8%): Eliminated in 5 years
- Coffee creamer (8%): Eliminated in 15 years
○ Instant noodle (5%): Eliminated in 5 years
○ Wine (15%): Eliminated in 10 years
- Other grape juice (30%): Excluded from concession
○ Soju (30%): Eliminated in 20 years
|
Appendix 4 Korea-China FTA TRQ products and corresponding amount
(Unit: Tons, %)
|
Products
|
In-quota
|
WTO TRQ
|
Quota Tariff Amount
|
World Export Amount
|
Import from China
|
Korea-China FTA
|
|
Total
|
Basic Amount
|
Increased Amount
|
Total Import Amount
(A)
|
WTO TRQ Import Amount
|
TRQ Amount
|
B/A
(%)
|
|
Soybean (Others, for soy sprout)
|
487 (5)
|
321,805
|
185,787
|
136,018
|
|
318,836
|
118,018
|
116,131
|
10,000
|
8.5
|
|
Sesame
|
633(40
|
88,431
|
6,731
|
74,969
|
|
73,401
|
29,685
|
27,987
|
24,000
|
80.8
|
|
Sweet potato starch
|
241.2(11)
|
20,176
|
4,376
|
15,800
|
|
29,218
|
27,794
|
27,794
|
5,000
|
18.0
|
|
Red beans (dried/others)
|
420.8(30)
|
29,500
|
14,694 (including green gram)
|
14,806 (including green gram)
|
|
24,984
|
24,984
|
24,654
|
3,000
|
12.0
|
|
*Other feeders (vegetable by-products)
|
46.4(5)
|
32,133
|
32,133
|
|
860,000
|
109,703
|
91,926
|
91,750
|
38,000
|
41.3
|
|
Malt
|
269(30)
|
40,000
|
40,000
|
|
274,000
|
199,739
|
13,481
|
13,481
|
5,000
|
37.1
|
* Other feeders include root vegetables for feeder and mushroom for seeds.
(To be continued)
|
Date submitted: Dec. 11, 2014
Reviewed, edited and uploaded: Dec. 30, 2014
|
Result of Korea-China FTA Negotiations on Agriculture and the Corresponding Plans (Part 1)
Sung-Jae Chun
Public-Service Advocate of Korea
This article is a news release of the Ministry of Trade, Industry & Energy, Republic of Korea which was distributed on November 10, 2014. It mentions about reaching a consensus on FTA between Korea and China.
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=1...
□ On November 10, 2014 (Monday), Presidents of Korea and China have declared the substantial settlement of Korea-China FTA during the summit conference in Beijing, China.
○ After the 14th official negotiations on Korea-China FTA during November 4, 2014 (Tuesday) to November 9 (Sunday), two countries have reached a final conclusion on all essential points including opening of goods and services market and Product Specific Rules (PSR).
□ During the summit conference on November 10, 2014 (Monday), Presidents of Korea and China have officially declared the substantial settlement of Korea-China FTA and ordered negotiation teams to finish the technicalities within this year. Ministers of Trade in both countries (Yoon Sang-jick of Korea and Gao Hucheng of China) signed ‘Korea-China FTA Agreement Minute’.
○ Discussions of formulating Korea-China FTA began in 2005 at the joint private research and since the first official negotiations on May 2012, the substantial settlement was achieved in 30 months.
- The technicalities are due to be finished as soon as possible and the initialation is planned to be done by the end of this year.
* 2005 ~ 2006 Joint private research à 2007 ~ 2010 Joint research by the industry, government and academia à 2010 ~ 2012 Prior consultation between the governments à May 2012 The first official negotiation of Korea-China FTA à 14 Official Negotiations
The following is an attached explanation on the press release written by the Ministry of Agriculture, Food and Rural Affairs, Republic of Korea, around the time of substantial settlement of Korea-China FTA.
I Progress of Korea-China FTA
□ Joint private research (2005 ~ 2006) and joint research by the industry, government and academia (2007 ~ May, 2010) between Korea and China were carried out.
□ Based on the Korea∙China Summit Conference on January 9, 2012, two countries agreed to proceed with the negotiations as soon as domestic procedures are taken care of.
* (Domestic procedures) Public hearings on Korea-China FTA (February 24, 2012), FTA Progress Committee (April 13, 2012), Minister Meeting on External Economic Affairs (April 16, 2012), Reports to the National Assembly (April 23, 2012)
* (External Procedures) Prior negotiations on detailed regulations on negotiation with China (March ~ April, 2012).
□ Based on Korean-Chinese Ministers of Trade Meetings on May 2, 2012, declaration of the beginning of Korea-China FTA negotiations and joint public statement took place.
* Including negotiations in stages, goods categorized into Normal Track, Sensitive List and Highly Sensitive List, Outward Processing Zones
□ After the declaration of the beginning of the negotiations, the first modality negotiation (outline of negotiation) began. Korea-China FTA Modality was settled on the 7th negotiation (September, 2013 in Weifang).
* Settlement of modality on goods, services/investments, other areas (cooperation on agricultural and fisheries products, SPS)
□ Second stage of negotiations began after the 8th negotiation. After six official negotiations, agreement on concession and rule of origin was reached.
* 8th (November, 2013 in Incheon), 9th (January, 2014 in Xian), 10th (March, 2014 in Goyang), 11th (May, 2014 in Meishan), 12th (July, 2014, Daegu), 13th (September, 2014, in Beijing)
□ Based on the APEC Summit on November 10, 2014, Presidents of both countries declared the substantial settlement of Korea-China FTA.
* Presidents of both countries have ordered to finish the remaining technicalities within this year.
◈ 180 times of meeting for exchanging opinions were held including meetings for particular goods and briefing sessions.
II Major results
1. Concessions on agricultural products
Concessions on the Korean side
A. Introduction
◈ The agreement is as follows: among the total agricultural goods (1,611 items), highly sensitive list contains 581 items (36.1%), sensitive list 441 (27.4%), normal track 589 (36.6%).
* (normal track) abolished within 10 years, (sensitive list) abolished after 10 years and within 20 years, (highly sensitive list) excluded from concession/TRQ/partial reduction
◈ The percentage of sensitive and highly sensitive list is 63.4% (1,022 items), higher than previous FTAs.
* (United States of America) 12.2%, (EU) 14.5%, (Canada) 18.5%, (Chile) 29.7%, (Australia) 38.5%
□ (Highly sensitive list) Among 581 items in highly sensitive list, 548 items (94.3%) are excluded from concession, TRQ is applied to seven items (1.2%) and partial reduction is applied to 26 items (4.5%).
○ (Excluded from concession) Most products that are subjected to domestic production are excluded from concession
* (United States of America) 1.0% (16 items), (EU) 2.8% (41 items), (Australia) 10.5% (158 items), (Canada) 14.1% (211 items)
○ (TRQ) Items that are already subjected to high dependence on imports from China due to WTO/TRQ, TRQ is being applied in order to protect domestic industry and stabilization of supply.
* TRQ supplies (fixed): soybeans 10,000 metric tons, sesame 24,000 metric tons, sweet potato starch 5,000 metric tons, red beans 3,000 metric tons, other feed 38,000 metric tons, malt 5,000 metric tons.
○ (Partial reduction) Domestic sensitive list goods with large amount of imports from China have been subjected to partial reduction in order to minimize the opening of the market.
* Partial reduction of tariff (average of 20%) goods: kimchi, composite seasoning, other sauces, prepared peanuts, perilla, starch noodles, prepared red beans, other starches, taro for starch products, tapioca, scotch oats, etc
□ (Sensitive list) Goods that are comparatively less sensitive such as lemon, margarine, etc will be subjected to a long-term tariff elimination schedule in order to prepare for sharp increase in imports
○ Other herbal medicine ingredients, other fruit nuts(prepared), other fruits (jam, jelly) are subjected to 20-year non-linear tariff elimination in order to minimize the influence.
* Other herbal medicine ingredients (tariff 8%) will apply tariff elimination after the 13th year, other fruit nuts (tariff 45 %) and other fruit (30%) will apply tariff elimination after the 11th year.
□ (Normal track) Low-rate tariff goods among fresh agricultural products, import-dependent goods such as raw materials of livestock feeds, goods that do not have domestic demand, etc will be subjected to tariff elimination within 10 years.
B. Concessions for major agricultural products
□ (Rice) Rice and rice-related products (16 tariff headings) are excluded from the subject of negotiations.
* All duties are excluded, including duties other than tariff elimination and any other FTA-related duties.
□ (Animal products) Major animal products in domestic market such as cows, pigs, chickens, ducks and other major animal products such as milk and egg are all excluded from the negotiation.
○ Breeding stocks, goods for low-rate tariff (pig fat 3%), processed livestock product (albumin) etc that have less influence on domestic livestock industry, are partially open.
□ (Fruits) Major products that have large amount of supply and demand in domestic market such as Apple, pear, grapes, tangerines, persimmons, strawberries, watermelons, peaches, etc are excluded from the subjects of negotiation.
○ Oranges, which have high substitution effects on tangerines and major processed fruits such as grapes, peaches, strawberries, tomato juices are excluded from concession.
○ Nuts such as chestnut, walnuts, pine nuts, jujube, gingko nuts are excluded from concession. Goods that are in competition with imported agricultural products such as bananas are opened.
○ (Vegetable∙special production) Seasoning vegetable such as red pepper, garlic, onion, cinnamon, major field crop such as Chinese cabbage, carrot, radish, cucumber, aubergime and ginseng products are excluded from concession.
○ Major vegetable are entirely excluded from concession- regardless whether they are fresh vegetables or products that may be circumvented by being imported in forms such as frozen, dried, prepared, temporarily stored.
○ Among ginseng products, high rate tariff products (222.8% ~ 754.3%) are excluded from concession and only low rate tariff products such as drinks∙teas (8%) are agreed to be subjected to tariff elimination in 20 years.
○ Sesame have high dependency on imports and 24,000 tons will be imported every year under TRQ. Perilla is subjected to decrease the current tariff rate (40%) to 36% in five years.
□ (Processed foods) Traditional foods such as soysauce, soybean paste, hot pepper paste, meju (fermented soybean), soybean oil(for food)∙sugar∙starch that need to maintain domestic production basis are excluded from concession.
○ Tariff rate for kimchi(20%) is to be decreased within 10% (2%p).
* Although the average partial reduction rate is 20%, the percentage of decrease is within 10% in order to minimize the impact to Chinese cabbage, sauce and kimchi industry.
○ Mixed seasoning, other sauces (so-called seasoned red-pepper sauce) are subjected to minimal decrease in tariff reduction because there are possibilities of negative impacts through circumvention.
○ Sweet potato starch have high dependency rate on the Chinese imports and are to be imported on fixed amount of 5,000 tons per year on TRQ.
The result of concessions on agricultural goods in Korea-China FTA
Type of Concession
Tariff Heading Number
Percentage (%)
Major Items
Immediate Elimination
216
13.4
Cow(beef cattle, dairy cattle, others), ducks (others, for breeding), pigs (for breeding), soy bean (seed, flour, middling), sorgo molasse (for spirit production), lard (others), poultry fat (others), palm oil and fractions, tomato seed, wool (others/absorbent cotton), variety of cake (common wheat), cabbage seed, mustard seed, fur (others), coconut oil and others, molasse (others/ for spirit production), lard oil, radish seed, coconut oil (crude oil), vegetable seed (others), rye (others)
Elimination in five years
209
13.0
Sunflower seed oil (crude oil/others), processed food (oatmeal/for infants), ox bezoar, pasta (others), corn gluten feed, sweet rice beverage (sik-hye), musk, beet, hard tack, common wheat (others), cottonseed oil (crude oil/refined oil/others), soybean oil (refind oil/ crude oil), sorgo, spaghetti, brewing vinegar, instant noodle and others
Elimination in ten years
164
10.2
Cognac, white wine (others), coconut (others/dried/in-shell-endocarp), bakery products (others), saffron, sweet biscuits, cookies and crackers, pine tree (for bonsai), red wine (others), vodka, mayonnaise, almond (shell removed) and others
Subtotal
589
36.6
Elimination in 15 years
202
12.5
Sunflower seed oil(refined oil), palm kernel oil (refined oil), curry, olive (sugar-processed for storage/processed for storage/processed for temporary storage), ice cream (others), shortening, cider, banana (others/plantain), mangosteen(fresh/dried), margarine (excluding liquefied forms), durian (fresh), guava (fresh/dried), pineapple (processed for storage/ sugar-processed for storage), mango (fresh/dried), popcorn (processed for storage), coffee creamer, mustard(powder/middling), sausages (others), compound feed (cattle/swine/chicken/fisheries/others), tomato paste, sweet corn (processed for storage/sugar-processed for storage/frozen) and others
Elimination in 20 years
Reduction from 11th year
2
0.1
Fruit, nuts and others (processed for storage), other fruits (jam, jelly, marmalade, etc)
Reduction from 13th year
1
0.1
Other herbal medicine ingredients (other plants – perfume, medicine and others)
Linear Elimination in 20 years
236
14.6
tlatycodon glaucum (thwn berg) narai (fresh/cold-storage), manioc (frozen), dairy spread, soju, beer, peanut oil (crude oil/refined oil/others/fractions), ginseng drinks, other vegetables (sugar-processed for storage), mixture of vegetable, chun-jang, bean (others/sugar-processed for storage), whey (others/feed) and others
Subtotal
441
27.4
TRQ
7
0.4
Sesame, red beans (dried/others), soy beans (others/for soy sprout), plant by-products for feeds, malt (non-fried), starch (of sweet potato), soy bean (others/others)
Partial Reduction
20 % partial reduction (average)
11
0.7
Kimchi (processed for storage), mixed seasoning, other sauces, red bean (shell removed/processed for storage), starch noodle, bracken (dried), perilla, saccharides (others), other peanuts (processed for storage), pine mushrooms (frozen), other vegetables (processed for storage)
130% reduction
15
0.9
Manioc (fresh/cold-storage/others/dried), manioc chips (dried), manioc pellets (dried), wheat (pellet/crushed/middling), sweet corn (others/dried), corn (seed), scotch oats (pressed flakes/crushed/middling/processed grain), yam-Dioscorea(others), taro- Colocasia (others), American taro- Xanthosoma (others)
Excluded from Concession
548
34.0
Rice, barley (hulled barley/naked barley), corn for popcorn, potato (food/frozen,dried/chips/potato flour), beef (fresh/cold-storage/frozen/comminuted meat products), pork (frozen pork belly/ cold-storage pork belly/other cold-storage pork/pig trotter/sealed products), chicken (frozen breast meat/ frozen wings/frozen meat/chicken processed products), powdered milk(whole milk powder, condensed milk/ modified milk powder/mixed milk powder), cheese (fresh/processed/others/cheddar), butter, honey (natural/artificial), citrus fruits ∙ oranges(satsuma mandarin/ mandarin/ tangerine/ orange), apple∙pear∙grape∙kiwi, pumpkin, pepper(fresh/cold-storage/dried/frozen), garlic (fresh/cold-storage/temporary storage/dried/frozen), onion (fresh/cold-storage/dried/frozen), ginseng products (root ginseng, other processed products) and others
Subtotal
581
36.1
TOTAL
1,611
100.0
Concession on the Chinese side
□ (Highly Sensitive List) 102 Goods that are traditionally sensitive and were excluded from concession in previous FTAs such as rice, sugar, wheat flour, vegetable oil, cigarette and others are excluded from concession.
○ The other 1,029 goods (91%) are subjected to the elimination of tariff in order to maximize the possibility for venturing into the Chinese market.
□ (Sensitive List) Fresh meat such as beef, pork, chicken and others, as well as processed goods of fruits and vegetable, pasta, instant noodle and others will be subjected to tariff elimination in 20 years.
○ Kimchi and other vegetable prepared for storage, prepared coffee and others will be subjected to tariff elimination in 20 years.
□ (Normal Track) Frozen beef, pork, chicken, fresh apple, pear, grape and other fruits will be subjected to tariff elimination in 10 years.
○ Vegetables will be subjected to tariff elimination in 10 years, regardless of whether they are fresh or frozen.
Types of Concession
Korea-China FTA
Major Goods
Tariff Heading Number
%
Normal Track
Immediate Concession
221
19.5
Processed products for feeds, jam∙fruit jelly, vegetable seed and others
Concession in 5 years
54
5.7
Protein-type material, wool, animal fur, raw silk, livestock raw hide, frozen orange juice, non-roasted coffee
Concession in 10 years
439
38.8
Apple∙pear∙grapes∙peach∙strawberry(fresh), beef∙pork∙chicken(frozen), sausage, roasted coffee, water and others
Subtotal
725
64.1
Sensitive List
Concession in 15 years
203
17.9
Beef∙pork∙chicken(fresh), pasta, fruit juice, vegetable juice, natural honey, processed cheese and others
Concession in 20 years
101
8.9
Kimchi, non-alcoholic beverages, other seasonings, instant noodle, coffee products, flour products, soy sauce, fermented alcohol, frozen duck meat and others
Subtotal
304
26.9
Highly Sensitive List
Partial Reduction
1
0.1
Other processed foods (20% à 18.4%)
Excluded from Concession
101
8.9
Rice, sugar, dried ginseng, chestnut (in-shell), vegetable oil, milk and cream, wheat, wheat flour, saccharides
Subtotal
102
9.0
TOTAL
1,131
100.0
2. Sanitary and Phytosanitary measures (SPS)
□ Taking into consideration the worries from agricultural industry, Sanitary and Phytosanitary measures were agreed at the level of WTO/SPS Agreement.
○ Articles that may violate the quarantine sovereignty such as regionalization are deleted and the dispute resolution process in FTA will not be applied.
○ Both sides agreed that the SPS Committee will be established in order to perform WTO/SPS Agreement and to consult an agreement on SPS issues.
3. Non-Tariff Measures (NTM)
□ Two countries agreed to enhance clarity on non-Tariff Measures – excluding the matters of sanitation, SPS, Technical Barriers to Trade- and to provide opportunities for consultation.
○ Both sides agreed to open a working group on commission of commodity trade on NTM issues that one party has confirmed.
4. Country of origin
□ Fresh agricultural products (1~14 class) are subjected to strict criteria in order to protect the domestic market. Processed foods (15~24) are subjected to eased criteria, considering the possibilities for export.
○ For dairy products, flowers, vegetables, fruits, grain∙grain flour, preferential tariff is applied only when domestic material are used, setting up wholly obtained criterion.
○ For sausage, chocolate, instant coffee, fruit and vegetable products country of origin criteria is being eased to allow the foreign material usage in order to enhance competitiveness in exports.
III Domestic supplement plans
□ Korea-China FTA concludes the previous FTAs and signifies that the Korean agriculture is completely incorporated into the open market system in the FTA
○ Upon the agreement of Korea-China FTA, the percentage of agricultural product import from FTA countries increase from 64% (including the Commonwealth) to 80% (in 2013).
□ Considering the unique characteristic of the agricultural goods trading between Korea and China, the Government of Republic of Korea (“Government”) plans to establish a comprehensive plan in order to improve the fundamentals of the Korean agriculture and to raise it as future growth industry.
○ The Government have considered plans for reaction with farmers, local governments, professionals and others for possible scenarios while progressing with the negotiation.
○ The Government plans to analyze the effects based on the final negotiations and prepare measures to preserve damages, enhance competitiveness and utilize the opportunities for expanding exports to China.
Major contents for comprehensive plans (proposals)
* (Enhancing competitiveness for field crop) Maintenance of field basis, mechanization of field, ICT convergence
* (Expanding consumption and export basis) Expansion of GAP, raising of agricultural food industry, expansion of export
* (Stabilizing farm household income) Expansion of field direct payment, Introduction of revenue guarantee insurance
* (Manpower, Financial Policies) Raising agricultural manpower, decrease of bank rate policy
○ A comprehensive plan will be prepared by making a T/F team with Rural Development Administration, Korea Forest Service and local governments.
□ Moreover, the Government will duly listen to opinions from farmers, professionals and others and start working with areas that need proactive action
○ Works that have long-term investments and effects will be actively engaged even before FTA takes effect.
IV Upcoming schedule
□ The Government will carefully cope with the upcoming procedures until the official signing.
Cooperation on technicalities à Legal scrub à Initialing à Translationà Signing
□ After the signing, ratification submitted to the National Assembly and the domestic supplements will be submitted simultaneously.
Analysis on the effect à First draft of countermeasures à Collection of opinions and consultation à Committee for supporting farmers à Domestic countermeasure projects committee on commercial treaties à Economic ministers meeting à Request for ratification of the National Assembly
○ (Analysis on the effect) Damages occurred by the result of the negotiation of goods will be analyzed.
- The announcement of the analysis will be held by joint research group after collecting and reviewing the data.
○ (First draft of countermeasures) First draft of domestic measures will be prepared based on the aforementioned data.
- Rural Development Administration, Korea Forest Service and local governments will establish and run a joint TF.
○ (Collection of opinions and consultation) Opinions of farmers, local governments, professionals will be collected and consultation will be made between the deparments.
- Various opinions of farmers, local governments and other interested parties will be collected by holding farmers association meeting(nationwide, association per goods), committee for national cohesion, general managers meeting on city and provincial government.
- First draft of countermeasures will be discussed in the Hope Agricultural Forum (희망 농업 포럼).
- Related departments will finalize the analysis on damages and consult on the investment and loan plans.
○ (Legal procedures) The plans for countermeasures will be introduced and discussed in committee for supporting farmers, Domestic countermeasure projects committee on commercial treaties and Economic ministers meeting
○ (Submission at the National Assembly) Ratification and domestic plans will be simultaneously submitted.
Appendix 1 Current situation of Korea-China trade
□ Comprehensive trade trends with China: US $ 228.8 billion (Trade surplus US $ 62.8 billion)
(Unit: US $ billion)
Classification
2009
2010
2011
2012
2013
Total Amount of International Trade (Percentage of Trade with China)
Exports
867
1,168
1,342
1,343
1,458
5,596 (26.1%)
Imports
542
716
864
808
830
5,156 (16.1%)
Trade Balance
325
453
478
535
628
Total Turnover
1,409
1,884
2,206
2,151
2,288
□ Agricultural and animal products trade trends with China: US $ 5.7 billion (Trade deficit US $ 3.8 billion)
(Unit: US $ million)
Classification
2009
2010
2011
2012
2013
Export (A)
Total
419
556
915
907
947
Agricultural products
327
447
816
654
675
Animal products
18
23
37
131
145
Forest products
74
86
62
122
127
Import (B)
Total
2,822
3,227
3,999
4,214
4,714
Agricultural products
1,702
1,946
2,463
2,364
2,747
Animal products
42
53
60
138
142
Forest products
1,078
1,228
1,476
1,712
1,825
Trade balance
(A – B)
r2,403
r2,671
r3,084
r3,307
r3,767
□ Top 10 agricultural and animal products in trade with China
(Unit: US $ million)
Rank
Exports
Imports
1
Sucrose
128.7
Granite products
540.8
2
Processed dry milk
56.4
Plywood
288.4
3
Processed coffee products
52.1
Rice
284.4
4
Composite food preparation
45.7
Starch pulp
224.0
5
Paper board
44.5
Composite food preparation
182.6
6
Other bakery products
44.4
Other forest products
136.7
7
Biscuits
37.8
Soybean meal
131.7
8
Instant noodle
37.8
Kimchi
117.4
9
Other forest products
36.7
Other furniture
113.3
10
Leather
33.9
Pepper
111.8
Appendix 2 Comparison of concessions in Korea-China/The United States/European Union/Australia/Canada FTA on major pgricultural products
Products
Korea-China FTA
Korea-US FTA
Korea-EU FTA
Korea-Australia FTA
Korea-Canada FTA
Rice
○ Rice and 16 rice-related tariff heading numbers
Excluded from Concession
Excluded From Concession
Excluded From Concession
Excluded From Concession
Excluded From Concession
Barley
○ Hulled barley (324%), Naked barley (299.7%)
Excluded from Concession
15 years + ASG + TRQ
Excluded From Concession
Excluded From Concession
15 years + ASG + TRQ
○ Malt (269%), Malting barley (513%)
TRQ/ Excluded from Concession
15 years + ASG + TRQ
15 years + ASG + TRQ
15 years + ASG + TRQ
12 years + TRQ, 15 years
Corn
○ Corn for popcorn (630%)
Excluded from concession
7 years + ASG
13 years
18 years
10 years
○ Corn for seeding (328%)
Reduced to 130% for 10 years
5 years
5 years
18 years
10 years
Soybean
○ Soybean for food (487%)
Current tariff is maintained + TRQ
Current Tariff is maintained + TRQ
Excluded From Concession
Current Tariff is maintained + TRQ
Current tariff is maintained + TRQ (Immediate application for soy sauce and soybean meal)
○ Others (487%)
Excluded from concession (Vegetable oil, For defatted soybean meal, For feeder)
Immediate Elimination (Vegetable oil, For defatted soybean meal, For feeder)
5 years (Vegetable oil, For defatted soybean meal), Excluded from concession (For feeder)
50 % Reduction in 10 years (For defatted soybean meal, feeder)
10 years (Vegetable oil, defatted soybean meal), Excluded from Concession (Feeder)
Potato
○ Potato for food (304%), Freeze drying (27%)
Excluded from concession
Current Tariff is maintained + TRQ (Frozen, Dried 5 years, For seed 10 years)
Excluded from concession (Frozen, dried 5 years, For seed 10 years)
Excluded from Concession
Excluded from concession(frozen, dried 5 years, For seed 10 years)
○ Potato for chips (304%)
Excluded from concession
Seasonal Tariff (Immediate / 8 years)
Excluded from concession
Seasonal tariff (Immediate / 15 years)
Seasonal tariff (Immediate / 15 years)
○ Potato flour (304%)
Excluded from concession
10 years + ASG
13 years
Excluded from concession
10 years + ASG + TRQ
Starch
○ Potato starch (455%)
Excluded from concession
15 years + ASG
15 years + ASG
50 % Reduction in 10 years
Excluded from concession
○ Manioc starch (455%), Sweet potato starch (241.2%)
Excluded from concession
15 years + ASG
15 years
50 % Reduction in 18/10 years
11 years
○ Modified starch (385.7%)
Excluded from concession
12 years + ASG + TRQ
12 years + ASG + TRQ
15 years
10 years
Beef
○ Fresh meat∙frozen (40%)
Excluded from concession
15 years + ASG
15 years + ASG
15 years + ASG
15 years + ASG, Excluded from concession
○ Edible meat offal (18%)
Excluded from concession
15 years
15 years
15 years
11 years
Pork
○ Frozen pork belly (25%)
Excluded from concession
Jan 1, 2014 (Frozen pork neck Jan 1, 2016)
10 years
Excluded from concession
13 years + ASG
○ Cold-storage pork belly, other cold-storage products (22.5%)
Excluded from concession
10 years + ASG
10 years + ASG
10 years
13 years + ASG
○ Pork foot (18%), Airtight processed products (30%)
Excluded from concession
Jan 1, 2014
6 years
7 / 5 years
5 years / 6 years
○ Other frozen products (25%)
Excluded from concession
Jan 1, 2016
5 years
5 years
5 years + ASG
Chicken
○ Frozen chicken breast, Frozen chicken wing (20%)
Excluded from concession
12 years
13 years
18 years
Excluded from Concession
○ Uncut chicken meat (18-20%)
Excluded from concession
12 years
12 years
18 years
11 years
○ Cold-storage meat (18%), processed chicken meat products (30%)
Excluded from concession
10 years
10 years
18 / 10 years
10 years / Excluded from concession
Duck meat
○ Cold-storage meat (18%), Frozen meat (18%)
Excluded from concession
10 years/ 12 years
11 years/ 14 years
15 years/ 18 years
10 years / Excluded from concession
Dry milk
○ Whole milk powder (176%)
Excluded from concession
Current tariff is maintained + TRQ
Current tariff is maintained + TRQ
Excluded from concession
Excluded from concession
○ Skim milk powder (176%)
Excluded from concession
Current tariff is maintained + TRQ
Current tariff is maintained + TRQ
Excluded from concession
Excluded from concession
○ Modified milk powder (36%)
Excluded from concession
10 years + ASG
10 years + ASG
15 years + ASG
Excluded from concession
○ Mixed milk powder (36%)
Excluded from concession
10 years
10 years
15 years
Excluded from concession
Cheese
○ Fresh, processed, other cheese (36%)
Excluded from concession
15 years + ASG
15 years + ASG
20 / 18 years + ASG
Excluded from concession
○ Cheddar cheese (36%)
Excluded from Concession
10 years + ASG
10 years + ASG
13 years + ASG
Excluded from concession
Honey
○ Natural honey (243%)
Excluded From concession
Current tariff is maintained + TRQ
Current tariff is maintained + TRQ
Excluded from concession
Current Tariff is maintained + TRQ
○ Artificial honey (243%)
Excluded From concession
10 years
10 years
Excluded from concession
10 years
Feeds
○ Subsidiary feeder (50.6%)
20 years
12 years + ASG
12 years + ASG
15 years
10 years + ASG
○ Corn for feeder (328%)
Excluded from concession
Immediate Elimination
5 years
18 years
10 years
Citrus fruits, Orange
○ Satsuma mandarin (144%)
Excluded from concession
15 years
Excluded from concession
Excluded from concession
Excluded from concession
○ Mandarin, Tangerine (144%)
Excluded from concession
15 years
15 years
Seasonal tariff
11 years
○ Orange (150%)
Excluded from concession
Seasonal tariff + ASG
Seasonal tariff + ASG
Seasonal tariff + ASG
Excluded from concession
Apple, Pear, Grapes
○ Apple (45%)
Excluded from concession
Fuji-produced 20 years (others 10 years) + ASG
Fuji-produced 20 years (others 10 years) + ASG
Excluded from concession
Fuji-produced excluded from concession (others 10 years ) + ASG
○ Pear (45%)
Excluded from concession
Chinese pear 20 years (other variety 10 years)
Chinese pear 20 years (other variety 10 years)
Excluded from concession
Fuji-produced excluded from concession (others 10 years ) + ASG
○ Grapes (45%)
Excluded from concession
Seasonal tariff
Seasonal tariff
Seasonal tariff
Excluded from concession
Pepper
○ Fresh, Cold-storage, Dried pepper (270%)
Excluded from concession
15 years + ASG
Excluded from concession
Excluded from concession
Excluded from concession
○ Frozen pepper (27%)
Excluded from concession
15 years
15 years
18 years
11 years
Garlic
○ Fresh, Cold-storage, temporary storage, dried garlic (360%)
Excluded from concession
15 years + ASG
Excluded from concession
Excluded from concession
Excluded from concession
○ Frozen garlic (27%)
Excluded from concession
15 years
15 years
18 years
11 years
Onion
○ Fresh, Cold-storage, Dried onion (135%)
Excluded from concession
15 years + ASG
Excluded from concession
Excluded from concession
Excluded from concession
○ Frozen onion (27%)
Excluded from concession
12 years
12 years
15 years
11 years
Ginseng
○ Root ginseng, seven tariff heading numbers (222.8~754.3%)
Excluded from concession
18 years + ASG
Excluded from concession
Excluded from concession
Excluded from concession
○ Other ginseng processed products
Excluded From concession
10 - 15 years + ASG
10 - 15 years + ASG
10 – 15th year, Excluded from concession
10 years - Excluded from concession
Noodles
○ Instant noodle (5%), pasta (5%)
5 years / 10 years
Immediate elimination
Immediate elimination
Immediate elimination/10years
Immediate elimination
Appendix 3 Result of Korea-China FTA on agricultural goods (in detail)
A. Food crops
Products
Result of FTA negotiations
Rice
○ Rice and rice related 16 tariff heading number: Excluded from concession
Soybean
○ Soybean for food(487%, for soy sprout, others): Current tariff is maintained + TRQ 10,000 tons
- Vegetable oil and defatted soybean meal: Excluded from concession
- For feeder: Excluded from concession
Potato, potato flour
○ Potato for chips (304%), other potato for food (304%): Excluded from concession
- Potato for chips: Excluded from concession
- Potato for seed (304%): Excluded from concession
- Frozen∙dried: Excluded from concession
○ Potato flour (304%): Excluded from concession
Barley
○ Hulled barley (324%), naked barley (299.7%): Excluded from concession
- Malt (non-fried, 269%): Current tariff is maintained + TRQ 5,000 tons
- Malting Barley (513%): Excluded from concession
- Other barley (299.7%): Excluded from concession
Corn
○ For popcorn (630%), for feeder (328%): Excluded from concession
- For seed (328%): Reduced to 130% (in uniform for 10 years)
- Other corn (328%): Excluded from concession
Starch
○Potato starch (455%), corn starch (226%), other starch (800.3%): Excluded from concession
- Wheat starch (50.9%), manioc starch (455%): Excluded from concession
- Sweet potato starch (241.2%): Current tariff is maintained + TRQ 5,000 tons
Others
○ Sweet potato (385%, Frozen is 45%), other root and tuber crops (385%): Excluded from concession
- Fermented spirits (270%): Excluded from concession
- Red bean seed (420.8%): Excluded from concession
- Other red beans (420.8%): Current tariff is maintained + TRQ 3,000 tons
- Buck wheat (256.1%): Excluded from concession
- Adlay (800.3%), other processed grains (800.3%): Excluded from concession
B. Beef
Products
Result of FTA negotiations
Beef
○ Eight sensitive tariff heading number goods: Excluded from Concession
○ Edible meat offal (Leg, Tail, Tongue and others, 18%), meat and edible meat offal (27%): Excluded from concession
Pork
○ Carcass and carcass in half, thigh, shoulder, pork belly and others (cold-storage/frozen, 22.5%/25%): Excluded from concession
○ Edible meat offal (18%): Excluded from concession
○ Processed pork product (27~30%): Excluded from concession
○ Sausage (18%): Excluded from concession
- Other sausages (30%): Eliminated in 15 years
Chicken
○ Chicken leg∙breast∙wings (cold-storage/frozen, 18/20%): Excluded from Concession
○ Fried chicken (18~20%): Excluded from Concession, Other un-cut chicken mean (18%): Excluded from concession
○ Processed chicken product (30%): Excluded from concession
○ Ginseng-chicken soup (30%): Excluded from concession
Egg
○ Egg (41.6%), Yolk (27%): Excluded from concession
○ Parent egg (27%): Excluded from Concession
○ Other mature eggs (27%): Excluded from concession
Other meat products
○ Duck meat (18~27%): Excluded from concession
○ Goat∙ Sheep meat (22.5%): Excluded from concession
○ Turkey meat (18~27%): Eliminated in 20 years
○ Antler powder (20%): Excluded from Concession
○ Other antler (20%): Excluded from concession
C. Dairy products, honey, feeders
Products
Result of FTA negotiations
Milk powder,
Condensed milk,
Lactose
○ skim milk powder∙whole milk powder (176%)∙condensed milk(89%): Excluded from concession
○ Mixed milk powder (36%): Excluded from concession
○ Modified milk powder (36~40%): Excluded from concession
○ Lactose (49.5%): Excluded from concession
Cheese
○ Cheese (36%): Excluded from concession
Milk and Cream
○ Milk and Cream (36%): Excluded from concession
- Less than 6% fat: Excluded from concession
- More than 6% other fat: Excluded from concession
- More than 6% frozen cream fat: Excluded from concession
Butter
○ Butter (89%): Excluded from concession
Whey
○ Whey for food (49.5%): Excluded from concession
○ Whey for feeder (39.5%): Eliminated in 20 years
Honey
○ Natural honey, artificial honey (243%): Excluded from concession
○ Royal jelly (7%): Excluded from concession
○ Royal jelly∙processed honey products (8%): Excluded from concession
Feeder
○ Root vegetable for feeder (100.5%): Excluded from concession
○ Subsidiary feeder (50.6%), Formula feeder (milk replacer, 71%): Eliminated in 20 years
○ Formula feeder (raising pork/chicken/ fish/ cow/others, 4.2~5%): Eliminated in 15 years
○ Other feeder (46.4%): Current tariff maintained + TRQ 38,000 tons
D. Fruit and Fruit Vegetable
Products
Result of FTA negotiations
Apple, Pear, Sweet persimmon, Watermelon, Strawberry, Grapes, Peach
○ Apple, Pear, Sweet persimmon, Watermelon, Strawberry, Grapes, Peach (45%): Excluded from concession
Citrus Fruit
○ Citrus fruit (144%): Excluded from concession
○ Mandarin (144%): Excluded from concession
Orange
○ Orange (50%): Excluded from concession
Kiwi
○ Kiwi (45%): Excluded from concession
Melon
○ Melon (45%): Excluded from concession
Other Strawberries
○ Berry (Fresh 45%, Frozen 30%): Excluded from concession
○ Herbaceous Strawberries (Temporary Storage, 30%): Excluded from concession
○ Strawberries (Processed for Storage, 45%): Excluded from concession
○ Strawberry juice (50%): Excluded from concession
Tomato
○ Tomato (Fresh∙ Cold-storage, 45%): Excluded from concession
○ Tomato juice (30%): Excluded from concession
○ Processed for Storage (30%): Eliminated in 20 years
○ Tomato ketchup (8%), Tomato sauce (45%): Eliminated in 20 years
- Tomato paste (5%): Eliminated in 15 years
Cucumber, Pumpkin
○ Cucumber (27%): Excluded from concession
○ Pumpkin (27%): Excluded from concession
Aubergime
○ Aubergime (27%): Excluded from concession
E. Sauced Vegetable, Ginseng, Special crops
Products
Result of FTA negotiations
Pepper
○ Fresh pepper, dried pepper, red pepper spice (270%), frozen pepper (27%): Excluded from concession
Garlic
○ Whole garlic∙peeled garlic∙dried garlic∙temporary storage processed (360%): Excluded from concession
○ Frozen garlic (27%): Excluded from concession
○ Processed for storage (30%): Excluded from concession
Onion
○ Fresh and dried onion (135%): Excluded from concession
○ Frozen onion (27%): Excluded from concession
○ Processed for storage (30%): Excluded from concession
Ginger
○ Fresh∙dried∙other ginger (377.3%): Excluded from concession
○ Sugar-processed for storage (30%): Excluded from concession
Scallion
○ Dried scallion (30%), shallot (27%): Excluded from concession
○ Processed shallot for storage (30%): Excluded from concession
Ginseng
○ Major 23 Ginseng products
- Raw ginseng (222.8%) and red ginseng (754.3%)∙white ginseng (222.8%) and other root ginseng: Excluded from Concession
- Red ginseng powder (754.3%)∙white ginseng powder (18%): Excluded from concession
- Red ginseng extract∙red ginseng extract powder (754.3%), White ginseng extract∙white ginseng extract powder (20%): Excluded from Concession
- Red ginseng tablet (754.3%)∙white ginseng tablet (18%): Excluded from concession
- Ginseng leaf∙cane, ginseng seed, red ginseng tea (754.3%): Excluded from concession
○ Ginseng tea (8%): Eliminated in 20 years
○ Ginseng drinks (8%): Eliminated in 20 years
- Extracted oleoresin (white ginseng∙other ginseng 20%, red ginseng 754.3%): Excluded from concession
Sesame, Sesame oil, Peanut, Perilla, Perilla oil
○ Sesame (630%): Maintaining current tariff + TRQ (24,000 tons)
- Perilla (40%): 10% reduced from current tariff (equal reduction for 5 years)
○ Sesame oil (630%), perilla oil (36%): Excluded from concession
○ Peanut (230.5%): Excluded from concession
- Processed for storage (63.9%): 10% reduced from current tariff (equal reduction for 5 years)
- Peanut butter (50%): Eliminated in 20 years
F. Leaf and Root Vegetables
Products
Result of FTA negotiations
Carrot
○ Fresh carrot (30%), Frozen (27%), Dried (30%): Excluded from concession
Radish
○ Fresh radish (30%), Dried (30%): Excluded from concession
○ Fresh turnip (27%): Excluded from concession
Chinese Cabbage
○ Fresh, others (27%): Excluded from concession
Cabbage
○ Fresh (27%), Dried (30%): Excluded from concession
Others
○ East Indian Lotus (sugar-processed for storage, 30%), Taro cane (30%): Eliminated in 20 years
○ Sweet potato cane (30%): Excluded from concession
Other Vegetables
○ Codonopsis lanceolata (Fresh 27%, Dried 30%), Dried tlatycodon glaucum (8%): Excluded from concession
- Fresh/ Cold-storage tlatycodon glaucum (27%): Eliminated in 20 years
○ Sweet corn (Processed for storage/Frozen 30%, Sugar-processed for storage 15%): Eliminated in 15 years
- Sweet corn (Others/Dried 370%): Reduced to 130% (Equal reduction for 10 years)
- Sweet corn (For seed 370%): Excluded from concession
Other vegetable mix, Homogenized vegetables
○ Mixture of vegetables (Dried/frozen 27%): Excluded from concession
- Mixture of vegetables (27%): Eliminated in 20 years
○ Other vegetables (Frozen/Processed for temporary storage 27%, Dried 30%): Excluded from concession
- Other vegetables (Processed for storage 20%): 10% Reduction from the original tariff (Equal reduction for 5 years)
○ Homogenized vegetables (purée corn for infants, 20%): Eliminated in 20 years
G. Processed Food
Products
Result of FTA negotiations
Kimchi
○ Kimchi (20%): Within 10% reduction from the original tariff
Sugar
○ Other saccharides (8%): 10% Reduction from the original tariff (Equal reduction for 5 years)
Soybean oil, Corn oil
○ Soybean oil for food (5%): Excluded from concession
- Soybean for Biodiesel (5%): 5 years
- Soybean and its fractions (8%): Eliminated in 10 years
○ Corn oil and its fractions (8%): Excluded from concession
- Other corn oil/crude oil (5%): Eliminated in 5 years
Mixed seasoning and sauce
○ Mixed seasoning (45%), other sauce (45%)
: Within 10% reduction from the original tariff
Pastes
○ Fermented salty soybean paste (8%), Soy sauce (8%), Red pepper paste (45%), other pastes (45%): Excluded from concession
○ Chun-jang (8%): Eliminated in 20 years
Confection, bread, Other foods
○ Chocolates (8%): Eliminated in 5 years
○ Scotch oat bread, pie, cake and breads (8%), Hard tack (8%): Eliminated in 5 years
○ Biscuit, cookie and crackers (5%), Bakery products (8%): Eliminated in 10 years
- rice cookies (8%): Eliminated in 15 years
○ Coffee (Non-roasted/Not decaffeined (2%)): Eliminated in 10 years
- Coffee (Roasted/Decaffeined (2%)), Coffee husks and skins: Immediate Elimination
- Roasted coffee (8%): Eliminated in 5 years
- Coffee creamer (8%): Eliminated in 15 years
○ Instant noodle (5%): Eliminated in 5 years
○ Wine (15%): Eliminated in 10 years
- Other grape juice (30%): Excluded from concession
○ Soju (30%): Eliminated in 20 years
Appendix 4 Korea-China FTA TRQ products and corresponding amount
(Unit: Tons, %)
Products
In-quota
WTO TRQ
Quota Tariff Amount
World Export Amount
Import from China
Korea-China FTA
Total
Basic Amount
Increased Amount
Total Import Amount
(A)
WTO TRQ Import Amount
TRQ Amount
B/A
(%)
Soybean (Others, for soy sprout)
487 (5)
321,805
185,787
136,018
318,836
118,018
116,131
10,000
8.5
Sesame
633(40
88,431
6,731
74,969
73,401
29,685
27,987
24,000
80.8
Sweet potato starch
241.2(11)
20,176
4,376
15,800
29,218
27,794
27,794
5,000
18.0
Red beans (dried/others)
420.8(30)
29,500
14,694 (including green gram)
14,806 (including green gram)
24,984
24,984
24,654
3,000
12.0
*Other feeders (vegetable by-products)
46.4(5)
32,133
32,133
860,000
109,703
91,926
91,750
38,000
41.3
Malt
269(30)
40,000
40,000
274,000
199,739
13,481
13,481
5,000
37.1
* Other feeders include root vegetables for feeder and mushroom for seeds.
(To be continued)
Date submitted: Dec. 11, 2014
Reviewed, edited and uploaded: Dec. 30, 2014