Korea has implemented FTAs or like agreements with Chile, EFTA, ASEAN, Chile, India and now the EU. The Korea-EU FTA was implemented on July of 2011. I have already seen an increase in interest in entry by Europeans into the Korean market.
Korea is Europe’s fourth largest export destination behind the United States, Japan and China.
This is the first in a multipart article on the Korea-European Free Trade Agreement.
Custom Duties/Tariffs under the Korea-EU FTA for Items Entering Korea
- Cosmetics: Year 5: Duty Free (Presently 8%)
- Pharmaceuticals: Year 3: Duty Free (Presently 6% average)
- Medical Devices: Year 7: Duty Free (Presently 5% average)
- Agricultural: Year 3: 45% of Products Duty Free; Year 5: 65% of Products Duty Free; Year 10: 85% of Products Duty Free;Year 18: 95% of Products Duty Free. Tariffs High at Present and Vary Greatly Based on Product. Rice is protected.
- Chemicals: Year 5: Duty Free (Presently 6.2% average)
- Car Parts: Day 1: Duty Free (Presently 8%)
- Railroad Items: Year 5: Duty Free (Presently 5%)
- Large-Mid Cars: Year 3: Duty Free
- Small Cars: Year 5: Duty Free
- Textiles: Day 1: Nearly all Duty Free
- Iron/Steel: Year 3: Duty Free (Presently 7.2% average)
- Industrial Items: Year 5: Nearly All Duty Free
- Electronics/Machines: Day 1: 88% Duty Free (Presently 7.2% Average): Year 3: 97% Duty Free; Year 5: Nearly All Duty Free; Year 7: Duty Free
- Beer: Yearly Reduction of 3.7% over 7 years (Presently 30%)
- Whisky: Yearly Reduction 5% over 3 years (Presently 20%)
More good information on KorEU FTA to come. Links will be HERE.
Other articles that may be of interest:
- The British are Coming: U.K. Law Firms in Korea
- Korea-EU FTA: Country of Origin under the Kor-EU FTA
- Positive Effects of Korea-EU FTA on Korean Car Brands? No Says Korean Car Lobby
- Exit Ban of Foreigners in Korea for Not Paying Taxes, Custom Duties or Violation of Law: Immigration Law Basics
- U.S. Imposes Steel Tariff on Korean Imports
- Korea inks FTA with China
- Korean Franchisors’ Obligations in Korea to File Annual Report to Korean FTC
- KORUS FTA: Impacts on Trade & Investment for Korea and the States (Guest Post by NerdWallet Journalist)