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FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION
AMONG THE GOVERNMENTS OF THE REPUBLIC OF KOREA AND
THE MEMBER COUNTRIES OF THE ASSOCIATION OF SOUTHEAST ASIAN
NATIONS
The Governments of the Republic of Korea, Brunei Darussalam, the
Kingdom of Cambodia, the Republic of Indonesia, the Lao People's
Democratic Republic, Malaysia, the Union of Myanmar, the Republic
of the Philippines, the Republic of Singapore, the Kingdom of
Thailand and the Socialist Republic of Vietnam, Member Countries of
the Association of Southeast Asian Nations, RECALLING the decision
made at the Korea-ASEAN Summit held on 30 November 2004 at
Vientiane, the Lao People's Democratic Republic, by the Joint
Declaration on Comprehensive Cooperation Partnership between Korea
and ASEAN, to establish a Korea-ASEAN Free Trade Area at an
earliest stage with special and differential treatment and
additional flexibility for the new ASEAN Member Countries of the
Kingdom of Cambodia, the Lao People's Democratic Republic, the
Union of Myanmar and the Socialist Republic of Vietnam; DESIRING to
adopt a Framework Agreement on Comprehensive Economic Cooperation
among them, that will further promote growth and development,
increase the living standard of the people throughout the region
and provide further dynamic benefits to the region in the long
term; BEING confident that the establishment of the Korea-ASEAN
Free Trade Area will be a natural extension of their existing
relations as well as a stepping stone to elevate their relationship
to a higher and more comprehensive level; REAFFIRMING the shared
belief that the arrangement for the creation of the Korea-ASEAN
Free Trade Area should be based on the agreed principles of
comprehensiveness in the liberalisation process, meaningful and
substantial liberalisation, enhancement of mutual benefits, and
consistency with WTO rules and disciplines; BUILDING on their
respective rights and obligations under the Marrakesh Agreement
Establishing the World Trade Organisation and the other agreements
negotiated thereunder and other multilateral and bilateral
instruments of cooperation to which they are parties; RECOGNISING
that the removal of obstacles to trade through the creation of the
Korea-ASEAN Free Trade Area will contribute to the harmonious
development and
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expansion of world trade and provide a catalyst to broader
international cooperation, in particular within East Asia;
RECOGNISING the importance of capacity building through human
resource development to face challenges of globalisation; and
RECOGNISING the different stages of economic development among the
ASEAN Member Countries and the need for flexibility to be given to
the new ASEAN Member Countries, in particular the need to
facilitate their increasing participation in the economic
cooperation of the Parties and the expansion of their exports,
including, inter alia, through the strengthening of their domestic
capacity, efficiency and competitiveness, HAVE AGREED as
follows:
CHAPTER 1 GENERAL PROVISIONS
Article 1.1 Objectives
The objectives of this Framework Agreement are to:
(a) strengthen and enhance economic, trade and investment
cooperation among the Parties;
(b) progressively liberalise and promote trade in goods and
services as well
as create a transparent, liberal and facilitative investment
regime; (c) explore new areas and develop appropriate measures for
closer economic
cooperation and integration; (d) facilitate the more effective
economic integration of the new ASEAN
Member Countries and bridge the development gap among the
Parties; and
(e) establish a cooperative framework for further strengthening
the economic
relations among the Parties.
Article 1.2 Definitions
For the purposes of this Framework Agreement, unless the context
otherwise requires: Korea means the Republic of Korea;
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Korea + AEM means the Minister for Trade of Korea and the
Economic Ministers of the ASEAN Member Countries; ASEAN means the
Association of Southeast Asian Nations which comprises of Brunei
Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the
Lao People's Democratic Republic, Malaysia, the Union of Myanmar,
the Republic of the Philippines, the Republic of Singapore, the
Kingdom of Thailand and the Socialist Republic of Vietnam;
Korea-ASEAN FTA means the Korea-ASEAN Free Trade Area established
by this Framework Agreement and other relevant agreements
stipulated in paragraph 1 of Article 1.4; ASEAN Member Countries
means Brunei Darussalam, the Kingdom of Cambodia, the Republic of
Indonesia, the Lao People's Democratic Republic, Malaysia, the
Union of Myanmar, the Republic of the Philippines, the Republic of
Singapore, the Kingdom of Thailand and the Socialist Republic of
Vietnam collectively; ASEAN Member Country means Brunei Darussalam,
the Kingdom of Cambodia, the Republic of Indonesia, the Lao
People's Democratic Republic, Malaysia, the Union of Myanmar, the
Republic of the Philippines, the Republic of Singapore, the Kingdom
of Thailand or the Socialist Republic of Vietnam individually;
Framework Agreement means this Framework Agreement on Comprehensive
Economic Cooperation among the Governments of the Republic of Korea
and the ASEAN Member Countries; GATS means the General Agreement on
Trade in Services, which is a part of the WTO Agreement; GATT 1994
means the General Agreement on Tariffs and Trade 1994, including
its Notes and Supplementary Provisions, which is a part of the WTO
Agreement; Implementing Committee means the Implementing Committee
established under Article 5.3; New ASEAN Member Countries means the
Kingdom of Cambodia, the Lao People's Democratic Republic, the
Union of Myanmar and the Socialist Republic of Vietnam; Normal
Track means a list of tariff lines of which applied MFN tariff
rates shall be gradually reduced and eliminated in accordance with
the modality set out in Annex 1 of the Agreement on Trade in Goods
under this Framework Agreement; Parties means Korea and the ASEAN
Member Countries collectively; Party means Korea or an ASEAN Member
Country;
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WTO means the World Trade Organisation; and WTO Agreement means
the Marrakesh Agreement Establishing the World Trade Organisation,
done on 15 April 1994 and the other agreements negotiated
thereunder.
Article 1.3 Measures for Comprehensive Economic Partnership
The Parties shall establish, consistent with Article XXIV of
GATT 1994 and Article V of GATS, a Korea-ASEAN FTA and strengthen
and enhance economic cooperation through the following:
(a) progressive elimination of tariffs and non-tariff barriers
in substantially
all trade in goods; (b) progressive liberalisation of trade in
services with substantial sectoral
coverage; (c) establishment of an open and competitive
investment regime that
facilitates and promotes investment among the Parties; (d)
provision of special and differential treatment to the ASEAN
Member
Countries and additional flexibility to the new ASEAN Member
Countries as agreed in the Joint Declaration on Comprehensive
Cooperation Partnership between Korea and ASEAN and the core
elements attached thereto;
(e) provision of flexibility to the Parties in the Korea-ASEAN
FTA
negotiations to address their sensitive areas in the goods,
services and investment sectors with such flexibility to be
negotiated and mutually agreed based on the principle of
reciprocity and mutual benefits;
(f) establishment of effective trade and investment facilitation
measures; (g) exploration of the ways and means to expand their
economic partnership
into new areas and expansion of economic cooperation in areas as
may be agreed among the Parties that will complement the deepening
of trade and investment link among the Parties; and
(h) establishment of appropriate procedures and mechanisms for
the
purposes of effective implementation of this Framework
Agreement.
Article 1.4 Legal Coverage and Relations to Other Agreements
1. The following agreements shall form part of legal instruments
establishing the
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Korea-ASEAN FTA upon their respective entry into force:
(a) this Framework Agreement (including the Annex on Economic
Cooperation);
(b) the Agreement on Trade in Goods under this Framework
Agreement as
provided for in Article 2.1; (c) an agreement on trade in
services to be concluded in accordance with
Article 2.2; (d) an agreement on investment to be concluded in
accordance with Article
2.3; (e) the Agreement on Dispute Settlement Mechanism under
this Framework
Agreement as provided for in Article 5.1; and (f) any other
agreements that may be mutually agreed by consensus and
concluded by the Parties in the context of the Korea-ASEAN FTA.
2. Except as otherwise provided in this Framework Agreement, this
Framework Agreement or any action taken under it shall not affect
or nullify the rights and obligations of a Party under the existing
agreements to which it is a party. 3. Nothing in this Framework
Agreement shall prevent any individual ASEAN Member Country from
entering into any bilateral or plurilateral agreement with Korea
and/or any other ASEAN Member Countries relating to trade in goods,
trade in services, investment, and/or other areas of economic
cooperation. The provisions of this Framework Agreement shall not
apply to any such bilateral or plurilateral agreement.
CHAPTER 2
LIBERALISATION
Article 2.1 Trade in Goods
1. The Parties shall progressively reduce and eliminate duties
and other restrictive regulations of commerce (except, where
necessary, those permitted under Article XXIV(8)(b) of GATT 1994)
on substantially all trade in goods among the Parties, in
accordance with the provisions, schedules and programme for the
Normal Track in the Agreement on Trade in Goods under this
Framework Agreement. 2. The Agreement on Trade in Goods under this
Framework Agreement shall include, but not limited to:
(a) detailed rules governing the progressive tariff reduction
and/or
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elimination programme as well as other related matters; (b)
rules of origin; (c) modification of commitments; (d) non-tariff
measures, sanitary and phytosanitary measures, and technical
barriers to trade; (e) safeguards measures; and (f) WTO
disciplines and reduction and elimination of non-tariff
barriers.
Article 2.2 Trade in Services
1. The Parties shall progressively liberalise trade in services
among the Parties with substantial sectoral coverage in conformity
with Article V of GATS. 2. For this purpose, the Parties shall
enter into negotiations on the progressive liberalisation of trade
in services. Such liberalisation shall be directed to:
(a) provision for the absence or elimination of substantially
all
discrimination among the Parties only in the sectors covered
under paragraph 1, through:
(i) elimination of existing discriminatory measures; and/or (ii)
prohibition of new or more discriminatory measures with
respect to trade in services among the Parties,
either at the entry into force of the agreement referred to in
paragraph 3 or on the basis of an agreed time-frame, except for
measures permitted under Articles XI, XII, XIV, XIVbis of GATS;
(b) expansion in the depth and scope of liberalisation of trade
in services
beyond those undertaken by the Parties under GATS; and (c)
enhanced cooperation in services among the Parties in order to
improve
efficiency and competitiveness, as well as to diversify the
supply and distribution of services of the respective service
suppliers of the Parties.
3. The Parties shall begin negotiations on an agreement on trade
in services at the beginning of 2006 with a goal of concluding the
negotiations not later than 31 December 2006.
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Article 2.3 Investment
1. The Parties shall create a liberal, facilitative, transparent
and competitive investment regime with business-friendly
environment. 2. For this purpose, the Parties shall enter into
negotiations on the liberalisation of investment regime. Such
negotiations shall be directed to:
(a) progressive liberalisation of the investment regime; (b)
strengthening of cooperation in investment, facilitation of
investment and
improvement of transparency of investment rules and regulations;
and (c) provision of the protection under the investment
regime.
3. The Parties shall begin negotiations on an agreement on
investment at the beginning of 2006 with a goal of concluding the
negotiations not later than 31 December 2006.
Article 2.4 Most-Favoured Nation Treatment
Korea shall accord to all the ASEAN Member Countries which are
not WTO members the Most-Favoured Nation Treatment consistent with
the WTO rules and disciplines upon the entry into force of this
Framework Agreement.
CHAPTER 3 ECONOMIC COOPERATION
Article 3.1 Scope and Implementation of Cooperation
1. The Parties, on the basis of mutual benefits, shall explore
and undertake cooperation projects in the following areas:
(a) customs procedures; (b) trade and investment promotion; (c)
small and medium enterprises; (d) human resource management and
development;
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(e) tourism; (f) science and technology; (g) financial services;
(h) information and communication technology; (i) agriculture,
fisheries, livestock, plantation commodities and forestry; (j)
intellectual property; (k) environmental industry; (l)
broadcasting; (m) construction technology; (n) standards and
conformity assessment and sanitary and phytosanitary
measures; (o) mining; (p) energy; (q) natural resources; (r)
shipbuilding and maritime transport; and (s) film.
2. The Parties shall undertake economic cooperation projects at
mutually agreed time periods, when feasible. These projects shall
be monitored by the Implementing Committee for their effective
implementation. 3. Details of such cooperation are specified in the
Annex on Economic Cooperation.
Article 3.2 Capacity Building Programmes and Technical
Assistance
1. The Parties, recognising that capacity building programmes
and technical assistance are important, particularly for the new
ASEAN Member Countries, in order to expand their trade and
investment with Korea, shall implement such programmes on a
mutually agreed basis. 2. The Parties shall strengthen cooperation
and support for the realisation of
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ASEAN integration objectives by implementing projects furthering
the Bali Concord II, the Initiative for ASEAN Integration (IAI), as
well as the Vientiane Action Programme (VAP), including providing
technical assistance and capacity building for the new ASEAN Member
Countries based on the experiences and expertise of Korea in
development. 3. The Parties shall strengthen ASEAN’s integration
efforts in narrowing the development gaps among the ASEAN Member
Countries and between Korea and the ASEAN Member Countries by
enhancing regional and sub-regional development. 4. The Parties,
recognising the development gaps among the ASEAN Member Countries
and between Korea and the ASEAN Member Countries, shall enhance
regional and sub-regional development, through cooperation
initiatives including:
(a) the Mekong Sub-region; (b) the Ayeawady-Chao Phraya-Mekong
Economic Cooperation Strategy
(ACMECS); (c) the Brunei
Darussalam-Indonesia-Malaysia-Philippines East ASEAN
Growth Area (BIMP-EAGA); (d) the growth triangles such as the
Indonesia-Malaysia-Thailand (IMT-GT)
and the Indonesia-Malaysia-Singapore (IMS-GT); (e) the Greater
Mekong Sub-Region (GMS) programme; (f) the Second East-West
Economic Corridor; (g) the ASEAN Mekong Basin Development
Corporation (AMBDC); (h) the Singapore-Kunming Rail Link (SKRL)
project; and
(i) sharing experiences with the Mekong River Commission (MRC)
in
formulating and implementing priority programmes in the Mekong
River Basin.
CHAPTER 4 OTHER AREAS
Article 4.1 Expansion of Economic Partnership into New Areas
With the aim of achieving the comprehensive Korea-ASEAN FTA, the
Parties shall explore ways and means to expand their economic
partnership into new areas where the Parties have mutual interests,
as may be agreed by the Parties.
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CHAPTER 5 FINAL PROVISIONS
Article 5.1 Dispute Settlement
1. Any dispute concerning the interpretation, implementation or
application of this Framework Agreement shall be resolved through
the procedures and mechanism as set out in the Agreement on Dispute
Settlement Mechanism under this Framework Agreement. 2.
Notwithstanding paragraph 1, any disputes arising from paragraph 3
of Article 2.2 (Trade in Services), paragraph 3 of Article 2.3
(Investment), Chapters 3 (Economic Cooperation) and 4 (Other
Areas), and the Annex on Economic Cooperation shall not be subject
to the Agreement on Dispute Settlement Mechanism under this
Framework Agreement.
Article 5.2 Institutional Arrangements for the Negotiations
1. There shall be established a Korea-ASEAN Trade Negotiating
Committee to carry out negotiations set out in this Framework
Agreement. 2. The Korea-ASEAN Trade Negotiating Committee may
establish any working group as may be necessary to assist it in
undertaking negotiations on specific areas in the Korea-ASEAN FTA.
3. Commencing immediately at the beginning of the negotiations
envisaged in this Framework Agreement and continuing until the
formal completion of such negotiations by 31 December 2006, the
Parties shall endeavour not to take any trade restrictive or
distorting measures in such a manner as to affect negatively the
negotiating position of any other Party.
Article 5.3 Implementation of the Framework Agreement
1. The Korea + AEM shall have the ultimate authority concerning
all matters relating to the implementation of this Framework
Agreement and any other agreements concluded or to be concluded in
accordance with this Framework Agreement. An Implementing
Committee, which is hereby established to be composed of the senior
economic officials of the Parties or their designees, shall convene
as appropriate to discharge such functions as provided for in
paragraph 2 under the supervision and guidance of the Korea + AEM.
2. The Parties, through the Implementing Committee, shall:
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(a) coordinate, supervise and oversee the implementation and
appropriate
application of the provisions of this Framework Agreement and
any other agreements concluded or to be concluded in accordance
with this Framework Agreement;
(b) review the implementation of this Framework Agreement and
any other
agreements concluded or to be concluded in accordance with this
Framework Agreement;
(c) supervise the work of the committees and working groups
established
under this Framework Agreement and any other agreements
concluded or to be concluded in accordance with this Framework
Agreement; and
(d) consider any other matter that may affect the operation of
this
Framework Agreement and any other agreements concluded or to be
concluded in accordance with this Framework Agreement, or that is
entrusted to the Implementing Committee by the Parties.
3. In the fulfilment of its functions, the Implementing
Committee may:
(a) establish and delegate responsibilities to ad hoc or
standing committees,
working groups or expert groups and assign them with tasks on
specific matters; and
(b) take such other action in the exercise of its functions, as
the Parties may
agree. 4. The Implementing Committee shall keep the Korea + AEM
informed of its activities on a regular basis.
5. The Implementing Committee shall establish its rules and
procedures, which shall be approved by the Korea + AEM.
6. The Implementing Committee shall convene within one year of
the date of entry into force of this Framework Agreement and then
annually or otherwise as appropriate.
Article 5.4 Secretariat and Contact Points
1. The Ministry of Foreign Affairs and Trade of Korea for Korea
and the ASEAN Secretariat for the ASEAN Member Countries shall
jointly provide the necessary secretariat support for the purposes
of this Framework Agreement and any other agreements concluded or
to be concluded in accordance with this Framework Agreement. The
Ministry of Foreign Affairs and Trade of Korea and the ASEAN
Secretariat shall monitor and report to the Implementing Committee
on the
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implementation of this Framework Agreement and any other
agreements concluded or to be concluded in accordance with this
Framework Agreement. 2. All official communications or
notifications among the Parties for the purposes of the
implementation of this Framework Agreement and any other agreements
concluded or to be concluded in accordance with this Framework
Agreement shall be made in the English language and through the
Ministry of Foreign Affairs and Trade of Korea and the ASEAN
Secretariat as appropriate. 3. The Parties shall designate their
respective contact point to facilitate all other communications
with one another on any matter covered by this Framework Agreement
and any other agreements concluded or to be concluded in accordance
with this Framework Agreement. At the request of a Party, the
contact point of the requested Party shall identify the office or
official responsible for the matter and assist in facilitating
communications with the requesting Party.
Article 5.5 Annexes and Future Legal Instruments
1. The Annex on Economic Cooperation shall form an integral part
of this Framework Agreement. 2. The Parties may adopt legal
instruments in the future pursuant to the provisions of this
Framework Agreement. Upon their respective entry into force, such
instruments shall form part of this Framework Agreement.
Article 5.6 Amendments
The provisions of this Framework Agreement may be modified
through amendments mutually agreed upon in writing by the
Parties.
Article 5.7 Depositary
For the ASEAN Member Countries, this Framework Agreement shall
be deposited with the Secretary-General of ASEAN, who shall
promptly furnish a certified copy thereof to each ASEAN Member
Country.
Article 5.8 Entry into Force
1. This Framework Agreement shall enter into force on 1 July
2006, provided that Korea and at least one ASEAN Member Country are
among the Signatory Countries
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that have by then notified all the other Parties in writing of
the completion of their internal procedures. In the event this
Framework Agreement does not enter into force on 1 July 2006, it
shall enter into force on the first day of the second month
following the latter date on which Korea and at least one ASEAN
Member Country have notified all the other Parties in writing of
the completion of their internal procedures. 2. A Party shall, upon
the completion of its internal procedures for the entry into force
of this Framework Agreement, notify all the other Parties in
writing. 3. Where a Party is unable to complete its internal
procedures for the entry into force of this Framework Agreement by
the date as set out in paragraph 1, this Framework Agreement shall
come into force for that Party upon the date of notification of the
completion of its internal procedures. IN WITNESS WHEREOF, the
undersigned, being duly authorised thereto, have signed this
Framework Agreement on Comprehensive Economic Cooperation among the
Governments of the Republic of Korea and the Member Countries of
the Association of Southeast Asian Nations. DONE at Kuala Lumpur,
Malaysia this thirteenth day of December 2005, in duplicate copies
in the English language.
For the Government of the Republic of Korea:
ROH MOO-HYUN
President
For the Government of Brunei Darussalam:
HAJI HASSANAL BOLKIAH Sultan of Brunei Darussalam
For the Royal Government of Cambodia:
SAMDECH HUN SEN
Prime Minister
For the Government of the Republic of Indonesia:
SUSILO BAMBANG YUDHOYONO President
For the Government of the Lao People’s Democratic Republic:
BOUNNHANG VORACHITH
Prime Minister
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For the Government of Malaysia:
ABDULLAH AHMAD BADAWI Prime Minister
For the Government of the Union of Myanmar:
SOE WIN
Prime Minister
For the Government of the Republic of the Philippines:
GLORIA MACAPAGAL-ARROYO President
For the Government of the Republic of Singapore:
LEE HSIEN LOONG
Prime Minister
For the Government of Thailand:
THAKSIN SHINAWATRA Prime Minister
For the Government of the Socialist Republic of Vietnam:
PHAN VAN KHAI
Prime Minister
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ANNEX ECONOMIC COOPERATION
Article 1 Customs Procedures
The Parties, recognising that cooperation among authorities on
customs matters is an important means of facilitating international
trade, shall, subject to their respective domestic laws and
consistent with their own policies and procedures:
(a) share expertise on ways to streamline and simplify customs
procedures; (b) exchange information on best practices relating to
customs procedures,
enforcement and risk management techniques with the exception of
confidential information;
(c) facilitate cooperation and exchange of experiences in the
application of
information technology and improvement of monitoring and
inspection systems in customs procedures; and
(d) ensure, as they deem fit, that their customs laws and
regulations are
published and publicly available, and their customs procedures,
where necessary, are exchanged among customs contact points.
Article 2 Trade and Investment Promotion
1. The Parties shall cooperate in promoting trade and investment
activities through government agencies and/or other bodies. 2. Such
cooperation shall include:
(a) launching a feasibility study on the establishment of an
Korea-ASEAN
Centre based in Korea; (b) organising trade and investment
promotion activities, such as trade and
investment missions, regular business seminars and fora, and
database sharing through electronic linkages (electronic
business-matching); and
(c) assisting the development of the legal system, especially
for the new
ASEAN Member Countries, through professional training programmes
and joint seminars to disseminate knowledge and experiences in law
practices, and conducting projects to improve trade and
investment-related laws.
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Article 3 Small and Medium Enterprises
1. The Parties, recognising the fundamental role of small and
medium enterprises (hereinafter referred to as “SMEs”) in
maintaining the dynamism of their respective national economies,
shall cooperate in promoting close cooperation among SMEs as well
as the relevant agencies of the Parties. 2. Such cooperation shall
include:
(a) establishing networking opportunities for SMEs of the
Parties to facilitate collaboration and/or sharing of best
practices, such as in the field of management skill development,
technology transfers, product quality improvements, supply-chain
linkages, information technology, access to financing as well as
technical assistance;
(b) facilitating the investment flows by Korean SMEs in the
ASEAN
Member Countries, and vice versa; and (c) encouraging their
relevant agencies to discuss, cooperate and share
information and experiences in the development of SMEs policy
and programmes.
Article 4 Human Resource Management and Development
The Parties, recognising that sustainable economic growth and
prosperity largely depend on people's knowledge and skills,
shall:
(a) encourage exchanges of their scholars, teachers, students,
members of
educational institutions and other persons engaging in
scientific or educational activities; and
(b) encourage their relevant agencies to discuss and cooperate
in upgrading
competency and skills of their workers.
Article 5 Tourism
The Parties, recognising that tourism will contribute to the
enhancement of mutual understanding among the Parties and that
tourism is an important industry for their economies, shall:
(a) explore the possibility of undertaking joint research on
tourism
development and promotion to increase inbound visitors to each
Party, as well as consider setting up linkages and networks between
the websites
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in Korea and the ASEAN Member Countries; (b) encourage tourism
agencies of the Parties to strengthen cooperation in
tourism training and education, particularly in the Korean
language and culture for tourist guides of the ASEAN Member
Countries, to ensure high-quality services for Korean tourists in
the territories of the ASEAN Member Countries;
(c) cooperate in joint campaigns to promote tourism in the
territories of the
Parties through workshops and seminars among tourism authorities
and professional tourism agencies in the territories of the
Parties;
(d) collaborate to promote the sustainable development of
tourism in the
territories of the Parties; and (e) exchange information on
relevant statistics, policies and laws in tourism
and related sectors.
Article 6 Science and Technology
The Parties, recognising that science and technology will
contribute to the continued expansion of their respective economies
in the medium and long term, shall:
(a) explore establishment of training programmes and exchange of
scientific
and technology information; (b) consider undertaking joint
research and development projects, especially
in high-end sciences in key technology areas such as
nano-technology, material technology, electronic technology, space
technology, biotechnology and technology management, and other
forms of science and technology cooperation;
(c) encourage linkages between their research institutions; and
(d) encourage the mutually beneficial joint use of research and
development
facilities and scientific equipment.
Article 7 Financial Services
The Parties shall cooperate in the field of financial services
with a view to:
(a) promoting regulatory cooperation and development, including
exchange
of information and experiences on market trends;
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(b) facilitating the development of financial markets and
infrastructure, including capital markets;
(c) providing technical assistance for human resource and
institutional
capacity development and exchanging experiences in the area of
risk management;
(d) assisting in mitigating the adverse implications of
financial services
liberalisation; and (e) providing capacity building in
developing the capital market.
Article 8 Information and Communication Technology
1. The Parties, recognising the rapid development, led by the
private sector, of information and communication technology
(hereinafter referred to as “ICT”) and of business practices
concerning ICT-related services both in the domestic and
international contexts, shall cooperate to promote the development
of ICT and ICT-related services with a view to obtaining the
maximum benefit of the use of ICT for the Parties. 2. The areas of
cooperation shall include:
(a) promotion of electronic commerce; (b) promotion of the use
by consumers, the public sector and the private
sector, of ICT-related services, including newly emerging
services and next generation networks;
(c) human resource development relating to ICT; (d) undertaking
of joint research and development projects; and (e) promotion of
anti-SPAM efforts.
3. The forms of cooperation may include:
(a) exchanging information and expertise on ICT policies,
creation of ICT-related services, provision of e-government
services, content development, network security and protection of
privacy;
(b) undertaking technical cooperation in areas such as network
infrastructure,
creative and multimedia industries and ICT infrastructure
development; (c) encouraging and facilitating investment by private
and/or public
enterprises in ICT industries in the territories of the Parties;
and
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(d) providing technical assistance in the development of
ICT-related projects.
Article 9 Agriculture, Fisheries, Livestock, Plantation
Commodities and Forestry
1. The Parties, recognising that there remain opportunities for
collaboration and technical cooperation in agriculture, fisheries,
livestock, plantation commodities and forestry, including the field
of ecosystem agroforestry and ecotourism, shall establish
cooperation for mutual benefits of the Parties. 2. The areas of
cooperation shall include, but not limited to:
(a) information exchange; (b) capacity building and human
resource development; (c) joint research and development; and (d)
technical assistance in sustainable development.
3. The forms of cooperation shall be:
(a) promoting exchange of information and sharing experiences
related to
the areas described in paragraph 1 including new technologies;
(b) promoting joint research projects; (c) exchanging experts; (d)
providing technical assistance including post-harvest; (e)
conducting seminars, training and workshops; (f) encouraging study
visits to farms and related production centers; (g) strengthening
technology, capacity and know-how of laboratory; and (h)
cooperating in other fields as may be identified and mutually
agreed
upon by the Parties.
Article 10
Intellectual Property 1. The Parties, recognising the growing
importance of intellectual property (hereinafter referred to as
“IP”) as a factor of economic competitiveness in the
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knowledge-based economy, shall enhance their cooperation in the
field of IP. 2. The cooperation shall include, but not limited
to:
(a) exchanging information and sharing experiences on the
creation and
utilisation of IP; (b) exchanging information, sharing
experiences and encouraging training of
each Party’s personnel in the field of IP; (c) conducting
international search and international preliminary
examination under the Patent Cooperation Treaty administered by
the World Intellectual Property Organisation subject to a Party’s
membership;
(d) promoting education and awareness on protection of
intellectual property
rights; (e) providing assistance in facilitating the enhancement
and modernisation
of IP databases including patents and trademarks in the
territories of the ASEAN Member Countries; and
(f) strengthening mutually beneficial cooperation in the
protection of IP.
Article 11 Environmental Industry
1. The Parties, recognising that economic development, social
progress and environmental protection are key pillars of
sustainable development, shall explore ways to promote closer
cooperation among their respective interested government entities,
industries, organisations and research institutions. 2. To this
end, the Parties shall pursue the following environmental
cooperation activities on a mutually agreed basis:
(a) cooperation in environmental technologies and policies, such
as
compressed natural gas technology and policy; (b) cooperation in
environmental capacity building of industries and
exchanges of information and experiences of environmental
industries; (c) cooperation in exchanges and education of human
resources related to
the environment; and (d) other forms of environmental
cooperation as mutually agreed.
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Article 12
Broadcasting 1. The Parties consider the significance of
broadcasting in the digital economy as well as its role as an
avenue for cultural exchanges across national boundaries, and
recognise the advancement of broadcasting technology as both a
challenge and an opportunity for the Parties to derive mutual
benefits. To this end, Korea and various ASEAN Member Countries, as
may be interested, shall develop and promote cooperative activities
in the field of broadcasting on a bilateral basis. 2. Subject to
the Parties’ laws and regulations governing the broadcast sectors,
the areas of cooperation shall include:
(a) exchanging information on statistics, as mutually agreed,
policies and
laws and regulations on broadcasting and related sectors; (b)
undertaking joint research and development of newly emerging
broadcasting technologies; (c) promoting exchanges aimed at
educating and training of broadcasting
related personnel; and (d) encouraging mutual exchanges of
re-transmission of broadcast as
appropriate.
Article 13 Construction Technology
The Parties shall cooperate, where appropriate, in the following
areas:
(a) manpower and construction development; (b) construction
technology; (c) international project collaboration; and (d)
infrastructural construction design.
Article 14 Standards and Conformity Assessment and
Sanitary and Phytosanitary Measures 1. The Parties, recognising
the important role of technical regulations, standards and
conformity assessment procedures on industry, agriculture and
plantation commodities in facilitating trade, shall cooperate in
the areas such as:
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(a) exchange of views and information on standards, technical
regulations
and conformity assessment procedures in areas of mutual
interests; (b) exchange of laws and regulations on standards and
conformity
assessment procedures as mutually agreed; (c) exchange of
experts and staff in areas of mutual interests; (d) explore
possible mutual recognition arrangements and agreements to
facilitate trade flows among the Parties; (e) development and
implementation of technical cooperation and capacity
building programmes on standards, technical regulations,
metrology and conformity assessment, which include, among others,
seminars, training and training attachments, exchange of staff and
regulatory dialogues on agreed areas;
(f) strengthening of cooperation among the Parties at relevant
international
and regional fora on standards and conformity assessment and
promotion of the use of international standards and conformity
assessment guidelines, as appropriate, as a basis for the
development of national technical regulations;
(g) development of testing laboratories and accreditation
network as well as
testing programmes, as appropriate, among the Parties; (h)
exploration of technical assistance in the development of
industrial
standards in areas of mutual interests; and (i) other areas of
cooperation as may be identified and mutually agreed upon
by the Parties. 2. Recognising the importance of sanitary and
phytosanitary (hereinafter referred to as “SPS”) measures in
minimising their negative effects on trade in agricultural,
fishery, animal and food products, and plantation commodities, the
Parties, on the basis of mutual benefits, shall cooperate in:
(a) exchange of information concerning SPS measures; (b)
exchange of information on any occurrences of SPS incidents; (c)
improvement of the distribution and packaging systems; (d) human
resource development in the concerned area that would be
promoted, among others, by organising training and exchange of
specialists;
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(e) development and promotion of new technologies; and (f) other
areas of cooperation as may be identified and mutually agreed
upon
by the Parties.
Article 15 Mining
The Parties, recognising that cooperation in the mining sector
will contribute to the economic development, shall:
(a) explore possibilities for the joint development of energy
and mineral
resources and cooperate in the improvement of technology on
exploration and extraction of energy and mineral deposits, mine
waste disposal and rehabilitation of closed mines;
(b) encourage enhancement of trade and investment in the mining
sector; (c) cooperate in the promotion of environmentally sound and
socially
responsible mineral development practices in sustainable
management and optimum utilisation of mineral resources;
(d) encourage exchange of information on issues related to the
mining policy
and technology; (e) promote and develop business alliances
between the private sectors; and (f) conduct trainings, seminars,
workshops and exchange of experts geared
towards development and promotion of mining.
Article 16 Energy
The Parties, recognising that energy demand in their
territories, shall expand in the future given the rapid pace of
economic development, shall:
(a) exchange information on the improvement of efficiency in
energy use; (b) cooperate in the development and use of alternative
and renewable
energy sources such as, but not limited to, compressed natural
gas technology and policy;
(c) cooperate in infrastructure development, resource
development,
investment promotion and application of new energy saving
technologies;
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(d) encourage exchange of experts; and (e) promote and develop
business alliances between the private sectors.
Article 17 Natural Resources
The Parties, recognising that proper management and efficient
utilisation of natural resources will contribute to the continued
expansion of their respective economies, shall cooperate in:
(a) development and utilisation of appropriate mathematical
models to
simulate and predict groundwater containment and transport,
assessment of risk posed by waste storage/disposal and
agro-industrial activities on groundwater quality, and setting-up
of groundwater protection zones;
(b) improvement of technology on exploration, extraction and
utilisation of
energy and mineral deposits, mine waste disposal and
rehabilitation of closed mines;
(c) investment promotion activities; and (d) comprehensive
management of water resources, including ground and
surface water, and the application of information technology in
this area.
Article 18 Shipbuilding and Maritime Transport
1. Recognising the important role of maritime transport in trade
and development, the Parties, through their relevant entities,
shall cooperate in the areas of shipbuilding and maritime
transport. 2. Such cooperative activities shall include:
(a) undertaking information exchange and sharing experiences;
and (b) promoting exchange of experts.
Article 19 Film
1. Recognising the potential of the film industry as means to
promote understanding and cultural exchanges among the Parties and
the rapid development of this industry in their respective economy,
interested Parties, through their relevant entities, shall
endeavour, subject to their respective laws and regulations, to
promote
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cooperation in the areas of mutual interests. 2. The forms of
cooperation shall be:
(a) exchange of experts on film; (b) exchange of information;
and (c) cooperation in holding and participating in film
festivals.
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AGREEMENT ON DISPUTE SETTLEMENT MECHANISM UNDER THE FRAMEWORK
AGREEMENT
ON COMPREHENSIVE ECONOMIC COOPERATION AMONG THE GOVERNMENTS OF
THE REPUBLIC OF KOREA
AND THE MEMBER COUNTRIES OF THE ASSOCIATION OF SOUTHEAST
ASIAN NATIONS The Governments of the Republic of Korea, Brunei
Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the
Lao People’s Democratic Republic, Malaysia, the Union of Myanmar,
the Republic of the Philippines, the Republic of Singapore, the
Kingdom of Thailand and the Socialist Republic of Vietnam, Member
Countries of the Association of Southeast Asian Nations, RECALLING
the Framework Agreement on Comprehensive Economic Cooperation among
the Governments of the Republic of Korea and the Member Countries
of the Association of Southeast Asian Nations signed in Kuala
Lumpur, Malaysia on the thirteenth day of December 2005; and
FURTHER RECALLING Article 5.1 of the Framework Agreement, which
provides for the dispute settlement procedures and mechanism for
the Framework Agreement and any other Agreement to be concluded
thereunder, HAVE AGREED as follows:
Article 1 Definitions
For the purposes of this Agreement, unless the context otherwise
requires: Korea means the Republic of Korea; ASEAN means the
Association of Southeast Asian Nations which comprises of Brunei
Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the
Lao People's Democratic Republic, Malaysia, the Union of Myanmar,
the Republic of the Philippines, the Republic of Singapore, the
Kingdom of Thailand and the Socialist Republic of Vietnam; ASEAN
Member Countries means Brunei Darussalam, the Kingdom of Cambodia,
the Republic of Indonesia, the Lao People's Democratic Republic,
Malaysia, the Union of Myanmar, the Republic of the Philippines,
the Republic of Singapore, the Kingdom of Thailand and the
Socialist Republic of Vietnam collectively;
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- 2 -
ASEAN Member Country means Brunei Darussalam, the Kingdom of
Cambodia, the Republic of Indonesia, the Lao People's Democratic
Republic, Malaysia, the Union of Myanmar, the Republic of the
Philippines, the Republic of Singapore, the Kingdom of Thailand or
the Socialist Republic of Vietnam individually; chair means the
member of an arbitral panel who serves as the chair of the arbitral
panel; complaining party means any Party that requests
consultations under paragraph 1 of Article 3; covered agreements
means:
(a) the Framework Agreement; (b) the Agreement on Trade in Goods
under the Framework Agreement; (c) this Agreement; (d) any
agreement to be concluded among the Parties pursuant to the
relevant provisions of the Framework Agreement unless provided
otherwise therein;
days means calendar days, including weekends and holidays;
Framework Agreement means the Framework Agreement on Comprehensive
Economic Cooperation among the Governments of the Republic of Korea
and the ASEAN Member Countries; Parties means Korea and the ASEAN
Member Countries collectively; parties to a dispute, or parties to
the dispute means both the complaining party and the party
complained against; Party means Korea or an ASEAN Member Country;
party complained against means any Party to which the request for
consultations is made under paragraph 1 of Article 3; third party
means a Party, other than the parties to a dispute, that delivers a
written notice in accordance with Article 7; and WTO means the
World Trade Organisation.
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- 3 -
Article 2 Coverage and Application
1. This Agreement shall apply with respect to the avoidance or
settlement of all disputes arising between the Parties under the
covered agreements. Unless otherwise provided in this Agreement or
any other covered agreement, this Agreement shall apply to all
disputes between the Parties. 2. The rules and procedures of this
Agreement shall apply subject to special or additional rules and
procedures on dispute settlement, if any, contained in the other
covered agreements. To the extent that there is a conflict between
the rules and procedures of this Agreement and such special or
additional rules and procedures on dispute settlement contained in
a covered agreement, the special or additional rules and procedures
shall prevail. In disputes involving rules and procedures under
more than one covered agreement, if there is a conflict between
special and additional rules and procedures of such covered
agreements, the chair of the arbitral panel, in consultation with
the parties to the dispute, shall determine the rules and
procedures to be followed for that dispute within ten (10) days
after a request by any party to the dispute. 3. The provisions of
this Agreement may be invoked in respect of measures affecting the
operation of any covered agreement taken within the territory of a
Party by:
(a) central, regional or local governments and authorities; or
(b) non-governmental bodies in the exercise of powers delegated by
central,
regional or local governments or authorities. 4. Subject to
paragraph 5, nothing in this Agreement shall prejudice any right of
the Parties to have recourse to dispute settlement procedures
available under any other treaty to which they are parties. 5. Once
dispute settlement proceedings have been initiated under this
Agreement or under any other treaty to which the parties to a
dispute are parties concerning a particular right or obligation of
such Parties arising under the covered agreements or that other
treaty, the forum selected by the complaining party shall be used
to the exclusion of any other for such dispute. 6. For the purposes
of paragraphs 4 and 5, the complaining party shall be deemed to
have selected a forum when it has requested the establishment of,
or referred a dispute to, a dispute settlement panel in accordance
with this Agreement or any other treaty to which the parties to a
dispute are parties.
Article 3 Consultations
1. A party complained against shall accord due consideration to
and afford
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- 4 -
adequate opportunity for consultations regarding a request for
consultations made by a complaining party with respect to any
matter affecting the interpretation, implementation or application
of any covered agreement, wherever the complaining party considers
that:
(a) a measure of the party complained against is inconsistent
with its
obligations under the covered agreements; or (b) the party
complained against has otherwise failed to carry out its
obligations under the covered agreements,
which results in nullification or impairment of any benefits
accruing to the complaining party under the covered agreements or
impediment of the attainment of any objective of the covered
agreements. 2. Any request for consultations shall be submitted in
writing, and include the specific measures at issue, and the
factual and legal basis (including the provisions of any of the
covered agreements alleged to have been breached and any other
relevant provision) of the complaint. The complaining party shall
send the request to the party complained against and the rest of
the Parties. Upon receipt, the party complained against shall
promptly acknowledge receipt of such request to the complaining
party and the rest of the Parties at the same time. 3. If a request
for consultations is made, the party complained against shall reply
to the request within seven (7) days after the date of its receipt
and shall enter into consultations in good faith within a period of
not more than thirty (30) days after the date of receipt of the
request, with a view to reaching a mutually satisfactory solution.
If the party complained against does not respond within the
aforesaid seven (7) days, or does not enter into consultations
within the aforesaid thirty (30) days, then the complaining party
may proceed directly to request for the establishment of an
arbitral panel under Article 5. 4. The parties to a dispute shall
make every effort to reach a mutually satisfactory resolution of
any matter through consultations under this Article. To this end,
the parties to the dispute shall:
(a) provide sufficient information to enable a full examination
of how the measure might affect the operation of the covered
agreement; and
(b) treat as confidential any information exchanged in the
course of
consultations which the other party to the dispute has
designated as confidential.
5. Consultations shall be confidential and without prejudice to
the rights of any Party in any further proceedings under this
Agreement or other proceedings before a forum selected by the
Parties. The parties to the dispute shall inform the rest of the
Parties the outcome of the consultations.
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- 5 -
6. In cases of urgency, including those which concern perishable
goods, the parties to the dispute shall enter into consultations
within a period of no more than ten (10) days after the date of
receipt by the party complained against of the request. If the
consultations have failed to settle the dispute within a period of
twenty (20) days after the date of receipt by the party complained
against of the request, the complaining party may proceed directly
to request for the establishment of an arbitral panel under Article
5. 7. In cases of urgency, including those which concern perishable
goods, the parties to the dispute and arbitral panels shall make
every effort to accelerate the proceedings to the greatest extent
possible.
Article 4 Good Offices, Conciliation and Mediation
1. Good offices, conciliation and mediation are procedures that
are undertaken voluntarily if the parties to the dispute so agree.
2. Good offices, conciliation or mediation may be requested at any
time by any party to a dispute. They may begin at any time and be
terminated by any party to a dispute at any time. 3. If the parties
to a dispute agree, good offices, conciliation or mediation
proceedings may continue before any person or body as may be agreed
by the parties to the dispute while the dispute proceeds for
resolution before an arbitral panel established under Article 5. 4.
Proceedings involving good offices, conciliation and mediation, and
in particular, positions taken by the parties to a dispute during
these proceedings, shall be confidential, and without prejudice to
the rights of any Party in any further proceedings under this
Agreement or other proceedings before a forum selected by the
Parties.
Article 5 Establishment of Arbitral Panels
1. If the consultations under Article 3 fail to settle a dispute
within sixty (60) days after the date of receipt of the request for
consultations or within twenty (20) days after such date in cases
of urgency including those which concern perishable goods, the
complaining party may make a written request to the party
complained against to establish an arbitral panel. A copy of this
request shall also be communicated to the rest of the Parties. 2. A
request for the establishment of an arbitral panel shall give the
reasons for the request, including the identification of:
(a) the specific measure at issue; and (b) the factual and legal
basis (including the provisions of any of the covered
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- 6 -
agreements alleged to have been breached and any other relevant
provisions) for the complaint sufficient to present the problem
clearly.
3. Upon delivery of the request, an arbitral panel shall be
established. 4. Unless otherwise agreed by the parties to the
dispute, an arbitral panel shall be established and perform its
functions in accordance with the provisions of this Agreement, and
the Annex on the Rules and Procedures for the Arbitral Panel
Proceedings. 5. Where more than one complaining party requests the
establishment of an arbitral panel related to the same matter, a
single arbitral panel may, whenever feasible, be established by the
parties to the dispute to examine the matter, taking into account
their respective rights. 6. Where a single arbitral panel is
established under paragraph 5, the arbitral panel shall organise
its examination and present its findings to all the parties to the
dispute in such manner that the rights which the parties to the
dispute would have enjoyed had separate arbitral panels examined
the same matter are in no way impaired. If one of the parties to
the dispute so requests, the arbitral panel may submit separate
reports on the dispute concerned if the timeframe for writing the
report so permits. The written submissions by a party to the
dispute shall be made available to the other parties to the
dispute, and each party to the dispute shall have the right to be
present when any of the other parties to the dispute presents its
views to the arbitral panel. 7. Where more than one arbitral panel
is established to examine the same matter, to the greatest extent
possible, the same persons shall be appointed by the parties to the
disputes to serve on each of the separate arbitral panels and the
timetable for the proceedings of each separate arbitral panel shall
be harmonised.
Article 6
Composition of Arbitral Panels 1. Unless otherwise provided in
this Agreement or agreed by the parties to the dispute, an arbitral
panel shall consist of three (3) members. 2. Each party to the
dispute shall appoint one member of the arbitral panel within
thirty (30) days after the date of receipt of the request under
Article 5. If any party to the dispute fails to appoint a member of
the arbitral panel within such period, then the member of the
arbitral panel appointed by the other party to the dispute shall
act as the sole member of the arbitral panel, notwithstanding
paragraph 1. 3. The parties to the dispute shall endeavour to agree
on the third member who shall serve as the chair of the arbitral
panel within thirty (30) days of the appointment of the second
member. If the parties to the dispute are unable to agree on the
chair within this period, the chair shall be jointly appointed, by
the members of the arbitral panel who have been appointed under
paragraph 2, within a further period of thirty (30) days.
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- 7 -
If the members of the arbitral panel fail to appoint the chair
within the aforesaid period, the chair shall be appointed at the
request of the members of the arbitral panel by the
Director-General of the WTO within thirty (30) days after the date
of receipt of the request. In the event that the Director-General
is a national of one of the parties to the dispute, the Deputy
Director-General or the officer next in seniority who is not a
national of any party to the dispute shall be requested to appoint
the chair. 4. The date of establishment of the arbitral panel shall
be the date on which the chair is appointed under paragraph 3 or,
the 30th day after the date of receipt of the request under Article
5 where only a sole member of the arbitral panel is available. 5.
If a member appointed under this Article resigns or becomes unable
to act, a successor member shall be appointed in the same manner as
prescribed for the appointment of the original member and the
successor member shall have all the powers and duties of the
original member. The work of the arbitral panel shall be suspended
until the successor member is appointed. 6. Any person appointed as
a member of an arbitral panel shall have expertise or experience in
law, international trade, other matters covered by the covered
agreements or the resolution of disputes arising under
international trade agreements. A member shall be chosen strictly
on the basis of objectivity, reliability, sound judgment and
independence and shall conduct himself or herself on the same basis
throughout the course of the arbitral panel proceedings. If a party
to the dispute believes that a member is in violation of the basis
stated above, the parties to the dispute shall consult and if they
agree, the member shall be removed and a new member shall be
appointed in accordance with this Article. Additionally, the chair
shall not be a national of any party to the dispute and shall not
have his or her usual place of residence in the territory of, nor
be employed by, any party to the dispute nor have dealt with the
referred matter in any capacity. 7. Where the original arbitral
panel is required for a matter as provided in this Agreement but
cannot hear the matter for any reason, a new arbitral panel shall
be established in accordance with this Article. The same timeframe
which would have applied, had the original arbitral panel heard the
matter, shall apply for the newly established arbitral panel.
Article 7
Third Parties 1. Any Party having a substantial interest in a
dispute before an arbitral panel and having notified its interest
in writing to the parties to such a dispute and the rest of the
Parties, shall have an opportunity to make written submissions to
the arbitral panel. These submissions shall also be given to the
parties to the dispute and may be reflected in the report of the
arbitral panel. 2. Third parties shall receive the submissions of
the parties to the dispute at the first meeting of the arbitral
panel.
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- 8 -
3. If a third party considers that a measure that is already the
subject of an arbitral panel proceeding nullifies or impairs
benefits accruing to it under the covered agreements, such Party
may have recourse to normal dispute settlement procedures under
this Agreement.
Article 8 Suspension and Termination of Proceedings
1. Where the parties to the dispute agree, the arbitral panel
may suspend its work at any time for a period not exceeding twelve
(12) months from the date of such agreement. Upon the request of
any party to the dispute, the arbitral panel proceeding shall be
resumed after such suspension. If the work of the arbitral panel
has been suspended for more than twelve (12) months, the authority
of the arbitral panel shall lapse unless the parties to the dispute
agree otherwise. 2. The parties to the dispute may agree to
terminate the proceedings of an arbitral panel at any time before
the presentation of the final report to them, in the event that a
mutually satisfactory solution to the dispute has been found. 3.
Before the arbitral panel makes its decision, it may, at any stage
of the proceedings, propose to the parties to the dispute that the
dispute be settled amicably.
Article 9 Functions of Arbitral Panels
An arbitral panel shall make an objective assessment of the
matter before it, including an examination of the facts of the case
and the applicability of and conformity with the relevant covered
agreements. Where the arbitral panel concludes that a measure is
inconsistent with a provision of any of the covered agreements, it
shall recommend that the party complained against bring the measure
into conformity with that provision. In addition to its
recommendations, the arbitral panel may suggest means by which the
party complained against could implement the recommendations. The
arbitral panel shall consult regularly with the parties to the
dispute and provide them adequate opportunities for the development
of a mutually satisfactory resolution. The arbitral panel shall
interpret the relevant provisions of the covered agreements in
accordance with customary rules of interpretation of public
international law. In its findings and recommendations, the
arbitral panel cannot add to or diminish the rights and obligations
provided in the covered agreements.
Article 10 Proceedings of Arbitral Panels
1. The rules and procedures pertaining to the proceedings before
an arbitral panel as set out in the Annex on the Rules and
Procedures for the Arbitral Panel Proceedings
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- 9 -
shall apply unless the parties to the dispute agree otherwise.
The arbitral panel may, after consulting the parties to the
dispute, adopt additional rules and procedures not inconsistent
with the Annex on the Rules and Procedures for the Arbitral Panel
Proceedings. 2. In any event the proceedings of the arbitral panel
shall be in accordance with the following principles:
(a) a right to at least one hearing before the arbitral panel;
(b) an opportunity for each party to the dispute to provide initial
and rebuttal
submissions; (c) a reasonable opportunity for each party to the
dispute to submit
comments on the interim report presented pursuant to Article 11;
and (d) the protection of confidential information.
3. An arbitral panel shall meet in closed session. The parties
to the dispute shall be present at the meetings only when invited
by the arbitral panel to appear before it.
Article 11 Interim Report
1. Unless the parties to the dispute otherwise agree, the
arbitral panel shall base its report on the relevant provisions of
the relevant covered agreement, on the submissions and arguments of
the parties to the dispute, and on any information before it,
pursuant to Article 13. 2. Unless the parties to the dispute
otherwise agree, the arbitral panel shall, within ninety (90) days
from the date of its establishment, present to the parties to the
dispute an interim report containing:
(a) findings of law and/or fact together with reasons; (b) its
determination as to the interpretation, implementation or
application
of the relevant covered agreement or whether the measure at
issue is inconsistent with obligations of the party complained
against under the relevant covered agreement or whether the party
complained against has otherwise failed to carry out its
obligations under the relevant covered agreement or whether the
measure at issue causes nullification or impairment of any benefit
accruing to the complaining party under the relevant covered
agreement or impediment of the attainment of any objective of the
relevant covered agreement, or any other determination requested in
the terms of reference; and
(c) where it determines that the measure at issue is
inconsistent with the
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- 10 -
obligations under the relevant covered agreement, its
recommendations to bring the measure into conformity with such
covered agreement and its suggestion, if any, on means by which the
party complained against could implement the recommendations.
3. When the arbitral panel considers that it cannot present its
interim report within the period of time referred to in paragraph
2, it shall inform the parties to the dispute in writing of the
reasons for the delay together with the estimate of the period
within which it will issue its interim report. 4. The parties to
the dispute may submit written comments on the interim report
within fourteen (14) days of its presentation. 5. In case that such
written comments by the parties to the dispute are received as
provided for in paragraph 4, the arbitral panel, on its own
initiative or at the request of a party to the dispute, may
reconsider its report and make any further examination that it
considers appropriate.
Article 12 Final Report
1. The arbitral panel shall present a final report to the
parties to the dispute, within thirty (30) days of presentation of
the interim report. 2. The arbitral panel shall present to the
parties to the dispute its final report within 120 days from the
date of its establishment. In cases of urgency, including those
relating to perishable goods, the arbitral panel shall aim to
present its final report to the parties to the dispute within
ninety (90) days from the date of its establishment. When the
arbitral panel considers that it cannot present its final report
within 120 days, or within ninety (90) days in cases of urgency, it
shall inform the parties to the dispute in writing of the reasons
for the delay together with an estimate of the period within which
it will present its report. In no case, however, should the period
from the establishment of an arbitral panel to the presentation of
the final report to parties to the dispute exceed 180 days or 120
days in the case of urgency, unless the parties to the dispute
otherwise agree. 3. The final report of the arbitral panel shall be
made publicly available within ten (10) days of its presentation to
the parties to the dispute.
Article 13 Information and Technical Advice
1. Upon request of a party to the dispute, or on its own
initiative, the arbitral panel may seek information and technical
advice from any person or body that it deems appropriate. Any
information and technical advice so obtained shall be made
available to the parties to the dispute.
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- 11 -
2. With respect to factual issues concerning a scientific or
other technical matter raised by a party to the dispute, the
arbitral panel may request advisory reports in writing from an
expert or experts. The arbitral panel may, at the request of a
party to the dispute or on its initiative, select, after a
consultation with the parties to the dispute, scientific or
technical experts who shall assist the arbitral panel throughout
its proceedings, but who shall not have the right to vote in
respect of any decision to be made by the arbitral panel.
Article 14 Implementation of the Final Report
1. The final report of an arbitral panel shall be binding on the
parties to the dispute and shall not be subject to appeal. 2. If,
in its final report, the arbitral panel determines that the party
complained against has not conformed to its obligations under the
relevant covered agreement, or that the party’s measure has caused
nullification or impairment, the means to implement the
recommendations shall be to eliminate the non-conformity, or the
nullification or impairment. 3. The parties to the dispute, shall,
within twenty (20) days upon presentation of the final report of an
arbitral panel, agree on:
(a) the means to implement the recommendations of the arbitral
panel; and (b) the reasonable period of time which is necessary to
implement the
recommendations of the arbitral panel. 4. If the parties to the
dispute fail to agree, a party to the dispute may refer the matter
to the original arbitral panel. The party complained against shall,
within fifteen (15) days after the date of referral of the matter
to the arbitral panel, propose the means to implement the
recommendations of the original arbitral panel. The arbitral panel
shall determine the consistency of the means proposed by the party
complained against with the recommendations and/or the reasonable
period of time. The arbitral panel shall present its report to the
parties to the dispute within thirty (30) days after the date of
the referral of the matter to it. No measure can be taken under
Article 15 without any determination by the arbitral panel under
this paragraph. 5. Where there is disagreement as to the existence
or consistency of measures taken with the recommendation of the
arbitral panel within the reasonable period of time, such dispute
shall be referred to the original arbitral panel. The arbitral
panel shall present its report within thirty (30) days after the
date of referral of the matter to it.
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Article 15 Compensation and the Suspension of Concessions or
Benefits
1. Compensation and the suspension of concessions or benefits
are temporary measures available in the event that the
recommendations are not implemented within a reasonable period of
time. However, neither compensation nor the suspension of
concessions or benefits is preferred to full implementation of the
recommendations to bring a measure into conformity with the covered
agreements. Compensation is voluntary and, if granted, shall be
consistent with the covered agreements. 2. If the party complained
against fails to bring the measure found to be inconsistent with
the relevant covered agreement into compliance with the
recommendations of the arbitral panel within the reasonable period
of time determined pursuant to paragraph 3 of Article 14, the party
complained against shall, if so requested, enter into negotiations
with the complaining party with a view to reaching a mutually
satisfactory agreement on any necessary compensatory adjustment. 3.
If no mutually satisfactory agreement on compensation has been
reached within twenty (20) days after the date of receipt of the
request of the complaining party to enter into negotiations on
compensatory adjustment, the complaining party may at any time
thereafter provide a written notice to the party complained against
and the rest of the Parties that it intends to suspend the
application to the party complained against of concessions or
benefits of equivalent effect and may begin suspending concessions
or benefits thirty (30) days after the date of receipt of the
notice. The notice shall specify the level of concessions or
benefits proposed to be suspended and the relevant covered
agreement and sector(s) which the concessions or benefits are
related to. Within thirty (30) days from the date of receipt of the
notice, the party complained against may request the original
arbitral panel to rule on whether the benefits which the
complaining party proposes to suspend are equivalent to those
affected by the measure found to be inconsistent with the relevant
covered agreement, and whether the proposed suspension is in
accordance with paragraphs 4 and 5. The ruling of the arbitral
panel shall be given within forty–five (45) days from the date of
receipt of that request. Concessions or benefits shall not be
suspended until the arbitral panel has issued its ruling. 4. Any
suspension of concessions or benefits shall be restricted to the
concessions or benefits granted to the party complained against
under the relevant covered agreement, subject to paragraph 5. The
party complained against and the rest of the Parties shall be
informed of the commencement and details of any such suspension. 5.
In considering what concessions or benefits to suspend under
paragraph 3:
(a) the complaining party should first seek to suspend
concessions or
benefits in the same sector or sectors as that affected by the
measure or other matter that the arbitral panel has found to be
inconsistent with the relevant covered agreement or to have caused
nullification or impairment; and
(b) the complaining party may suspend concessions or benefits in
other
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sectors if it considers that it is not practicable or effective
to suspend concessions or benefits in the same sector.
6. The suspension of concessions or benefits shall be temporary
and shall only be applied until such time as the measure found to
be inconsistent with the relevant covered agreement, has been
removed, or the party complained against that must implement the
arbitral panel's recommendations has done so, or a mutually
satisfactory solution is reached. 7. If the party complained
against considers that:
(a) the level of concessions or benefits suspended by the
complaining party
is manifestly excessive; or (b) it has eliminated the
non-conformity, or the nullification or impairment
that the arbitral panel has found; it may request the original
arbitral panel to determine the matter. The arbitral panel shall
present its determination to the parties to the dispute within
thirty (30) days after it reconvenes.
Article 16 Official Language
1. All proceedings pursuant to this Agreement shall be conducted
in the English language. 2. Any document submitted for use in any
proceedings pursuant to this Agreement shall be in the English
language. If any original document is not in the English language,
a Party submitting it for use in the proceedings pursuant to this
Agreement shall provide an English translation of that
document.
Article 17 Expenses
1. Each party to a dispute shall bear the costs of the arbitral
panel member, appointed by that party to the dispute, and its own
expenses and legal costs. 2. Unless the parties to the dispute
otherwise agree, the costs of the chair of the arbitral panel and
other expenses associated with the conduct of its proceedings shall
be borne in equal parts by the parties to a dispute.
Article 18 Annex
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The Annex on the Rules and Procedures for the Arbitral Panel
Proceedings and the contents therein shall form an integral part of
this Agreement.
Article 19 Amendments
The provisions of this Agreement may be modified through
amendments mutually agreed upon in writing by the Parties.
Article 20 Depositary
For the ASEAN Member Countries, this Agreement shall be
deposited with the Secretary-General of ASEAN, who shall promptly
furnish a certified copy thereof, to each ASEAN Member Country.
Article 21 Entry into Force
1. This Agreement shall enter into force on 1 July 2006,
provided that Korea and at least one ASEAN Member Country are among
the Signatory Countries that have by then notified all the other
Parties in writing of the completion of their internal procedures.
In the event this Agreement does not enter into force on 1 July
2006, it shall enter into force on the first day of the second
month following the latter date on which Korea and at least one
ASEAN Member County have notified all the other Parties in writing
of the completion of their internal procedures. 2. A Party shall,
upon the completion of its internal procedures for the entry into
force of this Agreement, notify all the other Parties in writing.
3. Where a Party is unable to complete its internal procedures for
the entry into force of this Agreement by the date as set out in
paragraph 1, this Agreement shall come into force for that Party
upon the date of notification of the completion of its internal
procedures. IN WITNESS WHEREOF, the undersigned, being duly
authorised thereto, have signed this Agreement on Dispute
Settlement Mechanism under the Framework Agreement on Comprehensive
Economic Cooperation among the Governments of the Republic of Korea
and Member Countries of the Association of Southeast Asian Nations.
DONE at Kuala Lumpur, Malaysia this day of December 2005, in
duplicate copies in the English language.
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For the Government of the Republic of Korea KIM HYUN-CHONG
Minister for Trade For the Government of Brunei Darussalam LIM JOCK
SENG Second Minister of Foreign Affairs and Trade For the Royal
Government of Cambodia CHAM PRASIDH Senior Minister and Minister of
Commerce For the Government of the Republic of Indonesia MARI ELKA
PANGESTU Minister of Trade For the Government of the Lao People's
Democratic Republic SOULIVONG DARAVONG Minister of Commerce For the
Government of Malaysia RAFIDAH AZIZ Minister of International Trade
and Industry For the Government of the Union of Myanmar SOE THA
Minister for National Planning and Economic Development For the
Government of the Republic of the Philippines PETER B. FAVILA
Secretary of Trade and Industry
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For the Government of the Republic of Singapore LIM HNG KIANG
Minister for Trade and Industry For the Government of Thailand
SOMKID JATUSRIPITAK Deputy Prime Minister and Minister of Commerce
For the Government of the Socialist Republic of Vietnam TRUONG DINH
TUYEN Minister of Trade
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ANNEX RULES AND PROCEDURES FOR THE ARBITRAL PANEL
PROCEEDINGS
Application
1. These Rules are established under Article 10 and shall apply
to arbitral panel proceedings under this Agreement unless the
parties to the dispute otherwise agree. 2. Any reference made in
these Rules to an Article is a reference to the appropriate Article
in this Agreement. Terms of Reference for Arbitral Panels 3. An
arbitral panel shall have the following terms of reference unless
the parties to the dispute agree otherwise within ten (10) days
from the date of the establishment of an arbitral panel: "To
examine, in the light of the relevant provisions in (name of the
covered agreement(s) cited by the parties to the dispute), the
matter referred to in the request for the establishment of an
arbitral panel pursuant to Article 5, to make findings,
determinations, recommendations and suggestions, if any, as
provided in Article 11, and to present the written reports referred
to in Articles 11 and 12.” 4. The parties to the dispute shall
promptly deliver the agreed terms of reference to the arbitral
panel. The arbitral panel shall address the relevant provisions in
the covered agreements cited by the parties to the dispute. Written
Submissions and Other Documents 5. Each party to the dispute shall
deliver no less than four copies of its written submissions to the
arbitral panel and a copy to the other party to the dispute. 6. A
complaining party shall deliver its initial written submission to
the party complained against no later than twenty (20) days after
the date of the establishment of the arbitral panel. The party
complained against shall deliver its written submission to the
complaining party no later than twenty (20) days after the date of
receipt of the initial written submission of the complaining party.
7. In respect of any request, notice or other document(s) related
to the arbitral panel proceeding that is not covered by paragraphs
5 and 6, each party to the dispute may deliver a copy of the
document(s) to the other party to the dispute by facsimile, email
or other means of electronic transmission.
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8. A party to the dispute may at any time correct minor errors
of a clerical nature in any request, notice, written submission or
other document(s) related to the arbitral panel proceeding by
delivering a new document clearly indicating the changes. Operation
of Arbitral Panels 9. The chair of the arbitral panel shall preside
at all of its meetings. An arbitral panel may delegate to the chair
authority to make administrative and procedural decisions. 10.
Except as otherwise provided in these Rules, the arbitral panel may
conduct its business by any means, including by telephone,
facsimile transmission and computer links. 11. Only members of the
arbitral panel may take part in the deliberations of the arbitral
panel, but the arbitral panel may, in consultation with the parties
to the dispute, retain such number of assistants, interpreters or
translators, or designated note takers as may be required for the
proceeding and permit them to be present during such deliberations.
The members of the arbitral panel and the persons retained by the
arbitral panel shall maintain the confidentiality of the arbitral
panel proceeding unless such information is already made available
to the public. 12. Where a procedural question arises that is not
addressed by these Rules, an arbitral panel may adopt an
appropriate procedure that is not inconsistent with this Agreement,
unless it considers that the procedural question may affect in a
meaningful manner the way in which it examines matters before it,
in which case it shall consult with the parties to the dispute. 13.
Any time period applicable to the arbitral panel proceeding shall
be suspended for a period that begins on the date on which any
member of the arbitral panel becomes unable to act and ends on the
date on which the successor member is appointed. 14. An arbitral
panel may, in consultation with the parties to the dispute, modify
any time period applicable in the arbitral panel proceeding and
make such other procedural or administrative adjustments as may be
required in the proceeding. 15. The venue for the arbitral panel
proceedings shall be decided by mutual agreement between the
parties to the dispute. If there is no agreement, the venue shall
alternate between the capitals of the parties to the dispute with
the first session of the arbitral panel proceeding to be held in
the capital of the party complained against. 16. All third parties
which have notified their interest in the dispute shall be invited
in writing to present their views during the first session of the
arbitral panel proceeding set aside for that purpose. All such
third parties may be present during the entirety of this session.
17. The interim and final report of the arbitral panel shall be
drafted without the
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presence of the parties to the dispute in the light of the
information provided and the statements made. Opinions expressed in
the report of the arbitral panel by its individual member shall be
anonymous. 18. Following the consideration of submissions,
arguments and any information before it, the arbitral panel shall
present an interim report to the parties to the dispute, including
both a descriptive section relating to the facts of the dispute and
the arguments of the parties to the dispute and the arbitral
panel's findings and conclusions. The arbitral panel shall accord
adequate opportunity to the parties to the dispute to review the
entirety of its interim report prior to its finalisation and shall
include a discussion of any comments by the parties concerned in
its final report. Timetable 19. After consulting the parties to the
dispute, the chair of the arbitral panel shall, as soon as
practicable and whenever possible within fifteen (15) days after
the establishment of the arbitral panel, fix the timetable for the
arbitral panel process. In determining the timetable for the
arbitral panel process, the arbitral panel shall provide sufficient
time for the parties to the dispute to prepare their respective
submissions. The arbitral panel should set precise deadlines for
written submissions by the parties to the dispute and they shall
respect those deadlines. Decisions of the Arbitral Panel
20. The arbitral panel shall take its decisions by consensus;
provided that where the arbitral panel is unable to reach
consensus, it may take its decisions by majority vote.
Availability of Information 21. The deliberations of the
arbitral panel and the documents submitted to it shall be kept
confidential. No party to the dispute shall be precluded from
disclosing statements of its own positions to the public. The
parties to the dispute shall treat as confidential information
submitted by the other party to the dispute to the arbitral panel
which that party has designated as confidential. Where a party to
the dispute submits a confidential version of its written
submissions to the arbitral panel, it shall also, upon request of
the other party to the dispute, provide a non-confidential summary
of the information contained in its submissions that could be
disclosed to the public. Remuneration and Payment of Expenses 22.
The arbitral panel shall keep a record and render a final account
of all general expenses incurred in connection with the
proceedings, including those paid to their assistants, designated
note takers or other individuals that it retains pursuant to
paragraph 11.
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AGREEMENT ON TRADE IN GOODS UNDER THE FRAMEWORK AGREEMENT ON
COMPREHENSIVE
ECONOMIC COOPERATION AMONG THE GOVERNMENTS OF THE REPUBLIC OF
KOREA AND THE MEMBER COUNTRIES OF THE
ASSOCIATION OF SOUTHEAST ASIAN NATIONS
The Governments of the Republic of Korea and the Member
Countries of the Association of Southeast Asian Nations; Brunei
Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the
Lao People's Democratic Republic, Malaysia, the Union of Myanmar,
the Republic of the Philippines, the Republic of Singapore, the
Kingdom of Thailand1 and the Socialist Republic of Vietnam,
RECALLING the Framework Agreement on Comprehensive Economic
Cooperation among the Governments of the Republic of Korea and the
Member Countries of the Association of Southeast Asian Nations
signed in Kuala Lumpur, Malaysia on the thirteenth day of December
2005;
FURTHER RECALLING Articles 1.3 and 2.1 of the Framework
Agreement, which reflect their commitment to establish the
Korea-ASEAN Free Trade Area covering trade in goods;
REAFFIRMING their commitment to eliminate duties and other
restrictive regulations of commerce on substantially all trade in
goods among the Republic of Korea and the ASEAN Member Countries
within the specified time frames, while allowing flexibility to
them to address their sensitive areas as provided in the Framework
Agreement; and
RECOGNISING the different stages of economic development among
the ASEAN Member Countries and the need for flexibility to be given
to the new ASEAN Member Countrie