1. General Information
Full Name: Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations (ASEAN) and the Republic of Korea.
Abbreviation: AKFTA (ASEAN–Korea Free Trade Agreement).
AKFTA is a comprehensive Free Trade Agreement (FTA) consisting of three main component agreements:
- The Agreement on Trade in Goods (TIG);
- The Agreement on Trade in Services;
- and the Agreement on Investment.
Participating Members:
- 10 ASEAN Member States: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam.
- 1 Partner: Republic of Korea (ROK).
Dates of Signing and Entry into Force:
| Agreement | Date of Signing | Date of Entry into Force |
| Framework Agreement on Comprehensive Economic Cooperation | 13 December 2005 | – |
| Agreement on Trade in Goods (TIG) | 24 August 2006 | 1 June 2007 |
| Agreement on Trade in Services | 20 November 2007 | 1 May 2009 |
| Agreement on Investment | 2 June 2009 | 1 September 2009 |
Negotiation Background and Rationale for the FTA
Background: The ASEAN–Korea dialogue partnership was established in 1989 and elevated to a Summit level in 1997. Korea is one of ASEAN’s most important economic partners.
Rationale for Formation:
- Establishment of a Free Trade Area: The goal was to create the ASEAN–Korea Free Trade Area (AKFTA) within ten years to strengthen and deepen economic, trade, and investment cooperation.
- Market Liberalisation: To remove most tariff and non-tariff barriers in trade in goods, services, and investment, thereby facilitating mutual market access for businesses from both sides.
- Supply Chain Integration: To strengthen economic linkages between ASEAN — a dynamic manufacturing hub — and Korea — a major industrial and technological power.
2. Scope and Key Commitments
AKFTA is a comprehensive agreement encompassing trade in goods, services, and investment, which are implemented through three separate agreements.
Main Chapters of the Agreement on Trade in Goods (TIG):
| Chapter | Title | Key Provisions |
|---|---|---|
| 1 | General Provisions | Defines the scope and objectives of the Agreement. |
| 2 | Elimination of Tariffs | Sets out the schedules and modalities for tariff reduction and elimination. Goods are categorized into: Normal Track (NT); Sensitive Track (ST); and Highly Sensitive List (HSL). |
| 3 | Rules of Origin (ROO) | Establishes origin criteria: a minimum Regional Value Content (RVC) of 40%; and/or Change in Tariff Heading (CTH) at the 4-digit HS level. |
| 4 | Non-Tariff Measures | Addresses non-tariff measures to ensure transparency and non-discrimination. |
| 5 | Trade Remedies | Covers trade defense instruments such as anti-dumping; countervailing; and global safeguard measures (including special safeguard provisions for ASEAN). |
| 6 | Institutional Mechanism | Establishes the Goods Trade Committee and working groups to oversee implementation of the Agreement. |
Key Commitments:
- Tariff Liberalisation: Viet Nam was granted a longer tariff reduction schedule (about six years) compared to the ASEAN-6 countries, aiming to eliminate tariffs on most items in the Normal Track by 2018.
- Certificate of Origin (C/O): The AKFTA Certificate of Origin uses Form AK.
3. Reference Materials & Official Sources
Full Text of the FTA: Official English versions can be found on:
- The ASEAN Secretariat website (www.asean.org)
- The website of the Ministry of Trade, Industry, and Energy of the Republic of Korea (MOTIE).
Relevant Agreements:
- ASEAN–Korea Agreement on Trade in Goods;
- ASEAN–Korea Agreement on Trade in Services;
- ASEAN–Korea Agreement on Investment.
Implementation Guidelines in Viet Nam
Vietnam FTA Portal (Ministry of Industry and Trade): Provides summaries of commitments, tariff reduction schedules, and rules of origin. Website: https://vntr.moit.gov.vn/
Vietnamese Legal Documents:
- Government Decree: On Vietnam’s Special Preferential Import Tariff Schedule for implementing the ASEAN–Korea Trade in Goods Agreement.
- Circular of the Ministry of Industry and Trade: Providing Rules of Origin under the AKFTA.
- WTO and Integration Center (VCCI): Provides summaries, guidance for enterprises, and customs procedures for the use of C/O Form AK.
