What is the ASEAN-Korea Free Trade Agreement (AKFTA)?
The ASEAN-Korea Free Trade Agreement (AKFTA), officially known as the Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations (ASEAN) and the Republic of Korea, is a comprehensive Free Trade Agreement (FTA). It comprises three main component agreements: the Agreement on Trade in Goods (TIG), the Agreement on Trade in Services, and the Agreement on Investment. This agreement involves all 10 ASEAN Member States (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam) and the 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 |
Why was the AKFTA established?
The AKFTA was established to deepen economic ties between ASEAN and Korea, building on a dialogue partnership initiated in 1989 and elevated to a Summit level in 1997, recognizing Korea as a vital economic partner for ASEAN. The primary rationale for its formation was to establish the ASEAN–Korea Free Trade Area (AKFTA) within ten years, aiming to strengthen economic, trade, and investment cooperation. This involved liberalizing markets by removing most tariff and non-tariff barriers across goods, services, and investment, thereby facilitating mutual market access. Additionally, the agreement sought to integrate supply chains, linking ASEAN’s dynamic manufacturing capabilities with Korea’s industrial and technological strengths.
What are the key commitments and scope of the AKFTA?
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.
Where can I find official AKFTA reference materials and legal documents?
Official English versions of the full AKFTA text and its relevant agreements—the ASEAN–Korea Agreement on Trade in Goods, the ASEAN–Korea Agreement on Trade in Services, and the ASEAN–Korea Agreement on Investment—are available on the ASEAN Secretariat website (www.asean.org) and the website of the Ministry of Trade, Industry, and Energy of the Republic of Korea (MOTIE). For implementation guidelines specific to Vietnam, the Vietnam FTA Portal (Ministry of Industry and Trade) at https://vntr.moit.gov.vn/ offers summaries of commitments, tariff reduction schedules, and rules of origin. Additionally, Vietnamese legal documents such as Government Decrees on Vietnam’s Special Preferential Import Tariff Schedule and Circulars from the Ministry of Industry and Trade provide specific rules of origin under the AKFTA. Further guidance for enterprises and customs procedures for using C/O Form AK can be found through the WTO and Integration Center (VCCI).
