Korea - Viet Nam Free Trade Agreement
The Free Trade Agreement between Korea and Viet Nam FTA provides for the elimination or reduction of border tariffs, notably for the following imports from Korea:
- Appliances
- Automobile components
- Automobile Internal Combustion Engines
- Heavy Duty Commercial Vehicles
- Pumps
- Steel bars and other steel items
- Wires
The Agreement also provides for the elimination or reduction of border tariffs for the following imports from Viet Nam:
- Copper wires
- Communication wires
Rules of origin delineated in the agreement state that goods may benefit from preferential tariff treatment if:
- wholly produced or obtained in the country (mainly applicable to minerals, raw materials, and waste and scrap materials)
- meeting specific requirements, mainly through having undergone manufacturing processes that warrant a change in the HS code or meeting regional value content requirements (mainly applicable to manufactured goods)
The investment provisions of the Agreement forbid performance requirements that require, as a condition of investment, export obligations, domestic content obligations, technology transfers, and other non-tariff barriers. It also carries national treatment and most-favoured nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or to those from any other nations.
However, it does allow either Party to provide additional benefits or advantages tied to such conditions. It also does not prevent either Party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.
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