South Korea–Peru Free Trade Agreement

The South Korea-Peru Free Trade Agreement is an FTA signed between the governments of Korea and Peru on March 21, 2011 in Seoul, Korea. On July 6, 2011, the Korean Parliament passed a bill ratifying the agreement concluding the process of establishing the second FTA between Korea and a South American country. The FTA did not need to be ratified by the Peruvian parliament.^[1]

History

In the 2005 APEC meeting held in Busan, Peru proposed Korea the establishment of an FTA between the two nations. On November 2006, the two countries agreed on forming a study group to develop the potential FTA. The study started in October 2007 in Lima and concluded spring 2008 in Seoul. Throughout 2009, four negotiation meetings were held in both Lima and Seoul and the announcement on the conclusion of the negotiations was on August 30, 2010. The FTA would eventually be signed in 2011.^[2]

Main Aspects

The goal of the FTA is to eliminate most tariffs over ten years with the exception of 107 agricultural and marine products such as rice, beef, onion and garlic. For Korea, the automotive, electronic and appliances industries will enjoy most of the benefits. For the Peruvian side, the main exports are copper, zinc, lead, iron and concentrates besides molluscs, frozen squid, fish meal, coffee and textiles.^[3] According to the Peruvian ministry of commerce, the FTA is formed by the next aspects:^[4]

National treatment and access to markets
Origin rules and procedures
Trade Defense
Technical obstacles for trade
Hygiene measures
Customs and easement of trade
Trade of services
Telecommunications
Temporary entry for business persons
Financial services
Investment Inversión
Electronic trade
Intellectual property
Competition policies
Public Purchases
Cooperation and strengthening of trade capacities
Labour
Environment
Controversies settlements
Institutional issues

Double Taxing Agreement

On July 8, 2011 the two countries signed an agreement to avoid double taxing, which also aims to persecute tax evasion. With the agreement, tax deductions will go up to 10 percent over the dividends in the country they were generated and interests go up to 15 percent. The Korean government aims to ease the activities of Korean companies entering the mining sector in the resource rich South American country.^[5]

References

Economy of South Korea
History	Chaebol 1997 Asian financial crisis Four Asian Tigers Five-Year Plans of South Korea Heavy-Chemical Industry Drive Miracle on the Han River
Currency	Won (1945–1953) Hwan (1953–1962) Won (1962–) Korea Minting and Security Printing Corporation Bank of Korea
Industry and business	Automotive industry Companies Energy Exports Financial services Fishing industry Markets Real estate Rice production Trade unions Korea National Oil Corporation
Government agencies	Fair Trade Commission Korea Forest Service Financial Services Commission Financial Supervisory Service Korea Deposit Insurance Corporation National Information & Credit Evaluation Korea Investment Corporation Korea Transportation Safety Authority Small and Medium Business Administration
Employment and tax	Companies
Infrastructure and transport	Trans Korea Pipeline South–North Pipeline Korea Driving license
Rankings	International rankings Regions by GDP
Finance and banking	Korea Exchange KOSDAQ KRX 100 KOSPI Banks
Free Trade Agreements	ASEAN EFTA India Peru European Union United States Australia Vietnam Canada
Energy	National RD&D Organisation for Hydrogen and Fuel Cell Programme Nuclear power Nuclear research programs
Other	European Union Chamber of Commerce in Korea Korea Financial Investment Association Kimchi bond Korea Non-Life Insurance Association Korea Oil & Petroleum Association
See also: Economy of North Korea

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