S Korea, Peru reach free trade pact to expand trade (2)

S. KOREA-PERU FTA

The free trade pact incorporates bilateral agreement on goods, trade safeguards, intellectual property rights, government procurement, and economic cooperation.

Under the deal, the two countries are obliged to eliminate or cut tariffs on goods within 10 years after the deal takes effect.

Accordingly, tariffs on South Korean autos with engine displacements of 3,000 cc or more and color TVs will be removed right away, while those with engine displacement of less than 3, 000 cc will be erased off in five years.

The pact also states elimination of tariffs on home appliances, such as refrigerators and washing machines, in four and 10 years, respectively.

With respect to agricultural products, 107 items that South Korea found sensitive have been excluded from the deal, while other 202 items were subject to be traded off tariffs in 10 years.

In addition, tariffs on Peruvian coffee will be abolished right after the deal comes into effect.

The statement also deals with an agreement on protection measures such as import safeguards and a clause to extend intellectual property rights from 50 to 70 years.

Products from the Kaesong Joint Industrial Park located in the Democratic People's Republic of Korea (DPRK) will also be recognized as originating from South Korea, the joint statement said.

The two countries will have a legal review on the pact until Sept. 3, after which they will push for initialing the deal in November.

South Korea and Peru have been going through three ministerial- level meetings and four official rounds of negotiation talks since March 2009.

Bilateral trade reached 1.56 billion U.S. dollars in 2009, with South Korea's exports to the South American country reaching 641 million U.S. dollars.


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