By virtue of Article 169(2) of the Constitution of Cyprus, the above mentioned Free Trade Agreement between EU and (South) Korea was ratified by the Cyprus Parliament on 19 January 2012. The agreement had been signed on 6 October 2010 and it was approved by the European Parliament on 1.7 February 2011 It has been provisionally in force since 1 July 2011.

It is noted that this is the most ambitious and comprehensive free trade agreement ever negotiated by the EU and the first with a partner country in Asia. According to the Agreement, import duties are to be eliminated on nearly all products (98.7 % of duties in terms of trade value will be eliminated within five years) and there is also far-reaching liberalisation of trade in services (including telecommunications, environmental, shipping, financial and legal services) covering all modes of supply. The Agreement is expected to create substantial new trade opportunities in goods and services, as well as in investment. The additional market access provided by the Agreement will further strengthen the position of EU suppliers in the Korean market.

The Agreement includes provisions on investment, both in services and industrial sectors and also covers important areas, such as the protection of intellectual property rights (including geographical indications) and government procurement. Moreover, specific commitments to eliminate and to prevent the emergence of non-tariff barriers to trade have been agreed in sectors such as automobiles, pharmaceuticals and electronics.

With regard to consumer electronics, Korea will consider many European standards as equivalent, and recognise European certificates. Finally, exporters of pharmaceuticals and medical devices will benefit from more transparency in pricing decisions, with detailed binding rules on the transparency of decisions on reimbursement and the option to have such pricing decisions reviewed by a court.

Dr. Kypros Chrysostomides

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