Japan-Republic of Korea EPA (Overview)

April 2008

1. Chronology

(1) Joint research by research institutes of Japan and the ROK: from December 1998 to May 2000

Research institutes of the two countries conducted research on Japan-ROK FTA including effects to be brought about by the FTA.

(2) Japan-ROK FTA Business Forum: from March 2001 to January 2002

A Business Forum consisting of business leaders and eminent figures from the two countries released a joint statement recommending that Japan-ROK FTA be promoted expeditiously as a comprehensive economic partnership agreement.

(3) Japan-Korea FTA Joint Study Group: from July 2002 to October 2003

A Joint Study Group composed of representatives from industry, government and academia of the two countries published a report including recommendations that the two governments enter into negotiations at an early date with a view to concluding a comprehensive Japan-ROK FTA that would bring about mutual benefits and would be a symbol of Japan-ROK partnership.

(4) In October 2003, the two leaders, at the summit meeting, agreed to launch negotiations for the conclusion of Japan-ROK FTA by the end of the year and to make it a goal to complete substantial negotiations in 2005.

(5) In December 2003, the first round of the negotiations was held.

(6) In November 2004, the sixth round of the negotiations was held. (No further round of negotiations has been held so far.)

(7) In December 2004, Prime Minister Koizumi, at the summit meeting, stated that he was seeking to begin market access negotiations at the earliest possible stage next year, with a view to agreeing on an FTA in next year. In response, President Roh stated that in keeping with the spirit of the original agreement between the two leaders he was seeking to push ahead with negotiations.

(8) In June 2005, Prime Minister Koizumi, at the summit meeting, stated that an early resumption of the negotiations was important. President Roh responded by explaining the situation in the ROK.

(9) In October 2006, Prime Minister Abe, at the summit meeting, stated that considering the growing interdependence of the two economies he would like to accelerate the Negotiations for creating a future-oriented relationship. In response, President Roh stated that while the negotiations were to be resumed, the two governments had different views on the contents and he would like to continue discussions on the negotiations with concern.

(10) In July 2007, at the Japan-ROK High Level Economic Dialogue, Deputy Minister for Foreign Affairs of Japan and Deputy Minister for Trade of the ROK exchanged opinions on creating favorable environment for the resumption of the negotiations.

(11) In February 2008, Prime Minister Fukuda, at the summit meeting, proposed to hold preliminary consultations for the resumption of negotiations. The two leaders shared the view that the two governments would consider the resumption of the negotiations.

(12) In April 2008, the two leaders, at the summit meeting, shared the view that working level consultations would be held in June to consider and to create a favorable environment for the resumption of EPA negotiations.

2. Outline of the Negotiations

(Head of Delegation of the Japanese side: Deputy Vice Minister for Foreign Affairs (Economic Affairs), the Head of Delegation of the ROK side: Deputy Minister for Trade)

1. Rounds of the Negotiations (See Appendix for summary of each round).

• The First Round: December 22, 2003 (in Seoul)
• The Second Round: February 23-25, 2004 (in Tokyo)
• The Third Round: April 26-28, 2004 (in Seoul)
• The Fourth Round: June 23-25, 2004 (in Tokyo)
• The Fifth Round: August 23-25, 2004 (in Kyonju)
• The Sixth Round: November 1-3, 2004 (in Tokyo)

2. Framework of the Negotiations

(1) Basic Principles

Comprehensiveness, substantial liberalization, enhancement of mutual benefits and consistency with WTO rules and regulations are regarded as basic principles.

(2) Scope of the Negotiations

The negotiations are categorized as follows to address a cluster of issues.

(3) Venue and Frequency of the Negotiations

The negotiations should take place alternately in Japan and the ROK and be held every two months for the time being.

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1. Summary of Each Round of the Negotiations

(1) Summary of the First Round

Both sides confirmed basic principles, structure and scope of the negotiations, etc.

(2) Summary of the Second Round

The Plenary meeting and five negotiation group meetings (Trade in Goods, Non-Tariff Measures, SPS and TBT, Trade in Services and Investment, Other Trade-Related Issues, Cooperation) were held. Each negotiation group discussed issues of concern, outline of respective part of the Agreement, future working schedule, etc. Both sides agreed to establish a negotiation group on Mutual Recognition.

(3) Summary of the Third Round

The Plenary meeting and all seven negotiation group meetings were held. In each negotiation group, both sides explained the proposed text exchanged before the meeting and answered questions on the text.

(4) Summary of the Fourth Round

The Plenary meeting and six negotiation group meetings (all negotiation groups except General Provisions, Dispute Settlement and Final Provisions) were held. Each negotiation group discussed the proposed text and other issues of concern. Both sides exchanged views on how to proceed the negotiation of tariff elimination, etc.

(5) Summary of the Fifth Round

The Plenary meeting and all seven negotiation group meetings were held. Each negotiation group discussed the proposed text and other issues of concern. Both sides further exchanged views on how to proceed the negotiation of tariff elimination, etc.

(6) Summary of the Sixth Round

The Plenary meeting and all seven negotiation group meetings were held. Each negotiation group discussed the proposed text and other issues of concern. Both sides further exchanged views on how to proceed the negotiation of tariff elimination, etc.

2. Major Issues of the Negotiations

(1) Trade in Goods (Tariff elimination and domestic impact thereof)

(2) Investment (Improvement of the Japan-ROK Investment Agreement)

(3) Trade in Services (High level liberalization as developed countries)

(4) Other Issues (Non-Tariff Measures, Mutual Recognition, Cooperation, etc.)

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