Chile-Korea Free Trade Agreement

Country / jurisdiction: Korea · Year: 2004 · Status: In force · Level: National · Type: Voluntary

The Chile-Korea Free Trade Agreement, was signed in February 2003, and later fully adopted in April of the following year.

In terms of trade, the treaty established a process of tariff reduction, with periods ranging from immediate tariff elimination at the time of its entry into force, to a period of 16 years, which was completed back in 2020. Since 2018, rounds of negotiations have been conducted to deepen certain trade categories included within the agreement, such as commerce facilitation, environment, cooperation, and intellectual property.

When it comes to energy technology trade, the treaty is tariff-free for the following prioritized products: agglomerated and reduced iron, alumina, scrap metal, ammonia, crude steel, aluminum, nitrogen fertilizers, solar PV modules, solar cells, solar wafers, polysilicon, battery packs, battery cells, anodes and cathodes, electrolyzers, heat pumps, electric vehicles, ICE cars, among other technologies.

The Agreement also includes rules of origin and local content provisions. Goods are counted as originating from each country if:

wholly produced or obtained in the country (applicable to minerals, raw materials, and waste and scrap materials)

meets specific standards for the good as defined in the Agreement (applicable largely to manufactured goods) which mainly cover changes in HS codes and minimum regional value content (RVC) requirements

Official source: https://www.subrei.gob.cl/acuerdos-comerciales/acuerdos-comerciales-vigentes/corea-del-sur