Ministerial Joint Statement on the Launch of China–ROK FTA Negotiation
(May 2, 2012, Beijing)

1. Chen Deming, Minister of Commerce of the People's Republic of China, and Bark Tae Ho, Minister for Trade of the Ministry of Foreign Affairs and Trade of the Republic of Korea (ROK), held a meeting in Beijing on May 2, 2012. The Ministers of the two countries reached consensus that China-ROK Free Trade Agreement (FTA) is not only of great significance to strengthening and expanding the long-existing economic cooperation and trade relations between the two countries, but also help to deepen China-ROK Strategic Cooperative Partnership. Based on the objectives, principles and proposals put forward in the Joint Feasibility Study on China-ROK FTA, and views exchange in a later date on sensitive issues, the ministers announced China-ROK FTA negotiation to be launched .

2. The ministers agreed that the first round of negotiation will be held as soon as possible, and the two countries will endeavor to conclude the negotiation at an early date.

3. The ministers agreed that the two countries will start consultation to finalize modalities for goods trade, services and investment soon after the launch of the negotiation, which will be an integral part of the Agreement. The ministers also agreed that after the finalization of the modalities, the two parties will enter into the rest of the negotiations covering all sectors including goods, services, investment and other issues on the basis of these modalities, and will conclude the negotiations with a package agreement.

4. The ministers agreed that the level of liberalization for goods trade shall go beyond each country’s commitment in the WTO. And a track for normal products and a track for sensitive products shall be established by the two parties in order to address the sensitive issues in goods trade. The ministers further agreed that the “sensitive” track would include a "sensitive" list and a "highly sensitive" list, and possible treatments include longer phase-out periods, partial reductions and exclusions.

5. The ministers agreed that the level of liberalization for services trade shall go beyond each country’s commitment in the WTO. In Investment, the ministers stressed that the level and coverage of liberalization will be defined to address appropriately the issues related to bilateral investment, taking into account the current and future investment-related arrangements of the two countries.

6. The ministers confirmed that appropriate provisions on outward processing zone designated by the two countries will be included in the future China-ROK FTA.

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