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FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION

AMONG THE GOVERNMENTS OF THE REPUBLIC OF KOREA AND

THE MEMBER COUNTRIES OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS

The Governments of the Republic of Korea, Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam, Member Countries of the Association of Southeast Asian Nations, RECALLING the decision made at the Korea-ASEAN Summit held on 30 November 2004 at Vientiane, the Lao People's Democratic Republic, by the Joint Declaration on Comprehensive Cooperation Partnership between Korea and ASEAN, to establish a Korea-ASEAN Free Trade Area at an earliest stage with special and differential treatment and additional flexibility for the new ASEAN Member Countries of the Kingdom of Cambodia, the Lao People's Democratic Republic, the Union of Myanmar and the Socialist Republic of Vietnam; DESIRING to adopt a Framework Agreement on Comprehensive Economic Cooperation among them, that will further promote growth and development, increase the living standard of the people throughout the region and provide further dynamic benefits to the region in the long term; BEING confident that the establishment of the Korea-ASEAN Free Trade Area will be a natural extension of their existing relations as well as a stepping stone to elevate their relationship to a higher and more comprehensive level; REAFFIRMING the shared belief that the arrangement for the creation of the Korea-ASEAN Free Trade Area should be based on the agreed principles of comprehensiveness in the liberalisation process, meaningful and substantial liberalisation, enhancement of mutual benefits, and consistency with WTO rules and disciplines; BUILDING on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organisation and the other agreements negotiated thereunder and other multilateral and bilateral instruments of cooperation to which they are parties; RECOGNISING that the removal of obstacles to trade through the creation of the Korea-ASEAN Free Trade Area will contribute to the harmonious development and

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expansion of world trade and provide a catalyst to broader international cooperation, in particular within East Asia; RECOGNISING the importance of capacity building through human resource development to face challenges of globalisation; and RECOGNISING the different stages of economic development among the ASEAN Member Countries and the need for flexibility to be given to the new ASEAN Member Countries, in particular the need to facilitate their increasing participation in the economic cooperation of the Parties and the expansion of their exports, including, inter alia, through the strengthening of their domestic capacity, efficiency and competitiveness, HAVE AGREED as follows:

CHAPTER 1 GENERAL PROVISIONS

Article 1.1 Objectives

The objectives of this Framework Agreement are to:

(a) strengthen and enhance economic, trade and investment cooperation among the Parties;

(b) progressively liberalise and promote trade in goods and services as well

as create a transparent, liberal and facilitative investment regime; (c) explore new areas and develop appropriate measures for closer economic

cooperation and integration; (d) facilitate the more effective economic integration of the new ASEAN

Member Countries and bridge the development gap among the Parties; and

(e) establish a cooperative framework for further strengthening the economic

relations among the Parties.

Article 1.2 Definitions

For the purposes of this Framework Agreement, unless the context otherwise requires: Korea means the Republic of Korea;

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Korea + AEM means the Minister for Trade of Korea and the Economic Ministers of the ASEAN Member Countries; ASEAN means the Association of Southeast Asian Nations which comprises of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam; Korea-ASEAN FTA means the Korea-ASEAN Free Trade Area established by this Framework Agreement and other relevant agreements stipulated in paragraph 1 of Article 1.4; ASEAN Member Countries means Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam collectively; ASEAN Member Country means Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand or the Socialist Republic of Vietnam individually; Framework Agreement means this Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the ASEAN Member Countries; GATS means the General Agreement on Trade in Services, which is a part of the WTO Agreement; GATT 1994 means the General Agreement on Tariffs and Trade 1994, including its Notes and Supplementary Provisions, which is a part of the WTO Agreement; Implementing Committee means the Implementing Committee established under Article 5.3; New ASEAN Member Countries means the Kingdom of Cambodia, the Lao People's Democratic Republic, the Union of Myanmar and the Socialist Republic of Vietnam; Normal Track means a list of tariff lines of which applied MFN tariff rates shall be gradually reduced and eliminated in accordance with the modality set out in Annex 1 of the Agreement on Trade in Goods under this Framework Agreement; Parties means Korea and the ASEAN Member Countries collectively; Party means Korea or an ASEAN Member Country;

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WTO means the World Trade Organisation; and WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organisation, done on 15 April 1994 and the other agreements negotiated thereunder.

Article 1.3 Measures for Comprehensive Economic Partnership

The Parties shall establish, consistent with Article XXIV of GATT 1994 and Article V of GATS, a Korea-ASEAN FTA and strengthen and enhance economic cooperation through the following:

(a) progressive elimination of tariffs and non-tariff barriers in substantially

all trade in goods; (b) progressive liberalisation of trade in services with substantial sectoral

coverage; (c) establishment of an open and competitive investment regime that

facilitates and promotes investment among the Parties; (d) provision of special and differential treatment to the ASEAN Member

Countries and additional flexibility to the new ASEAN Member Countries as agreed in the Joint Declaration on Comprehensive Cooperation Partnership between Korea and ASEAN and the core elements attached thereto;

(e) provision of flexibility to the Parties in the Korea-ASEAN FTA

negotiations to address their sensitive areas in the goods, services and investment sectors with such flexibility to be negotiated and mutually agreed based on the principle of reciprocity and mutual benefits;

(f) establishment of effective trade and investment facilitation measures; (g) exploration of the ways and means to expand their economic partnership

into new areas and expansion of economic cooperation in areas as may be agreed among the Parties that will complement the deepening of trade and investment link among the Parties; and

(h) establishment of appropriate procedures and mechanisms for the

purposes of effective implementation of this Framework Agreement.

Article 1.4 Legal Coverage and Relations to Other Agreements

1. The following agreements shall form part of legal instruments establishing the

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Korea-ASEAN FTA upon their respective entry into force:

(a) this Framework Agreement (including the Annex on Economic Cooperation);

(b) the Agreement on Trade in Goods under this Framework Agreement as

provided for in Article 2.1; (c) an agreement on trade in services to be concluded in accordance with

Article 2.2; (d) an agreement on investment to be concluded in accordance with Article

2.3; (e) the Agreement on Dispute Settlement Mechanism under this Framework

Agreement as provided for in Article 5.1; and (f) any other agreements that may be mutually agreed by consensus and

concluded by the Parties in the context of the Korea-ASEAN FTA. 2. Except as otherwise provided in this Framework Agreement, this Framework Agreement or any action taken under it shall not affect or nullify the rights and obligations of a Party under the existing agreements to which it is a party. 3. Nothing in this Framework Agreement shall prevent any individual ASEAN Member Country from entering into any bilateral or plurilateral agreement with Korea and/or any other ASEAN Member Countries relating to trade in goods, trade in services, investment, and/or other areas of economic cooperation. The provisions of this Framework Agreement shall not apply to any such bilateral or plurilateral agreement.

CHAPTER 2

LIBERALISATION

Article 2.1 Trade in Goods

1. The Parties shall progressively reduce and eliminate duties and other restrictive regulations of commerce (except, where necessary, those permitted under Article XXIV(8)(b) of GATT 1994) on substantially all trade in goods among the Parties, in accordance with the provisions, schedules and programme for the Normal Track in the Agreement on Trade in Goods under this Framework Agreement. 2. The Agreement on Trade in Goods under this Framework Agreement shall include, but not limited to:

(a) detailed rules governing the progressive tariff reduction and/or

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elimination programme as well as other related matters; (b) rules of origin; (c) modification of commitments; (d) non-tariff measures, sanitary and phytosanitary measures, and technical

barriers to trade; (e) safeguards measures; and (f) WTO disciplines and reduction and elimination of non-tariff barriers.

Article 2.2 Trade in Services

1. The Parties shall progressively liberalise trade in services among the Parties with substantial sectoral coverage in conformity with Article V of GATS. 2. For this purpose, the Parties shall enter into negotiations on the progressive liberalisation of trade in services. Such liberalisation shall be directed to:

(a) provision for the absence or elimination of substantially all

discrimination among the Parties only in the sectors covered under paragraph 1, through:

(i) elimination of existing discriminatory measures; and/or (ii) prohibition of new or more discriminatory measures with

respect to trade in services among the Parties,

either at the entry into force of the agreement referred to in paragraph 3 or on the basis of an agreed time-frame, except for measures permitted under Articles XI, XII, XIV, XIVbis of GATS;

(b) expansion in the depth and scope of liberalisation of trade in services

beyond those undertaken by the Parties under GATS; and (c) enhanced cooperation in services among the Parties in order to improve

efficiency and competitiveness, as well as to diversify the supply and distribution of services of the respective service suppliers of the Parties.

3. The Parties shall begin negotiations on an agreement on trade in services at the beginning of 2006 with a goal of concluding the negotiations not later than 31 December 2006.

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Article 2.3 Investment

1. The Parties shall create a liberal, facilitative, transparent and competitive investment regime with business-friendly environment. 2. For this purpose, the Parties shall enter into negotiations on the liberalisation of investment regime. Such negotiations shall be directed to:

(a) progressive liberalisation of the investment regime; (b) strengthening of cooperation in investment, facilitation of investment and

improvement of transparency of investment rules and regulations; and (c) provision of the protection under the investment regime.

3. The Parties shall begin negotiations on an agreement on investment at the beginning of 2006 with a goal of concluding the negotiations not later than 31 December 2006.

Article 2.4 Most-Favoured Nation Treatment

Korea shall accord to all the ASEAN Member Countries which are not WTO members the Most-Favoured Nation Treatment consistent with the WTO rules and disciplines upon the entry into force of this Framework Agreement.

CHAPTER 3 ECONOMIC COOPERATION

Article 3.1 Scope and Implementation of Cooperation

1. The Parties, on the basis of mutual benefits, shall explore and undertake cooperation projects in the following areas:

(a) customs procedures; (b) trade and investment promotion; (c) small and medium enterprises; (d) human resource management and development;

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(e) tourism; (f) science and technology; (g) financial services; (h) information and communication technology; (i) agriculture, fisheries, livestock, plantation commodities and forestry; (j) intellectual property; (k) environmental industry; (l) broadcasting; (m) construction technology; (n) standards and conformity assessment and sanitary and phytosanitary

measures; (o) mining; (p) energy; (q) natural resources; (r) shipbuilding and maritime transport; and (s) film.

2. The Parties shall undertake economic cooperation projects at mutually agreed time periods, when feasible. These projects shall be monitored by the Implementing Committee for their effective implementation. 3. Details of such cooperation are specified in the Annex on Economic Cooperation.

Article 3.2 Capacity Building Programmes and Technical Assistance

1. The Parties, recognising that capacity building programmes and technical assistance are important, particularly for the new ASEAN Member Countries, in order to expand their trade and investment with Korea, shall implement such programmes on a mutually agreed basis. 2. The Parties shall strengthen cooperation and support for the realisation of

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ASEAN integration objectives by implementing projects furthering the Bali Concord II, the Initiative for ASEAN Integration (IAI), as well as the Vientiane Action Programme (VAP), including providing technical assistance and capacity building for the new ASEAN Member Countries based on the experiences and expertise of Korea in development. 3. The Parties shall strengthen ASEAN’s integration efforts in narrowing the development gaps among the ASEAN Member Countries and between Korea and the ASEAN Member Countries by enhancing regional and sub-regional development. 4. The Parties, recognising the development gaps among the ASEAN Member Countries and between Korea and the ASEAN Member Countries, shall enhance regional and sub-regional development, through cooperation initiatives including:

(a) the Mekong Sub-region; (b) the Ayeawady-Chao Phraya-Mekong Economic Cooperation Strategy

(ACMECS); (c) the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN

Growth Area (BIMP-EAGA); (d) the growth triangles such as the Indonesia-Malaysia-Thailand (IMT-GT)

and the Indonesia-Malaysia-Singapore (IMS-GT); (e) the Greater Mekong Sub-Region (GMS) programme; (f) the Second East-West Economic Corridor; (g) the ASEAN Mekong Basin Development Corporation (AMBDC); (h) the Singapore-Kunming Rail Link (SKRL) project; and

(i) sharing experiences with the Mekong River Commission (MRC) in

formulating and implementing priority programmes in the Mekong River Basin.

CHAPTER 4 OTHER AREAS

Article 4.1 Expansion of Economic Partnership into New Areas

With the aim of achieving the comprehensive Korea-ASEAN FTA, the Parties shall explore ways and means to expand their economic partnership into new areas where the Parties have mutual interests, as may be agreed by the Parties.

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CHAPTER 5 FINAL PROVISIONS

Article 5.1 Dispute Settlement

1. Any dispute concerning the interpretation, implementation or application of this Framework Agreement shall be resolved through the procedures and mechanism as set out in the Agreement on Dispute Settlement Mechanism under this Framework Agreement. 2. Notwithstanding paragraph 1, any disputes arising from paragraph 3 of Article 2.2 (Trade in Services), paragraph 3 of Article 2.3 (Investment), Chapters 3 (Economic Cooperation) and 4 (Other Areas), and the Annex on Economic Cooperation shall not be subject to the Agreement on Dispute Settlement Mechanism under this Framework Agreement.

Article 5.2 Institutional Arrangements for the Negotiations

1. There shall be established a Korea-ASEAN Trade Negotiating Committee to carry out negotiations set out in this Framework Agreement. 2. The Korea-ASEAN Trade Negotiating Committee may establish any working group as may be necessary to assist it in undertaking negotiations on specific areas in the Korea-ASEAN FTA. 3. Commencing immediately at the beginning of the negotiations envisaged in this Framework Agreement and continuing until the formal completion of such negotiations by 31 December 2006, the Parties shall endeavour not to take any trade restrictive or distorting measures in such a manner as to affect negatively the negotiating position of any other Party.

Article 5.3 Implementation of the Framework Agreement

1. The Korea + AEM shall have the ultimate authority concerning all matters relating to the implementation of this Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement. An Implementing Committee, which is hereby established to be composed of the senior economic officials of the Parties or their designees, shall convene as appropriate to discharge such functions as provided for in paragraph 2 under the supervision and guidance of the Korea + AEM. 2. The Parties, through the Implementing Committee, shall:

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(a) coordinate, supervise and oversee the implementation and appropriate

application of the provisions of this Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement;

(b) review the implementation of this Framework Agreement and any other

agreements concluded or to be concluded in accordance with this Framework Agreement;

(c) supervise the work of the committees and working groups established

under this Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement; and

(d) consider any other matter that may affect the operation of this

Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement, or that is entrusted to the Implementing Committee by the Parties.

3. In the fulfilment of its functions, the Implementing Committee may:

(a) establish and delegate responsibilities to ad hoc or standing committees,

working groups or expert groups and assign them with tasks on specific matters; and

(b) take such other action in the exercise of its functions, as the Parties may

agree. 4. The Implementing Committee shall keep the Korea + AEM informed of its activities on a regular basis.

5. The Implementing Committee shall establish its rules and procedures, which shall be approved by the Korea + AEM.

6. The Implementing Committee shall convene within one year of the date of entry into force of this Framework Agreement and then annually or otherwise as appropriate.

Article 5.4 Secretariat and Contact Points

1. The Ministry of Foreign Affairs and Trade of Korea for Korea and the ASEAN Secretariat for the ASEAN Member Countries shall jointly provide the necessary secretariat support for the purposes of this Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement. The Ministry of Foreign Affairs and Trade of Korea and the ASEAN Secretariat shall monitor and report to the Implementing Committee on the

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implementation of this Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement. 2. All official communications or notifications among the Parties for the purposes of the implementation of this Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement shall be made in the English language and through the Ministry of Foreign Affairs and Trade of Korea and the ASEAN Secretariat as appropriate. 3. The Parties shall designate their respective contact point to facilitate all other communications with one another on any matter covered by this Framework Agreement and any other agreements concluded or to be concluded in accordance with this Framework Agreement. At the request of a Party, the contact point of the requested Party shall identify the office or official responsible for the matter and assist in facilitating communications with the requesting Party.

Article 5.5 Annexes and Future Legal Instruments

1. The Annex on Economic Cooperation shall form an integral part of this Framework Agreement. 2. The Parties may adopt legal instruments in the future pursuant to the provisions of this Framework Agreement. Upon their respective entry into force, such instruments shall form part of this Framework Agreement.

Article 5.6 Amendments

The provisions of this Framework Agreement may be modified through amendments mutually agreed upon in writing by the Parties.

Article 5.7 Depositary

For the ASEAN Member Countries, this Framework Agreement shall be deposited with the Secretary-General of ASEAN, who shall promptly furnish a certified copy thereof to each ASEAN Member Country.

Article 5.8 Entry into Force

1. This Framework Agreement shall enter into force on 1 July 2006, provided that Korea and at least one ASEAN Member Country are among the Signatory Countries

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that have by then notified all the other Parties in writing of the completion of their internal procedures. In the event this Framework Agreement does not enter into force on 1 July 2006, it shall enter into force on the first day of the second month following the latter date on which Korea and at least one ASEAN Member Country have notified all the other Parties in writing of the completion of their internal procedures. 2. A Party shall, upon the completion of its internal procedures for the entry into force of this Framework Agreement, notify all the other Parties in writing. 3. Where a Party is unable to complete its internal procedures for the entry into force of this Framework Agreement by the date as set out in paragraph 1, this Framework Agreement shall come into force for that Party upon the date of notification of the completion of its internal procedures. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations. DONE at Kuala Lumpur, Malaysia this thirteenth day of December 2005, in duplicate copies in the English language.

For the Government of the Republic of Korea:

ROH MOO-HYUN

President

For the Government of Brunei Darussalam:

HAJI HASSANAL BOLKIAH Sultan of Brunei Darussalam

For the Royal Government of Cambodia:

SAMDECH HUN SEN

Prime Minister

For the Government of the Republic of Indonesia:

SUSILO BAMBANG YUDHOYONO President

For the Government of the Lao People’s Democratic Republic:

BOUNNHANG VORACHITH

Prime Minister

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For the Government of Malaysia:

ABDULLAH AHMAD BADAWI Prime Minister

For the Government of the Union of Myanmar:

SOE WIN

Prime Minister

For the Government of the Republic of the Philippines:

GLORIA MACAPAGAL-ARROYO President

For the Government of the Republic of Singapore:

LEE HSIEN LOONG

Prime Minister

For the Government of Thailand:

THAKSIN SHINAWATRA Prime Minister

For the Government of the Socialist Republic of Vietnam:

PHAN VAN KHAI

Prime Minister

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ANNEX ECONOMIC COOPERATION

Article 1 Customs Procedures

The Parties, recognising that cooperation among authorities on customs matters is an important means of facilitating international trade, shall, subject to their respective domestic laws and consistent with their own policies and procedures:

(a) share expertise on ways to streamline and simplify customs procedures; (b) exchange information on best practices relating to customs procedures,

enforcement and risk management techniques with the exception of confidential information;

(c) facilitate cooperation and exchange of experiences in the application of

information technology and improvement of monitoring and inspection systems in customs procedures; and

(d) ensure, as they deem fit, that their customs laws and regulations are

published and publicly available, and their customs procedures, where necessary, are exchanged among customs contact points.

Article 2 Trade and Investment Promotion

1. The Parties shall cooperate in promoting trade and investment activities through government agencies and/or other bodies. 2. Such cooperation shall include:

(a) launching a feasibility study on the establishment of an Korea-ASEAN

Centre based in Korea; (b) organising trade and investment promotion activities, such as trade and

investment missions, regular business seminars and fora, and database sharing through electronic linkages (electronic business-matching); and

(c) assisting the development of the legal system, especially for the new

ASEAN Member Countries, through professional training programmes and joint seminars to disseminate knowledge and experiences in law practices, and conducting projects to improve trade and investment-related laws.

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Article 3 Small and Medium Enterprises

1. The Parties, recognising the fundamental role of small and medium enterprises (hereinafter referred to as “SMEs”) in maintaining the dynamism of their respective national economies, shall cooperate in promoting close cooperation among SMEs as well as the relevant agencies of the Parties. 2. Such cooperation shall include:

(a) establishing networking opportunities for SMEs of the Parties to facilitate collaboration and/or sharing of best practices, such as in the field of management skill development, technology transfers, product quality improvements, supply-chain linkages, information technology, access to financing as well as technical assistance;

(b) facilitating the investment flows by Korean SMEs in the ASEAN

Member Countries, and vice versa; and (c) encouraging their relevant agencies to discuss, cooperate and share

information and experiences in the development of SMEs policy and programmes.

Article 4 Human Resource Management and Development

The Parties, recognising that sustainable economic growth and prosperity largely depend on people's knowledge and skills, shall:

(a) encourage exchanges of their scholars, teachers, students, members of

educational institutions and other persons engaging in scientific or educational activities; and

(b) encourage their relevant agencies to discuss and cooperate in upgrading

competency and skills of their workers.

Article 5 Tourism

The Parties, recognising that tourism will contribute to the enhancement of mutual understanding among the Parties and that tourism is an important industry for their economies, shall:

(a) explore the possibility of undertaking joint research on tourism

development and promotion to increase inbound visitors to each Party, as well as consider setting up linkages and networks between the websites

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in Korea and the ASEAN Member Countries; (b) encourage tourism agencies of the Parties to strengthen cooperation in

tourism training and education, particularly in the Korean language and culture for tourist guides of the ASEAN Member Countries, to ensure high-quality services for Korean tourists in the territories of the ASEAN Member Countries;

(c) cooperate in joint campaigns to promote tourism in the territories of the

Parties through workshops and seminars among tourism authorities and professional tourism agencies in the territories of the Parties;

(d) collaborate to promote the sustainable development of tourism in the

territories of the Parties; and (e) exchange information on relevant statistics, policies and laws in tourism

and related sectors.

Article 6 Science and Technology

The Parties, recognising that science and technology will contribute to the continued expansion of their respective economies in the medium and long term, shall:

(a) explore establishment of training programmes and exchange of scientific

and technology information; (b) consider undertaking joint research and development projects, especially

in high-end sciences in key technology areas such as nano-technology, material technology, electronic technology, space technology, biotechnology and technology management, and other forms of science and technology cooperation;

(c) encourage linkages between their research institutions; and (d) encourage the mutually beneficial joint use of research and development

facilities and scientific equipment.

Article 7 Financial Services

The Parties shall cooperate in the field of financial services with a view to:

(a) promoting regulatory cooperation and development, including exchange

of information and experiences on market trends;

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(b) facilitating the development of financial markets and infrastructure, including capital markets;

(c) providing technical assistance for human resource and institutional

capacity development and exchanging experiences in the area of risk management;

(d) assisting in mitigating the adverse implications of financial services

liberalisation; and (e) providing capacity building in developing the capital market.

Article 8 Information and Communication Technology

1. The Parties, recognising the rapid development, led by the private sector, of information and communication technology (hereinafter referred to as “ICT”) and of business practices concerning ICT-related services both in the domestic and international contexts, shall cooperate to promote the development of ICT and ICT-related services with a view to obtaining the maximum benefit of the use of ICT for the Parties. 2. The areas of cooperation shall include:

(a) promotion of electronic commerce; (b) promotion of the use by consumers, the public sector and the private

sector, of ICT-related services, including newly emerging services and next generation networks;

(c) human resource development relating to ICT; (d) undertaking of joint research and development projects; and (e) promotion of anti-SPAM efforts.

3. The forms of cooperation may include:

(a) exchanging information and expertise on ICT policies, creation of ICT-related services, provision of e-government services, content development, network security and protection of privacy;

(b) undertaking technical cooperation in areas such as network infrastructure,

creative and multimedia industries and ICT infrastructure development; (c) encouraging and facilitating investment by private and/or public

enterprises in ICT industries in the territories of the Parties; and

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(d) providing technical assistance in the development of ICT-related projects.

Article 9 Agriculture, Fisheries, Livestock, Plantation Commodities and Forestry

1. The Parties, recognising that there remain opportunities for collaboration and technical cooperation in agriculture, fisheries, livestock, plantation commodities and forestry, including the field of ecosystem agroforestry and ecotourism, shall establish cooperation for mutual benefits of the Parties. 2. The areas of cooperation shall include, but not limited to:

(a) information exchange; (b) capacity building and human resource development; (c) joint research and development; and (d) technical assistance in sustainable development.

3. The forms of cooperation shall be:

(a) promoting exchange of information and sharing experiences related to

the areas described in paragraph 1 including new technologies; (b) promoting joint research projects; (c) exchanging experts; (d) providing technical assistance including post-harvest; (e) conducting seminars, training and workshops; (f) encouraging study visits to farms and related production centers; (g) strengthening technology, capacity and know-how of laboratory; and (h) cooperating in other fields as may be identified and mutually agreed

upon by the Parties.

Article 10

Intellectual Property 1. The Parties, recognising the growing importance of intellectual property (hereinafter referred to as “IP”) as a factor of economic competitiveness in the

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knowledge-based economy, shall enhance their cooperation in the field of IP. 2. The cooperation shall include, but not limited to:

(a) exchanging information and sharing experiences on the creation and

utilisation of IP; (b) exchanging information, sharing experiences and encouraging training of

each Party’s personnel in the field of IP; (c) conducting international search and international preliminary

examination under the Patent Cooperation Treaty administered by the World Intellectual Property Organisation subject to a Party’s membership;

(d) promoting education and awareness on protection of intellectual property

rights; (e) providing assistance in facilitating the enhancement and modernisation

of IP databases including patents and trademarks in the territories of the ASEAN Member Countries; and

(f) strengthening mutually beneficial cooperation in the protection of IP.

Article 11 Environmental Industry

1. The Parties, recognising that economic development, social progress and environmental protection are key pillars of sustainable development, shall explore ways to promote closer cooperation among their respective interested government entities, industries, organisations and research institutions. 2. To this end, the Parties shall pursue the following environmental cooperation activities on a mutually agreed basis:

(a) cooperation in environmental technologies and policies, such as

compressed natural gas technology and policy; (b) cooperation in environmental capacity building of industries and

exchanges of information and experiences of environmental industries; (c) cooperation in exchanges and education of human resources related to

the environment; and (d) other forms of environmental cooperation as mutually agreed.

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Article 12

Broadcasting 1. The Parties consider the significance of broadcasting in the digital economy as well as its role as an avenue for cultural exchanges across national boundaries, and recognise the advancement of broadcasting technology as both a challenge and an opportunity for the Parties to derive mutual benefits. To this end, Korea and various ASEAN Member Countries, as may be interested, shall develop and promote cooperative activities in the field of broadcasting on a bilateral basis. 2. Subject to the Parties’ laws and regulations governing the broadcast sectors, the areas of cooperation shall include:

(a) exchanging information on statistics, as mutually agreed, policies and

laws and regulations on broadcasting and related sectors; (b) undertaking joint research and development of newly emerging

broadcasting technologies; (c) promoting exchanges aimed at educating and training of broadcasting

related personnel; and (d) encouraging mutual exchanges of re-transmission of broadcast as

appropriate.

Article 13 Construction Technology

The Parties shall cooperate, where appropriate, in the following areas:

(a) manpower and construction development; (b) construction technology; (c) international project collaboration; and (d) infrastructural construction design.

Article 14 Standards and Conformity Assessment and

Sanitary and Phytosanitary Measures 1. The Parties, recognising the important role of technical regulations, standards and conformity assessment procedures on industry, agriculture and plantation commodities in facilitating trade, shall cooperate in the areas such as:

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(a) exchange of views and information on standards, technical regulations

and conformity assessment procedures in areas of mutual interests; (b) exchange of laws and regulations on standards and conformity

assessment procedures as mutually agreed; (c) exchange of experts and staff in areas of mutual interests; (d) explore possible mutual recognition arrangements and agreements to

facilitate trade flows among the Parties; (e) development and implementation of technical cooperation and capacity

building programmes on standards, technical regulations, metrology and conformity assessment, which include, among others, seminars, training and training attachments, exchange of staff and regulatory dialogues on agreed areas;

(f) strengthening of cooperation among the Parties at relevant international

and regional fora on standards and conformity assessment and promotion of the use of international standards and conformity assessment guidelines, as appropriate, as a basis for the development of national technical regulations;

(g) development of testing laboratories and accreditation network as well as

testing programmes, as appropriate, among the Parties; (h) exploration of technical assistance in the development of industrial

standards in areas of mutual interests; and (i) other areas of cooperation as may be identified and mutually agreed upon

by the Parties. 2. Recognising the importance of sanitary and phytosanitary (hereinafter referred to as “SPS”) measures in minimising their negative effects on trade in agricultural, fishery, animal and food products, and plantation commodities, the Parties, on the basis of mutual benefits, shall cooperate in:

(a) exchange of information concerning SPS measures; (b) exchange of information on any occurrences of SPS incidents; (c) improvement of the distribution and packaging systems; (d) human resource development in the concerned area that would be

promoted, among others, by organising training and exchange of specialists;

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(e) development and promotion of new technologies; and (f) other areas of cooperation as may be identified and mutually agreed upon

by the Parties.

Article 15 Mining

The Parties, recognising that cooperation in the mining sector will contribute to the economic development, shall:

(a) explore possibilities for the joint development of energy and mineral

resources and cooperate in the improvement of technology on exploration and extraction of energy and mineral deposits, mine waste disposal and rehabilitation of closed mines;

(b) encourage enhancement of trade and investment in the mining sector; (c) cooperate in the promotion of environmentally sound and socially

responsible mineral development practices in sustainable management and optimum utilisation of mineral resources;

(d) encourage exchange of information on issues related to the mining policy

and technology; (e) promote and develop business alliances between the private sectors; and (f) conduct trainings, seminars, workshops and exchange of experts geared

towards development and promotion of mining.

Article 16 Energy

The Parties, recognising that energy demand in their territories, shall expand in the future given the rapid pace of economic development, shall:

(a) exchange information on the improvement of efficiency in energy use; (b) cooperate in the development and use of alternative and renewable

energy sources such as, but not limited to, compressed natural gas technology and policy;

(c) cooperate in infrastructure development, resource development,

investment promotion and application of new energy saving technologies;

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(d) encourage exchange of experts; and (e) promote and develop business alliances between the private sectors.

Article 17 Natural Resources

The Parties, recognising that proper management and efficient utilisation of natural resources will contribute to the continued expansion of their respective economies, shall cooperate in:

(a) development and utilisation of appropriate mathematical models to

simulate and predict groundwater containment and transport, assessment of risk posed by waste storage/disposal and agro-industrial activities on groundwater quality, and setting-up of groundwater protection zones;

(b) improvement of technology on exploration, extraction and utilisation of

energy and mineral deposits, mine waste disposal and rehabilitation of closed mines;

(c) investment promotion activities; and (d) comprehensive management of water resources, including ground and

surface water, and the application of information technology in this area.

Article 18 Shipbuilding and Maritime Transport

1. Recognising the important role of maritime transport in trade and development, the Parties, through their relevant entities, shall cooperate in the areas of shipbuilding and maritime transport. 2. Such cooperative activities shall include:

(a) undertaking information exchange and sharing experiences; and (b) promoting exchange of experts.

Article 19 Film

1. Recognising the potential of the film industry as means to promote understanding and cultural exchanges among the Parties and the rapid development of this industry in their respective economy, interested Parties, through their relevant entities, shall endeavour, subject to their respective laws and regulations, to promote

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cooperation in the areas of mutual interests. 2. The forms of cooperation shall be:

(a) exchange of experts on film; (b) exchange of information; and (c) cooperation in holding and participating in film festivals.

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AGREEMENT ON DISPUTE SETTLEMENT MECHANISM UNDER THE FRAMEWORK AGREEMENT

ON COMPREHENSIVE ECONOMIC COOPERATION AMONG THE GOVERNMENTS OF THE REPUBLIC OF KOREA

AND THE MEMBER COUNTRIES OF THE ASSOCIATION OF SOUTHEAST

ASIAN NATIONS The Governments of the Republic of Korea, Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam, Member Countries of the Association of Southeast Asian Nations, RECALLING the Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations signed in Kuala Lumpur, Malaysia on the thirteenth day of December 2005; and FURTHER RECALLING Article 5.1 of the Framework Agreement, which provides for the dispute settlement procedures and mechanism for the Framework Agreement and any other Agreement to be concluded thereunder, HAVE AGREED as follows:

Article 1 Definitions

For the purposes of this Agreement, unless the context otherwise requires: Korea means the Republic of Korea; ASEAN means the Association of Southeast Asian Nations which comprises of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam; ASEAN Member Countries means Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam collectively;

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ASEAN Member Country means Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand or the Socialist Republic of Vietnam individually; chair means the member of an arbitral panel who serves as the chair of the arbitral panel; complaining party means any Party that requests consultations under paragraph 1 of Article 3; covered agreements means:

(a) the Framework Agreement; (b) the Agreement on Trade in Goods under the Framework Agreement; (c) this Agreement; (d) any agreement to be concluded among the Parties pursuant to the

relevant provisions of the Framework Agreement unless provided otherwise therein;

days means calendar days, including weekends and holidays; Framework Agreement means the Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the ASEAN Member Countries; Parties means Korea and the ASEAN Member Countries collectively; parties to a dispute, or parties to the dispute means both the complaining party and the party complained against; Party means Korea or an ASEAN Member Country; party complained against means any Party to which the request for consultations is made under paragraph 1 of Article 3; third party means a Party, other than the parties to a dispute, that delivers a written notice in accordance with Article 7; and WTO means the World Trade Organisation.

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Article 2 Coverage and Application

1. This Agreement shall apply with respect to the avoidance or settlement of all disputes arising between the Parties under the covered agreements. Unless otherwise provided in this Agreement or any other covered agreement, this Agreement shall apply to all disputes between the Parties. 2. The rules and procedures of this Agreement shall apply subject to special or additional rules and procedures on dispute settlement, if any, contained in the other covered agreements. To the extent that there is a conflict between the rules and procedures of this Agreement and such special or additional rules and procedures on dispute settlement contained in a covered agreement, the special or additional rules and procedures shall prevail. In disputes involving rules and procedures under more than one covered agreement, if there is a conflict between special and additional rules and procedures of such covered agreements, the chair of the arbitral panel, in consultation with the parties to the dispute, shall determine the rules and procedures to be followed for that dispute within ten (10) days after a request by any party to the dispute. 3. The provisions of this Agreement may be invoked in respect of measures affecting the operation of any covered agreement taken within the territory of a Party by:

(a) central, regional or local governments and authorities; or (b) non-governmental bodies in the exercise of powers delegated by central,

regional or local governments or authorities. 4. Subject to paragraph 5, nothing in this Agreement shall prejudice any right of the Parties to have recourse to dispute settlement procedures available under any other treaty to which they are parties. 5. Once dispute settlement proceedings have been initiated under this Agreement or under any other treaty to which the parties to a dispute are parties concerning a particular right or obligation of such Parties arising under the covered agreements or that other treaty, the forum selected by the complaining party shall be used to the exclusion of any other for such dispute. 6. For the purposes of paragraphs 4 and 5, the complaining party shall be deemed to have selected a forum when it has requested the establishment of, or referred a dispute to, a dispute settlement panel in accordance with this Agreement or any other treaty to which the parties to a dispute are parties.

Article 3 Consultations

1. A party complained against shall accord due consideration to and afford

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adequate opportunity for consultations regarding a request for consultations made by a complaining party with respect to any matter affecting the interpretation, implementation or application of any covered agreement, wherever the complaining party considers that:

(a) a measure of the party complained against is inconsistent with its

obligations under the covered agreements; or (b) the party complained against has otherwise failed to carry out its

obligations under the covered agreements,

which results in nullification or impairment of any benefits accruing to the complaining party under the covered agreements or impediment of the attainment of any objective of the covered agreements. 2. Any request for consultations shall be submitted in writing, and include the specific measures at issue, and the factual and legal basis (including the provisions of any of the covered agreements alleged to have been breached and any other relevant provision) of the complaint. The complaining party shall send the request to the party complained against and the rest of the Parties. Upon receipt, the party complained against shall promptly acknowledge receipt of such request to the complaining party and the rest of the Parties at the same time. 3. If a request for consultations is made, the party complained against shall reply to the request within seven (7) days after the date of its receipt and shall enter into consultations in good faith within a period of not more than thirty (30) days after the date of receipt of the request, with a view to reaching a mutually satisfactory solution. If the party complained against does not respond within the aforesaid seven (7) days, or does not enter into consultations within the aforesaid thirty (30) days, then the complaining party may proceed directly to request for the establishment of an arbitral panel under Article 5. 4. The parties to a dispute shall make every effort to reach a mutually satisfactory resolution of any matter through consultations under this Article. To this end, the parties to the dispute shall:

(a) provide sufficient information to enable a full examination of how the measure might affect the operation of the covered agreement; and

(b) treat as confidential any information exchanged in the course of

consultations which the other party to the dispute has designated as confidential.

5. Consultations shall be confidential and without prejudice to the rights of any Party in any further proceedings under this Agreement or other proceedings before a forum selected by the Parties. The parties to the dispute shall inform the rest of the Parties the outcome of the consultations.

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6. In cases of urgency, including those which concern perishable goods, the parties to the dispute shall enter into consultations within a period of no more than ten (10) days after the date of receipt by the party complained against of the request. If the consultations have failed to settle the dispute within a period of twenty (20) days after the date of receipt by the party complained against of the request, the complaining party may proceed directly to request for the establishment of an arbitral panel under Article 5. 7. In cases of urgency, including those which concern perishable goods, the parties to the dispute and arbitral panels shall make every effort to accelerate the proceedings to the greatest extent possible.

Article 4 Good Offices, Conciliation and Mediation

1. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the parties to the dispute so agree. 2. Good offices, conciliation or mediation may be requested at any time by any party to a dispute. They may begin at any time and be terminated by any party to a dispute at any time. 3. If the parties to a dispute agree, good offices, conciliation or mediation proceedings may continue before any person or body as may be agreed by the parties to the dispute while the dispute proceeds for resolution before an arbitral panel established under Article 5. 4. Proceedings involving good offices, conciliation and mediation, and in particular, positions taken by the parties to a dispute during these proceedings, shall be confidential, and without prejudice to the rights of any Party in any further proceedings under this Agreement or other proceedings before a forum selected by the Parties.

Article 5 Establishment of Arbitral Panels

1. If the consultations under Article 3 fail to settle a dispute within sixty (60) days after the date of receipt of the request for consultations or within twenty (20) days after such date in cases of urgency including those which concern perishable goods, the complaining party may make a written request to the party complained against to establish an arbitral panel. A copy of this request shall also be communicated to the rest of the Parties. 2. A request for the establishment of an arbitral panel shall give the reasons for the request, including the identification of:

(a) the specific measure at issue; and (b) the factual and legal basis (including the provisions of any of the covered

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agreements alleged to have been breached and any other relevant provisions) for the complaint sufficient to present the problem clearly.

3. Upon delivery of the request, an arbitral panel shall be established. 4. Unless otherwise agreed by the parties to the dispute, an arbitral panel shall be established and perform its functions in accordance with the provisions of this Agreement, and the Annex on the Rules and Procedures for the Arbitral Panel Proceedings. 5. Where more than one complaining party requests the establishment of an arbitral panel related to the same matter, a single arbitral panel may, whenever feasible, be established by the parties to the dispute to examine the matter, taking into account their respective rights. 6. Where a single arbitral panel is established under paragraph 5, the arbitral panel shall organise its examination and present its findings to all the parties to the dispute in such manner that the rights which the parties to the dispute would have enjoyed had separate arbitral panels examined the same matter are in no way impaired. If one of the parties to the dispute so requests, the arbitral panel may submit separate reports on the dispute concerned if the timeframe for writing the report so permits. The written submissions by a party to the dispute shall be made available to the other parties to the dispute, and each party to the dispute shall have the right to be present when any of the other parties to the dispute presents its views to the arbitral panel. 7. Where more than one arbitral panel is established to examine the same matter, to the greatest extent possible, the same persons shall be appointed by the parties to the disputes to serve on each of the separate arbitral panels and the timetable for the proceedings of each separate arbitral panel shall be harmonised.

Article 6

Composition of Arbitral Panels 1. Unless otherwise provided in this Agreement or agreed by the parties to the dispute, an arbitral panel shall consist of three (3) members. 2. Each party to the dispute shall appoint one member of the arbitral panel within thirty (30) days after the date of receipt of the request under Article 5. If any party to the dispute fails to appoint a member of the arbitral panel within such period, then the member of the arbitral panel appointed by the other party to the dispute shall act as the sole member of the arbitral panel, notwithstanding paragraph 1. 3. The parties to the dispute shall endeavour to agree on the third member who shall serve as the chair of the arbitral panel within thirty (30) days of the appointment of the second member. If the parties to the dispute are unable to agree on the chair within this period, the chair shall be jointly appointed, by the members of the arbitral panel who have been appointed under paragraph 2, within a further period of thirty (30) days.

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If the members of the arbitral panel fail to appoint the chair within the aforesaid period, the chair shall be appointed at the request of the members of the arbitral panel by the Director-General of the WTO within thirty (30) days after the date of receipt of the request. In the event that the Director-General is a national of one of the parties to the dispute, the Deputy Director-General or the officer next in seniority who is not a national of any party to the dispute shall be requested to appoint the chair. 4. The date of establishment of the arbitral panel shall be the date on which the chair is appointed under paragraph 3 or, the 30th day after the date of receipt of the request under Article 5 where only a sole member of the arbitral panel is available. 5. If a member appointed under this Article resigns or becomes unable to act, a successor member shall be appointed in the same manner as prescribed for the appointment of the original member and the successor member shall have all the powers and duties of the original member. The work of the arbitral panel shall be suspended until the successor member is appointed. 6. Any person appointed as a member of an arbitral panel shall have expertise or experience in law, international trade, other matters covered by the covered agreements or the resolution of disputes arising under international trade agreements. A member shall be chosen strictly on the basis of objectivity, reliability, sound judgment and independence and shall conduct himself or herself on the same basis throughout the course of the arbitral panel proceedings. If a party to the dispute believes that a member is in violation of the basis stated above, the parties to the dispute shall consult and if they agree, the member shall be removed and a new member shall be appointed in accordance with this Article. Additionally, the chair shall not be a national of any party to the dispute and shall not have his or her usual place of residence in the territory of, nor be employed by, any party to the dispute nor have dealt with the referred matter in any capacity. 7. Where the original arbitral panel is required for a matter as provided in this Agreement but cannot hear the matter for any reason, a new arbitral panel shall be established in accordance with this Article. The same timeframe which would have applied, had the original arbitral panel heard the matter, shall apply for the newly established arbitral panel.

Article 7

Third Parties 1. Any Party having a substantial interest in a dispute before an arbitral panel and having notified its interest in writing to the parties to such a dispute and the rest of the Parties, shall have an opportunity to make written submissions to the arbitral panel. These submissions shall also be given to the parties to the dispute and may be reflected in the report of the arbitral panel. 2. Third parties shall receive the submissions of the parties to the dispute at the first meeting of the arbitral panel.

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3. If a third party considers that a measure that is already the subject of an arbitral panel proceeding nullifies or impairs benefits accruing to it under the covered agreements, such Party may have recourse to normal dispute settlement procedures under this Agreement.

Article 8 Suspension and Termination of Proceedings

1. Where the parties to the dispute agree, the arbitral panel may suspend its work at any time for a period not exceeding twelve (12) months from the date of such agreement. Upon the request of any party to the dispute, the arbitral panel proceeding shall be resumed after such suspension. If the work of the arbitral panel has been suspended for more than twelve (12) months, the authority of the arbitral panel shall lapse unless the parties to the dispute agree otherwise. 2. The parties to the dispute may agree to terminate the proceedings of an arbitral panel at any time before the presentation of the final report to them, in the event that a mutually satisfactory solution to the dispute has been found. 3. Before the arbitral panel makes its decision, it may, at any stage of the proceedings, propose to the parties to the dispute that the dispute be settled amicably.

Article 9 Functions of Arbitral Panels

An arbitral panel shall make an objective assessment of the matter before it, including an examination of the facts of the case and the applicability of and conformity with the relevant covered agreements. Where the arbitral panel concludes that a measure is inconsistent with a provision of any of the covered agreements, it shall recommend that the party complained against bring the measure into conformity with that provision. In addition to its recommendations, the arbitral panel may suggest means by which the party complained against could implement the recommendations. The arbitral panel shall consult regularly with the parties to the dispute and provide them adequate opportunities for the development of a mutually satisfactory resolution. The arbitral panel shall interpret the relevant provisions of the covered agreements in accordance with customary rules of interpretation of public international law. In its findings and recommendations, the arbitral panel cannot add to or diminish the rights and obligations provided in the covered agreements.

Article 10 Proceedings of Arbitral Panels

1. The rules and procedures pertaining to the proceedings before an arbitral panel as set out in the Annex on the Rules and Procedures for the Arbitral Panel Proceedings

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shall apply unless the parties to the dispute agree otherwise. The arbitral panel may, after consulting the parties to the dispute, adopt additional rules and procedures not inconsistent with the Annex on the Rules and Procedures for the Arbitral Panel Proceedings. 2. In any event the proceedings of the arbitral panel shall be in accordance with the following principles:

(a) a right to at least one hearing before the arbitral panel; (b) an opportunity for each party to the dispute to provide initial and rebuttal

submissions; (c) a reasonable opportunity for each party to the dispute to submit

comments on the interim report presented pursuant to Article 11; and (d) the protection of confidential information.

3. An arbitral panel shall meet in closed session. The parties to the dispute shall be present at the meetings only when invited by the arbitral panel to appear before it.

Article 11 Interim Report

1. Unless the parties to the dispute otherwise agree, the arbitral panel shall base its report on the relevant provisions of the relevant covered agreement, on the submissions and arguments of the parties to the dispute, and on any information before it, pursuant to Article 13. 2. Unless the parties to the dispute otherwise agree, the arbitral panel shall, within ninety (90) days from the date of its establishment, present to the parties to the dispute an interim report containing:

(a) findings of law and/or fact together with reasons; (b) its determination as to the interpretation, implementation or application

of the relevant covered agreement or whether the measure at issue is inconsistent with obligations of the party complained against under the relevant covered agreement or whether the party complained against has otherwise failed to carry out its obligations under the relevant covered agreement or whether the measure at issue causes nullification or impairment of any benefit accruing to the complaining party under the relevant covered agreement or impediment of the attainment of any objective of the relevant covered agreement, or any other determination requested in the terms of reference; and

(c) where it determines that the measure at issue is inconsistent with the

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obligations under the relevant covered agreement, its recommendations to bring the measure into conformity with such covered agreement and its suggestion, if any, on means by which the party complained against could implement the recommendations.

3. When the arbitral panel considers that it cannot present its interim report within the period of time referred to in paragraph 2, it shall inform the parties to the dispute in writing of the reasons for the delay together with the estimate of the period within which it will issue its interim report. 4. The parties to the dispute may submit written comments on the interim report within fourteen (14) days of its presentation. 5. In case that such written comments by the parties to the dispute are received as provided for in paragraph 4, the arbitral panel, on its own initiative or at the request of a party to the dispute, may reconsider its report and make any further examination that it considers appropriate.

Article 12 Final Report

1. The arbitral panel shall present a final report to the parties to the dispute, within thirty (30) days of presentation of the interim report. 2. The arbitral panel shall present to the parties to the dispute its final report within 120 days from the date of its establishment. In cases of urgency, including those relating to perishable goods, the arbitral panel shall aim to present its final report to the parties to the dispute within ninety (90) days from the date of its establishment. When the arbitral panel considers that it cannot present its final report within 120 days, or within ninety (90) days in cases of urgency, it shall inform the parties to the dispute in writing of the reasons for the delay together with an estimate of the period within which it will present its report. In no case, however, should the period from the establishment of an arbitral panel to the presentation of the final report to parties to the dispute exceed 180 days or 120 days in the case of urgency, unless the parties to the dispute otherwise agree. 3. The final report of the arbitral panel shall be made publicly available within ten (10) days of its presentation to the parties to the dispute.

Article 13 Information and Technical Advice

1. Upon request of a party to the dispute, or on its own initiative, the arbitral panel may seek information and technical advice from any person or body that it deems appropriate. Any information and technical advice so obtained shall be made available to the parties to the dispute.

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2. With respect to factual issues concerning a scientific or other technical matter raised by a party to the dispute, the arbitral panel may request advisory reports in writing from an expert or experts. The arbitral panel may, at the request of a party to the dispute or on its initiative, select, after a consultation with the parties to the dispute, scientific or technical experts who shall assist the arbitral panel throughout its proceedings, but who shall not have the right to vote in respect of any decision to be made by the arbitral panel.

Article 14 Implementation of the Final Report

1. The final report of an arbitral panel shall be binding on the parties to the dispute and shall not be subject to appeal. 2. If, in its final report, the arbitral panel determines that the party complained against has not conformed to its obligations under the relevant covered agreement, or that the party’s measure has caused nullification or impairment, the means to implement the recommendations shall be to eliminate the non-conformity, or the nullification or impairment. 3. The parties to the dispute, shall, within twenty (20) days upon presentation of the final report of an arbitral panel, agree on:

(a) the means to implement the recommendations of the arbitral panel; and (b) the reasonable period of time which is necessary to implement the

recommendations of the arbitral panel. 4. If the parties to the dispute fail to agree, a party to the dispute may refer the matter to the original arbitral panel. The party complained against shall, within fifteen (15) days after the date of referral of the matter to the arbitral panel, propose the means to implement the recommendations of the original arbitral panel. The arbitral panel shall determine the consistency of the means proposed by the party complained against with the recommendations and/or the reasonable period of time. The arbitral panel shall present its report to the parties to the dispute within thirty (30) days after the date of the referral of the matter to it. No measure can be taken under Article 15 without any determination by the arbitral panel under this paragraph. 5. Where there is disagreement as to the existence or consistency of measures taken with the recommendation of the arbitral panel within the reasonable period of time, such dispute shall be referred to the original arbitral panel. The arbitral panel shall present its report within thirty (30) days after the date of referral of the matter to it.

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Article 15 Compensation and the Suspension of Concessions or Benefits

1. Compensation and the suspension of concessions or benefits are temporary measures available in the event that the recommendations are not implemented within a reasonable period of time. However, neither compensation nor the suspension of concessions or benefits is preferred to full implementation of the recommendations to bring a measure into conformity with the covered agreements. Compensation is voluntary and, if granted, shall be consistent with the covered agreements. 2. If the party complained against fails to bring the measure found to be inconsistent with the relevant covered agreement into compliance with the recommendations of the arbitral panel within the reasonable period of time determined pursuant to paragraph 3 of Article 14, the party complained against shall, if so requested, enter into negotiations with the complaining party with a view to reaching a mutually satisfactory agreement on any necessary compensatory adjustment. 3. If no mutually satisfactory agreement on compensation has been reached within twenty (20) days after the date of receipt of the request of the complaining party to enter into negotiations on compensatory adjustment, the complaining party may at any time thereafter provide a written notice to the party complained against and the rest of the Parties that it intends to suspend the application to the party complained against of concessions or benefits of equivalent effect and may begin suspending concessions or benefits thirty (30) days after the date of receipt of the notice. The notice shall specify the level of concessions or benefits proposed to be suspended and the relevant covered agreement and sector(s) which the concessions or benefits are related to. Within thirty (30) days from the date of receipt of the notice, the party complained against may request the original arbitral panel to rule on whether the benefits which the complaining party proposes to suspend are equivalent to those affected by the measure found to be inconsistent with the relevant covered agreement, and whether the proposed suspension is in accordance with paragraphs 4 and 5. The ruling of the arbitral panel shall be given within forty–five (45) days from the date of receipt of that request. Concessions or benefits shall not be suspended until the arbitral panel has issued its ruling. 4. Any suspension of concessions or benefits shall be restricted to the concessions or benefits granted to the party complained against under the relevant covered agreement, subject to paragraph 5. The party complained against and the rest of the Parties shall be informed of the commencement and details of any such suspension. 5. In considering what concessions or benefits to suspend under paragraph 3:

(a) the complaining party should first seek to suspend concessions or

benefits in the same sector or sectors as that affected by the measure or other matter that the arbitral panel has found to be inconsistent with the relevant covered agreement or to have caused nullification or impairment; and

(b) the complaining party may suspend concessions or benefits in other

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sectors if it considers that it is not practicable or effective to suspend concessions or benefits in the same sector.

6. The suspension of concessions or benefits shall be temporary and shall only be applied until such time as the measure found to be inconsistent with the relevant covered agreement, has been removed, or the party complained against that must implement the arbitral panel's recommendations has done so, or a mutually satisfactory solution is reached. 7. If the party complained against considers that:

(a) the level of concessions or benefits suspended by the complaining party

is manifestly excessive; or (b) it has eliminated the non-conformity, or the nullification or impairment

that the arbitral panel has found; it may request the original arbitral panel to determine the matter. The arbitral panel shall present its determination to the parties to the dispute within thirty (30) days after it reconvenes.

Article 16 Official Language

1. All proceedings pursuant to this Agreement shall be conducted in the English language. 2. Any document submitted for use in any proceedings pursuant to this Agreement shall be in the English language. If any original document is not in the English language, a Party submitting it for use in the proceedings pursuant to this Agreement shall provide an English translation of that document.

Article 17 Expenses

1. Each party to a dispute shall bear the costs of the arbitral panel member, appointed by that party to the dispute, and its own expenses and legal costs. 2. Unless the parties to the dispute otherwise agree, the costs of the chair of the arbitral panel and other expenses associated with the conduct of its proceedings shall be borne in equal parts by the parties to a dispute.

Article 18 Annex

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The Annex on the Rules and Procedures for the Arbitral Panel Proceedings and the contents therein shall form an integral part of this Agreement.

Article 19 Amendments

The provisions of this Agreement may be modified through amendments mutually agreed upon in writing by the Parties.

Article 20 Depositary

For the ASEAN Member Countries, this Agreement shall be deposited with the Secretary-General of ASEAN, who shall promptly furnish a certified copy thereof, to each ASEAN Member Country.

Article 21 Entry into Force

1. This Agreement shall enter into force on 1 July 2006, provided that Korea and at least one ASEAN Member Country are among the Signatory Countries that have by then notified all the other Parties in writing of the completion of their internal procedures. In the event this Agreement does not enter into force on 1 July 2006, it shall enter into force on the first day of the second month following the latter date on which Korea and at least one ASEAN Member County have notified all the other Parties in writing of the completion of their internal procedures. 2. A Party shall, upon the completion of its internal procedures for the entry into force of this Agreement, notify all the other Parties in writing. 3. Where a Party is unable to complete its internal procedures for the entry into force of this Agreement by the date as set out in paragraph 1, this Agreement shall come into force for that Party upon the date of notification of the completion of its internal procedures. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Agreement on Dispute Settlement Mechanism under the Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and Member Countries of the Association of Southeast Asian Nations. DONE at Kuala Lumpur, Malaysia this day of December 2005, in duplicate copies in the English language.

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For the Government of the Republic of Korea KIM HYUN-CHONG Minister for Trade For the Government of Brunei Darussalam LIM JOCK SENG Second Minister of Foreign Affairs and Trade For the Royal Government of Cambodia CHAM PRASIDH Senior Minister and Minister of Commerce For the Government of the Republic of Indonesia MARI ELKA PANGESTU Minister of Trade For the Government of the Lao People's Democratic Republic SOULIVONG DARAVONG Minister of Commerce For the Government of Malaysia RAFIDAH AZIZ Minister of International Trade and Industry For the Government of the Union of Myanmar SOE THA Minister for National Planning and Economic Development For the Government of the Republic of the Philippines PETER B. FAVILA Secretary of Trade and Industry

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For the Government of the Republic of Singapore LIM HNG KIANG Minister for Trade and Industry For the Government of Thailand SOMKID JATUSRIPITAK Deputy Prime Minister and Minister of Commerce For the Government of the Socialist Republic of Vietnam TRUONG DINH TUYEN Minister of Trade

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ANNEX RULES AND PROCEDURES FOR THE ARBITRAL PANEL PROCEEDINGS

Application

1. These Rules are established under Article 10 and shall apply to arbitral panel proceedings under this Agreement unless the parties to the dispute otherwise agree. 2. Any reference made in these Rules to an Article is a reference to the appropriate Article in this Agreement. Terms of Reference for Arbitral Panels 3. An arbitral panel shall have the following terms of reference unless the parties to the dispute agree otherwise within ten (10) days from the date of the establishment of an arbitral panel: "To examine, in the light of the relevant provisions in (name of the covered agreement(s) cited by the parties to the dispute), the matter referred to in the request for the establishment of an arbitral panel pursuant to Article 5, to make findings, determinations, recommendations and suggestions, if any, as provided in Article 11, and to present the written reports referred to in Articles 11 and 12.” 4. The parties to the dispute shall promptly deliver the agreed terms of reference to the arbitral panel. The arbitral panel shall address the relevant provisions in the covered agreements cited by the parties to the dispute. Written Submissions and Other Documents 5. Each party to the dispute shall deliver no less than four copies of its written submissions to the arbitral panel and a copy to the other party to the dispute. 6. A complaining party shall deliver its initial written submission to the party complained against no later than twenty (20) days after the date of the establishment of the arbitral panel. The party complained against shall deliver its written submission to the complaining party no later than twenty (20) days after the date of receipt of the initial written submission of the complaining party. 7. In respect of any request, notice or other document(s) related to the arbitral panel proceeding that is not covered by paragraphs 5 and 6, each party to the dispute may deliver a copy of the document(s) to the other party to the dispute by facsimile, email or other means of electronic transmission.

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8. A party to the dispute may at any time correct minor errors of a clerical nature in any request, notice, written submission or other document(s) related to the arbitral panel proceeding by delivering a new document clearly indicating the changes. Operation of Arbitral Panels 9. The chair of the arbitral panel shall preside at all of its meetings. An arbitral panel may delegate to the chair authority to make administrative and procedural decisions. 10. Except as otherwise provided in these Rules, the arbitral panel may conduct its business by any means, including by telephone, facsimile transmission and computer links. 11. Only members of the arbitral panel may take part in the deliberations of the arbitral panel, but the arbitral panel may, in consultation with the parties to the dispute, retain such number of assistants, interpreters or translators, or designated note takers as may be required for the proceeding and permit them to be present during such deliberations. The members of the arbitral panel and the persons retained by the arbitral panel shall maintain the confidentiality of the arbitral panel proceeding unless such information is already made available to the public. 12. Where a procedural question arises that is not addressed by these Rules, an arbitral panel may adopt an appropriate procedure that is not inconsistent with this Agreement, unless it considers that the procedural question may affect in a meaningful manner the way in which it examines matters before it, in which case it shall consult with the parties to the dispute. 13. Any time period applicable to the arbitral panel proceeding shall be suspended for a period that begins on the date on which any member of the arbitral panel becomes unable to act and ends on the date on which the successor member is appointed. 14. An arbitral panel may, in consultation with the parties to the dispute, modify any time period applicable in the arbitral panel proceeding and make such other procedural or administrative adjustments as may be required in the proceeding. 15. The venue for the arbitral panel proceedings shall be decided by mutual agreement between the parties to the dispute. If there is no agreement, the venue shall alternate between the capitals of the parties to the dispute with the first session of the arbitral panel proceeding to be held in the capital of the party complained against. 16. All third parties which have notified their interest in the dispute shall be invited in writing to present their views during the first session of the arbitral panel proceeding set aside for that purpose. All such third parties may be present during the entirety of this session. 17. The interim and final report of the arbitral panel shall be drafted without the

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presence of the parties to the dispute in the light of the information provided and the statements made. Opinions expressed in the report of the arbitral panel by its individual member shall be anonymous. 18. Following the consideration of submissions, arguments and any information before it, the arbitral panel shall present an interim report to the parties to the dispute, including both a descriptive section relating to the facts of the dispute and the arguments of the parties to the dispute and the arbitral panel's findings and conclusions. The arbitral panel shall accord adequate opportunity to the parties to the dispute to review the entirety of its interim report prior to its finalisation and shall include a discussion of any comments by the parties concerned in its final report. Timetable 19. After consulting the parties to the dispute, the chair of the arbitral panel shall, as soon as practicable and whenever possible within fifteen (15) days after the establishment of the arbitral panel, fix the timetable for the arbitral panel process. In determining the timetable for the arbitral panel process, the arbitral panel shall provide sufficient time for the parties to the dispute to prepare their respective submissions. The arbitral panel should set precise deadlines for written submissions by the parties to the dispute and they shall respect those deadlines. Decisions of the Arbitral Panel

20. The arbitral panel shall take its decisions by consensus; provided that where the arbitral panel is unable to reach consensus, it may take its decisions by majority vote.

Availability of Information 21. The deliberations of the arbitral panel and the documents submitted to it shall be kept confidential. No party to the dispute shall be precluded from disclosing statements of its own positions to the public. The parties to the dispute shall treat as confidential information submitted by the other party to the dispute to the arbitral panel which that party has designated as confidential. Where a party to the dispute submits a confidential version of its written submissions to the arbitral panel, it shall also, upon request of the other party to the dispute, provide a non-confidential summary of the information contained in its submissions that could be disclosed to the public. Remuneration and Payment of Expenses 22. The arbitral panel shall keep a record and render a final account of all general expenses incurred in connection with the proceedings, including those paid to their assistants, designated note takers or other individuals that it retains pursuant to paragraph 11.

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AGREEMENT ON TRADE IN GOODS UNDER THE FRAMEWORK AGREEMENT ON COMPREHENSIVE

ECONOMIC COOPERATION AMONG THE GOVERNMENTS OF THE REPUBLIC OF KOREA AND THE MEMBER COUNTRIES OF THE

ASSOCIATION OF SOUTHEAST ASIAN NATIONS

The Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations; Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand1 and the Socialist Republic of Vietnam, RECALLING the Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations signed in Kuala Lumpur, Malaysia on the thirteenth day of December 2005;

FURTHER RECALLING Articles 1.3 and 2.1 of the Framework Agreement, which reflect their commitment to establish the Korea-ASEAN Free Trade Area covering trade in goods;

REAFFIRMING their commitment to eliminate duties and other restrictive regulations of commerce on substantially all trade in goods among the Republic of Korea and the ASEAN Member Countries within the specified time frames, while allowing flexibility to them to address their sensitive areas as provided in the Framework Agreement; and

RECOGNISING the different stages of economic development among the ASEAN Member Countries and the need for flexibility to be given to the new ASEAN Member Countrie