A comparative analysis of TBT chapters in Korea’s and China’s FTAs: Implications for TBT negotiations of the Korea-China FTA

Abstract

Korea-China FTA negotiations were launched in earnest in May 2012. Elimination of technical barriers to trade (TBT) is one of the key issues in which the South Korean government is interested since technical barriers significantly affect trade between the two countries. Previous studies show that national standards and certification policies may act as TBT. In order to eliminate TBT, the World Trade Organization (WTO) obliges Members to observe the principles of non-discrimination and necessity, international standards, equivalence and mutual recognition, and transparency through the TBT Agreement. This paper derives policy implications for TBT negotiations of the Korea-China FTA from the analysis of Korea`s and China`s FTAs. These include: i) defining de facto mandatory standards as technical regulations; ii) including local government`s and non-government`s measures in the scope of application; iii) stipulating provisions of non-discrimination in the process of certification and accreditation; iv) discussing necessity requirements with respect to specific industries such as IT in the Korea-China FTA negotiations. In addition, it is of importance that the both countries bring to the table such issues as: v) determining and rejecting relevant international standards; vi) possible ways of signing a mutual recognition agreement (MRA); vii) transparency regarding the development and notification of technical regulations and standards.