recommendations of the ASEAN-ROK Expert Group (ACEG) on measures to increase trade and investment in both directions through market liberalization and integration; “The bilateral free trade agreement aims to provide both countries with a better platform to strengthen their trade activities and facilitate investment. SEOUL, September 3 (Yonhap) — South Korea will hold a third round of free trade talks with Malaysia this week to conclude a trade deal by November, Seoul`s commerce ministry said Tuesday. The Ministry of International Trade and Industry (MITI) announced today that Malaysia has bilateral free trade agreements with the Republic of Korea. The No. 4 Asian economy is striving to diversify its trade portfolio, particularly in the midst of a growing trade diversity between the United States and China. The two main trading partners accounted for about 40% of South Korea`s annual deliveries in 2018. A free trade agreement is an international agreement between two or more countries to reduce or remove trade barriers and achieve closer economic integration. The country`s exports fell 13.6% in August from the previous year, bringing their decline in the previous quarter to the ninth consecutive month. Deliveries reached $44.2 billion last month, up from $51 billion a year earlier, according to Commerce Department data. South Korea has already concluded a free trade agreement with the Association of South Asian Nations (ASEAN), but is trying to expand its economic relations with its members through separate free trade agreements. In 2018, South Korea was Malaysia`s 8th largest trading partner, with a 7.2% increase in total trade to $72.60 billion (.RM$17.98 billion) from 2017. The two countries, which have held two roundtables since July, will discuss details of the bilateral free trade agreement in Seoul from Wednesday to Friday, according to the Ministry of Commerce, Industry and Energy. Discussions on the conclusion of the bilateral trade agreement began when Prime Minister Tun, Dr Mahathir Mohamad, met with South Korean President Moon Jae-in in March 2019.
At the 2014 ASEAN-ROK Memorial Summit, heads of state and government agreed to aim for $200 billion in two-part exchanges by 2020, including maximizing the use of AKFTA to improve economic ties between ASEAN and the ROK. . Create an environment favourable to ASEAN and Korean investors and their investments; A general rule of regional value (RVC) equal to or greater than 40% of the FOB value or the modification of the tariff position (CTH) of the harmonized system, thus allowing exporting producers to be flexible in choosing the applicable rule. The Framework Agreement on Comprehensive Economic Cooperation between ASEAN and Korea was signed by the Heads of State and Government at the ASEAN-Korea Summit on 13 December 2005 in Kuala Lumpur, Malaysia, and came into force on 1 July 2006. The main elements of the framework agreement are that this agreement lays the groundwork for an expansion of investment between the parties through measures such as improving investor protection and the most favoured nation (MFN) that guarantee protection from discriminatory measures taken by governments.