01What it covers
The EU's first FTA with an Asian economy — removes almost all tariffs and opens services markets.
Free trade agreements like this reduce tariff barriers and set common standards for non-tariff topics (standards, public procurement, investment protection). For exporters this translates into lower duties, faster clearance and more predictable compliance — provided the rules of origin are met.
02Key benefits
- Duty-free for >99 % of industrial goods
- Services-market opening for finance and telecom
- Recognition of European automotive test marks
03Proof of origin and practice
Proof of origin required; EU exporters use REX registration above 6,000 EUR.
Note that rules of origin are defined product-specifically in the agreement's annexes — there is rarely a single percentage threshold. For complex goods with third-country inputs, document an origin calculation.
04Who benefits most?
The agreement pays off primarily for companies with recurring exports or imports between the parties and for products whose "normal" duty is ≥ 3–5 %. For electronic products already enjoying 0 % MFN duties, the benefit lies more in regulatory coherence than tariff elimination.
Frequently asked questions
When does a product qualify for preference?
Whenever it meets the product-specific rules of origin (e.g. wholly obtained, or sufficiently worked/processed). For third-country components, a value rule ("max. 40 % non-originating value") or a chapter-change rule typically applies.