U.S.-Korea Free Trade Agreement: Potential Economy-wide ... - USITC

exceptions. The benefits of this chapter may be denied under limited circumstances if the
service supplier is controlled by persons of a nonparty.
FTA chapter 12 includes specific language on express delivery services that defines the
scope of coverage, confirms the desire to maintain market access no less favorable than that
in effect when the FTA was signed, and delineates the relationship between covered services
and each party’s postal monopoly. 52 Additionally, two side letters express Korea’s intention
to reform its postal system to reduce the number of services, including international delivery,
that may be provided solely by the Korean Postal Authority. The side letters also state that
Korea would, over time, ensure independent regulation of the postal and express delivery
systems.
Annex 12-C of the agreement would provide for consultations between the parties regarding
NCMs maintained by regional levels of government. Finally, a side letter included would
clarify that various regulations currently maintained by the parties are not inconsistent with
the agreement. These regulations include the prohibition of holding more than one license
to provide multiple services and various regulations governing educational institutions and
rail transportation.
Professional Services
Provisions of the FTA related to cross-border trade in professional services are not included
in a separate chapter, but instead Annex 12-A to chapter 12 covers measures related to
licensing and certification of the other party’s professional services suppliers. The annex
would commit each party, upon request, to provide information including the appropriate
regulatory or other bodies to consult on standards and criteria 53 for licensing and certification
of professional services suppliers. Upon agreement, each party must encourage relevant
bodies to develop mutually acceptable standards and criteria for licensing and certification
of professional services suppliers, to make recommendations on mutual recognition, and to
develop procedures for the temporary licensing of the other party’s professional service
suppliers, in particular those supplying engineering, architectural, and veterinary services.
To facilitate these activities, the annex would commit the parties to establish a Professional
Services Working Group, 54 comprising representatives of both parties, which is to meet by
mutual consent within 1 year of the FTA’s entry into force. The Working Group would
consider issues pertaining to professional services generally as well as individual
professional services. The scope of work would include developing procedures to encourage
mutual recognition arrangements and model procedures for licensing and certification,
addressing regional-level government measures inconsistent with market access and national
treatment, and discussing other mutual interests affecting the supply of professional services.
The Working Group must consider bilateral, plurilateral, and multilateral agreements related
to professional services. Within 2 years after the FTA’s entry into force, the Working Group
must report on progress, including any recommendations on promoting mutual recognition
52 Ibid., Chap. 12 Annex 12-B, 12-11.
53 Such standards and criteria may address education, examinations, experience, conduct and ethics,
professional development and recertification, scope of practice, local knowledge, and consumer protection.
54 USTR, “Final Text of the U.S.-Australia Free Trade Agreement.” The U.S.-Australia Free Trade
Agreement provided for a similar working group on professional services.
D-17