Services and Investment in the EU - South Korea Free-Trade Area: Implications of a New Approach for GATS V Agreements and for Bilateral Investment Treaties

This paper focuses on the services and investment features of the recently concluded free trade agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part. This agreement is an early example of a new scheduling approach adopted by the European Union in its regional trade agreements. Rather than isolating services and investment into different sections for attention, the provisions for these factors are merged into a single and integrated approach for establishment and national treatment. After outlining the primary features of the agreement, we analyze the approach taken by the parties to services and investment liberalization. Finally, the implications of this approach are considered in light of the WTO General Agreement on Trade in Services rules for economic integration agreements, and existing bilateral investment treaties operating between the parties.