India And South Korea Advance Talks To Upgrade Free Trade Agreement

ENA Global 2024-06-24 16:04:45 New Delhi, Jun 24 (KNN) India and South Korea are making progress in negotiations to upgrade their existing Comprehensive Economic Partnership Agreement (CEPA), a free trade agreement that has been in effect since January 2010. The Indian Department of Commerce is currently engaging with various ministries, including heavy industries, steel, and chemicals, to prepare an offer list as part of the ongoing talks. Both nations have exchanged request lists and are now working on their respective offer lists. India is seeking greater market access for products such as steel, rice, and shrimp in the South Korean market to boost exports. The country has also raised concerns about Korean firms not purchasing Indian steel. The review process aims to address implementation issues, rules of origin, customs procedures, and further liberalisation of trade in goods. Both sides view the CEPA upgradation as crucial for strengthening economic cooperation between the two countries. However, India's trade deficit with South Korea has been a growing concern. According to the Global Trade Research Initiative (GTRI), India's trade deficit with South Korea has increased significantly since the implementation of CEPA. The average trade deficit rose from USD 4 billion in the pre-CEPA period (2007-09) to USD 12.8 billion in the post-CEPA period (2022-24), marking a 220 per cent increase. Indian exporters face various non-tariff barriers in the South Korean market, including stringent standards, regulations, and certification requirements. These obstacles have made it challenging for Indian goods to penetrate the South Korean market effectively. The ongoing negotiations are addressing several key issues. India is working to improve market access for its agricultural products, steel, pharmaceuticals, and services in South Korea. The talks also involve reviewing rules of origin provisions to ensure they facilitate rather than hinder trade. Another important aspect of the negotiations is India's push for greater liberalisation in the services sector, particularly in areas such as healthcare and information technology. The country is also advocating for mutual recognition of standards, qualifications, and certifications to streamline trade and investment flows between the two nations. As negotiations progress, both countries aim to create a more equitable and mutually beneficial trade relationship under the upgraded CEPA framework. The successful resolution of these issues is crucial for balancing trade relations and fostering stronger economic ties between India and South Korea. (KNN Bureau) 38327 https://knnindia.co.in/news/newsdetails/global/india-and-south-korea-advance-talks-to-upgrade-free-trade-agreement 2024-06-24 16:04:45 knnindia.co.in India And South Korea Advance Talks To Upgrade Free Trade Agreement