Imminent deal to liberalize Korea’s India investments
Korea Herald | 2009.08.04
Imminent deal to liberalize Korea’s India investments
By Yoo Soh-jung
Investments in India for Korean companies will become easier once the two trading partners ratify their bilateral free trade agreement, Seoul’s Trade Ministry said yesterday.
The Comprehensive Economic Partnership Agreement (CEPA), which Korea and India are scheduled to sign in Seoul on Friday, would open investment opportunities for most sectors in the manufacturing industry, it said.
Tariffs for core industrial goods are expected to be phased out between five and eight years after ratification. Tariffs for most auto parts, which face an average 12.5 percent levy, are likely to be phased out over an eight-year period.
Ministry officials here said the tariff-removal rate is slower compared to most other FTAs, but underlined Korea’s benefit of having secured a foothold in the market ahead of China and Japan with the world’s second-largest population.
The government said the CEPA can take effect as soon as Korea’s legislature ratifies the bill, as Indian lawmakers have already approved the deal.
