India, Korea discuss upgrading of existing trade pact; promoting investments
Deccan Herald | 21 September 2024
India, Korea discuss upgrading of existing trade pact; promoting investments
by PTI
New Delhi: India and Korea on Saturday held discussions on upgrading the existing
free trade agreement, balancing two-way commerce and promoting investments
between the two countries.
The issues were discussed during a meeting between Commerce and Industry
Minister Piyush Goyal and his Korean counterpart Inkyo Cheong at Vientiane, Laos.
"Deliberations were held on achieving more balanced trade, upgrading the India-
Korea Comprehensive Economic Partnership Agreement (CEPA), promoting
investments linked to job creation and addressing non-tariff barriers to further
strengthen our economic ties," Goyal said in a post on social media platform X.
The two countries are holding review meetings to upgrade the CEPA, which was
operationalised in January 2010. So far, over 10 rounds of review talks have been
held.
The two countries have sought greater market access for certain products that are
under the negative list of the agreement. No customs duty concessions are granted
for the goods under this list.
Department of Commerce had earlier engaged with different ministries, including
heavy industries, steel, and chemicals, to prepare the offer list.
India has sought greater market access for certain products like steel, rice, and
shrimp from South Korea to boost exports of these goods. India has �agged issues
over Korean �rms not buying Indian steel.
The review exercise assumes signi�cance as both sides have shared the hope that
the CEPA upgradation negotiations would play an important role in strengthening
and deepening the economic cooperation between both countries.
In general, such review or upgrade exercise includes implementation issues, rules of
origin, veri�cation process and release of consignments, customs procedures, further
liberalisation of trade in goods, and sharing and exchange of trade data.
India has also raised concerns about the growing trade deficit between the two countries. India’s exports to Korea dipped to USD 6.41 billion in 2023-24 from USD 6.65 billion in 2022-23 and USD 8 billion in 2021-22.
The imports stood at USD 21.13 billion in the last �scal as against USD 21.22 billion in
2022-23 and USD 17.5 billion in 2021-22.
According to economic think tank Global Trade Research Initiative (GTRI), India’s
trade de�cit with South Korea increased at a much higher rate compared to its trade
de�cit with the world.
It has also stated that Indian exporters are facing various non-tariff barriers in South
Korea, including stringent standards, regulations, and certi�cation requirements,
and these barriers make it dif�cult for Indian goods to penetrate the South Korean
market.
Goyal also held a meeting with Kan Zaw, Myanmar’s Minister of Investment and
Foreign Economic Relations, on the sidelines of the 12th East Asia Summit Economic
Ministers’ Meeting.
"Discussed potential cooperation in areas like lentils, diesel, gasoline, electric
vehicles, etc and ways to promote bilateral trade including through Rupee-Kyat
currency mechanism, between our nations," he said.
