Korea hopeful of trade pact with India by Dec
New Delhi - May 11 2007
Korea hopeful of trade pact with India by Dec
South Korea hopes to wrap up a Comprehensive Economic Partnership Agreement (CEPA) with India by December 2007.
The signing of the CEPA, which would encompass trade in goods and services and investment, is expected to add momentum to the growing economic partnership between the two countries.
"The CEPA is well on track. We hope to have it by 2007-end," Mr Paek Young-Sun, South Korea’s Ambassador to India, told Business Line.
At least six rounds of negotiations have been held between the two sides.
In February 2006 the two countries signed an agreement that set the stage for launch of negotiations towards the CEPA.
Mr Paek said that bilateral trade has been growing rapidly in the recent years, increasing from $2.5 billion in 2004 to $9.2 billion in 2006. He said that the trade will touch $11-12 billion in 2007.
Although the trade balance has been in South Korea’s favour, Mr Paek said that efforts are on to have a balanced trade and increase imports from India.
A high-powered Trade Mission from Korea Importers’ Association (KOIMA) is currently in the Capital to explore sourcing opportunities.
’We do not want to cut our exports to India to balance the trade. I think we can have balanced trade if we take efforts to improve our trade volumes,’ Mr Paek said.
The CEPA with South Korea would be the first of its kind that India would be signing with a country belonging to the 30-member group of economically developed nations (OECD).
India currently has FTAs with Sri Lanka, Nepal and Thailand and a Comprehensive Economic Co-operation Agreement (CECA) with Singapore.
South Korea’s global exports in 2006 stood at $326 billion, while imports amounted to $309 billion.
Mr Ajai Sahai, Director-General of FIEO, said that a CEPA with South Korea would benefit India more in terms of investments from that country rather than trade in goods and services.
There is lot of potential for diversification of Korean investment in India in sectors like steel, telecom, ship building, mining, petrochemicals, ceramics, power, auto components for re-export to South Korea.
