S Korea, India to push for trade pact
Times of India
S Korea, India to push for trade pact
Sidhartha
3 Jan 2007
NEW DELHI: Asia seems to be the flavour of the season with India and South Korea slated to take forward their discussions on a comprehensive economic cooperation agreement - a trade pact covering goods and services later this week.
While the two countries have agreed on a CECA, officials from the two sides are expected to exchange the first set of lists giving out the sectors which would not be opened up and those where zero-duty imports would be allowed and visas and investment would be allowed without restrictions.
While trade in services appears to be heading for a smooth sailing, there are concerns over the distance that India is willing to cover on freer investment flows.
On goods, classification of products is proving to a tricky issue, with Korea having a 10-digit classification (meaning that more products are covered) while India has only graduated to the eight-digit classification level.
The issue is expected to be resolved later this week, paving the way for commencement of negotiations on freer flow of goods from India and South Korea.
Lower or zero customs for Korean exports is expected to benefit the likes of LG, Samsung and Hyundai the most, since they will be able to import components and inputs at cheaper rates.
The CECA is also expected to counter the impact of the trade agreement with Thailand, which is seen to have benefited Japanese players - Sony, Toyota and Honda Motors.
