CEPA with S Korea by yr-end
India today successfully concluded talks on the Comprehensive Economic Partnership Agreement (CEPA) involving free trade of goods and services with South Korea.
This comes close on the heels of India sealing negotiations for a free trade pact with the Association of South East Asian nations (Asean).
The agreement with South Korea is likely to be inked by the end of 2008, and become by the first half of 2009, a commerce ministry statement said today.
In the meeting, the Indian trade officials were led by Commerce Secretary Gopal Pillai, while the South Korean delegation was headed by their deputy trade minister Hye-min Lee.
A study done by the Federation of Indian Chambers of Commerce and Industry had identified marine products, inorganic chemicals, pharmaceuticals, dyestuffs, ready-made garments, plastics, copper and aluminium products, and instruments and electrical machinery as goods of high export interest for India to South Korea.
India exports large amount of petroleum products, gems and jewellery, cotton yarn and textile products to the country. Petroleum products constitute around 55 per cent of India’s exports to South Korea. In 2007-08, India exported $2.85 billion worth of goods to South Korea, posting a rise of 13.5 per cent over the previous year.
This agreement is also likely to bridge the increasing gap between China and India in South Korean imports.
“Both sides expect that they will be able to finalise the text of the agreement, including the schedules for liberalisation of goods, services and investment, by the end of October,” the statement added.
Government officials had earlier told Business Standard that the agreement with South Korea was likely to be less ambitious (in terms of liberalisation of trade) than the one with Asean.
The agreement on free trade in goods will lead to India opening up 85 per cent of its market to South Korea, which in turn will give access to 95 per cent of its market at either zero duty or at concessional rates.
Both the sides held 12 round of negotiations between March 2006 and September 2008.