Trade Articles

With the conclusion of the 12th round of the South Korea-India Comprehensive Economic Partnership Agreement(CEPA) in Seoul, South Korea, the good news has been break out as both nations have claimed to resolve out their disputes. All outstanding matters concerning to the negotiations have been successfully cleared out and have reached to the agreement in relation to the free trade deal. With consensus both nations have make out the announcement that all concerning pending matters and issues coming in the negotiations for forging the CEPA has been clearly figured out for paving the pathway to their implementation from the Ist half of 2009. The talks have also reached at consensus on imperative agricultural products which will principally be not included in the free trade deal. India has been known as the agricultural goods net exporter while South Korea needs to import large requirement of its food from around the world.

The CEPA agreement is hoping to jack the 'jammed' growth barometer and could accelerate the bilateral trade and investment among both countries-India and Korea. The authoritative parties of both nations have decided to sign the agreement by the end of this year 2008. Mr. Gopal K.Pillai, Commerce Secretary, was holding the Indian flag in the Seoul while it was Mr. Hye-min Lee, Deputy Minister, who was leading the Korean side. The aforesaid Korea and India's CEPA negotiations have been started from March 2006 and till now 12 negotiations have been come across in this direction. India has been characterized as the 12th largest economy in throughout the world and the Korea as the 13th largest economy. In last 3 years, the bilateral trade between both countries have grown by the average of 27 per cent and has reached to US$11.2 billion in previous year i.e, 2007. Both sides have shown their positive affirmation that they will be able to finalize the formal text of the CEPA, with the inclusion of the schedules for liberalization of goods, services and investment, by the end of 2008. The concrete points of the agreement will be publicized at that time. The agreement will be enforceable on the mutual agreeable date in the first half of the year 2009.

South Korea is hoping to escalate its growth rate as the agreement will facilitate its companies to attain an edge over the India, which is the second most populous nation in the world and an economy with a surging growing rate of above 8 per cent. Technically speaking, the CEPA is considered in equivalent to the Free Trade Agreement (FTA). South Korea has entered into the FTA with Chile, Singapore, the European Free Trade Association of Switzerland, Norway, Ireland and Lichtenstein, the Association of Southeast Asian Nations and the United States, which is yet to be ratified by the legislative bodies of both countries. Talks of South Korea with the European Union, Canada, Mexico, the Gulf Cooperation Council is under progress.