India Pushes For Broader Tariff Eliminations In CEPA Talks With South Korea
(MENAFN- KNN India)
New Delhi, Jul 2 (KNN) India is pushing for broader tariff eliminations from South Korea in the ongoing negotiations to upgrade the Comprehensive Economic Partnership Agreement (CEPA) between the two nations.
India's proposal includes tariff elimination on previously exempt items such as various meat and dairy products, fruits, fish, stones, yarn, and petroleum products.
The country is also seeking to address non-tariff barriers, as Indian exporters face stringent standards, regulations, and certification requirements in South Korea.
The Department of Commerce has requested industry feedback on SPS (Sanitary and Phytosanitary) and TBT (Technical Barriers to Trade) issues.
The original CEPA, signed in 2009 and implemented in 2010, saw India offering tariff concessions on 83.8 per cent of tariff lines, while South Korea reciprocated with 93.2 per cent.
However, the agreement has led to an uneven trade growth. In the pre-CEPA period (2007-09), the average trade deficit was USD 4 billion. This has ballooned to an average of USD 12.8 billion in the post-CEPA period (2022-24).
The talks, scheduled for July 17-19, come as India grapples with a widening trade deficit that has surged by 220 per cent since the agreement's implementation in 2010.
In the fiscal year 2023-24, India's imports from South Korea reached USD 21.13 billion, significantly outpacing its exports of USD 6.41 billion.
The Department of Commerce is actively engaging with Indian industry stakeholders, seeking input on additional items for tariff reduction requests and potential deletions from the draft list.
As negotiations progress, India aims to leverage this opportunity to create a more balanced trade relationship with South Korea, focusing on reducing barriers and expanding market access for Indian goods and services.
(KNN Bureau)
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