(MENAFN- KNN India)
New Delhi, Jul 15 (KNN) India and South Korea are set to commence the 11th round of talks aimed at reviewing and upgrading their Comprehensive Economic Partnership Agreement (CEPA) this week in Seoul.
The discussions, scheduled for July 17-19, represent the latest effort to enhance the bilateral trade agreement that has been in effect since 2010.
The review process, initiated in 2016, has gained momentum in recent months, with some Korean officials suggesting a potential conclusion in 2024.
Both nations have exchanged lists of requests for further trade liberalisation in various sectors. South Korea seeks increased market access in automobiles, textiles, chemicals, and petrochemicals, while India aims for greater entry into Korea's steel, rice, shrimp, and clothing markets.
Korean negotiators are pushing for parity with the India-Japan Free Trade Agreement terms, while Indian exporters have raised concerns about market access barriers in Korea, particularly in steel and apparel sectors.
The original CEPA, signed in 2009, outlined plans for Korea to reduce or eliminate tariffs on 90 per cent of Indian exports, while India would do the same for 85 per cent of Korean exports.
The agreement encompasses trade in goods, investments, services, and bilateral cooperation in areas of mutual interest.
Trade statistics reveal that total merchandise trade between the two countries has grown from USD 16.91 billion in 2011 to USD 27.5 billion in the last fiscal year.
However, the trade balance heavily favours South Korea, with Indian exports remaining relatively stagnant between USD 5-7 billion annually, while imports from Korea have surged from USD 12.4 billion in 2011 to USD 21.1 billion in 2023-24.
As negotiations proceed, both sides aim to address existing imbalances and enhance the effectiveness of the trade partnership. The talks underscore the ongoing efforts to strengthen economic ties between India and South Korea, with potential implications for various industries and bilateral trade dynamics.
(KNN Bureau)
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