NEW DELHI, July 14: With talks to upgrade the existing India-Korea free trade agreement (FTA) moving forward, senior officials of both countries will hold the next round of negotiations from Wednesday in Seoul, an official said.
The agreement, dubbed as comprehensive economic partnership agreement (CEPA), was operationalised in January 2010. So far, 10 rounds of review talks have been concluded.
The Indian team “will visit Seoul from July 17-19” for the next round of review meetings, the official added.
“In the 11th round, both the sides would discuss the broad contours for closing the deal,” the official said, adding that Korea is keen to conclude the negotiations this year.
The two countries have sought greater market access for certain products, which are under the negative list of the agreement. No customs duty concessions are granted for the goods under this list.
The Department of Commerce has engaged with different ministries, including heavy industries, steel, and chemicals, to prepare the offer list.
India has sought greater market access for certain products like steel, rice, and shrimp from South Korea to boost exports of these goods. India has flagged issues over Korean firms not buying Indian steel.
The review exercise assumes significance as both sides have shared the hope that the CEPA upgradation negotiations would play an important role in strengthening and deepening economic cooperation between both countries.
In general, such review or upgrade exercises include implementation issues, rules of origin, verification process and release of consignments, customs procedures, further liberalisation of trade in goods, and sharing and exchange of trade data.
India has also raised concerns about the growing trade deficit between the two countries. India’s exports to Korea dipped to USD 6.41 billion in 2023-24 from USD 6.65 billion in 2022-23 and USD 8 billion in 2021-22.
The imports stood at USD 21.13 billion in the last fiscal as against USD 21.22 billion in 2022-23 and USD 17.5 billion in 2021-22.
According to the economic think tank Global Trade Research Initiative (GTRI), India’s trade deficit with South Korea increased at a much higher rate compared to its trade deficit with the world.
It said India’s trade with South Korea has shown significant changes in the periods before and after the implementation of the CEPA.
Besides, a GTRI report has stated that Indian exporters are facing various non-tariff barriers in South Korea, including stringent standards, regulations, and certification requirements, and these barriers make it difficult for Indian goods to penetrate the South Korean market.
According to GTRI, India is looking for greater liberalisation in the services sector, including healthcare and information technology (IT), and easier access for Indian professionals and service providers in the South Korean market. (PTI)
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