- Next round of India-Korea FTA review meetings scheduled from July 17-19 in Seoul.
- India seeks greater market access for steel, rice, and shrimp.
- Review aims to address trade deficit and non-tariff barriers impacting Indian exports.
In the upcoming India-Korea Free Trade Agreement (FTA) review meeting, senior officials from both nations will discuss key issues from July 17-19 in Seoul. This 11th round of negotiations seeks to upgrade the Comprehensive Economic Partnership Agreement (CEPA), originally operational since January 2010.
The discussions are expected to cover the broader contours for concluding the deal, with Korea keen to finalize negotiations this year. Both sides aim to address the negative list of the agreement, which currently excludes certain goods from customs duty concessions.
Strengthening India-Korea Economic Ties Through CEPA Review
The India-Korea FTA review, scheduled from July 17-19 in Seoul, marks a crucial step towards enhancing bilateral trade relations. With the CEPA in place since 2010, both nations aim to address ongoing challenges and explore new avenues for cooperation. India’s focus onc for steel, rice, and shrimp underlines its strategy to boost exports and reduce the trade deficit with Korea.
This round of talks will tackle not only product-specific access but also broader trade facilitation issues such as rules of origin, customs procedures, and non-tariff barriers. India has raised concerns about stringent South Korean standards and certification requirements that hinder its exports. Additionally, India seeks more liberalization in the services sector, especially in healthcare and IT, aiming for easier entry for its professionals into the Korean market.
Both countries are committed to finalizing the CEPA upgrade this year, recognizing its potential to significantly enhance economic cooperation. The review process will also focus on the implementation issues that have arisen since the agreement’s inception, aiming to streamline and simplify trade procedures. This proactive approach by India, involving multiple ministries, highlights the importance of a cohesive strategy to tackle trade challenges.
Moreover, the growing trade deficit between India and South Korea has prompted a thorough examination of current trade practices. India’s exports to Korea have seen a decline in recent years, while imports remain substantial, emphasizing the need for balanced trade relations. Addressing these imbalances through improved market access and reduced non-tariff barriers is a priority for the Indian delegation.
By addressing these critical issues, the India-Korea FTA review aims to lay the groundwork for a more equitable and mutually beneficial trade relationship. The successful conclusion of these talks could lead to increased economic engagement and growth for both countries.
The 11th round of the India-Korea FTA review represents a pivotal opportunity to resolve existing trade issues and strengthen bilateral economic ties. Both nations are keen to finalize negotiations and achieve a more balanced and cooperative trade environment.
“India has flagged issues over Korean firms not buying Indian steel,” highlighting the core concern driving India’s push for better market access in the ongoing FTA review talks.
