India's commerce minister due in Seoul for trade deal

By Lee Chi-dong
SEOUL, July 29 (Yonhap) -- India's Commerce Minister Anand Sharma will visit
South Korea next week to sign a trade pact that slashes tariffs and other
barriers between the two Asian economic powers, officials here said Wednesday.

The minister is scheduled to arrive on Aug. 6 for a three-day stay, during which
he will sign a comprehensive economic partnership agreement (CEPA), they said. A
CEPA is a term used by India to emphasize the agreement's purpose of covering
goods and services trade, investment, and economic cooperation in a comprehensive
manner. It is technically the equivalent of a free trade agreement (FTA). Seoul
and New Delhi started the CEPA talks in March 2006.
"Once the CEPA is signed, it is expected to go into effect within this year," a
government official said, asking not to be named as Seoul has yet to announce the
minister's trip schedule. The Indian government does not need parliamentary
ratification to put the deal into effect, while South Korea's National Assembly
is expected to give its full endorsement, he added.
India, with the world's second-largest population of 1.1 billion, conducted
two-way trade with South Korea totaling US$15.4 billion last year.
South Korea has signed FTAs with Chile, Singapore, the European Free Trade
Association -- comprising Switzerland, Norway, Ireland and Lichtenstein -- the
Association of Southeast Asian Nations, and the United States. The FTA with the
U.S. has not yet been ratified by the two countries' legislative bodies.
During President Lee Myung-bak's tour of Europe earlier this month, South Korea
also declared that it has completed negotiations on an FTA with the European
bloc. South Korea is also seeking FTAs with Australia, New Zealand, Canada, and
Mexico.
lcd@yna.co.kr
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