ID :
73691
Tue, 08/04/2009 - 09:34
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https://www.oananews.org//node/73691
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S. Korea, India to sign bilateral trade pact this week
By Park Sang-soo
SEOUL, Aug. 4 (Yonhap) -- South Korea and India will sign a comprehensive
bilateral trade pact in Seoul this week, ending their three-year negotiations,
Seoul's trade ministry said Tuesday.
The two countries started their negotiations in March 2006, and initialed the
so-called comprehensive economic partnership agreement (CEPA) in February this
year.
India's Cabinet also approved the signing of the CEPA, similar to a free trade
agreement, last month. The signing ceremony will be held on Friday, according to
the ministry.
"The trade agreement is the first of its kind with one of the BRICs countries,"
the ministry said in a statement. "Both countries will be able to further
solidify and upgrade their relations."
BRICs refer to the fast-growing developing economies of Brazil, Russia, India and
China.
The trade agreement is expected to come into effect early next year after South
Korea's parliament ratifies the deal.
The CEPA is the latest in a series of free trade agreements that South Korea has
concluded. Last month, South Korea concluded their two-year free trade
negotiations with the European Union (EU).
The CEPA includes trade in goods and services as well as investments. It also
contains chapters on competition and intellectual property rights.
Under the deal, tariffs on goods are expected to be phased out between five and
eight years after ratification. Tariffs for most auto parts, which face an
average 12.5 percent levy, are likely to be eliminated over an eight-year period.
The tariff-removal rate is slower compared to most other FTAs, but underlines
Korea's benefit of having secured a foothold in the market ahead of China and
Japan, the ministry said.
Overall, the trade pact is expected to boost bilateral trade by as much as US$3.3
billion, according to estimates by the state-run Korea Institute for
International Economic Policy (KIEP).
Two-way trade reached $15.56 billion last year with South Korea enjoying a
surplus of $2.39 billion.
sam@yna.co.kr
(END)
SEOUL, Aug. 4 (Yonhap) -- South Korea and India will sign a comprehensive
bilateral trade pact in Seoul this week, ending their three-year negotiations,
Seoul's trade ministry said Tuesday.
The two countries started their negotiations in March 2006, and initialed the
so-called comprehensive economic partnership agreement (CEPA) in February this
year.
India's Cabinet also approved the signing of the CEPA, similar to a free trade
agreement, last month. The signing ceremony will be held on Friday, according to
the ministry.
"The trade agreement is the first of its kind with one of the BRICs countries,"
the ministry said in a statement. "Both countries will be able to further
solidify and upgrade their relations."
BRICs refer to the fast-growing developing economies of Brazil, Russia, India and
China.
The trade agreement is expected to come into effect early next year after South
Korea's parliament ratifies the deal.
The CEPA is the latest in a series of free trade agreements that South Korea has
concluded. Last month, South Korea concluded their two-year free trade
negotiations with the European Union (EU).
The CEPA includes trade in goods and services as well as investments. It also
contains chapters on competition and intellectual property rights.
Under the deal, tariffs on goods are expected to be phased out between five and
eight years after ratification. Tariffs for most auto parts, which face an
average 12.5 percent levy, are likely to be eliminated over an eight-year period.
The tariff-removal rate is slower compared to most other FTAs, but underlines
Korea's benefit of having secured a foothold in the market ahead of China and
Japan, the ministry said.
Overall, the trade pact is expected to boost bilateral trade by as much as US$3.3
billion, according to estimates by the state-run Korea Institute for
International Economic Policy (KIEP).
Two-way trade reached $15.56 billion last year with South Korea enjoying a
surplus of $2.39 billion.
sam@yna.co.kr
(END)
