ID :
74021
Thu, 08/06/2009 - 20:17
Auther :
Shortlink :
https://www.oananews.org//node/74021
The shortlink copeid
S. Korea, India agree to eliminate or cut tariffs over next 10 yrs
By Park Sang-soo
SEOUL, Aug. 6 (Yonhap) -- South Korea and India have agreed to eliminate or cut
tariffs on goods over the next 10 years and will open their service and
investment sectors to boost economic cooperation, Seoul's trade ministry said
Thursday.
Wrapping up three years of negotiations, the two countries will sign a so-called
Comprehensive Economic Partnership Agreement (CEPA) on Friday, committing
themselves to drastically lower import tariffs on cars and other manufactured
goods.
The trade pact is similar in essence to the free trade agreements (FTA) South
Korea has signed the U.S. and other trading partners, but phases out tariffs more
slowly.
Overall, the CEPA is expected to boost bilateral trade by as much as US$3.3
billion annually, 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 logging a surplus of $2.39 billion.
Under the trade pact, South Korea will phase out or reduce tariffs on 90 percent
of Indian goods over 10 years after the accord takes effect. India will eliminate
or cut tariffs on 85 percent of South Korean goods within the same period.
Tariffs on South Korean auto parts, the country's biggest trading item, are to be
reduced to as low as 1 percent over an eight-year period from the current average
of 12.5 percent. But both sides agreed to exclude fisheries and some agricultural
products -- including dairy, beef and pork -- from tariff concessions.
The South Korean trade ministry said that the slower tariff-removal rate with
India underlines the importance of Korea securing a foothold in the market ahead
of China and Japan. The agreement with India addresses trade in goods and
services as well as investments, and contains chapters on competition and
intellectual property rights.
In the service sector, India agreed to open its telecom, accounting, medical and
advertising markets to South Korean companies. South Korean lenders will also be
allowed to open branches in India.
Both sides agreed to allow temporary migration of professional workers such as
computer programmers and engineers. South Korea has not offered that kind of
commitment to any of its FTA partners.
Goods made at the Kaesong complex, a South Korean-built industrial zone in North
Korea, are regarded as being made in South Korea under the deal, according to the
ministry. India will also allow South Korean companies to invest in the
machinery, automaking and electronics sectors.
South Korea will be the second country after Singapore with which India has
signed such a treaty. The Comprehensive Economic Cooperation Agreement between
India and Singapore took effect in August 2005.
India is in the middle of negotiations with the European Union and Japan on
similar trade deals. The South Asian giant, populated by over 1.1 billion, has
not yet launched negotiations with China.
sam@yna.co.kr
(END)
SEOUL, Aug. 6 (Yonhap) -- South Korea and India have agreed to eliminate or cut
tariffs on goods over the next 10 years and will open their service and
investment sectors to boost economic cooperation, Seoul's trade ministry said
Thursday.
Wrapping up three years of negotiations, the two countries will sign a so-called
Comprehensive Economic Partnership Agreement (CEPA) on Friday, committing
themselves to drastically lower import tariffs on cars and other manufactured
goods.
The trade pact is similar in essence to the free trade agreements (FTA) South
Korea has signed the U.S. and other trading partners, but phases out tariffs more
slowly.
Overall, the CEPA is expected to boost bilateral trade by as much as US$3.3
billion annually, 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 logging a surplus of $2.39 billion.
Under the trade pact, South Korea will phase out or reduce tariffs on 90 percent
of Indian goods over 10 years after the accord takes effect. India will eliminate
or cut tariffs on 85 percent of South Korean goods within the same period.
Tariffs on South Korean auto parts, the country's biggest trading item, are to be
reduced to as low as 1 percent over an eight-year period from the current average
of 12.5 percent. But both sides agreed to exclude fisheries and some agricultural
products -- including dairy, beef and pork -- from tariff concessions.
The South Korean trade ministry said that the slower tariff-removal rate with
India underlines the importance of Korea securing a foothold in the market ahead
of China and Japan. The agreement with India addresses trade in goods and
services as well as investments, and contains chapters on competition and
intellectual property rights.
In the service sector, India agreed to open its telecom, accounting, medical and
advertising markets to South Korean companies. South Korean lenders will also be
allowed to open branches in India.
Both sides agreed to allow temporary migration of professional workers such as
computer programmers and engineers. South Korea has not offered that kind of
commitment to any of its FTA partners.
Goods made at the Kaesong complex, a South Korean-built industrial zone in North
Korea, are regarded as being made in South Korea under the deal, according to the
ministry. India will also allow South Korean companies to invest in the
machinery, automaking and electronics sectors.
South Korea will be the second country after Singapore with which India has
signed such a treaty. The Comprehensive Economic Cooperation Agreement between
India and Singapore took effect in August 2005.
India is in the middle of negotiations with the European Union and Japan on
similar trade deals. The South Asian giant, populated by over 1.1 billion, has
not yet launched negotiations with China.
sam@yna.co.kr
(END)
