India hoping for more investment from Korea: Indian trade minister

By Nam Kwang-sik
SEOUL, Aug. 7 (Yonhap) -- India's visiting Trade Minister Arnand Sharma on Friday
expressed hope that South Korean companies would increase their investments in
his country after the two nations signed a landmark trade deal.

Earlier in the day, Sharma and his South Korean counterpart Kim Jong-hoon signed
the so-called Comprehensive Economic Partnership Agreement (CEPA), committing
both countries to drastically lower import tariffs on cars and other manufactured
items.
The accord is expected to take effect on Jan. 1 after South Korea's parliament
ratifies the deal.
"Many South Korean companies such as POSCO and Hyundai contributed to India's
economic growth. I hope that companies of the two countries make more investment
in each other's countries," Sharma said in a luncheon meeting hosted by the Korea
Chamber of Commerce and Industry.
He noted that the two nations could further cooperation, especially in the
hi-tech and agricultural sectors.
Under the trade pact, South Korea will phase out or reduce tariffs on 90 percent
of Indian goods over the next 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 export, 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.
Two-way trade increased 39 percent to US$15.56 billion last year, with South
Korea logging a surplus of $2.39 billion.
South Korea exported $3.6 billion of goods to India, and imported $1.6 billion in
the first six months of this year, according to Seoul's trade ministry.
ksnam@yna.co.kr
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