Gov't submits India trade bill to parliament

SEOUL, Aug. 26 (Yonhap) -- The government submitted a bill on a comprehensive trade agreement with India to parliament for approval on Wednesday, which could increase bilateral trade considerably, officials said.

South Korea and India concluded the deal, called a Comprehensive Economic
Partnership Agreement (CEPA), on Aug. 7 to cut duties on such goods as auto parts
and electronics and to boost cooperation between the two Asian economic
powerhouses.
The National Assembly will deliberate on the trade deal during the ongoing
parliamentary session, the trade ministry said. India's parliament has yet to
ratify the agreement.
The trade accord, if ratified in both countries as scheduled, will likely take
effect as of Jan. 1, 2010, the ministry said.
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).
The agreement is essentially similar to the free trade agreements (FTA) South
Korea has signed with the U.S. and other trading partners, but phases out tariffs
more slowly.
Under the agreement, 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.
ygkim@yna.co.kr