S Korea ratifies free trade pact with India

Seoul/New Delhi, Nov 6 (PTI) South Korean Parliament on
Friday ratified its free trade agreement with India, paving
the way for a cut or elimination of tariff on a number of
items, including automobile parts from January.

The agreement between Asia's third and fourth largest
economies, signed in August, was passed by South Korean
National Assembly, the Yonhap news agency said here.
The pact, officially known as Comprehensive Economic
Partnership Agreement (CEPA), is likely to help increase the
bilateral trade of about USD 13 billion.
Under the CEPA, import duties will be reduced or
eliminated on 93 per cent of South Korea's and 85 per cent of
India's tariff lines.
At present, the trade is highly imbalanced in favour of
South Korea, which exported USD 8.5 billion to India against
imports of USD 3.9 billion in 2008-09.
India has signed a similar but more ambitious FTA with
the 10-nation Association of Southeast Nations, which will
also largely be implemented from January.
While South Korea needed Parliamentary approval for the
pact, no such clearance is required in India where Prime
Minister Manmohan Singh-headed Committee on Trade and Economic
Relations and Cabinet give the political clearance to the
multilateral trade pacts. PTI RR
SDE


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