India and South Korea have reaffirmed their commitment to conclude the upgrade of the Comprehensive Economic Partnership Agreement (CEPA) in a time-bound manner. This decision was taken during the 10th India-Korea Joint Trade Committee meeting held in Seoul on Friday. The meeting was co-chaired by India's Commerce Secretary Sunil Barthwal and South Korea's Deputy Minister for Trade, Industry and Energy Jeong Dae-jin.
Focus on Trade Expansion
Both sides agreed to expedite the negotiations for upgrading the CEPA, which was signed in 2009 and implemented in 2010. The upgrade is aimed at further liberalizing trade in goods, services, and investment. The discussions also covered ways to enhance cooperation in sectors such as pharmaceuticals, medical devices, and automotive components.
Key Outcomes
- Both countries committed to resolving pending issues and concluding the upgrade negotiations at the earliest.
- They agreed to work towards removing non-tariff barriers and improving market access.
- There was a mutual understanding to strengthen supply chain resilience and explore new areas of cooperation like digital trade and green technologies.
The meeting also reviewed the implementation of the existing CEPA and identified areas where trade can be expanded. India sought greater market access for its agricultural products, including rice and buffalo meat, while South Korea emphasized the need for improved intellectual property rights protection.
Bilateral Trade Performance
Bilateral trade between India and South Korea stood at USD 27.8 billion in 2022-23, showing an increase from the previous year. However, both sides acknowledged the potential to reach USD 50 billion by 2030 as envisioned by the leaders. The upgrade of CEPA is seen as a critical step to achieve this target.
The next round of negotiations is expected to be held in New Delhi later this year. Both sides expressed optimism about concluding the talks within the agreed timeframe.
