India and South Korea will hold the 11th round of FTA review talks in Seoul from July 17-19, focusing on boosting trade and market access for key products like steel, rice, and shrimp. The comprehensive economic partnership agreement (CEPA) has been in effect since January 2010, with ten rounds of review talks completed.
Senior officials will discuss the broad contours for closing the deal, with Korea keen to conclude negotiations this year. Both countries seek greater market access for products under the agreement’s negative list, which currently receives no customs duty concessions.
The Department of Commerce has engaged with various ministries to prepare the offer list. India aims to boost exports by securing greater market access for products like steel, rice, and shrimp, and has raised concerns about Korean firms not purchasing Indian steel.
The review is significant as it aims to strengthen economic cooperation between India and Korea. Review exercises typically address implementation issues, rules of origin, customs procedures, trade liberalization, and data exchange.
India has also flagged concerns over the growing trade deficit with Korea. India’s exports to Korea decreased to USD 6.41 billion in 2023-24, while imports remained high at USD 21.13 billion. The trade deficit has grown significantly compared to India’s global trade deficit.
According to the Global Trade Research Initiative (GTRI), Indian exporters face non-tariff barriers in South Korea, making market penetration difficult. India seeks greater liberalization in the services sector, including healthcare and IT, and easier access for Indian professionals in the South Korean market.
Source: Rediff
