India to discuss trade deficit, access with S Korea

NEW DELHI: Commerce minister Piyush Goyal and South Korean trade minister Han-koo Yeo are expected to focus on updating a bilateral trade pact during their meeting on Tuesday as part of efforts to address a trade deficit and market access issues.

The Indian side has been pushing for a review of the Comprehensive Economic Partnership Agreement (CEPA) finalised in 2009 to bridge its high trade deficit with South Korea. Goyal had raised similar issues with his South Korean counterpart during their last meeting in October. “The discussion will focus on addressing the large trade deficit, market access issues and non-tariff barriers faced by Indian exporters,” a commerce ministry statement said ahead of the Tuesday meet.

The discussions will also focus on investment-related issues, it said. The meeting is expected to boost India-south Korea trade relations in an “equitable and balanced manner to the mutual advantage of both countries”, it added.

The meeting is expected to pave the way for the review of the CEPA, an official said, requesting anonymity. South Korea is an important trade partner for India and the two sides signed the CEPA in Seoul on August 7, 2009. The pact was operationalised from 2010.

The trade deal committed the two sides to lowering or eliminating import tariffs on a wide range of goods over a period of eight years, and it helped expand opportunities for investments and trade in goods and services. South Korea was to phase out or reduce tariffs on 90% of Indian exports while India was to phase out or cut tariffs on 85% of South Korean exports, the official said.

The CEPA helped enhance trade and economic ties between India and South Korea, with annual bilateral trade reaching $21.5 billion in 2018, and crossing the $20-billion mark for the first time.