S. Korea, India close to economic partnership agreement

SEOUL, Sept. 25 (Yonhap) -- South Korea and India on Thursday made significant progress in their talks aimed at reaching a comprehensive economic partnership agreement (CEPA), with both sides seeking to sign the deal before the end of the year, officials said.

Negotiators from both countries reached an agreement on key issues such as tariff
concessions and the opening of the service sector during their 12th round of
talks in Seoul that started on Monday, according to their officials.
"Both countries will finalize the deal soon, and seek to sign it within this
year," an official at the Trade Ministry said. "In that case, the agreement will
go into effect in the first half of the year."
A CEPA is technically the equivalent of a free trade agreement (FTA), and is
geared to promote growth through liberal trade, investment and economic and
technical cooperation.
Seoul and New Delhi started the CEPA talks in March 2006. Bilateral trade volume
reached US$11.2 billion last year, and South Korea's direct investment in India
reached $1.1 billion at the end of last year.
With the world's second-biggest population of 1.1 billion people, India's economy
has been growing at an annual rate of more than 8 percent.
South Korea expects the CEPA to help its companies gain an edge over foreign
rivals in the world's 12th-largest economy.
South Korea has signed FTAs with Chile, Singapore, the European Free Trade
Association of Switzerland, Norway, Ireland and Lichtenstein, the Association of
Southeast Asian Nations and the United States. The FTA with the U.S. is pending
ratification by the two countries' legislative bodies before it goes into effect.
South Korea is also engaged in talks with the European Union, Canada, Mexico, the
Gulf Cooperation Council.
sam@yna.co.kr
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