India clinches FTA deal with South Korea; pact likely in Dec

New Delhi, Nov 11 (PTI) India is closer to signing a free
trade agreement with South Korea, giving the country an
opportunity to aggressively engage within Asia when the U.S.
and European economies are in turmoil.

"The deal is done and the agreement will be signed by
December," a senior Commerce Ministry official told reporters
here on the sidelines of a Federation of Indian Chamber of
Commerce and Industry (F.I.C.C.I.) function Tuesday.

While India does not need a Parliamentary approval for a
trade pact, South Korea would need a green signal from its
National Assembly.

"It will go to our Cabinet while the Koreans would need a
nod from their National Assembly," the official said, adding
the process of verification of the documents would be
completed by November 18.

The India-South Korea F.T.A. would break duty barriers
for over 11.2-billion-dollar bilateral trade. Over 90 percent
of the items under trade would be covered in the agreement,
which is likely to come into effect in 2009.

India's engagement within Asia is set to grow with the
help of the trade-opening agreements reaching final stages
with Association of South East Asian Nations. Besides an
umbrella pact with the 10-nation bloc, there would be
individual deals with several member countries like Indonesia
and Malaysia.

While negotiations with Japan have also reached advanced
stage, India is hard-selling its 70-billion dollar
pharmaceutical industry in the agreement.

"By 2010, excepting China we will be seriously engaged
with east and north-east Asia," the official said.

India, growing by over eight per cent for the last four
years, is also negotiating F.T.As with European Union while
preliminary studies have been initiated for sharing market
with Australia and New Zealand.

The country has so far signed five F.T.As and five
preferential trade agreements. Export to these countries
account for 10 percent of the its total outbound shipments.
Twelve more are under negotiation. PTI N.K.D.
RKM
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