CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. South Korea, India To Enhance Free Trade Deal

South Korea, India To Enhance Free Trade Deal

by Mary Swire, Tax-News.com, Hong Kong

22 June 2016


South Korea and India have agreed to enter into talks aimed at re-negotiating the terms of their existing bilateral Comprehensive Economic Partnership Agreement (CEPA), particularly to improve the list of traded goods subject to reduced tariffs.

In a statement following the second meeting of the Joint Ministerial Committee held to review the CEPA in New Delhi on June 18, the South Korean Ministry of Trade, Industry, and Energy confirmed that the percentage of tariffs eliminated or reduced in the current agreement (which entered into force on January 1, 2010) is less than in the free trade agreements subsequently concluded by South Korea with other jurisdictions.

The Ministry confirmed that, presently, only about 85 percent of South Korean exports to India (both in terms of the number of items and their value) are tariff free or pay a reduced rate of import duty. With regard to Indian goods exported to South Korea, only 93 percent by number of items (or 90 percent by value) are subject to tariff elimination or reduction.

The Indian Government has become concerned at the increasing trade deficit being seen recently by India in its trade with South Korea. In reply, during the meeting, the South Korean Minister of Trade, Industry, and Energy, Joo Hyunghwan, stressed that his country is open to increasing trade with India and to allowing Indian exporters greater market access on a reciprocal basis.

India's Commerce Minister Nirmala Sitharaman looked for greater market access in South Korea for the Indian agricultural, marine, information technology and service sectors. On the other hand, South Korean exporters might expect to see improved terms for its steel, electrical and electronic, and automotive parts industries, within a CEPA renegotiation.

TAGS: tax | India | tariffs | trade treaty | agreements | Korea, South | import duty | trade

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »