Minister of Trade, Industry and Energy Yeo Han-koo had a meeting with Minister of Commerce and Industry Piyush Goyal in New Delhi on the 11th and exchanged opinions on the progress and implementation of negotiations for improvement of the Korea-India Economic Partnership Agreement (CEPA). Provided by the Ministry of Trade, Industry and Energy.
The government resumes negotiations with India to improve the Comprehensive Economic Partnership (CEPA) after two and a half years.
The Ministry of Trade, Industry and Energy announced on the 12th that the Minister of Trade, Industry and Energy Yeo Han-koo had reached an agreement on these matters during a meeting with Minister of Commerce and Industry Piyush Goyal held in New Delhi the day before. The Korea-India CEPA came into effect in January 2010, and negotiations for improvement have been in progress since 2015. However, since June 2019, it has been suspended due to COVID-19. The two ministers decided to hold official negotiations sometime next month. The two sides mentioned the fact that the two leaders agreed to achieve $50 billion in trade between Korea and India by 2030, taking advantage of the July 2018 summit, and expected that the improvement of the CEPA would greatly contribute to the expansion of trade and investment between the two countries.
The Korea-India CEPA has a low export utilization rate of 41.7% due to its low level of market opening and strict rules of origin compared to other free trade agreements (FTAs), which requires improvement. The two countries agreed to discuss ways to strengthen supply chains and expand cooperation on new trade issues such as climate change, vaccines, and digital cooperation through the CEPA improvement negotiations in preparation for the post-corona era.
On the same day, Director Yeo held a video discussion with experts from major economic groups and think tanks such as the Indian Industry Association (CII) and the Observer Research Foundation (ORF) to explore ways to jointly respond to changes in the trade environment and economic cooperation between Korea and India. In a discussion with ORF, Director Yeo said, “In the process of discussing the formation of a new trade order surrounding the recently accelerating Indo-Pacific region, such as the Indo-Pacific Economic Framework (IPEF) and the Comprehensive Progressive Trans-Pacific Partnership (CPTPP), Korea and India We need close cooperation,” he said.