The negotiations on the expansion of the Comprehensive Economic Partnership Agreement (CEPA) between India and South Korea are expected to be firmed up later this year.
At a press meet in New Delhi, ahead of External Affairs Minister S Jaishankar’s visit to Seoul next month, Chang Jae-bok, the South Korean envoy to India said “On the bilateral trade front, efforts are underway to expedite negotiations for the expansion of CEPA, signed in 2010. During the last round of talks in January, this year, negotiators from both sides showcased a shared commitment to conclude negotiations within this year.”
South Korea is hoping that the negotiations will conclude before the possible visit of Yoon Suk Yeol, the South Korean President, to India.
When will the President of South Korea visit?
According to the envoy, “There are elections in both countries. No decisions or discussions have taken place over the visit. However, later this year a visit is expected.”
Adding, “So hopefully, the negotiation on CEPA will conclude before a bilateral visit by our president. (the visit will) probably (be) after the elections in India; there is also an election in Korea.”
India has asked South Korea to renegotiate the CEPA to make the trade more balanced and equitable.
The Republic of Korea and India signed a CEPA in 2009. The two nations are negotiating the expansion of the CEPA and have so far held several rounds of discussions.
Journey of CEPA Talks
Last July, Commerce Minister Piyush Goyal remarked that the agreement has been extensively discussed because the Indian industry hasn’t reaped many benefits, with gains mostly favouring one side. India’s trade deficit with South Korea increased to US$14.57 billion in FY23 from US$9.39 billion the previous year.
Regarding India’s concerns about CEPA, the envoy noted, “Negotiating free trade agreements is generally challenging… Some industries will suffer losses, and some will benefit from CEPA. However, in the last round of talks, we saw a willingness to negotiate soon.”
Jaishankar’s Travel to Seoul
Indian and South Korean foreign ministers will lead a joint trade commission meeting on March 6 in Seoul. Responding to media queries, the envoy mentioned that regional and global issues might be discussed during the meeting.
“The South Korea-India Trade Commission meeting is scheduled for March 6 in Seoul. Jaishankar, India’s Minister of External Affairs, and his Korean counterpart, Cho Tae-yul, will co-chair this meeting. We expect discussions on high-level exchanges, defence, economics, science and technology, and people-to-people connections alongside important regional issues,” the envoy said.