Cepa Agreement Between India And South Korea

By September 14, 2021 No Comments

The Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement between India and South Korea. [2] The agreement was signed on August 7, 2009. [3] The signing ceremony took place in Seoul and the agreement was signed by Indian Trade Minister Anand Sharma and South Korean Trade Minister Kim Jong-Hoon. [4] Negotiations lasted three and a half years and the first meeting took place in February 2006. The agreement was adopted by the South Korean parliament on 6 November 2009. [5] It was passed next week by the Indian parliament. [2] After its adoption, the agreement entered into force sixty days later, on 1 January 2010. [6] It is consistent with a free trade agreement. [2] The agreement will allow better access to India`s services sector in South Korea. Services include information technology, engineering, finance and legal. [7] South Korean automakers will suffer significant tariff reductions of less than 1%.

[8] Meanwhile, Korean groups flooded India with cheaper imports of raw metals, steel and finished products. The Comprehensive Economic Partnership Agreement (CEPA), signed on 7 August 2009 between India and South Korea and operational from 1 January 2010, remains a turning point in relations between the two countries. CEPA is a bilateral agreement covering trade in goods and services, investment, competition and intellectual property rights (IPRs). RCEP has tried to integrate ASEAN countries and the bloc`s partners in the free trade agreement (FTA) – India, China, Japan, South Korea, Australia and New Zealand – into a free trade area. Initially touted as an alternative to the Trans-Pacific Partnership (TPP), RCEP took on a new dimension after the US pulled out of the TPP and then embarked on a trade war, mainly against China. According to several estimates, the share of RCEP in global GDP could reach 50% by 2050. Fears that India would be ruled out if it decided not to join the group has worried Indian politicians. But given the economic power of China and other economies, it may have been very difficult for India to get a significant share of this RCEP pie. Instead, the country can make realistic attempts to seize opportunities through bilateral trade negotiations and agreements – where Indian concerns can be clearly expressed and expressed. The CEPA between South Korea and India offers such a platform. The development of a mutually beneficial trade and economic relationship between India and South Korea will undoubtedly help economies that now urgently need to find economic boosters.

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