India, Korea agree to ‘impart fresh momentum’ to bilateral trade pact

What is the news?

South Korea’s Trade Minister met with the Indian Minister of Commerce & Industry.

What are the key highlights of the meeting?

Firstly, the two countries agreed to upgrade the existing CEPA (Comprehensive Economic Partnership Agreement) signed in 2009.

Secondly, they will try to achieve the target of USD 50 Billion before 2030 which was agreed at the summit meeting in 2018. 

Thirdly, they agreed to boost bilateral trade between India and Korea to achieve growth in a fair and balanced manner to the mutual advantage of both sides.

What are the issues in India-South Korea Trade?

India has a large trade deficit with South Korea and is aiming to address issues of market access and non-tariff barriers faced by Indian exporters.

– India’s total exports to South Korea in FY21 were about $4.68 billion, against imports of $12.77 billion. Microphones and cameras are key imports from South Korea. Key exports to South Korea are aluminum and mineral fuels.

Source: This post is based on the following articles:

“India, Korea agree to ‘impart fresh momentum’ to bilateral trade pact” published in Indian Express on 12th January 2022.

“Joint Press Communique India – Korea Trade Talks” published in PIB on11th January 2022.