<\/p>\n
News<\/span><\/b>: <\/span>India aspires to be the 3rd<\/strong><\/span> largest economy <\/span><\/b>in the world by the <\/span>year 2047<\/span><\/b>. The government is working hard to make India self-reliant and play a bigger role in the global economy. <\/span><\/p>\n In this context, Indian industry has been requesting the government to look into the existing trade pacts, especially India-South Korea CEPA that includes provisions which are threatening domestic industry.\u00a0<\/span>\u00a0<\/span><\/p>\n When the India-Korea CEPA was signed, India used to export a sizeable quantity of zinc to the Republic of Korea (RoK). Korea had low production and India had weaker domestic demand.\u00a0<\/span>\u00a0<\/span><\/p>\n The RoK increased its manufacturing capabilities, over time it enhanced its smelting capabilities. It also has lower logistical costs. In addition, it was also helped by the \u201c<\/span>smart free trade agreement negotiations<\/span><\/b>. Therefore, RoK has been able to supply zinc at highly competitive prices to India.\u00a0<\/span>\u00a0<\/span><\/p>\n India\u2019s import of zinc and zinc alloys products from South Korea increased manifold since 2013-14. It happened because the duty was phased down to zero for the Republic of Korea (South Korea).\u00a0<\/span>\u00a0<\/span><\/p>\n In 2020, the RoK became the leading exporter of zinc. It accounted for around10.5% of global exports, despite having no mines.<\/span>\u00a0<\/span><\/p>\n It is facing tough competition from low-cost imports from the RoK<\/strong>. <\/span><\/p>\n –<\/strong> India has a lot of domestic manufacturing capabilities. For example, India was the 5th largest country for zinc mining (with 5.67% share) in 2019, after China, Peru, Australia and the US. In India, 100% of the value addition can be done within the country. <\/span><\/p>\n Increased negative trade balance with the RoK<\/strong>. It has adversely impacted several downstream industries.\u00a0<\/span>\u00a0<\/span><\/p>\n The India-Korea trade pact has resulted in a large and growing trade deficit in zinc products. It happened because India overlooked imports from South Korea as a threat to domestic market while signing the pact.<\/span>\u00a0<\/span><\/p>\n A large deficit between India and South Korea occurred due to the Rules-of-Origin (RoO) in the India-Korea Comprehensive Economic Partnership Agreement (CEPA).\u00a0<\/span>\u00a0<\/span><\/p>\n There is a need to re-examine the India-Korea CEPA<\/strong>. It needs to talk about the existing product-specific RoO for zinc. India also needs to discuss a change in tariff subheading (CTSH) and other aspects in the trade pact.<\/span>\u00a0<\/span><\/p>\n India needs to take lessons from the India-Korea zinc-metal trade case history,<\/strong> and be cautious in its new trade deals with Australia, the UK, Canada and the European Union(EU).<\/span>\u00a0<\/span><\/p>\n India needs to have a regular engagement with domestic industry<\/strong> before signing trade agreements with other countries.<\/span>\u00a0<\/span><\/p>\n Source<\/span><\/b>: The post is based on an article <\/span>\u201cIndia-zinc trade deficit with Korea tells why we need industry input on deals<\/span><\/b>\u201d published in the Live Mint<\/strong> on 5<\/strong><\/span>th<\/strong> Apr 22<\/strong>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" News: India aspires to be the 3rd largest economy in the world by the year 2047. The government is working hard to make India self-reliant and play a bigger role in the global economy. In this context, Indian industry has been requesting the government to look into the existing trade pacts, especially India-South Korea CEPA… Continue reading India\u2019s zinc-trade deficit with Korea tells why we need industry input on deals<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10501],"class_list":["post-177744","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1702892115},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/177744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=177744"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/177744\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=177744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=177744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=177744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What was the trade position before signing of the CEPA between India and South Korea?<\/span><\/b>\u00a0<\/span><\/h5>\n
What are the issues in the Indian Zinc Industry and CEPA b\/w India and Korea?<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/h5>\n
Way Forward<\/span><\/b>\u00a0<\/span><\/h5>\n