India and South Korea have agreed to accelerate negotiations to upgrade their bilateral trade pact, aiming to address New Delhi’s widening trade deficit with Seoul, according to a statement issued after the latest talks in New Delhi. The 12th round of negotiations for the India-Korea Comprehensive Economic Partnership Agreement (CEPA) concluded recently, with both sides committing to conclude discussions within a set timeframe, livemint.com reported.
The original CEPA was signed in 2009 and came into effect in January 2010 to boost bilateral trade and investment between the two countries. During the 12th round of talks, officials from both nations reaffirmed their commitment to modernize the 16-year-old agreement. The focus of the upgrade includes narrowing the trade gap and expanding cooperation in high-technology sectors, reflecting evolving economic priorities and the need to balance trade flows, according to livemint.com.
This development is significant as the trade deficit between India and South Korea has been widening, prompting New Delhi to seek a more balanced trade relationship. Upgrading the CEPA could enhance market access for Indian goods and services while encouraging South Korean investments in emerging sectors. The pact’s modernization aligns with broader efforts to deepen economic ties and foster technology collaboration, which could benefit industries on both sides, livemint.com noted.
Looking ahead, both countries plan to conclude the CEPA upgrade negotiations within a defined timeline, aiming to implement the revised agreement promptly. The next steps will involve finalizing specific provisions to address trade imbalances and promote high-tech cooperation. Observers will watch closely for progress in the coming months as India and South Korea work to strengthen their economic partnership, livemint.com added.