CEPA with RoK
India – ROK Comprehensive Economic Partnership Agreement (CEPA)
ROK and India signed a Comprehensive Economic Partnership Agreement (CEPA) in Seoul on 7th August , 2009, heralding a new era of greater economic exchanges, between the two countries. Negotiated over twelve rounds, during more than three years, CEPA came into effect on 1st January 2010.
It commits both countries to lower or eliminate import tariffs on a wide range of goods, over the next 10 years and expand opportunities for investments and exchanging services. ROK is phasing out or reducing tariffs on 90 percent of Indian goods over the next decade, while India will do so on 85 percent of Korean goods.
South Korean business was quick to recognize the great potential of the Indian market comprising of 1.2 billion people and a 300 million strong middle class, endowed with excellent buying power. Indian demand for a wide range of goods and services, is expanding rapidly consequent to the steady GDP growth of around 8% during the preceding five years. India’s GDP is poised to touch $ 2 trillion by the end of the year. It is expected that India would become the 3rd biggest economy in the world by 2030.
India will also benefit from CEPA, which allows temporary movement to ROK, of professional workers such as computer programmers, software engineers and English language teachers etc. 163 such professions would be allowed access to Korean services market.
The initial impact of CEPA has been very encouraging. Bilateral trade crossed $ 20.6 billion by the end of 2011, registering nearly a 70% increase over a two year period. Both sides have been conducting regular reviews of the implementation of CEPA . The next Joint Committee meeting at the level of Ministers of Trade / Commerce is expected to take place in the first half of 2013.