About:
- India raised serious concerns on the growing trade deficit between the two countries and discussed market access issues. Both sides agreed to work closely to address tariff and non-tariff barriers and deepen the relationship in the services sector.
- It was agreed that the 10th round of CEPA upgradation negotiations will be hosted by India in early 2023.
India – ROK Comprehensive Economic Partnership Agreement (CEPA)
- ROK and India signed a CEPA in Seoul on 7th August , 2009.
- It commits both countries to lower or eliminate import tariffs on a wide range of goods, over the next 10 years. ROK is reducing tariffs on 90 percent of Indian goods while India will do so on 85 percent of Korean goods.
Types of Trade Agreements:
- Free Trade Agreement: It is an agreement in which two or more countries agree to provide preferential trade terms, tariff concession etc. to the partner country. Here a negative list of products and services is maintained on which the terms of FTA are not applicable.
- Preferential Trade Agreement: In this, two or more partners give preferential right of entry to certain products. This is done by reducing duties on an agreed number of tariff lines. India signed a PTA with Afghanistan.
- Comprehensive Economic Partnership Agreement: It is comprehensive than an FTA. CECA/CEPA also looks into the regulatory aspect of trade.
- Comprehensive Economic Cooperation Agreement: CECA generally covers negotiation on trade tariff and TQR rates only. It is not as comprehensive as CEPA. India has signed CECA with Malaysia.
- Framework agreement: It primarily defines the scope and provisions of orientation of the potential agreement between the trading partners. It provides for some new area of discussions and set the period for future liberalisation. India has previously signed framework agreements with the ASEAN, Japan etc.
- Early Harvest Scheme: It is a precursor to an FTA/CECA/CEPA between two trading partners. At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
