NEW DELHI, June 29 (Bernama) -- The Indian Government is likely to approve next week a free trade agreement (FTA) with South Korea aimed at opening markets of both the countries to each other, reports the Press Trust of India (PTI).
The Comprehensive Economic Partnership Agreement (CEPA) between the countries would break duty barriers that would enable over US$10 billion in bilateral trade.
Over 90 per cent of the items under trade would be covered in the agreement, which is likely to come into operation later this year, an official said, adding that the agreement may come up for consideration next week.
With the implementation of CEPA, people of the two countries would be able to import bulk of goods eventually without paying any duty.
The CEPA negotiations had started in March 2006 and was concluded in September 2008, PTI said.
In its recent visit to India, South Korea Minister for Foreign Affairs and Trade Yu Myung-hwan had discussed CEPA with Commerce and Industry Minister Anand Sharma.
India exports large amount of petroleum products, gems and jewellery, cotton yarn and textile products to the country. Petroleum products constitute around 55 per cent of India's exports to South Korea.
In 2007-08, India exported US$2.85 billion worth of goods to South Korea, posting a rise of 13.5 per cent over the previous year. In the same period, the bilateral trade between the countries was US$10.12 billion.
Source : BERNAMA