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India-S Korea to sign trade pact on Aug 7.


Date: 20-07-2009
Subject: India-S Korea to sign trade pact on Aug 7
New Delhi (PTI): India and South Korea are likely to sign a Comprehensive Economic Economic Partnership Agreement (CEPA) in Seoul on August 7.

The CEPA, comprising six agreements, would pave the way for duty-free trade of goods and services besides investment and customs cooperation between the two countries.

"India has agreed to eliminate 70 per cent of the tariff line while South Korea will do away with its most of the duties in the next 10-years," a senior Commerce Ministry official said.

India's exclusion and sensitive lists includes agriculture, textile and auto components. The Government had said no product had been offered with complete elimination of duty in these sectors.

Seoul would break duty barriers on items of India's export interests while New Delhi has taken enough care to protect its sensitive industries and the farm sector, he said.

A Cabinet meeting presided over by Prime Minister Manmohan Singh had approved the pact early this month. The negotiations for the agreement had started in March 2006 and were concluded in September 2008.

Commerce and Industry Minister Anand Sharma is likely to visit Seoul in August.

India exports petroleum products, gems and jewellery, cotton yarn and textile products to South Korea. In 2007-08, bilateral trade was USD 10.12 billion.

Source : The Hindu

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