India – South Korea Trade Talks

India – South Korea Trade Talks

Part of: Mains GS-2: India and its neighbourhood- relations.

Context: India-Republic of Korea (RoK) relations has made great strides in recent years and has become truly multidimensional, spurred by a significant convergence of interests, mutual goodwill and high level exchanges.

• India Korea aim to achieve the trade target of USD 50 Billion before 2030.
• Both the countries have agreed to 
  • Impart fresh momentum to the discussions on CEPA up-gradation negotiations and address difficulties expressed by industry from both sides  
  • Promote extensive B2B interactions on trade and investment between the Industry leaders of the two countries.  
  • Highlighted the difficulties the bovine meat exports are facing in South Korea.

A brief history of India-South Korea Relation 

• During the Korean War (1950- 53),  India has played a major role in cease-fire agreement signed between both the warring sides and the ceasefire was declared on 27 July 1953. 
• The relationship did not move much till 1990s due to South Korea’s closeness to US and India either following non-aligned or under Russian influence 
• The economic relation between India and South Korea grew after economic reforms in India which led to signing of Comprehensive Economic Partnership Agreement (CEPA) in 2010 
• Relations between India and South Korea was raised to the level of Strategic Partnership in January 2010 and upgraded to Special strategic partnership in 2015 
• India has a major role to play in South Korea’s Southern Policy under which Korea is looking at expanding relations beyond its immediate region. 
• Similarly, South Korea is a major player in India’s Act East Policy under which aims to promote economic cooperation, cultural ties and develop strategic relationships with countries in the Asia-Pacific.

Comprehensive Economic Partnership Agreement (CEPA)

• A free trade agreement between two countries
• Covers negotiation on the trade in services and investment, and other areas of economic partnership such as trade facilitation and customs cooperation, competition, and Intellectual Property Rights.
• CEPA also looks into the regulatory aspect of trade and encompasses an agreement covering the regulatory issues.

News Source: PIB