India, South Korea sign agreements on trade and commerce

Posted by Daily Shipping Times on 11-07-2018        Tweet

NEW DELHI: India and South Korea will reduce duties on 11 tariff lines in a bid to expand bilateral trade by updating their existing free-trade agreement, called the comprehensive economic partnership agreement (CEPA).

“Both countries have agreed to tariff concessions on 11 lines,” said an official in the know of the details.

The revised CEPA would be signed shortly in the presence of South Korean President Moon Jae-in, who is on a four-day visit to India. The two Countries arrived at the final tariff lines after intense negotiations in which South Korea offered to reduce tariffs on 17 lines.

In 2017-18, India exported goods worth $4.4 billion to South Korea while imports from the latter were worth $16.3 billion. India allowed imports of South Korean pears and had asked Seoul to reduce duties on sesame imports. South Korea imposes quantitative restrictions on sesame imports and levies a whopping 630% duty on Indian sesame, which India wants reduced.

South Korea’s main items of export to India include automobile parts, telecommunication equipment, hot-rolled iron products, petroleum refined products, base lubricating oils, nuclear reactors, mechanical appliances, electrical machinery and parts, and iron and steel products.