India looks to renegotiate trade pact with Korea

NEW DELHI: India is looking to renegotiate its free trade agreement with South Korea to address the widening trade deficit and make the pact more contemporary, commerce and industry minister Piyush Goyal said on Monday.

"All options are on the table... we may even consider rewriting it into a completely new FTA because it should be more contemporary. A lot has changed in the last 16 years and India today comes with a lot of strength on the negotiating table," Goyal said about the FTA renegotiation on the sidelines of the India-Korea Business Forum organised by FKI (Federation of Korean Industries) and Ficci.




He said the proposal was discussed with South Korean trade minister Yeo Han-koo, who is accompanying President Lee Jae Myung for his visit as both countries work towards doubling their trade to $50 billion by 2030 from about $25 billion as well as a more balanced trade relationship.

India and South Korea held meetings on Monday to review and upgrade the existing comprehensive economic partnership agreement, or CEPA, that has been in operation since the year 2010.

Goyal also said discussions were held on setting up a Korean industrial enclave in India, similar to Japanese townships, with plug-and-play infrastructure, housing and social facilities to attract investment and support Korean companies operating in the country.

South Korean President Lee, meanwhile, said there is significant scope to expand trade between the two counties and spoke for cooperation in high-tech sectors, artificial intelligence and shipping.
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