India-Korea CEPA review begins; Both agree to up trade in services and also improved utilisation of bilateral concessions; Korea Plus launched to facilitate Korean investments
By TIOL News Service
NEW DELHI, JUNE 19, 2016: THE second meeting of the Joint Committee at the Ministerial Level to review the India-Korea CEPA (Comprehensive Economic Partnership Agreement) was held in New Delhi yesterday. Ms Nirmala Sitharaman, Minister of State (Independent Charge) for Commerce and Industry and Mr Joo Hyunghwan, Minister of Trade, Industry and Energy of the Republic of Korea reviewed the progress made in trade between the two countries since the entry into force of the CEPA from 1st January, 2010 and also had extensive discussions on bilateral trade and economic relations.
The Ministers welcomed the opening of “Korea Plus” by the Indian Ministry of Commerce and Industry and agreed to support its operations especially in promoting Korean investment in India. Korean companies’ investment and business activities in India were appreciated and the need to encourage their further participation in India’s key initiatives such as Make in India, Digital India, Skill India, Smart City projects, Power Generation, Smart Grid and Waste Management was stressed upon. The ‘Korea-India Infra & Industry Forum 2016’ was held on the sidelines of the Ministerial Joint Committee with the participation of the business community of both countries and B2B MoUs were signed in areas such as auto parts, waste-to-energy etc.
Both the ministers agreed that the utilization rate of the bilateral concessions given under CEPA need to be improved. Recognizing the need for providing greater market access, and mutual capacity building in SPS and TBT measures, the Ministers agreed that Korean companies could invest in food processing of agricultural and marine products so that these value added products could be exported to the east Asian markets.
The Ministers also agreed to increase the trade in services and the Commerce Minister sought greater market access for Indian IT and Healthcare industry in Korea. On India’s request the Korean Minister agreed to assess the visa requirements to enable Indian teachers teach in Korea under the English Program in Korea (EPIK).
The Ministers agreed that the widening trade deficit was a matter of concern for India and the Korean Minister observed that the wider economic slowdown was one of the causes of increasing trade deficit. He assured that the Korean side is open to increasing trade with India and allowing Indian exporters greater market access on reciprocal basis. He also agreed that Korea could make investments under the make in India Program for the mutual benefit of both the countries. Commerce and Industry Minister Smt. Nirmala Sitharaman impressed upon the Korean side for greater market access in Agriculture, Marine, IT and other services.
Recalling that the leaders of both countries, at the summit meeting held on 18 May 2015 in Korea, had agreed on commencement of negotiations to amend the CEPA by June 2016 with a view to achieve qualitative and quantitative increase of trade through an agreed road-map, the Ministerial Level Joint Committee Meeting commenced the process of review of CEPA.
The Indian Commerce Minister also launched Korea Plus, a special initiative to promote and facilitate Korean Investments in India.
An MOU for establishing Korea Plus was earlier signed between the Ministry of Trade, Industry and Energy, Govt. of the Republic of Korea and Invest India, the National Investment Promotion & Facilitation Agency of India in January 2016. This MOU came as an outcome of the visit of the Indian Prime Minister to South Korea in May 2015.
The launch took place in the presence of Mr. Cho Hyun, the Ambassador of the Republic of Korea to India, officials of the Department of Industrial Policy and Promotion, Korea Trade Investment Promotion Agency (KOTRA), Invest India team and several Korean Business delegates.
Korea Plus, operationalized on June 18, 2016 comprises of a representative from the Ministry of Industry, Trade and Energy, Government of the Republic of Korea and representative from Korea Trade Investment and Promotion Agency (KOTRA) and three representatives from Invest India.
The mandate of Korea Plus covers the entire investment spectrum including supporting Korean enterprises entering the Indian market for the first time, looking into issues faced by Korean companies doing business in India and policy advocacy to the Indian Government on their behalf. Korea Plus will act as a mediator in arranging meetings, assisting in public relations and research/evaluation and provide information and counselling in regard to Korean companies’ investing in India.
India and the Republic of Korea relations have made great strides in recent years and Korea Plus will act as a catalyst in making these relations even more robust.
