Editing Comprehensive Economic Partnership Agreement between India and South Korea

{{for|a similar agreement|India–Singapore Comprehensive Economic Cooperation Agreement}}
{{Infobox Geopolitical organization
|conventional_long_name = Comprehensive Economic Partnership Agreement between India and South Korea
|native_name = {{unbulleted list|{{native name|ko|대한민국-인도 포괄적 경제동반자 협정}}}}
|image_map = India South Korea Locator.png
|map_width = 250px
|languages_type = Languages
|languages = {{hlist |[[English language|English]]|[[Korean language|Korean]]}}
|org_type = [[Free-trade agreement|Free trade agreement]]
|membership_type = Member states
|membership = {{unbulleted list |{{flagicon image|Flag of India.svg}} [[India]] |{{flagicon image|Flag of South Korea.svg}} [[South Korea]]}}
|established = {{start date and age|2010|1|1}}<ref>{{Cite web|url=https://aric.adb.org/fta/india-korea-comprehensive-economic-partnership-agreement|title=India-Korea Comprehensive Economic Partnership Agreement Free Trade Agreement|website=Asian Regional Integration Center|access-date=2019-07-14}}</ref>
|area_magnitude =
|area_km2 = 3,386,983
|population_estimate = 1,401,511,167
|population_estimate_year = 2019
|population_density_km2 = 413.8
|official_website = {{URL|http://www.fta.go.kr/main/situation/kfta/lov5/in/}}
{{URL|http://www.indembassyseoul.gov.in/page/cepa/}}
}}
The '''Comprehensive Economic Partnership Agreement''' (CEPA) is a [[free trade agreement]] between [[India]] and [[South Korea]].<ref name="JoongAng">{{cite news|url=http://joongangdaily.joins.com/article/view.asp?aid=2908164|title=India to sign trade deal next week|last=Gwang-lip|first=Moon|author2=Lee Sang-ryeul|date=2009-07-31|publisher=[[JoongAng Daily]]|accessdate=2009-08-15}}</ref> 
The agreement was signed on August 7, 2009.<ref name="ap">{{Cite news
| last = Olsen
| first = Kelly
| title = South Korea, India sign free trade agreement
| work = Associated Press
| accessdate = 2009-08-21
| date = 2010-08-07
| url = https://www.google.com/hostednews/ap/article/ALeqM5gJByB7TxyFlA54GnWFaU5A57k5nwD99TVT180
}}
</ref> The signing ceremony took place in [[Seoul, South Korea|Seoul]] and the agreement was signed by the Indian Commerce Minister, [[Anand Sharma]] and South Korean Commerce Minister, Kim Jong-Hoon.<ref>{{cite news|url=https://www.bloomberg.com/apps/news?pid=20601091&sid=av9jDUOA5nQU|title=South Korea, India Agree to Cut Tariff to Boost Trade |last=Koo|first=Heejin|date=2009-08-07|publisher=Bloomberg News|accessdate=2009-08-21}}</ref> The negotiations took three-and-a-half years, with the first session being held in February 2006. The agreement was passed in the [[National Assembly of South Korea|South Korean parliament]] on 6 November 2009.<ref name="arirang">{{cite news|url=https://www.arirang.co.kr/News/News_View.asp?nseq=96945&code=Ne2|date=2009-11-06|title=Korea-India CEPA Ratified by Parliament|newspaper=[[Arirang News]]|publisher=[[Korea International Broadcasting Foundation]]|accessdate=2014-04-11|url-status=dead|archivedate=2014-04-11|archiveurl=https://web.archive.org/web/20140411150424/https://www.arirang.co.kr/News/News_View.asp?nseq=96945&code=Ne2}}</ref> It was passed in the [[Indian parliament]] the next week.<ref name="JoongAng" /> Once passed, the agreement came into effect sixty days later, on January 1, 2010.<ref>{{Cite web|url=https://aric.adb.org/fta/india-korea-comprehensive-economic-partnership-agreement|title=India-Korea Comprehensive Economic Partnership Agreement Free Trade Agreement|website=Asian Regional Integration Center|access-date=2019-07-14}}</ref> It is equivalent to a [[free trade agreement]].<ref name="JoongAng" /> The agreement will provide better access for the Indian service industry in South Korea. Services include [[Information technology]], engineering, finance, and the legal field.<ref>{{cite news|url=http://economictimes.indiatimes.com/Indians-to-get-easy-short-term-visas-from-Korea/articleshow/4902847.cms|title=Indian professionals to get easy short-term visas from Korea|date=2009-08-19|publisher=Economic Times|accessdate=2009-08-21}}</ref> South Korean car manufactures will see large tariffs cuts to below 1%.<ref name="business line">{{cite news|url=http://www.thehindubusinessline.com/2009/08/08/stories/2009080851720100.htm|title=India, Korea agree to cut tariffs to boost trade ties |date=2009-08-07|publisher=Hindu Business Line|accessdate=2009-08-21}}</ref> All the while, Korean corporations have flooded India with cheaper imports of raw metal, steel and finished products.

The agreement will ease restrictions on foreign direct investments. Companies can own up to 65% of a company in the other country.<ref name="business line" /> Both countries avoided issues over agriculture, fisheries, and mining and choose not to decrease tariffs in those areas. This was due to the very sensitive nature of these sectors in the respective countries.<ref>{{cite news|url=http://news.xinhuanet.com/english/2009-08/07/content_11844670.htm|title=S. Korea, India sign bilateral trade agreement |last=Haejung |first=Na|date=2009-08-07|publisher=Xinhua|accessdate=2009-08-21}}</ref> Trade between India and South Korea was $15.6 billion in 2008. This is a major increase from 2002, when the total trade amount was $2.6 billion.<ref name="ap" /> The [[Korea Institute for International Economic Policy]] believes the agreement  will increase trade between the two countries by $3.3 billion.<ref name="JoongAng" />

== Negotiation and Establishment (2005 - 2009) ==
In January of 2005, both parties formed a Joint Study Group to assess the viability of a free trade agreement between the two nations. During the following four years, the Joint Study Group studied the existing $7.1 billion trade between the two nations and negotiated a deal that paid respect to economic weaknesses and strengths of the markets in both nations. Rahul Khullar, the Indian Commerce Secretary and member of the Joint Study Group, elaborates that one such cooperation occurred during discussions regarding the agricultural sector, one that is particularly weak in South Korea, but thriving in India.<ref>{{Cite web|url=https://www.thehindubusinessline.com/news/the-beachhead-in-east-asia/article23032423.ece|title=The beachhead in East Asia|last=Sen|first=Amiti|website=@businessline|language=en|access-date=2019-07-15}}</ref> [[File:The President of Republic of Korea Mr. Roh Moo-Hyun and his Wife Mrs. Roh Moo-Hyun are received by the President Dr. A.P.J Abdul Kalam and the Prime Minister Dr. Manmohan Singh at a Ceremonial Reception in New Delhi on October 05.jpg|thumb|The President of Republic of Korea Mr. Roh Moo-Hyun and his Wife Mrs. Roh Moo-Hyun are received by the President Dr. A.P.J Abdul Kalam and the Prime Minister Dr. Manmohan Singh at a Ceremonial Reception in New Delhi on October 05]]

The deal, for South Korea, added to a large roster of existing bilateral and multilateral free trade agreements created under the term of Korean President [[Roh Moo-hyun]].<ref name="ap" /> As for India, the negotiations coincided with then-incumbent Indian Prime Minister [[Manmohan Singh|Manmohan Singh's]] [[Look East policy (India)|Look East initiative]], which promised greater regional integration between India and the markets of East Asia. 

After 12 rounds of negotiations between January of 2005 and September 25, 2008, the committee concluded discussion and went into a phase of legal review by both governments.<ref name=":0">{{Cite web|url=http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&oid=001&aid=0002799782&sid1=001|title=협상 일지(종합)|website=news.naver.com|language=ko|access-date=2019-07-15}}</ref> The bill was passed by the Indian parliament on July 2, 2009 and, subsequently, by the South Korean parliament on November 6, 2009.<ref name=":0" />

== Impact ==
{| class="wikitable sortable"
|+Trade Balance between India and South Korea (2007 - 2017, in billions USD)<ref>{{Cite web|url=http://atlas.media.mit.edu/en/visualize/line/hs92/show/ind/kor/all/2007.2017/|title=Trade balance of India to South Korea (2007-2017)|website=The Observatory of Economic Complexity|language=en|access-date=2019-07-14}}</ref>
!Year
!Indian exports
!South Korean exports
!Trade Balance
!Volume
|-
|2007
|4.49
|6.25
| -1.76
|10.74
|-
|2008
|6.35
|8.57
| -2.22
|15.92
|-
|2009
|4.11
|7.91
| -3.8
|12.02
|-
|2010
|5.42
|10.7
| -5.28
|16.12
|-
|2011
|7.45
|12.6
| -5.15
|20.05
|-
|2012
|6.57
|13.1
| -6.53
|19.67
|-
|2013
|6.03
|12
| -5.97
|18.03
|-
|2014
|5.13
|13
| -7.87
|18.13
|-
|2015
|4.2
|12.5
| -8.3
|16.7
|-
|2016
|4.07
|11.8
| -7.73
|14.87
|-
|2017
|4.96
|15.3
| -10.34
|20.26
|}
<br />
== See also ==
* [[Comprehensive Economic Partnership for East Asia]]

== References ==
{{Reflist}}

{{Economy of South Korea}}{{Economy of India}}
[[Category:Economy of South Korea]]
[[Category:Free trade agreements of South Korea]]
[[Category:Treaties concluded in 2009]]
[[Category:Treaties entered into force in 2010]]
[[Category:Free trade agreements of India]]
[[Category:Foreign trade of India]]