The 7th round of India – South Korea Comprehensive Economic Partnership Agreement (CEPA) negotiations were held inSouth Korea between 11-13 December 2018.
The discussions were positive and subject to Indian sugar industry meeting the quality standards and specifications prescribed by the South Korean Government.
South Korea imports around 15 lac tones of raw sugar annually and the Indian sugar industry is making efforts to export raw sugar from India during 2018-19 sugar seasons.
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).
In 2017-18, India exported goods worth $4.4 billion to South Korea while imports from the latter were worth $16.3 billion.
Difference between CECA and CEPA –
CECA – Comprehensive Economic Cooperation Agreement
CEPA – Comprehensive Economic Partnership Agreement
The major “technical” difference between a CECA and CEPA is that CECA involve only “tariff reduction/elimination in a phased manner on listed/all items except the negative list and tariff rate quota (TRQ) items. CEPA also covers the trade in services and investment and other areas of economic partnership”.
So CEPA is a wider term that CECA and has the widest coverage.
Usually, CECA is signed first with a country and after that negotiations may start for a CEPA.