In July 2018, India`s Trade and Industry and Trade Ministers signed trade and trade agreements, updating the EPA. The two countries reduced tariffs on 11 tariff lines to expand bilateral trade.  By 2030, bilateral trade is expected to increase to $50 billion.  In January 2005, the two sides formed a joint task force to assess the viability of a free trade agreement between the two countries. Over the next four years, the Joint Study Group reviewed existing trade between the two countries worth $7.1 billion and negotiated an agreement that respected the weaknesses and economic strengths of the two countries` markets. Rahul Khullar, India`s trade minister and member of the Joint Study Group, says such cooperation took place during discussions on the agricultural sector, which is particularly weak in South Korea but thrives in India.  If you have any questions or comments on this free trade agreement, we would like to hear from you. Please contact Global Affairs Canada at: The Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement between India and South Korea.  The agreement was signed on August 7, 2009.  The signing ceremony took place in Seoul and the agreement was signed by Indian Trade Minister Anand Sharma and South Korean Trade Minister Kim Jong Hoon.  The negotiations lasted three and a half years and the first meeting took place in February 2006.
The agreement was adopted by the South Korean Parliament on 6 November 2009.  It was passed next week by the Indian Parliament.  After its adoption, the agreement came into force sixty days later, on 1 January 2010.  This is a free trade agreement.  The agreement will allow the Indian service industry in South Korea to have better access. Services include information technology, engineering, finance and the legal sector.  In South Korea, tariffs are reduced to less than 1%.  All this time, Korean companies have flooded India with cheaper imports of raw metals, steel and finished products. Several estimates show that the RCEP`s share of global GDP could reach 50% by 2050.
Fears that India would stay away if it decided not to join the group worried Indian politicians. But given the economic influence of China and other economies, it would have been very difficult for India to get a significant slice of this RCEP cake. Instead, the country is able to make realistic attempts to take advantage of trade negotiations and bilateral agreements – where Indian concerns can be clearly articulated and articulated. The EPA between South Korea and India offers such a platform. The agreement will ease restrictions on foreign direct investment. Companies can own up to 65% of a business in another country.  Both countries have avoided problems in agriculture, fisheries and mining and are deciding not to reduce tariffs in these areas. This is due to the high sensitivity of these sectors in the countries concerned.  In 2008, trade between India and South Korea amounted to $15.6 billion. This is a significant increase from 2002, when total trade was $2.6 billion.  The Korea Institute for International Economic Policy estimates that the agreement will increase trade between the two countries by $3.3 billion.  The Comprehensive Economic Partnership Agreement (EPA), signed on 7 August 2009 between India and South Korea and effective 1 January 2010, remains a turning point in relations between the two countries.