The Hindu Business Line : India asks Korea to eliminate non-tariff walls

INDIA has asked South Korea to eliminate non-tariff barriers and also rationalise its sanitary and phyto-sanitary (SPS) regulations with a view to allowing greater market access.

The request for review of SPS regulations did not evoke an immediate positive response from the South Korean side, with the visiting President of Republic of Korea, Mr Roh Moo-Hyun, expressing difficulty in giving any form of assurance on this issue.

"It's difficult to say that we will do everything on your behalf," Mr Roh Moo-Hyun told a business meeting here.

Stating that SPS was a "difficult issue," the President highlighted that the Koreans are always keen that their Government should ensure that their imported food products conform to best quality standards.

At the meeting, the Commerce and Industry Minister, Mr Kamal Nath, said that the SPS and non-tariff barriers imposed by South Korea were creating impediments in increasing the volume of the country's exports to Republic of Korea. The meeting was jointly organised by the Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI).

Mr Nath also suggested that India and Republic of Korea should aim for a "relatively evenly balanced total annual trade of $10 billion within three years and a sustained average annual foreign direct investment (FDI) of $1 billion."

The total trade between India and South Korea stood at $3.3 billion last year. While India's exports to Republic of Korea stood at $800 million last year, imports from Korea in the same period stood at $2.5 billion.

India's exports to South Korea comprised a high proportion of primary products — agri products, dyes and pharmaceuticals. India's imports from South Korea are industrial goods like electronics, machinery and transport equipments.