The Hindu Business Line : Indo-Korea panel for comprehensive economic pact

The Commerce Secretary, Mr Menon, and the Korea Deputy Minister for Trade, Ministry of Foreign Affairs and Trade, Mr Joong Keun Kim, signed the joint study group report.

New Delhi , Jan. 15

THE Indo-Korea Joint Study Group (JSG) has plumped for forging a comprehensive economic partnership agreement (CEPA) encompassing trade in goods and services, measures for trade facilitation, promotion, facilitation and liberalisation of investment flows, besides measures to beef up bilateral economic cooperation between the two countries.

Following their meeting on October 6, 2004, where both the Prime Minister, Dr Manmohan Singh, and the Korean President had decided to establish a JSG, the Union Commerce & Industry Minister, Mr Kamal Nath, directed his officials to begin the work on the JSG.

Accordingly, the JSG - composed of the Government officials, economists and representatives of business communities of Korea and India - held its first meting in end-January 2005 and had met alternately in India and Korea four times. On January 5-7, the Commerce Secretary, Mr S.N. Menon, led a delegation to Seoul to attend the fourth and concluding meeting of India-Korea JSG when the study group report was finalised.

Mr Menon co-chaired the meeting from the Indian side and Mr Joong Keun Kim, Deputy Minister for Trade, Ministry of Foreign Affairs and Trade, from the Korean side. The two co-chairs signed the India-Korea JSG report.

An official release issued here said the JSG also recommended that the two Governments appoint a joint task force composed of Government officials to work on realising benefits that might be derived from the Korea-India CEPA and accordingly begin the work for completion within a reasonable period of time.

The joint task force would bring about specific recommendations on each of the constituent elements of the CEPA for adoption by the two governments. For the further expansion of bilateral investment flows, the two countries are required to improve their investment environments by removing constraints to foreign investment on an institutional basis.

Indian and Korean enterprises, which are quickly emerging as significant sources of outward investment, could be made even more attractive to third country FDI by enlarging the market through a bilateral agreement such as the CEPA.

Among the rich 30 countries belonging to the Organisation for Economic Cooperation and Development (OECD), Korea is the first county with which India has completed the JSG report.

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Indo-Korea panel for comprehensive economic pact

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