S Korea-India trade pact ratified in S Korean parliament

South Korea's National Assembly ratified a trade deal with India, so-called the Comprehensive Economic Partnership Agreement (CEPA), on Friday that would eliminate or reduce tariffs on over 4,400 South Korean export items.

During a regular parliamentary session held in the morning of Friday, the trade bill was passed 192-0 with five abstentions by the 299-seat Assembly.

The pact is slated to take effect on Jan. 1, 2010 if approved in both countries as scheduled.

South Korea and India wrapped up their three-and-a-half-year-long bilateral trade talks in early August, which called for tariff reduction in auto and other manufacturing sectors in both countries.

The CEPA binds South Korea to phase out or reduce tariffs on 90percent of Indian goods over 10 years, while India is to eliminate tariffs on 85 percent of South Korean exports within the same period.

The CEPA is different than the free trade agreements (FTA) in that it has a longer write-off period.

The pact is expected to boost bilateral trade by as much as 3.3billion U.S. dollars annually, with South Korea's trade to the market likely to grow 4 percent on year, the state-run Korea Institute for International Economic Policy (KIEP) said.

In the meantime, South Korea has been awaiting parliamentary ratifications on the South Korea-U.S. FTA in both countries, as its process has been slowed with some opposition groups urging it has to be modified in terms related to agriculture in South Korea and automobiles in the U.S..

Source:Xinhua