India and South Korea have agreed to establish dedicated sub-groups on digital trade, supply chain cooperation, and strategic industrial collaboration as part of ongoing efforts to upgrade the bilateral Comprehensive Economic Partnership Agreement (CEPA). The move marks a significant step toward modernizing the trade pact and strengthening economic ties between the two countries.
The decision was reached during the 12th round of India-Korea CEPA upgrade negotiations, held in New Delhi from May 25 to 27. The expanded scope of discussions reflects both nations’ commitment to enhancing trade, investment, and economic cooperation in line with evolving global business and technology trends.
Focus Areas of the CEPA Upgrade Talks
During the latest negotiation round, officials discussed several key areas aimed at improving bilateral trade and investment flows, including:
- Trade in Goods (TiG)
- Trade in Services (TiS)
- Rules of Origin (RoO)
- Origin Procedures (OP)
- Investment Frameworks
- Sanitary and Phytosanitary (SPS) Standards
The newly formed sub-groups will focus on addressing emerging trade priorities such as digital commerce, resilient supply chains, and industrial cooperation, helping both countries unlock new economic opportunities.
Commitment to a Modern and Balanced Trade Pact
India and South Korea reaffirmed their commitment to concluding the CEPA upgrade negotiations in a time-bound manner. Both sides emphasized the importance of developing a modern, comprehensive, and mutually beneficial agreement that supports balanced trade growth, stronger investment flows, and deeper economic integration.
The upgraded agreement is expected to enhance market access, facilitate business operations, and strengthen collaboration across key sectors.
High-Level Participation in Negotiations
The discussions were co-chaired by Kapil Chaudhary, Joint Secretary in India’s Department of Commerce, and Park Geun-oh, Director General for Trade Agreement Policy at South Korea’s Ministry of Trade, Industry and Energy.
Senior officials from both countries participated in the negotiations, reflecting the strategic importance of the CEPA upgrade for bilateral economic relations.
Addressing India's Trade Deficit with South Korea
A key issue discussed during the negotiations was India’s growing trade deficit with South Korea. Since the implementation of the CEPA in 2010, the trade imbalance has widened significantly.
Both countries acknowledged the concern and agreed to address the issue within the broader framework of the upgraded agreement. Efforts will focus on creating a more balanced trade relationship while promoting sustainable economic growth and increased market opportunities for businesses in both nations.
Strengthening Future Economic Cooperation
The formation of dedicated sub-groups on digital trade, supply chains, and strategic industries highlights the growing importance of technology-driven commerce and resilient trade networks in the global economy. The upgraded CEPA is expected to serve as a key platform for expanding bilateral trade, attracting investment, and strengthening long-term economic cooperation between India and South Korea.
Key Highlights:
- India and South Korea have formed sub-groups on digital trade, supply chain cooperation, and strategic industrial collaboration.
- The decision was taken during the 12th round of CEPA upgrade negotiations in New Delhi.
- Discussions covered Trade in Goods, Trade in Services, Rules of Origin, Investment, and SPS standards.
- Both countries committed to concluding CEPA upgrade talks in a time-bound manner.
- The upgraded agreement aims to support balanced trade and deeper economic integration.
- India and South Korea acknowledged the need to address India's growing trade deficit.
- The CEPA upgrade is expected to improve market access, investment opportunities, and bilateral trade cooperation.
