CEPA Review:

Given the size of the Korean and Indian economies and their structural complementarities, the current flow of trade and investment between two countries is relativel low due to several tariff and non!tariff barriers "outh Korea is the #th lar$est econom in Asia, and remains a %e tradin$ and investment partner to India& $30 billion bilateral trade turnover target to be achieved by 2014. 'ilateral (rdae sur$ed #)* to reach $17b in 2010 'ilateral Investments reached +#b (he a$reement which proposes bilateral economic cooperation in 13 areas, such as audio!visual content, ener$ , information and communications technolo$ , and science and technolo$ , will stren$then economic cooperation and both countries will benefit immensel & (hou$h, the a$reement did not pa much attention to reducin$ tariffs and other re$ulations in a$riculture, fisheries, and minin$ due to their sensitive nature, the India!Korea CEPA will boost trade and Korean investment and professionals from ndia 'enefits to India: It benefits ndian service sector and service wor!ers to wor! for "outh Korean companies& (he CEPA a$reement which gives mar!et access and allows inflows of professionals such as # wor!ers$ engineers$ and teachers would be beneficial for ndia and improve bilateral trade in services. %a&or sectors attracting Korean '( approvals are electrical e)uipments ,includin$ computer software - electronics., metallur$ical industries, food processin$ industries etc& some of the sectors where "outh Korean investors will be able to invest and reap benefits are food processin$, te/tiles, $arments, chemicals, metals and machiner due to a reduction in tariffs& (his is a $ood opportunit for the Indian I( industr loo%in$ to establish a stronger presence in the *+,- region Indian e/porters would benefit from the CEPA in sectors, li%e te/tiles and apparel products and a$ricultural and fisher products, where Korea maintains hi$h tariffs of more than 01 per cent& 2urther$ ndian e.ports which were sub3ect to ri$id standards, technical re$ulations and conformit assessment procedures, particularl in dru$s, food,

cosmetics etc& will find it easier to enter Korean mar!ets. 'enefits to "K: (he a$reement is forecast to benefit "outh Korean shipment of auto parts (he openin$ up of the Indian econom has not onl enhanced mar!et access to Korean goods$ but also provided investment opportunities for the internationally competitive Korean companies& As a result of the CEPA, some of the barriers to Korean investors such as high regulation$ nationality or residency re)uirements$ biasness in award of pro&ects$ compulsory registration with local specific service provider associations$ etc will be rela.ed$ thereby increasing Korean '( in the future.

4uclear 5eal:
"outh Korea has become the ninth country which had signed nuclear agreement with India after it $ot the waiver from the 4uclear "uppliers6 Group ,4"G. in 7118&(he others are the 9", 2rance, Russia, Canada, :on$olia, Kaza%hstan, Ar$entina and 4amibia, an official said Koreans have established themselves as not onl much cheaper nuclear suppliers, but more cruciall , from the Indian point of view, as an alternative suppl chain for nuclear reactors and its components li%e $iant for$in$s& #he ndia/"outh Korea deal therefore does two things // it allows ndia to tap into another country0s nuclear e.pertise and it ta!es the pressure off the ndia/1apan nuclear deal.

5efence Coop:
; "teps: Political Partnership thru hi$h level visits 5eepenin$ eco relations 2or$in$ "cience and (echnolo$ lin%s Ener$ cooperation thru research in ener$ efficienc ,renewable Cultural E/chan$e People to people communications

<thers:
"ocial securit a$reement

Civil Aviation A$reement so as to $rant each other6s carriers fifth freedom ri$hts& (he a$reed to do this soon