Comprehensive Economic Partnership Agreement
Encyclopedia
The Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement between India
and South Korea
.
The agreement was signed on August 7, 2009. The signing ceremony took place in Seoul and the agreement was signed by Indian Commerce Minister Anand Sharma
and South Korean Commerce Minister Kim Jong-Hoon. The negotiations took three-and-a-half years, with the first session in February 2006. The agreement still needs to pass the South Korean parliament
. It passed the Indian parliament. Once passed, the agreement will come into effect sixty days later. The South Korean government expects the agreement to pass in the fall of 2009. The agreement, once passed, will cut South Korean tariffs on 93% of goods from India. India will cut 75% of total tariffs.
The unusual name for the agreement was suggested by India. It is equivalent to a free trade agreement. The agreement will provide better access for the Indian service industry in South Korea.. Services include Information technology
, engineering, finance, and the legal field. South Korean car manufactures will see large tariffs cuts to below 1%.
The agreement will ease restrictions on foreign direct investments. Companies can own up to 65% of a company in the other country. Both countries avoided issues over agriculture, fisheries, and mining and choose not to decrease tariffs in those areas. This was due to the very sensitive nature of these sections in the respective countries. Trade between India and South Korea was $15.6 billion in 2008. This is a major increase from 2002, which had a total trade amount of $2.6 billion. The Korea Institute for International Economic Policy
believes the agreement will increase trade between the two countries by $3.3 billion. The act came into force on January 1, 2010.
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
.
The agreement was signed on August 7, 2009. The signing ceremony took place in Seoul and the agreement was signed by Indian Commerce Minister Anand Sharma
Anand Sharma
Anand Sharma is the present Union Cabinet Minister for Commerce and Industry of the Government of India. He took charge after outgoing Minister Priyaranjan Dasmunsi fell into a critical condition due to a cardiac arrest. He was also given the portfolio for Ministry of Textiles on July 12 2011...
and South Korean Commerce Minister Kim Jong-Hoon. The negotiations took three-and-a-half years, with the first session in February 2006. The agreement still needs to pass the South Korean parliament
National Assembly of South Korea
The National Assembly of the Republic of Korea is a 299-member unicameral legislature. The latest general elections were held on April 9, 2008. Single-member constituencies comprise 245 of the National Assembly's seats, while the remaining 54 are allocated by proportional representation...
. It passed the Indian parliament. Once passed, the agreement will come into effect sixty days later. The South Korean government expects the agreement to pass in the fall of 2009. The agreement, once passed, will cut South Korean tariffs on 93% of goods from India. India will cut 75% of total tariffs.
The unusual name for the agreement was suggested by India. It is equivalent to a free trade agreement. The agreement will provide better access for the Indian service industry in South Korea.. Services include Information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
, engineering, finance, and the legal field. South Korean car manufactures will see large tariffs cuts to below 1%.
The agreement will ease restrictions on foreign direct investments. Companies can own up to 65% of a company in the other country. Both countries avoided issues over agriculture, fisheries, and mining and choose not to decrease tariffs in those areas. This was due to the very sensitive nature of these sections in the respective countries. Trade between India and South Korea was $15.6 billion in 2008. This is a major increase from 2002, which had a total trade amount of $2.6 billion. The Korea Institute for International Economic Policy
Korea Institute for International Economic Policy
The Korea Institute for International Economic Policy is a think tank under the affiliation of the South Korean government. It is a public entity and has more than 160 employees in 2011, among them more than 50 research fellows with PhD's. KIEP is headquartered in Seocho-gu, Seoul but also...
believes the agreement will increase trade between the two countries by $3.3 billion. The act came into force on January 1, 2010.