Korea, India to expedite free trade deal

Foreign ministers from Korea and India agreed on Tuesday to expedite a bilateral free trade agreement between the two countries.

During their talks in New Delhi, Korean Foreign Minister Yu Myung-hwan and his Indian counterpart S.M. Krishna also agreed to push for exchange visits by their leaders and regular interactions by high-level officials.

President Lee Myung-bak is likely to visit India in October, according to an official at the Foreign Ministry in Seoul.

Yu said he asked India to sign the Comprehensive Economic Partnership Agreement, a de facto free trade agreement, within one month. Krishna responded by promising an early settlement of the CEPA.



The two countries had agreed in 2006 to conclude the deal by the end of 2008. That pact is estimated to increase two-way trade by $3.3 billion per year.

The Indian minister also pledged the government`s support for Korean steelmaker POSCO`s plan to build a plant with an annual production capacity of 12 million tons in the eastern Indian state of Orissa.

The $12 billion project has been delayed due to legal problems and with difficulties in securing land.

Yu elaborated on President Lee Myung-bak`s policies to enhance ties with its Asian neighbors and presented Seoul`s position regarding upcoming international negotiations to deal with climate change.

They also agreed to accelerate negotiations on a revised double taxation avoidance convention, a maritime transport and civil aviation treaty, and discussed other arrangements to boost investment and trade. A joint committee will be established this year to improve bilateral economic ties, he said.

President Lee and Prime Minister Singh held a summit in Japan as part of an expanded Group of Eight summit in July 2008.

(jjhwang@heraldm.com)



By Hwang Jang-jin