Government approves trade pact with South Korea

New Delhi, July 2 : The stage is set for a comprehensive economic pact between India and South Korea after the union cabinet Thursday approved signing of the agreement.

'The union cabinet today (Thursday) approved the proposal for signing of a comprehensive economic partnership agreement (CEPA) with South Korea,' Information and Broadcasting Minister Ambika Soni told reporters here.

The pact comprises six areas including trade in goods, trade facilitation and customs cooperation, trade in services and investment and dispute settlement.

'(South) Korea has put additionally 60 percent of tariff lines, under immediate tariff liberalisation for India. Most of the items are of India's export interest to Korea,' Soni said.

The agreement, once signed, will give Indian firms wider access to the Korean market and there would be provisions in the agreement to protect investment of investors from both sides, the minister added.

India has started talks with Korea for the proposed pact in 2004.

According to the Department of Commerce, the total trade between India and South Korea in 2007-08 stood at $8.9 billion.

The cabinet has also approved signing and ratification of a bilateral investment promotion and protection agreement (BIPA) with Colombia.

A government statement said the agreement would 'promote and protect the interests of investors from either country in the territory of the other country'.