India, South Korea To Review CEPA On May 25
India and South Korea will hold official negotiations on May 25 to review their Comprehensive Economic Partnership Agreement (CEPA), which has been in force since January 2010, an official said.
The discussions come amid India’s push for a more modern and balanced trade framework, with New Delhi proposing a fresh bilateral trade agreement to address widening trade imbalances.
The review meeting is expected to assess the effectiveness of the existing pact and explore ways to make it more aligned with current economic realities and evolving supply chain dynamics.
The talks follow recent discussions between Commerce and Industry Minister Piyush Goyal and his South Korean counterpart Yeo Han-koo, during which India raised concerns over the growing trade deficit.
India’s exports to South Korea declined 9.3% to US$ 5.81 billion in 2024–25, while imports stood at US$ 21 billion, resulting in a trade deficit of US$ 15.19 billion. The gap has widened significantly from US$ 8 billion in 2020–21.
Despite the imbalance, both countries have set a target to double bilateral trade to US$ 54 billion by 2030 from the current US$ 27 billion, with a focus on creating a more sustainable and equitable trade relationship.
Officials said the upcoming review will be critical in shaping the future direction of the agreement, including potential updates to address market access issues, trade barriers, and sectoral opportunities.
