India has been complaining about Indian businesses gaining far less from CEPA than their South Korean counterparts and the need for up-gradation of the pact in a way that favours India and reduces the trade gap.

As per India Custom Import Export Data India has asked South Korea to do away with non tariff barriers like mandatory local certification, bio-equivalent tests and other export hurdles for at least 6 items including mangoes, steel, engineering goods, pharmaceuticals and rice to improve market access for Indian businesses and bridge the wide trade deficit.

Commerce minister of India met the South Korean trade minister Yeo Han Koo and raised issues regarding the non-tariff trade restrictions faced by Indian steel, rice, textiles, engineering goods, pharmaceuticals exporters and mango.

In the bilateral talks the ministers agreed to impart fresh momentum to the discussions on the comprehensive economic partnership agreement up-gradation negotiations and also promote extensive B2B interactions on trade and investment between industry leaders of India and South Korea.

They leaders of both the countries agreed to address their issues expressed by industry on both sides and instructed officials to meet on a regular basis to conclude the CEPA upgrade negotiations in time-bound manner.

As per India Import Data, Indian officials also raised issues regarding the trade deficit which is in favour of South Korea. The trade deficit of India with South Korea has continued to remain high over last few years. Indian exports did not witness a massive rise despite a free-trade agreement between the nations. On the other hand imports from East Asian nation continue to remain high.

India and South Korea implemented the CEPA 11 years ago. Trade between India and South Korea during April to October stood at $13.69 billion with a deficit of $5.29 billion. Both the countries are gearing up towards reaching $50 billion bilateral trade target before 2030.

India stressed the need for faster tracking the up gradation process of Comprehensive Economic Partnership Agreement- CEPA with South Korean and raised issues of concern such as large trade deficit and industry’s demand for greater market access and lower non-tariff barriers.

Both the countries agreed to boost bilateral trade to gain a fair and balanced manner to mutual benefit of both the sides.

The US trade Deficit hit an All-Time high of $80.9 Billion in September as American Exports