External Affairs Minister S Jaishankar has called for a quick conclusion to the review of India's trade agreement with South Korea, adding that the two countries must work together to find more "meeting points" and increase their engagement to realise their potential.
"To realise our potential, it is important we intensify our engagement in different spheres. Certainly, we need more political discussions, more strategic conversations – which is why I am here," the external affairs minister said on March 5 while speaking at the Korea National Diplomatic Academy in Seoul.
Also Read: India seeks greater market access for steel, rice, shrimp from S Korea
"We need stronger business connects and technology interactions. The long-pending review of our CEPA (Comprehensive Economic Partnership Agreement) must be expedited so that it can be upgraded. We will have to identify more intersections and meeting points that work for both of us," Jaishankar added.
The minister is in South Korea from March 5-6 where he will co-chair the 10th India-Republic of Korea Joint Commission Meeting (JCM) with his counterpart Cho Tae-yul.
The Comprehensive Economic Partnership Agreement, or CEPA, between India and South Korea came into force in 2010. However, India has said the pact should be more balanced and equitable. Reports say India wants greater access to the South Korean market for certain goods such as steel, rice, and shrimp while Korea is said to want greater access to India in sectors such as auto components and chemicals.
Negotiations to 'upgrade' the CEPA are currently ongoing, with South Korea's Ambassador to India Chang Jae-bok saying last week that the two countries are hopeful of completing the talks in 2024.
Officials from India and South Korea had met in January for the 10th round of official negotiations to upgrade the CEPA.
India's bilateral trade with South Korea grew 9 percent in 2022-23 to $27.88 billion, with India having a significant trade deficit. While India's exports contracted by 18 percent to $6.65 billion, imports from South Korea jumped 21 percent to $21.23 billion.
In the first nine months of 2023-24, the total bilateral trade stood at $20.92 billion, with India's exports down 7 percent year-on-year at $4.76 billion and imports from South Korea up 1 percent at $16.16 billion.
Trade apart, Jaishankar also said on March 5 at the Korea National Diplomatic Academy that India and South Korea must recognise the strengths they both brought to the table.
Also Read: De-risking from China supply chain to take longer than thought, says CEA Nageswaran
"Today, we are all contemplating the prospect of a re-globalisation that would be very much shaped by emerging technologies. That gives our two nations the opening to progress ourselves while contributing to a better world," the minister said.
Responding to a question related to India's production-linked incentive scheme for semiconductor manufacturing, Jaishankar said it is part of increasing domestic capabilities. While this is in India's interests, Jaishankar said it is also part of de-risking the world economy.
"Today it is very dangerous for the world if production is too concentrated, if production is located in only a few geographies – I am making no judgement on the geography. But it is a risk any of us would counter," Jaishankar said.
"You don't want too many assets, too much production, too much dependence on a narrow source. So that is a big lesson from Covid – how to de-risk the global economy. And I would put that as different from what may happen in a competition between countries, that's a different dynamic."
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