Revamping Trade: India and South Korea's CEPA Negotiations

India and South Korea will hold discussions on May 25 to review their Comprehensive Economic Partnership Agreement (CEPA). India proposes a new bilateral trade agreement to address trade deficit concerns. The countries aim to double bilateral commerce to USD 54 billion by 2030 with a better balance.

India and South Korea are set to engage in crucial negotiations on May 25 to discuss the review of the Comprehensive Economic Partnership Agreement (CEPA), originally implemented in January 2010, as per official sources.

The discussions carry significant weight, with India pressing South Korea to consider creating a new bilateral trade deal to better suit contemporary needs and address the persistent trade deficit issue. Last month, during a bilateral meeting, India's Commerce and Industry Minister, Piyush Goyal, urged Korean counterpart Yeo Han-koo to explore the possibility of a fresh Free Trade Agreement (FTA).

This initiative comes amid falling trade figures; India's exports to Korea fell 9.3% in 2024-25, while imports saw a slight dip. The nations aspire to enhance their trade volume to USD 54 billion by 2030 from the current USD 27 billion, with a focus on a more equitable trade balance.