South Korea has asked the government of India to undertake major tariff cuts on its goods as part of the Comprehensive Economic Partnership Agreement, which was signed by the two countries in 2009 and became law as of 2010.
Dong Seok Choi, director-general, Korea Trade-Investment Promotion Agency, recently noted: “We have been urging India to liberalise tariff duties, especially in automobiles, auto parts and Korean machinery. We want a drastic reduction in this.”
Talks to resolve this problem are scheduled to take place in the middle of the current year.
India’s trade deficit with Korea rose from $5.1 billion in 2009-10 to $8.9 billion in 2012-13.