1. Korea and India held the 3rd round of negotiations for the conclusion of the Korea-India Comprehensive 
Economic Partnership Agreement (CEPA) from July 18 to 21, 2006 in New Delhi, India. 

- The Korean delegation was led by Mr. Kim Han-soo, Director-General of the FTA Bureau at the Ministry of 
Foreign Affairs and Trade, and composed of approximately 45 related officials from the Ministry of Finance 
and Economy, Ministry of Commerce, Industry, and Energy, Ministry of Information and Communication, and 
Ministry of Agriculture and Forestry. The Indian delegation was headed by Dr. Khullar, the Additional 
Secretary of the Ministry of Commerce and Industry, and consisted of 25 government officials from the 
Ministry of External Affairs, Ministry of Finance, and other related ministries. 

- At the summit meeting held between President Abdul Kalam of India and President Roh Moo-hyun of Korea 
in February 2006 on occasion of President Kalam’s state visit to Korea, Korea and India agreed upon 
pursuing a Comprehensive Economic Partnership Agreement (CEPA) that would serve as an institutional 
framework for developing the existing economic cooperation relationship between the two countries into a 
more intimate partnership.

(Outcomes of the Negotiations)

2. The two parties held working group meetings for the seven negotiating groups (trade in goods, trade in 
services, investment, other regulations and economic cooperation, general provisions and dispute 
settlement, rules of origin, customs administration and procedures) in which they carried out in-depth 
discussions based on pre-exchanged draft texts. The flexible and proactive attitude displayed by both parties 
enabled substantial progress to be made in terms of drafting a consolidated text for all sections of the 
negotiations, including goods, services and investment. 

- Both Korea and India agreed that the rate of progress made in the negotiations so far has been very 
encouraging and decided to hold two more rounds of negotiations before the end of this year to maintain the 
current momentum. 

- Regarding the text on trade in goods, the two sides reached agreement on common text for most articles, 
including those on bilateral safeguards and national treatment. Furthermore, by establishing agreement on 
the need to achieve overall liberalization that is above a certain level, notwithstanding the granting of 
exceptions to liberalization for sensitive products, the parties were able to substantially resolve concerns 
that had been raised over the possibility that India’s concessions on goods might be made at an extremely 
low level.

- While the two sides had differences in opinion regarding liberalization method for services and investment, 
stemming from differences in prior experience with FTAs, domestic legal systems, and economic 
development level, the two parties were able to discuss the possibility of seeking appropriate alternative 
solutions on these issues.

(India’s Potential for Growth and Expected Beneficial Effects of Korea-India CEPA)

3. The Korea-India CEPA is part of the Korean government’s “multi-track” FTA policy and is the first FTA 
Korea is pursuing with a BRICs nation. The parties plan to conclude negotiations by the end of 2007. 

- The pursuit of a Korea-India CEPA stems from Korea’s selection of India, and India’s selection of Korea, as 
a strategic point in Southwest Asia and Northeast Asia, respectively.

- The conclusion of a CEPA with India, a country that has been recording an annual economic growth rate of 
over 8% for the last three years and has great potential for future economic growth, is expected to bring 
about a $3.3 billion increase in Korea-India trade and a ￦1.3 trillion increase in Korean GDP.

                                                            Spokesperson for MOFAT

* unofficial translation