August 08, 2009

 

CEPA to benefit steel, car parts, machinery

Indian service firms may invest here when deal takes effect

 

 

 

 

A bilateral agreement to break down tariff barriers

between Korea and India is expected to encourage local businesses to invest more freely in the subcontinent.

 

Experts of automobile components, steel and machinery will benefit most from the Cooperative Economic Partnership Agreement, or CEPA.

 

Some Korean companies already export large numbers of goods to India, but further growth had been stymied by high duties.

 

Korean firms sold $1.131 billion in car parts to India as of last year, but 12.5 percent was lost to tariffs. Under the agreement, which will go into effect in January next year if the national Assembly ratifies ir as planned, those duties will decrease by between 1 and 5 percent over the next eight years.

Meanwhile, Indian service companies will benefit from lowered barriers to investment in Korea in areas such as English education and IT.

 

 

 

 

 

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http://joongangdaily.joins.com/article/view.asp?aid=2908510

 

source : YONHAP / By Lee Eun-joo