The Indian government is gearing up for the next round of negotiations with South Korea to upgrade their existing free trade agreement (FTA), which was operationalized in 2010. The comprehensive economic partnership agreement (CEPA) is expected to address several issues, including market access for certain products, including India’s shrimp exports.

Shrimp Exports in Focus

India has been seeking greater market access for its shrimp products in South Korea, a move that could boost exports and create new opportunities for Indian farmers and exporters. However, Korean firms have not been buying Indian steel, another key product India wants to export more of. The Indian government is looking to resolve these issues during the upcoming talks.

The 11th round of review meetings between the two countries will take place from July 17-19 in Seoul. Both sides will discuss the broad contours for closing the deal, with South Korea keen to conclude the negotiations by the end of this year.

Growing Trade Deficit Concerns

India’s trade deficit with South Korea has been growing rapidly, with exports dipping to USD 6.41 billion in 2023-24 from USD 8 billion in 2021-22. The country’s imports stood at USD 21.13 billion in the last fiscal year. Experts say that India’s trade deficit with South Korea has increased at a much higher rate compared to its trade deficit with the world.

Indian exporters are facing various non-tariff barriers in South Korea, including stringent standards, regulations, and certification requirements, which make it difficult for Indian goods to penetrate the South Korean market. To address these issues, India is seeking greater liberalization in the services sector, including healthcare and information technology, and easier access for Indian professionals and service providers in the South Korean market.