(RTTNews) - South Korea on Friday ratified a free trade deal with India, paving the way in either eliminating or reducing tariffs on goods and services on more than $15 billion in annual bilateral trade between the two countries, say media reports.

South Korea and India in August finalized the deal, the Comprehensive Economic Partnership Agreement (CEPA), to cut duties on goods, including auto parts and electronics, and to boost co-operation between the two Asian economic powerhouses.

The deal will likely to take effect on January 1 next year, if ratified in both countries, as scheduled.

India's trade minister Anand Sharma said though the trade pact would not require ratification by India, it could nearly double the volume of trade between the two sides.
The deal will either eliminate or cut tariffs for 90% of Indian goods in terms of value and 80% of South Korea's imports from India.

A study by the state-run Korea Institute for International Economic Policy indicated that the pact could boost annual two-way trade by $3.3 billion soon, and raise South Korea's GDP by 1.3 trillion won or $1.06 billion.

South Korea's main exports to India are auto and petroleum products, as also mobile phones. It largely imports naphtha from India, accounting for more than half of its imports last year.

by RTT Staff Writer

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