Co-chairs: Kapil Chaudhary (Joint Secretary, Department of Commerce, India) and Park Geun-oh (Director General for Trade Agreement Policy, Ministry of Trade, Industry and Energy, South Korea).
Key discussion areas: Trade in Goods (TiG), Trade in Services (TiS), Rules of Origin (RoO) and Origin Procedures (OP), Investment, Sanitary and Phytosanitary (SPS) standards.
Main issue acknowledged: India's bilateral trade deficit with South Korea. India's trade deficit was 5.1 billion in FY 2009-10 and 15.6 billion in FY 2025-26.
New sub-groups formed: Digital trade, supply chain cooperation, and strategic industrial cooperation.
India's key demands: Greater market access for labour-intensive sectors, tighter rules of origin.
South Korea's key demands: Better investment protections, policy predictability for Korean firms.
Target timeline: Substantive results by end of 2026 or first half of 2027.
Upgrade negotiations first launched: 2016; talks were effectively suspended since 2022 before being resumed in 2026.
Underlying vision: "Futuristic Partnership" envisioned by PM Narendra Modi and South Korean President Lee Jae-myung.
Frequently Asked Questions (FAQ)
Q1: What is IK CEPA?
A: IK CEPA stands for India-Korea Comprehensive Economic Partnership Agreement. It is a bilateral trade pact between India and South Korea that came into force in 2010. It covers trade in goods, services, investment, and other trade-related rules.
Q2: When and where was the 12th round of CEPA upgrade talks held?
A: The 12th round was held in New Delhi from 25 to 27 May 2026. It was co-chaired by Kapil Chaudhary from India's Department of Commerce and Park Geun-oh from South Korea's Ministry of Trade, Industry and Energy.
Q3: What is India's trade deficit with South Korea?
A: India's trade deficit with South Korea was 5.1 billion in the financial year ending March 2010. By 2025-26, it had increased to 15.6 billion. This means India imports much more from Korea than it exports to Korea.
Q4: What new areas will be covered in the upgraded CEPA?
A: India and South Korea have decided to form sub-groups to discuss digital trade, supply chain cooperation, and strategic industrial cooperation. These are modern trade areas that go beyond traditional tariff negotiations.
Q5: When will the CEPA upgrade be completed?
A: Both countries have committed to a "time-bound manner". The target is to achieve substantive results by the end of 2026 or in the first half of 2027.