India, Korea Commence Negotiations On Opening Mkts

NEW DELHI: India and South Korea on July 24, began negotiations by discussing their initial offers in the Comprehensive Economic Partnership Agreement (CEPA) targeted at opening their markets to each other through reduction as well as elimination of duties. The official level discussions will take up a host of issues comprising how a particular item would qualify for duty reduction via the process known as ''rules of origin,'' covering substantial items of trade. Indian negotiators would have to tackle the conflict of interest between Korean firms like LG and Hyundai, which have established large manufacturing base here, and their compatriots in Seoul which are keen only to sell goods to Indian consumers without investing in establishing facilities. India has so far maintained the cost advantage not only in services but manufacturing as well. After a green signal from a Joint Study Group, Seoul and New Delhi have held several rounds of technical level talks. Both India and South Korea are in the process of inking a large of number of FTAs covering merchandise goods, services and investment.