Talks begin for economic partnership with South Korea
ISLAMABAD: South Korea’s Trade Minister Inkyo Cheong has outlined an ambitious plan to relocate Korea’s industrial base from its Northeast Asian neighbours to Pakistan following the signing of the Economic Partnership Agreement (EPA) between the two countries.
The disclosure came during a high-level ceremony held on Thursday in Seoul where Commerce Minister Jam Kamal Khan and the Korean minister signed a joint declaration to commence formal negotiations for reaching EPA. The declaration reflects the two countries’ commitment to expanding trade, investment, and economic partnership.
An official announcement of the commerce ministry said that the EPA seeks to build on the longstanding diplomatic ties between the two countries, established in 1983, and promote mutually beneficial trade in goods and services, economic cooperation, and supply chain resilience. The agreement will align with World Trade Organisation principles and is expected to be a cornerstone of bilateral relations moving forward.
At the ceremony, Mr Cheong highlighted the potential of targetting new markets in East Africa and Central Asia by using Pakistan as a strategic manufacturing hub. Additionally, he expressed a strong desire to bring a business delegation to Pakistan to explore investment opportunities and strengthen ties between the private sectors of both nations.
Seoul keen on relocating industrial base to Pakistan
“With Pakistan’s cost-effective labour, liberal investment policies, and proximity to high-growth regions, we see immense potential to develop a dynamic partnership that benefits both sides,” Mr Cheong stated.
The Korean minister reiterated his commitment to advancing the negotiations in the shortest possible timeframe. “The EPA represents not just a trade agreement but a transformative partnership that will elevate Korea-Pakistan ties to unprecedented levels,” he said.
He emphasised Pakistan’s strategic importance, stating that Pakistan’s geographical location and its vast market of 250 million people make it a critical partner for Korea’s economic growth plans.
Mr Cheong also announced his intention to personally lead the first round of negotiations, which will be hosted in Pakistan. He invited Pakistan’s Commerce Minister Jam Kamal to co-chair the discussions, signalling Korea’s commitment to fostering a high-level partnership.
Both sides expressed their determination to conclude the negotiations expeditiously. The Terms of Reference (TOR) provide a comprehensive framework for addressing key issues such as trade liberalisation, investment, digital trade, intellectual property rights, and climate resilience.
With the first round of negotiations set for early 2025, both nations are poised to embark on a new era of economic collaboration, targeting global markets and ensuring shared prosperity.
Mr Kamal highlighted the untapped potential of bilateral trade, which currently stands at $1.3 billion annually, highly in favour of South Korea. He emphasised the opportunity for Pakistani businesses to learn from Korea’s transition from low-tech industries to advanced sectors, underscoring the shared vision for economic advancement.
“Together, we can build bridges of cooperation across diverse sectors such as food, IT, minerals, textiles, and logistics,” Mr Kamal said.
He formally invited his Korean counterpart to visit Islamabad for the first round of negotiations. He hoped the visit would deepen ties between the two nations and foster collaboration at the highest levels.
Published in Dawn, January 10th, 2025
Dear visitor, the comments section is undergoing an overhaul and will return soon.