SEOUL, Aug 7 Asian economic powerhouses South Korea and India on Friday signed a pact to scrap or reduce most trade tariffs over the next decade, giving Seoul a head start over its rivals in a market of 1.1 billion people.
Indian Commerce Minister Anand Sharma and his Korean counterpart Kim Jong-Hoon inked the deal at Seoul's foreign ministry after three years of negotiations.
It will eliminate or reduce import duties on 85 per cent of Korean exports and 90 per cent of India's overseas sales by 2019, Seoul officials say.
The pact known as the Comprehensive Economic Partnership Agreement is expected to come into force early next year after South Korea's parliament ratifies it.
Two-way trade was worth $15.56 billion last year.
South Korea has been actively pushing for trade pacts worldwide to bolster its export-dominated economy. Friday's deal is its first with the so-called BRICS group of fast-developing economies Brazil, Russia, India and China.
Seoul officials say it gives the nation greater access to a potentially huge market ahead of trade rivals Japan and China.
The deal covers goods and services as well as investments and contains chapters on competition.
In the service sector, India agreed to open its telecom, accounting, medical and advertising markets to South Korean companies. South Korean banks will also be allowed to open branches in India.—AFP
