Thrust to improve trade with Korea

By Our Special Correspondent

NEW DELHI, MAY 10. India and Korea have agreed to intensify efforts to expand bilateral trade to $ 5 billion annually and to improve market access for products of mutual interest. A strategic alliance in the information technology sector is also in the offing between the private sector of the two countries especially in e-commerce and software industries.

These initiatives were taken during the Indo-Korea Trade Ministers meeting which concluded here yesterday. The Indian delegation to the one-day meeting was led by the Commerce and Industry Minister, Mr. Murasoli Maran, while the Korean delegation was headed by the Korean Trade Minister, Mr.Han Duck- soo, who is accompanied by a large business delegation.

Addressing the meeting, Mr. Maran drew attention to the existing imbalance in bilateral trade which currently stood at $ 1.4. billion. India's exports to Korea are valued at only $ 274.32 millions while imports amounted to $ 1.1 billion. He sought Korea's cooperation in broadening and diversifying Indian exports to Korea.

Mr.Han Duck-soo underlined the importance of the third Indo-Korea Trade Ministers' meeting in the context of Korea's recovery from the Asian financial crisis.

Expressing appreciation of the recent investment and trade liberalisation measures by the Indian Government, Mr.Duck- soo noted that Korean investment has risen significantly from $ 180 millions in 1995 to $ 890 millions by January 2000, making Korea the fourth largest foreign investor in this country. He said Korean investment would continue to increase in the coming years thanks to the economic recovery of the two countries.

The Indian side expressed interest in expanding export of items such as rice, seafood, spices & essential oils, auto components, dyes, drugs & pharmaceuticals and iron & steel to Korea. Korea in turn expressed concern over level of tariffs on items of interest to Korean industry as well as anti-dumping duties on Korean products and also cited difficulties impeding greater Korean investment such as restrictions on remittance of profits, exit policy, and extension of commercial visa. The Indian side took note of these concerns and agreed to refer them to the relevant authorities.

Mr. Maran said the peak tariffs in India had come down from 200 per cent in 1991 to 35 per cent now with the exception of a few items and the average tariff was down to 20 per cent. The Minister urged the Korean side to facilitate participation of Indian companies in Korea's Government procurement programmes.

The Korean Minister responded by saying that Government procurement in Korea followed a transparent system based on international tendering and in the recent past some Indian companies had procured orders on this basis.

In the area of information technology, it was broadly agreed to pursue a strategic alliance between the private sector of the two countries, particularly in e-commerce and software industries. The Indian side agreed to work out the modalities in the matter.

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