WT/REG286/M/1  
 
27 September 2017 
(17-5135)  Page: 1/3 
Committee on Regional Trade Agreements  
Eighty -sixth Session    
 
 
COMPREHENSIVE ECONOM IC PARTNERSHIP AGREE MENT BETWEEN  
THE REPUBLIC OF KORE A AND INDIA  
(SERVICES ) 
NOTE ON THE MEETING OF 20 SEPTEMBER  2017 
Chairman: Ambassador Walid DOUDECH (Tunisia)  
1.1.  The 86th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram  WTO/AIR/RTA/11 dated 9 August 2017 . 
1.2.  Under Agenda Item C.II of the Session, the CRTA considered the  Comprehensive Economic 
Partner ship Agreement between the Republic of Korea and India, services,  (hereinafter "the 
Agreement").  
1.3.  The Chairman  said that the Agreement had entered into force on 1 January 2010. It had  
been notified to the WTO by the Parties on 23  June 2010 under  GATS  Article  V:7(a) as an 
Agreement providing for the liberalization of trade in services within the meaning of Article V of the 
GATS (document S/C/N/558).  The text of the Agreement was available, together with its Annexes, 
on the Parties' official website s. The Factual Presentation on the services aspect s 
(document  WT/REG 286/1 dated 10 July 2017) and questions and replies on th e Agreement 
(document WT/REG286 /2 dated 13 September 2017)  had been distributed . 
1.4.  The representative of the Republic of Korea  thanke d the Secretariat for its preparation of  the 
Factual Presentation  and Members for their interest and insightful questions on the Korea -India 
Comprehensive Economic Partnership Agreement (Korea -India CEPA). He also thank ed India for its 
active cooperation i n preparing for th e Session with Korea. He hoped that th e Session would  help 
WTO Members to better understand the Agreement .  
1.5.  After the commencement of the Korea -India CEPA negotiations at the summit in February 
2006, both countries had held a total of 15 rounds of negotiations from March 2006 to August 
2008. Korea and India had then officially signed the deal in August 2009  which had entered into 
force in January 2010, and ha d been smoothly implementing the Agreement since then.  
1.6.  The Korea -India CEPA cons isted of 15 chapters, ranging from Chapter One, 'General 
Provisions and Definitions,' to Chapter Fifteen, 'Administrative and Final Provisions.' CEPA was a 
comprehensive and high -level trade Agreement that cover ed free trade regulations, such as trade 
in goods, rules of origin, and trade facilitation.  
1.7.  In the area of trade in goods, duties on 88.7% of Korean tariff lines and 71.5% of Indian 
tariff lines ha d been eliminated as of 2017, the eighth year of CEPA 's entry into force. Korea  
believe d that CEPA was fully consistent with both countries' WTO obligations and went beyond 
their WTO commitments in a number of areas.  
1.8.  Regarding services and investment, the Agreement include d the general principles of national 
treatment and a review of MFN commitments. In ad dition, CEPA introduce d a higher level of 
services market opening and investment protection than the General Agreement on Trade in 
Services (GATS).  WT/REG286/M/1  
 
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  1.9.  With regard to concessions on trade in services, both countries had adopted a positive list 
approach to set  limits on market access, national treatment and additional commitments. When it 
came to investment, they had adopted a negative list approach, achieving a high level of 
investment market opening.  
1.10.   On top of that, both countries had agreed to pursue liberal ization of audio -visual co -
production and intellectual property rights and to aim for achieving WTO -plus levels in other areas 
apart from trade in goods.  
1.11.   Since the Agreement's entry into force in January 2010, the bilateral trade volume between 
Korea and India had increased by 30% from US$12 billion in 2009 to US$16 billion in 2016. 
Investment flows ha d grown by 8% from US$352 million to US$381 million during the same 
period. Korea was  confident that this trend would  continue on the back of close cooperati on 
between the two countries.  
1.12.   Korea and India were currently negotiating to upgrade the CEPA in various areas, including 
goods, services and investment, with a goal to maximize its effects so that both countries could  
enjoy additional benefits.   
1.13.   Korea appreciated the  written questions sent by Members  to which t he Parties had provide d 
detailed answers to enhance transparency. Korea was happy to respond to any further questions 
that Members had .  
1.14.   The representative of India thank ed the Secretariat for preparing the Factual Presentation , 
her colleagues from Korea for their excellent cooperation in the joint preparatory work  and the 
delegations of the European Union, Thailand, Chinese Taipei , El Salvador, and Mexico for showing 
intere st in the Agreement by raising advance written questions.  
1.15.   Korea and India had signed the Comprehensive Economic Partnership Agreement in Seoul 
on 7 August 2009 which  was operationalized with effect from 1 January 2010. The Agreement 
cover ed a number of are as including trade in goods, trade in services, rules of origin, intellectual 
property rights, and investment.  
1.16.   According to WTO data, India ranked 8th globally in terms of global export s of commercial 
services (excluding intra-EU trade). Similarly, it was  ranked 10th globally in terms of global imports 
of commercial services in 2016. Services play ed an important role in the Indian economy.  
1.17.   The CEPA ha d allowed the opening of the services market. In the case of India, the sectors 
covered include d telecommuni cations, construction, distribution ( excluding retail), transportation, 
accounting, real estate and energy distribution. The Agreement would  also mutually expand job 
opportunities for computer specialists, engineers, managing consultants and assistant Engl ish 
teachers. In the financial services sector, India had agreed that ten Korean banks could  establish 
branches in India. At present Shinhan Bank ha d four branches and Woori Bank ha d one. Hana 
Bank and KB Kookmin Bank ha d set up their representative offices. The CEPA allow ed for the 
temporary movement of 163 Indian professionals such as computer programmers and engineers 
to access the Korean services market.   
1.18.   The Parties  had already taken up negotiations to upgrade the CE PA which include d further 
liberalization in trade in services and areas of mutual interest in investment with a view to 
ensuring commercially meaningful market access, and possible mutual recognition agreements.  
There existed substantial scope for India an d Korea to explore complementarities and to harness 
the full potential of trade and investment ties. India look ed forward to working closely with Korea 
to further expand the trade linkages for mutual benefit.  
1.19.   The representative of El Salvador  thanked the Parties for their responses to its questions. El 
Salvador had no further questions.  
1.20.   The representative of Japan  asked what kind of mechanism would be used to address 
bilateral cooperation or matters stipulated in Chapter 13 (paragraph 4.29 of the Factual 
Presentation) . Would regular or ad hoc sub Committees  identify areas and items of bilateral WT/REG286/M/1  
 
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  cooperation as well as review and monitor its progress?  He said he would submit the question in 
writing  but would appreciate any preliminary comments the Parties could make . 
1.21.    The representative of Mexico  thanked the Parties for their responses to its questions. 
Mexico had no further questions.  
1.22.   The representative of Thailand  thanked the Parties for their res ponses to its questions on 
the Agreement's horizontal commitments and competition. Thailand reserved the right to submit 
any further questions in writing.  
1.23.   The representative of the European Union  said it had asked questions on rules of con duct 
for major su ppliers in the telecoms sector , the audiovisual coproduction agreement signed in 2015 , 
and on actions carried out for strengthening cooperation  in various areas . She thanked the Parties 
for their replies. She had two follow up questions that she would subm it in writing. As the 
Agreement had entered into force in 2010 the EU would be interested to know if  the Parties had 
assessed more thoroughly the impact of services trade flows. Secondly, she asked the Parties for 
updates on concrete activities related to the audiovisual coproduction agreement.  
1.24.   The representative of the United States  noted that the Agreement dated from 2010 and 
expressed regret at the long delay under the Transparency Mechanism but he appreciated being 
able to review at least part of the Ag reement. The United States appreciated the transparency 
provided on trade in goods by the representative of Korea and looked forward to a full review of 
the goods aspects of the Agreement as soon as possible. He understood that there was an 
outstanding que stion of venue but data was also outstanding and he hoped that the Parties would 
submit the data so that the Secretariat could complete its Factual Presentation. Once that 
document was complete Members could address the question of venue. It had been  many years 
since the Agreement's entry into force and the United States would like to see the Transparency 
Mechanism applied for the complete Agreement.  
1.25.   The representative of Republic of Korea  said that the Parties would provide detailed answers 
to the question s posed by Japan and the European Union in the near future. He could provide 
some preliminary responses. On the question about  the operation of the cooperation mechanism 
between the Parties he said that a meeting would be held under the general Committee m eeting . 
He said that film making and audiovisual industries were promising areas to the Parties and 
several products had been made under the audiovisual coproduction  agree ment. Further detailed 
information on this and other questions would be provided in writing.  
1.26.   The Chairman  said that consideration of the Services Aspects of the Comprehensive 
Economic Partnership Agreement between the Republic of Korea and India had allowed the 
Committee to clarify a number of questions and it could now conclude oral disc ussion of the RTA in 
accordance with paragraph 11 of the Transparency Mechanism. If any delegations wished to ask 
follow -up questions they were invited to forward submissions in writing to the Secretariat by 
27 September 2017 and Parties were asked to subm it replies in writing by no later than 
11 October 2017. In accordance with paragraph  13 of the Transparency Mechanism all written 
submissions, as well as minutes of this meeting would be circulated promptly, in all WTO  official 
languages, and would be made  available on the WTO website.  
1.27.   The Committee took note of the comments made.  
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