KTRV Fox 12 South Korea OK's India free trade agreement
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SEOUL, South Korea (AP) - South Korea on Friday approved a free trade deal with India that promises to give two of Asia's powerhouse economies vastly expanded access to each other's markets.
The deal was passed overwhelmingly in the country's National Assembly, with the margin 192-0 in the 298-seat body and five abstentions. Results were announced by the assembly's speaker.
The two countries signed the accord, known officially as a Comprehensive Economic Partnership Agreement, in August in Seoul.
Trade between India and South Korea - Asia's third- and fourth-largest economies, respectively - has grown steadily in the past decade and reached $15.6 billion last year. In 2002, it amounted to just $2.6 billion.
Under the agreement, tariffs on Indian goods will be abolished or cut by 90 percent in terms of value and tariffs on South Korean products will be slashed by 85 percent during phases over 10 years, according to South Korea.
At the time the deal was signed in August, South Korea's Ministry of Foreign Affairs and Trade said India had completed all necessary procedures for the agreement to take effect once South Korea approved it.
A message left for an economic affairs official at the Indian Embassy in Seoul was not returned.
South Korea expects that the agreement will take effect in January.
South Korea has been aggressively pursuing free trade agreements as part of a national strategy to boost its economy and increase opportunities for its companies, including heavyweight exporters like electronics maker Samsung and automaker Hyundai.
The country has negotiated deals with the United States and the European Union, though both remain unratified.
In effect are agreements with 15 countries: Chile, the 10-member Association of Southeast Asian Nations and the European Free Trade Association, which comprises Switzerland, Iceland, Liechtenstein and Norway.
South Korea is currently negotiating free trade deals with 11 nations including Canada, Mexico, Australia, Peru and New Zealand.
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APTN Producer Hyun-ah Kim and Associated Press Writer Kwang-tae Kim contributed to this report.
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