India-Korea CEPA

Curated by Vinod Kumar Jain & Amit Jain · All Frontier Global · free, no login

Chapter-by-chapter intelligence on the India-Korea CEPA — status: in-force. What each chapter changes for Indian exporters and importers.

Trade in Goods: India-Korea CEPA is the SECOND-most-mature India FTA; "upgrade" negotiations active 2016-onwards.

CEPA Goods chapter covers ~85% of bilateral tariff lines with phase-out completed on most lines by 2020 (10-year schedule from 2010 entry-into-force). Sensitive-list exclusions preserved on selected agricultural and labour-intensive sectors on both sides.

India advantage: Indian textiles, gems, agricultural products, pharmaceuticals gain duty-free Korean access for ~85% of bilateral lines; basmati rice + processed foods gain preferential treatment.

Next milestone: CEPA upgrade conclusion (target uncertain — has slipped multiple times); bilateral working groups continue.

Services + Mode 4: CEPA Services + Mode-4 chapter is mature but has had limited Mode-4 uptake on both sides.

CEPA Services chapter commits both sides on Modes 1-4 across IT, financial, education, healthcare, business services. Mode 4 covers Independent Professionals + Contractual Services Suppliers + Intra-Corporate Transferees with standard categories.

India advantage: Indian IT services workers gain Korea business-purpose mobility; Korean banks/insurance subsidiaries in India provide bilateral financial-services flow.

Next milestone: CEPA upgrade Services enhancement — included in upgrade negotiation scope but conclusion target uncertain.

Investment Protection: CEPA includes investment protections; pre-2016-Model-BIT framework offers broader ISDS exposure than current Indian preferences.

CEPA Chapter 10 (Investment) covers national treatment, MFN, fair-and-equitable-treatment, expropriation, transfers, ISDS — pre-dating 2016 Model BIT framework. Provides "grandfathered" investment protections for pre-existing Korean investments in India.

India advantage: CEPA pre-dating 2016 Model BIT means Indian commitments under broader ISDS + FET — a structural carry-over from pre-2016 era.

Next milestone: CEPA upgrade investment chapter resolution — target uncertain given protracted negotiations.

Trade Remedies + ROO Compliance: Mature ROO + WTO trade-remedy preservation; recurring ADD friction is the corridor's defining feature.

CEPA Chapter 5 (ROO) sets dual-qualification (CTH + 35% RVC) for most products with PSR for sensitive lines. Chapter 7 (Trade Remedies) preserves both sides' WTO ADD + CVD + safeguards rights.

India advantage: India retains ADD + CVD authority — used recurringly against Korean-origin chemicals + steel. ROO discipline limits third-country rerouting via Korea.

Next milestone: CEPA upgrade ROO rationalisation — target uncertain; harmonisation with India-UAE-CEPA template under discussion.

IP + Digital Trade: CEPA IP chapter TRIPS-compatible with bilateral cooperation; digital-trade chapter absent — CEPA upgrade priority.

CEPA Chapter 12 (IP) covers patents, trademarks, copyrights, designs, GIs at TRIPS-compatibility with bilateral cooperation. Digital-trade chapter does not exist in CEPA 1.0 — being added in upgrade negotiations.

India advantage: India retains TRIPS flexibilities; CEPA upgrade digital-trade chapter being negotiated with Indian DPDP Act (2023) framework integration.

Next milestone: CEPA upgrade conclusion with new digital-trade chapter — target uncertain.