Steel sector opposes bringing more products under India-Korea trade pact

The domestic steel sector has opposed bringing more products under the India-Korea free trade agreement, as cheaper imports from that country have already impacted the industry, an official said. India and South Korea are negotiating to upgrade the existing FTA, officially dubbed as Comprehensive Economic Partnership Agreement (CEPA), for expanding bilateral trade to USD 50 billion by 2030. Upgradation or widening of such agreement includes elimination or significant reduction of import duties on more goods. To widen the scope of the pact, Korea wants addition of more products such as machinery and certain kinds of steel products. "The steel ministry and the industry have opposed this demand and instead want Korean steel companies to set up manufacturing facilities in India," the official added. Both the countries have resolved for early conclusion of talks to upgrade the existing trade pact.