12th Round Of India-Korea CEPA Upgrade Negotiations Held In New Delhi

**Executive Summary** The 12th round of India-Korea Comprehensive Economic Partnership Agreement (IK CEPA) upgrade negotiations was held in New Delhi from May 25–27, 2026. Building on a Joint Declaration signed in April 2026, the session aimed to accelerate the modernization of the trade partnership and address India’s significant bilateral trade deficit. Both nations reaffirmed their commitment to concluding the negotiations in a time-bound manner to achieve a balanced and mutually beneficial agreement. **Key Points / Main Content** * **Negotiation Oversight** * The talks were co-chaired by the Joint Secretary of the Department of Commerce (India) and the Director General for Trade Agreement Policy from the Ministry of Trade, Industry and Energy (Republic of Korea). * The discussions were framed within the “Futuristic Partnership” vision established by the leaders of both nations. * **Core Discussion Areas** * Substantive reviews were conducted regarding Trade in Goods (TiG) and Trade in Services (TiS). * Technical discussions covered Rules of Origin (RoO), Origin Procedures (OP), and Sanitary and Phytosanitary (SPS) standards. * Investment frameworks were also a primary focus of this negotiation round. * **Expansion of Scope** * Both parties agreed to constitute new sub-groups to facilitate deeper cooperation in three specific areas: digital trade, supply chain cooperation, and strategic industrial cooperation. * **Addressing Trade Imbalances** * Both sides acknowledged the significant increase in India's trade deficit since the original CEPA took effect in 2010. * There is a mutual agreement to resolve these trade imbalances within the updated IK CEPA framework. **Impact Analysis** **Government of India (Department of Commerce)** **Impact** Responsible for leading the negotiations to reduce the bilateral trade deficit and modernizing trade rules to support national economic interests. **Action Required** Must participate in newly formed sub-groups and continue time-bound negotiations to finalize the upgraded agreement. **Government of the Republic of Korea (Ministry of Trade, Industry and Energy)** **Impact** Committed to a “Futuristic Partnership” and required to address Indian concerns regarding trade imbalances within the CEPA framework. **Action Required** Collaborate on the formation of sub-groups for digital trade and supply chains and work toward a mutually beneficial conclusion of the talks. **Bilateral Trade Stakeholders (Exporters and Industry)** **Impact** Businesses in both countries will be affected by revised standards in goods, services, investment, and the emerging digital trade landscape. **Action Required** Monitor the development of new standards in SPS, Rules of Origin, and strategic industrial cooperation to ensure future compliance and market access.

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