India, Sth Korea sign free trade deal

SEOUL- South Korea and India signed a broad trade agreement today to slash tariffs on goods and services in a bid to increase commerce between two of Asia's biggest economies.

South Korean Trade Minister Kim Jong-hoon and India's Minister of Commerce and Industry Anand Sharma signed what the two sides formally called a Comprehensive Economic Partnership Agreement, but which is essentially a free trade deal.

The trade ministers hailed the deal. Kim said it was South Korea's first free trade deal with one of the fast growing BRICs countries - Brazil, Russia, India and China. Sharma said it was India's first comprehensive agreement with a major economy.

Bilateral trade between the two countries reached $US15.6 billion dollars last year and has been steadily growing. In 2003, it amounted to just $US2.6 billion.

South Korea has been aggressively pursuing free trade agreements as a national strategy. Seoul signed a free trade deal with the United States in 2007, though the agreement has yet to be ratified by legislatures in both countries.

Seoul also has a deal with the Association of Southeast Asian Nations and said last month it has concluded free trade negotiations with the European Union.

-AP