Korea, Pakistan sign landmark economic partnership agreement to boost trade

ISLAMABAD: South Korea’s Trade Minister Inkyo Cheong has unveiled an ambitious initiative to shift Korea’s industrial base from its Northeast Asian neighbours to Pakistan, following the signing of an Economic Partnership Agreement (EPA) between the two nations, reported Dawn.

This announcement was made during a significant ceremony in Seoul, where Commerce Minister Jam Kamal Khan and the Korean minister signed a joint declaration to initiate formal negotiations for the EPA. This declaration signifies both countries’ commitment to enhancing trade, investment, and economic cooperation.

As per the official statement from the commerce ministry, the EPA aims to build upon the long-standing diplomatic relations established in 1983 and promote mutually beneficial trade in goods and services, economic cooperation, and resilience in supply chains. The agreement is expected to align with World Trade Organization principles and serve as a foundational element for future bilateral relations.

During the ceremony, Minister Cheong stressed the opportunity to target emerging markets in East Africa and Central Asia by utilising Pakistan as a strategic manufacturing hub. He also expressed a strong interest in bringing a business delegation to Pakistan to explore investment prospects and strengthen private sector connections between the two countries.

“With Pakistan’s cost-effective labour, liberal investment policies, and proximity to rapidly growing regions, we see considerable potential to cultivate a dynamic partnership benefiting both nations,” Mr. Cheong remarked.

The Korean minister affirmed his dedication to advancing negotiations quickly, stating, “The EPA is not just a trade agreement; it represents a transformative partnership that will elevate Korea-Pakistan relations to new heights.”

He underscored the strategic significance of Pakistan, highlighting its geographical location and large market of 250 million people as crucial for Korea’s economic growth strategy.

Mr. Cheong also announced his plan to personally lead the first round of negotiations, which will take place in Pakistan, and extended an invitation to Pakistan’s Commerce Minister Jam Kamal to co-chair the discussions. This gesture underscores Korea’s commitment to nurturing a high-level partnership.

Both parties expressed determination to expedite the negotiations, with the Terms of Reference (TOR) providing a comprehensive framework to address key areas such as trade liberalization, investment, digital trade, intellectual property rights, and climate resilience. With the first round of negotiations scheduled for early 2025, both countries are set to embark on a new era of economic collaboration, aiming for shared prosperity in global markets.