Pakistan, Korea initiate negotiations for economic partnership agreement
SEOUL, Jan 09 (SABAH): In a groundbreaking move to deepen economic cooperation, Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, and the Republic of Korea’s Minister for Trade, Inkyo Cheong, have officially launched negotiations for an Economic Partnership Agreement (EPA). The joint declaration, signed during a high-profile event in Seoul, underscores a mutual commitment to enhancing trade, investment, and collaboration between the two nations. The EPA seeks to build on the longstanding diplomatic ties between the two countries, established in 1983, and promote mutually beneficial trade in goods and services, economic cooperation, and supply chain resilience. The agreement will align with World Trade Organization (WTO) principles and is expected to be a cornerstone of bilateral relations moving forward.
Federal Minister Jam Kamal Khan highlighted the untapped potential of bilateral trade, which currently stands at $1.3 billion annually. He emphasized the opportunity for Pakistani businesses to learn from Korea’s transition from low-tech industries to advanced sectors, underscoring the shared vision for economic advancement. “Together, we can build bridges of cooperation across diverse sectors such as food, IT, minerals, textiles, and logistics,” Minister Khan noted. Minister Jam Kamal Khan echoed this sentiment, stating, “This declaration is a milestone that will unlock immense potential and create a platform for entrepreneurs from both countries to thrive together.”
Jam Kamal Khan extended a formal invitation to his Korean counterpart, Inkyo Cheong, to visit Islamabad for the first round of negotiations. He expressed hope that the visit would deepen ties between the two nations and foster collaboration at the highest levels.
Korean Trade Minister Inkyo Cheong emphasized Pakistan’s strategic importance, stating, “Pakistan’s geographical location and its vast market of 250 million people make it a critical partner for Korea’s economic growth plans.” Minister Cheong also announced his intention to personally lead the first round of negotiations, which will be hosted in Pakistan. He invited Pakistan’s Federal Minister Jam Kamal Khan to co-chair the discussions, signaling Korea’s commitment to fostering a high-level partnership. Minister Cheong revealed ambitious plans for shifting Korea’s production base from its Northeast Asian neighbors to Pakistan upon the conclusion of the EPA. He highlighted the potential to target new markets in East Africa and Central Asia by using Pakistan as a strategic manufacturing hub. Additionally, he expressed a strong desire to bring a business delegation to Pakistan to explore investment opportunities and strengthen ties between the private sectors of both nations. “With Pakistan’s cost-effective labor, liberal investment policies, and proximity to high-growth regions, we see immense potential to develop a dynamic partnership that benefits both sides,” Minister Cheong stated. Minister Cheong concluded by reiterating his commitment to advancing the negotiations in the shortest possible timeframe. “The EPA represents not just a trade agreement but a transformative partnership that will elevate Korea-Pakistan ties to unprecedented levels,” he said.
Both sides expressed their determination to conclude the negotiations expeditiously. The Terms of Reference (TOR) provide a comprehensive framework for addressing key issues such as trade liberalization, investment, digital trade, intellectual property rights, and climate resilience ?. With the first round of negotiations set for early 2025, both nations are poised to embark on a new era of economic collaboration, targeting global markets and ensuring shared prosperity.