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Korea and Pakistan set to negotiate economic partnership agreement to boost trade

Published: 09 Jan. 2025, 10:32 Updated: 09 Jan. 2025, 13:43

Trade Minister Cheong In-kyo [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Korea and Pakistan on Thursday agreed to begin negotiations for an Economic Partnership Agreement (EPA) aimed at expanding their bilateral trade portfolio, the Ministry of Trade, Industry and Energy said.

Trade Minister Cheong In-kyo announced the start of the talks during a meeting with his Pakistani counterpart, Jam Kamal Khan, in Seoul, according to the Trade Ministry.

An EPA aims to establish a mutually beneficial trade network with partner nations beyond simple market opening, though it covers a smaller scope compared to a traditional FTA.

"Pakistan is a major market in Southwest Asia with the world's fifth-largest population, rich labor forces and abundant natural resources," the industry ministry said. "It is also located in a geographically significant region, neighboring China and India."

The Industry Ministry added the envisioned EPA is expected to pave the way for Korea to expand cooperation with Pakistan in areas that include digital technology, information technology and the automobile sector.

"Korea will continue to expand its trade network with emerging markets this year," Cheong said.

In November, Korea also agreed to begin negotiations for an EPA with Bangladesh.

Yonhap