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Introduction
Recently, high ministerial level delegates of India and Korea met in Seoul, Korea, in the last week of September, 2008, and finalized a Comprehensive Economic Partnership Agreement (CEPA) between the * Professor of Law, Campus Law Centre, University of Delhi, Delhi, India.
two countries. This Agreement is slated to be signed by the Heads of the two countries by the end of 2008. The finalization of the various terms of this Agreement is the outcome of thorough high-level deliberations and negotiations spread over 12 grueling sessions over a period of more than two and a half years. This fact is a clear pointer to the meeting of the minds and the crossing of the high barriers relating to trade duties between India and Korea. The Korean and Indian economies are highly complementary. Therefore, the liberalization of trade in goods would promote inter-industry trade between the two countries.

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The Background

The object of the World Trade Organisation (WTO) to have globalization of free trade amongst its member countries is uncertain and even seems to be a distant dream. Its uncertainty has resulted in
frustrations in many countries, and some of whom are keen to have economic, science and technology development, have now started to enter into bilateral Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs).
By entering into FTAs and CEPAs, the two countries or group of countries agree to eliminate tariffs, quotas and preferences on most of the goods (if not all) between them. FTAs and CEPAs cover not only trade in goods, but also services and investments. In simple terms, they remove all restrictions on businesses. Countries choose FTA or CEPAs if their economical structures are complementary, not competitive. Such agreements allow transnational corporations (TNCs) more freedom to exploit the trade and business opportunities of the other country, which in turn helps in shaping their own national economy and also suits their own business interests. In simple terms, these agreements remove all restrictions on businesses. This is another way to ensure that governments implement the liberalization,
privatization and deregulation measures of the corporate globalization agenda. Although India and Korea are geographically distant, there have been historical, cultural, religious and even trade contacts between the people of the two nations dating back to ancient times. The enduring philosophy of the Buddha has also influenced the lives and thoughts of the people of the two countries. This Agreement will reopen and revive the historical glorious "Southern trade Route" and the "Silk trade Route" with both India and Korea as the hub-centers for not only trade, but also cooperation and partnership for mutual progress and prosperity.

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The Challenges Ahead
In India, a well established IPR law and an independent judicial system exist. Information Technology is a part of the Government’s National agenda aimed at supporting higher growth and integration with the global economy. Government policies on Intellectual Property Rights (IPRs) and Data protection have helped in generating high levels of confidence in India amongst foreign investors. The recognition of India's strengths internationally with domestic IT giants like Tata Consultancy Services, Wipro Technologies, Infosys Technologies and HCL is leading the way to make India a major IT hub globally. These ITEs (IT-enabled services and also BPOs (Business Process Outsourcing) have demonstrated their competitiveness, efficiency and reliability in the global market.
Today, Korea has emerged as one of the top most industrial superpowers and has attained world class industrialization. It has secured a very high position as a global leader of ship-building and semiconductor industry. It is now internationally competing with automobile majors of America and Japan. Korea is one of the top
petro-chemical manufacturers of the world. It is also one of the biggest manufacturers of digital electronic goods. Simultaneously, it has secured a very high global position in production of steel, machinery parts and heavy machinery. Korea has also attained international recognition as a country having most advanced and excellent e-governance, e-business, and Logistics. Its e-governance is rated as No.1 in the whole world. The government in Korea is also promoting the robotics industry and it has the ambitious plan to ensure that in the next 10 years every Korean household has at least one robot.
India's knowledge- based service industry will complement the hardware and manufacturing based economic structure of Korea. India's competence in pharmaceuticals and research in Bio-Nano Technology will ensure emergence of new knowledge-based
health-care devices and medicine utilizing the rich bio-diversity of both India and Korea.
The core competence of India in its technically qualified human resources is well known for its software expertise. Korea has the cutting edge technology in IT hardware. Both being complementary to each other, the synthesis and collaboration between the two countries will enable them to capture the large untapped potential in this sector.
This agreement will give an impetus not only to trade between the two countries, but also to the research and development of science and technology. Both countries would thus stand to gain
By this agreement with Korea, India will be able to provide integrated connectivity, i.e. physical connectivity of the village clusters through quality roads and transport; better electronic tele -communication, and knowledge connectivity through education, vocational training for farmers, artisans and craftsmen and entrepreneurship programs. This would thus result in prosperity to the Indian rural poor.
The future business hub center of the world is definitely Asia. Business and trade community of India and Korea can make this region an economically developed region with robust E-business framework. This would lead to increased information sharing, education programs and knowledge connectivity among the regional partners. It can also result in realizing technology upliftment, business development, joint ventures, free trade zone, and employment generation and over-all prosperity of both the region.
The CEPA between India & Korea will thus result in the convergence of Technologies such as Nano-Bio technologies,
the world knowledge platform and e-business network. These agreements will open new trade vistas for Korean trade. Experts are of the opinion that the agreement on free trade will make India open nearly 85 percent of its market to Korea, which in turn will allow India to access its 95 percent of the market at either zero duty or at concessional rates. This, in return, would also provide greater employment opportunities.
CEPA is a win-win agreement, bringing new business opportunities to Korea and India. For India, it will provide various windows of opportunities for Indian businesses to gain greater access to the South Korean market, particularly in inorganic chemicals, dye-stuffs and ready-made garments. CEPA also benefits the Korean Industrial houses as India serves as a perfect "springboard" for Korean enterprises to reach out to participate in the development of Indian infrastructure, particularly in the areas of construction of highways and bridges, power generation and distribution, setting up of new industrial townships in the various Special Export Zones (SEZs), harnessing of rivers, rebuilding of airports, shipyards and docks, etc. To felicitate regulatory free access to Indian industrial and service sectors, the Government of India proposes to further liberalise the Foreign Direct Investment (FDI) regime by standardising procedures across various sectors so as to make FDI in India more attractive.

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The Legal Perspective

Few critics are alleging that this agreement would result in trade diversions. Some are even stating that India is one of the largest democracies in the world, but also a noisy democracy as a result of which the future of industrial and business commitments is not certain. Some experts have alleged that Indian Labour laws also have not kept pace with the growing international industrial and market economy.
They are citing the Honda Industry Workers’ strike of mid-2005 and also the recent violent murder of a Chief Executive Officer (CEO).
It is true that whenever two or more nations enter into FTAs or CEPAs, there is bound to be trade diversions. The other allegations are legally not well founded.
Noisy democracy is an indication to the fact that the people of India are able to enjoy their fundamental rights and have the full freedom of speech and expression.
The Government of India has the unique distinction of honouring all its international commitments. The Indian Judiciary is pro-active and zealously ensuring the compliance of all laws including the Environmental laws. For the redressal of consumers’ complaints, the Consumer Protection Act has constituted Consumer Court. Many new industrial townships have been created in Special Economic Zones (SEZs) wherein many big industries have been set up. Labour laws are not enforceable in these SEZs as they are considered as foreign land resulting in inapplicability of all laws, including labour laws. The Honda Industry Workers’ strike was in reality a case of union
busting for which the management is to be blamed. Similarly, the violent murder of the CEO was by outsiders.
For the success of this CEPA, Korea will have to reduce barriers to foreign direct investment. As this Agreement would result in great inflow of highly skilled and semi-skilled workers, Korea will also have provide Korean language education at free or cheap cost. It will also have to rapidly train its legal community to the Indian Judicial System and legal practice which is based on the Common Law Legal system.

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CONCLUSION

India and Korea have re-discovered one another. They have been able to clear off all stumbling blocks including anti-dumping rules and regulations. This Agreement will lead to economic growth, nuclear scientific research and development, reducing poverty and increasing standards of living and generating employment opportunities.

This Agreement is a stepping stone towards integration into an Asian Free Market Economy.