If countries went beyond the free trade agreement and agreed on a higher level of economic integration, including improving the attractiveness of capital and human resources and expanding trade and investment, this would lead to CECAF or CEPA. CEPA/CEPA is similar to a free trade agreement (FTA) with comprehensive coverage of trade in goods and services and investments as well as intellectual property rights. India and South Korea will lower tariffs to 11 customs lines to expand bilateral trade by updating their existing comprehensive economic partnership agreement (CEPA). Objectives of CEPA The official document on India-Korea CEPA identifies the following objectives between the parties: Liberalization of trade in goods Liberalization of trade in services Expansion of investments Creation of a cooperative framework Promotion of the conditions for fair competition Exploration of new areas of economic cooperation Extension of the cooperation agreement to other countries. In fact, CECAF and CEPA are a broader concept than FTA. For example, under the India-Malaysia CACE, the goods package included tariff liberalization beyond the india-ASEAN commitments, beyond the india-ASEAN free trade agreement commitments, to issues of mutual interest. A greater degree of economic integration will then be achieved in CEPA. Under the India-South Korea CEPA, in the eight years following cepa`s entry into force, India will eliminate tariffs on 75% of products imported from South Korea on a customs basis. During the same period, South Korea will remove tariffs on 93% of Indian products.
The hierarchy of these agreements is as follows: PTA →FTA→CECA→CEPA Everything you need to know about trade agreements! Once a trade agreement is concluded, we read about these trading blocs – a kind of intergovernmental agreement that removes or removes regional barriers (tariffs and non-tariff barriers) between the participating states. An agreement between the countries so that they have free trade among themselves and that common external barriers are erected against any other country interested in exporting to these countries. A trade agreement is a treaty/agreement/pact between two or more countries, which indicates how they will cooperate to ensure mutual benefits in trade and investment. It is a bilateral agreement in which two countries sit together and define the conditions for private investment by citizens and businesses of both countries. Free Trade Agreement/Free Trade Area (FTA): Whenever certain countries meet and decide to remove tariffs, import quotas, and preferences for most (if not all) of the goods and services traded with each other, they create a free trade agreement. The objective of a free trade area is to reduce barriers to trade in order to allow trade to grow through specialization, division of labour and, above all, comparative advantage. A free trade agreement can be an agreement between two (bilateral) countries or many (multilateral) countries. For example, in 1988, the U.S.-Canada Free Trade Agreement was signed between Canada and the United States. Please note that each customs union, common trade market, economic union, customs and monetary union and economic and monetary union also has a free trade area. NAFTA is such a trading bloc. A free trade agreement includes a substantial reduction or elimination of tariffs on all trade that allows the free movement of goods and, in more advanced agreements, the reduction of restrictions on investment and establishment, which allow the free movement of capital and the free movement of services. A preferential trade agreement is a trading bloc that gives preferential access to certain products from participating countries.
A free trade area is a trading bloc whose member states have signed a free trade agreement (FTA) that eliminates tariffs, import quotas, and preferences for most (if not all) of the goods and services traded with each other. . . .