ISLAMABAD: Following the two nations’ signing of the Economic Partnership Agreement (EPA), South Korea’s Trade Minister Inkyo Cheong has laid out a bold plan to move Korea’s industrial base from its neighbors in Northeast Asia to Pakistan.
The announcement was made during a high-level ceremony in Seoul on Thursday, where the Korean minister and Commerce Minister Jam Kamal Khan signed a joint declaration to start official discussions to reach EPA. The two nations’ commitment to growing their trade, investment, and economic cooperation is reflected in the declaration.
According to a statement released by the ministry of commerce, the EPA aims to strengthen the two nations’ long-standing diplomatic relations, which were first established in 1983, and to advance supply chain resilience, economic collaboration, and mutually beneficial trade in commodities and services. The agreement is anticipated to be a pillar of future bilateral ties and will be in accordance with the norms of the World Trade Organization.
During the ceremony, Mr. Cheong emphasized the possibility of leveraging Pakistan as a strategic manufacturing hub to pursue new markets in East Africa and Central Asia. He also stated that he was eager to send a business delegation to Pakistan in order to investigate potential investments and deepen connections between the two countries’ corporate sectors.
Seoul is interested in moving its manufacturing base to Pakistan.
“We see enormous potential to develop a dynamic partnership that benefits both sides with Pakistan’s cost-effective labor, liberal investment policies, and proximity to high-growth regions,” Mr. Cheong said.
The Korean minister reaffirmed his determination to move the negotiations along as quickly as possible. “The EPA is a transformative partnership that will take Korea-Pakistan relations to new heights, not just a trade agreement,” he stated.
He emphasized the strategic significance of Pakistan, saying that Korea’s goals for economic expansion depend heavily on Pakistan’s geographic location and its sizable market of 250 million people.
Additionally, Mr. Cheong declared that he would personally chair the initial round of talks, which will take place in Pakistan. In order to demonstrate Korea’s commitment to developing a high-level collaboration, he invited Pakistan’s Commerce Minister Jam Kamal to co-chair the talks.
Both parties stated that they were committed to a speedy conclusion to the negotiations. A thorough framework for tackling important topics like trade liberalization, investment, digital trade, intellectual property rights, and climate resilience is offered by the Terms of Reference (TOR).
Both countries are ready to start a new age of economic cooperation, aiming for international markets and guaranteeing shared prosperity, with the first round of talks scheduled for early 2025.
Mr. Kamal emphasized how South Korea stands to gain greatly from the unrealized potential of bilateral trade, which now amounts to $1.3 billion yearly. He emphasized the common ambition for economic progress and the chance for Pakistani companies to learn from Korea’s shift from low-tech to sophisticated sectors.
“By working together, we can create cooperative links between various industries, including food, IT, minerals, textiles, and logistics,” Mr. Kamal stated.
For the initial round of talks, he formally invited his Korean colleague to come to Islamabad. He believed the visit will strengthen the two countries’ relationship and encourage top-level cooperation.
