India and South Korea on Saturday discussed ways to improve their existing free trade agreement and address a growing trade imbalance between the two countries.

Commerce and industry minister Piyush Goyal met his South Korean counterpart Inkyo Cheong in Vientiane, Laos, to review the India-Korea Comprehensive Economic Partnership Agreement (CEPA) and explore opportunities for greater bilateral trade and investment.

Goyal said the discussions focused on achieving more balanced trade, promoting investments, and addressing non-tariff barriers.

Both countries have been holding review meetings to upgrade the CEPA, which was implemented in 2010.

India has sought greater market access for certain products such as steel, rice, and shrimp from South Korea, while also raising concerns about non-tariff barriers faced by Indian exporters in the South Korean market.

The trade deficit between India and South Korea has been widening in recent years, with India’s imports from South Korea significantly outpacing its exports.

According to the Global Trade Research Initiative (GTRI), India’s trade deficit with South Korea increased at a much higher rate compared with its trade deficit with the world.

The upgrade of the CEPA is seen as crucial for strengthening economic ties between India and South Korea. By addressing the trade imbalance and improving market access, both countries aim to boost bilateral trade and investment.

In addition to the trade discussions, Goyal and Cheong also exchanged views on regional economic cooperation and the challenges posed by geopolitical tensions. The two countries reaffirmed their commitment to working together to promote peace, stability, and prosperity in the region.

Goyal also met Myanmar’s minister of investment and foreign economic relations, Kan Zaw, to discuss potential cooperation in areas such as lentils, diesel, gasoline, electric vehicles and bilateral trade promotion through the rupee-Kyat currency mechanism.