SEOUL: In a significant step toward enhancing economic collaboration, Pakistan's Federal Minister for Commerce, Jam Kamal Khan, and the Republic of Korea's Minister for Trade, Inkyo Cheong, have officially launched negotiations for an Economic Partnership Agreement (EPA).

The joint declaration, signed at a high-profile event in Seoul, marks a mutual commitment to fostering trade, investment, and cooperation between the two nations. The EPA, aligned with World Trade Organization (WTO) principles, aims to build on the diplomatic ties between Pakistan and Korea, which were established in 1983. It seeks to promote trade in goods and services, enhance economic cooperation, and strengthen supply chain resilience. With bilateral trade currently standing at $1.3 billion annually, the agreement is expected to open new opportunities for growth in various sectors, including food, IT, textiles, minerals, and logistics. Minister Jam Kamal Khan emphasized the untapped potential in bilateral trade and highlighted the opportunity for Pakistan to learn from Korea's successful transition from low-tech industries to advanced sectors.

He expressed confidence that the agreement would help both countries achieve mutual economic advancement. "Together, we can build bridges of cooperation across diverse sectors," said Minister Khan. The Federal Minister also extended an invitation to Minister Inkyo Cheong to visit Islamabad for the first round of negotiations, reinforcing Pakistan's desire to deepen bilateral ties. Minister Cheong, in turn, acknowledged Pakistan's strategic importance, noting its vast market of 250 million people and its location at the crossroads of Asia. He expressed Korea's interest in shifting its production base to Pakistan, targeting new markets in East Africa and Central Asia. This move could also create opportunities for Korea to leverage Pakistan as a manufacturing hub, benefiting both economies. Minister Cheong also announced plans to bring a business delegation to Pakistan to explore investment opportunities, citing the country's cost-effective labor, liberal investment policies, and proximity to high-growth regions.

"We see immense potential in developing a dynamic partnership that benefits both sides," he stated. Both sides are committed to advancing the negotiations quickly, with the first round of talks scheduled for early 2025. The Terms of Reference (TOR) will address critical issues, including trade liberalization, investment, digital trade, intellectual property rights, and climate resilience.

The signing of this agreement marks the beginning of a new era of economic collaboration between Pakistan and Korea, aimed at fostering shared prosperity and reaching global markets.