The signatories of the agreement said that the door remained open for India to join india in the future. For example, with the EPA, Indonesia will open markets to 93 per cent of its products, compared to 80 per cent under the existing free trade agreement with the regional bloc, according to the Ministry of Commerce. “IK-CEPA is a new milestone in the economic relations of Indonesia and South Korea,” said Indonesian Trade Minister Agus Suparmanto. “The Ik-CEPA is not only a free trade agreement, but a comprehensive partnership between the two countries in the areas of trade in goods, services, plantation capital, rules of origin and economic cooperation.” The new free trade bloc will be larger than the agreement between the United States, Mexico and Canada and the European Union. South Korea believes that this agreement will be a new milestone in the promotion of bilateral partnerships as part of its signing of the South`s new policy. Both sides will formally sign the agreement early next year, after the agreement has been revised. Once the agreement is signed, it will be ratified by each parliament in each country. When the South Korean EPA comes into force, 93% of the Indonesian market will be open to South Korea, up from the current level of 80.1%. The Peterson Institute for International Economics estimates that the agreement could increase global national income by $186 billion a year by 2030 and increase the economies of its member states by 0.2%. Indonesian Trade Minister Agus Suparmanto said in a statement that it would also give Indonesia “greater access” to the South Korean market compared to what was agreed by the ASEAN-Korea free trade agreement. “The partnership between the two parties will be beneficial for both parties,” he said. Under the agreement, Indonesian industrial, fishing and agricultural products will benefit from better access to the South Korean market. In return, Indonesia will purchase raw materials from South Korea to facilitate South Korean investment in the country.
Earlier this month, ASEAN member states, South Korea and five other partner countries agreed on a mega-Asia-Pacific trade pact, known as the Comprehensive Regional Economic Partnership (RCEP). At the regional level, the two countries are working on a larger trade agreement with several countries. The two sides will now continue the legal process for completing the contract text, which is expected to be finalised by February 2020 and signed in the first half of 2020.