SEOUL (Commodity Online) : In a significant development on Friday, Asia’s fourth largest economy, South Korea approved a free trade deal with India, Asia’s third largest economy.

The agreement was passed in a vote by lawmakers in South Korea’s National Assembly.



Analysts said the deal promises to slash tariffs on goods and services between two of Asia's biggest economies.

The two countries signed the deal, known officially as a Comprehensive Economic Partnership Agreement, in August in Seoul.

Trade between India and South have grown steadily and reached $15.6 billion last year. In 2002, it amounted to just $2.6 billion.

The two countries will abolish or cut tariffs for 90 percent of Indian goods in terms of value and 85 percent of South Korean products.

South Korea has been aggressively pursuing free trade agreements as part of a national strategy to boost its economy and increase opportunities for its companies, including heavyweight exporters like electronics maker Samsung and automaker Hyundai.

The country has concluded accords with the United States and the European Union, though both remain unrratified.

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