Cairo: South Korean Trade Minister Yeo Han-koo and his Egyptian counterpart have formalized the commitment of their respective countries to initiate negotiations for a comprehensive economic partnership agreement (CEPA), as announced by Yeo's office.

According to Yonhap News Agency, Yeo and Hassan El-Khatib, Egypt's trade minister, signed a joint statement affirming their intention to advance CEPA negotiations during Yeo's visit to Egypt. The Ministry of Trade, Industry and Resources highlighted that the agreement was formalized on Sunday, local time. The CEPA aims to foster broader economic cooperation and exchanges in addition to market access.

The decision to commence CEPA negotiations follows a bilateral summit between South Korea and Egypt in November. Additionally, Yeo met with Walid Gamal El-din, chairman of the Suez Canal Economic Zone, to explore potential business partnerships. During this meeting, Yeo highlighted that Qualifying Industrial Zones (QIZs) in the Suez Canal area could become a production hub for Korean firms targeting the U.S. market. QIZs are special trade zones that enable products with Israeli inputs to be exported to the United States without tariffs.