M A I N   N E W S

India, Japan sign free trade agreement
This is the third comprehensive economic partnership agreement signed by India
Sanjeev Sharma
Tribune News Service

New Delhi, February 16
India and Japan today signed a comprehensive economic partnership agreement (CEPA) to open markets and reduce barriers on goods, services and movement of people between the two countries.

The pact was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Affairs Minister Seiji Maehara in Tokyo.

Sharma set a target of doubling bilateral trade to $25 billion by 2014, which is currently at $10.3 billion. He also suggested establishment of a joint revolving fund of $9 billion for the Delhi-Mumbai Industrial Corridor Project.

Under CEPA, 94% of the tariffs between India and Japan will be eliminated in 10 years. Japan will eliminate duties on 95 per cent of its industrial goods and other products and India will do the same on 85 per cent of its goods. This is the third CEPA signed by India, the others being with Singapore and South Korea.

“At $10.3 billion the trade relationship between India and Japan has been far below its true potential. CEPA will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property,” said Hari Bhartia, president, CII.

“As a result of the CEPA, India is expected to gain greater market access in Japan in textiles & garments, pharmaceuticals, marine products, organic and inorganic chemicals”, Dr Amit Mitra, FICCI Secretary General said.

A Commerce Ministry statement said this agreement is the most ambitious agreement signed by India so far and covers trade in goods, services and investment under its ambit. This agreement follows from the commitment of the two Prime Ministers in October 2010. The agreement has ensured that the sensitive sectors for India are fully protected including agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts.

Japan has agreed to grant additional category of visas for instructors for yoga practitioners, classical musical exponents, dance practitioners, chefs and English language teachers. Negotiations are also on for creating greater openings for Indian nurses and care givers.

Indian agricultural produce including instant tea, seafood will find their way in the Japanese market. Textile products including readymade garments stand to gain significantly in terms of market access.