India and Japan would soon sign an in-principle agreement which would facilitate wrapping up negotiations between the two countries to have a Comprehensive Economic Partnership Agreement.
The last round of talks were held in New Delhi earlier this month. Next month, Commerce Secretary Rahul Khullar would be leading a team of negotiators to Tokyo. “We will be looking forward to reach an in-principle agreement which can be formalised as per the mandate of the last Prime Ministers’ summit that took place in December 2009,” Commerce and Industry Minister Anand Sharma said today on the sidelines of the 42nd Asean Economic Ministers’ meeting.
He also said that following the signing of the in-principle agreement, Prime Minister Manmohan Singh would be visiting Japan. The deal is expected to slash tariffs on more than 8,000 products including drugs, apparel, agricultural products and machinery, thereby increasing the bilateral trade between both countries to $20 billion by 2012-13 from around $13 billion at present.
One of the main stumbling blocks in the deal is India’s demand to obtain greater access in Japan’s pharmaceuticals and services markets. “I hope it will get addressed, we will leave it to the negotiators,” Sharma said after meeting the Japanese Minister for Economy, Trade and Industry, Masayuki Naoshima, adding that both sides also reviewed the progress of the Delhi-Mumbai Industrial Corridor and the Dedicated Freight Corridor.
While Japan ranks 10th among India’s export destinations, India stands 26th among its export destinations. India’s exports to Japan comprise mostly of raw materials, minerals, marine products, iron ore, handicrafts, cotton, carpets and leather garments. Its imports from Japan include heavy machines, transport equipment and pharmaceuticals.
