India-Japan sign Comprehensive Economic Partnership
Agreement:
India and Japan signed the Comprehensive Economic Partnership Agreement (CEPA) in Tokyo on February 16, 2011. The objective of the agreement is to “liberalise and facilitate trade in goods and services between the parties. Bilateral trade between the two countries currently amounts to $10.36 billion per annum.
India’s exports to Japan were 3629.54 million while imports were 6734.18 million in 2009-10. The agreement will eliminate tariffs on 94 per cent of two-way trade flows in 10 years after it comes into force. This is the third Comprehensive Economic Partnership Agreement signed by India, the others being with Singapore and South Korea.
The agreement signed by Anand Sharma, Union Minister of Commerce and Industry and Japanese Foreign Minister, Seiji Maehara 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. India stands to gain significantly through this Agreement and 90% of tariff lines are covered while Japan has covered 5% more lines than India. 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.
Under the agreement, 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. An example: The 10 per cent tariff imposed by India on the Japanese exports of lithium batteries, DVD players and tractors will be lowered to zero in ten years, while the 3.6 per cent and 2.5 per cent duty levied by Japan on Indian curry and tea will be eliminated in the same period. It would also help in increasing investment opportunities and strengthen protection for investment and investment activities.
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