Indo-Japan mutual trade talk begins

Underlining the fact that Indo-Japan economic cooperation is going stronger by the year, both the countries have agreed to build up an extensive and deeper bilateral economic relationship during Prime Minister Manmohan Singh’s visit to Japan.

At a meeting held in Tokyo on Tuesday, the Minister for Commerce and Industry, Kamal Nath and his Japanese counterpart, Nikai Toshihiro pressed for a Comprehensive Economic Partnership Agreement (CEPA).

Prior to Dr. Singh’s two-day visit to Japan starting from today (October 22), both the Commerce Ministers expressed satisfaction in their discussion on bilateral, regional and multilateral relationship. They urged their negotiators or both sides to work towards a mutually acceptable solution for some key roadblocks.

Both the countries are now sharing a joint trade of $10 billion that is expected to reach $15 billion by 2015. However, there are certain sectors such as agriculture in which India is seeking a clear and categorical road map, especially on the import and export of fresh fruits and vegetables.

Ahead of the summit of India-Japan Policy Dialogue, industry minister of the two nations hailed progress achieved for the establishment of a Project Development Fund (PDF) that is important to promote infrastructure construction in India including the Delhi-Mumbai Industrial Corridor (DMIC) Project. Such projects will further encourage Japanese enterprise for investment in India in a mutually beneficiary business relation.

The two ministers also welcomed the initiatives of Japan External Trade Organisation (JETRO) in promoting small and medium-sized enterprises (SMEs).

The two countries are looking forward to boost their trade tie, which is comparatively lower to what it is between India and China. Prime Minister Manmohan Singh, while talking to Japanese media soon after his arrival in Tokyo, has already expressed his wish to sign free trade agreement by the end of this year. Free Trade Area (FTA) pact has been stalled on the issues of the amount of tariff cut and kind of two-sided investment options.