India Seeks to Review and Expand Long-standing Trade Agreement with Japan
NAGOYA: The Indian government has reiterated its demand for a review of the Comprehensive Economic Partnership Agreement (CEPA) with Japan, which has been in place for 15 years. Union Minister of Commerce and Industry Piyush Goyal stated that the agreement has not delivered significant benefits to Indian exporters of goods and services. He expressed a willingness to expand the scope of the pact, which India has sought to revise for several years.
Last month, a breakthrough occurred when the Prime Ministers of both countries agreed to discuss modernizing the agreement. Goyal mentioned that he had conversations with Japan’s Minister of Economy, Trade, and Industry, Akazawa Ryosei, about expanding opportunities within the partnership. He noted that both sides need to agree on the review’s scope, acknowledging that negotiations will require concessions from both parties.
Bilateral trade between India and Japan stands at $27.5 billion, with Indian exports estimated at $6 billion, resulting in a trade deficit of $15.5 billion. This deficit has increased from $11 billion in the previous fiscal year. Goyal also highlighted that of the $67 billion foreign direct investment target set by both nations, $10 billion has been invested in the last 10 months, particularly in the financial services sector.
Industry representatives have raised concerns about the complex certification and registration processes that hinder Indian exports. Ficci President Anant Goenka pointed out that pharmaceutical companies face significant challenges in registering their products in Japan. In response, Goyal stated that the commerce department is assisting exporters in meeting regulatory requirements and has urged the pharmaceutical industry to pursue global registrations, including in Japan. He has also requested various industries to report the challenges they encounter in exporting to Japan.
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