India, Japan resume talks on FTA

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SME Times News Bureau | 08 Apr, 2010
India and Japan on Wednesday resumed talks in New Delhi on a free trade agreement (FTA) that will break duty and other barriers for bilateral investment and commerce in goods and services.

"India is seeking market access in the world's second largest economy mainly for its agricultural products and pharmaceuticals. Besides, services like information technology, English teaching and para-medical are of interest to us," a Commerce Ministry official was quoted by a news agency.

The two countries have already held over a dozen rounds of discussions since January 2007 without resolving basic differences, which are holding the agreement.

The last meeting of the joint task force negotiating the Comprehensive Economic Partnership Agreement (CEPA) was held in October 2009 in Tokyo.

Japan's tariffs remained high for a number of agricultural commodities. Besides, sectors such as oilseeds, dairy products, sugar and sugar products were facing higher tariffs, and non-tariff barriers like health standards were also affecting the Indian shipments.

In terms of standards and technical regulations, Indian goods often find it difficult to meet the Japanese requirements, the official added.

India-Japan bilateral trade has more than doubled over the past four years to about $11 billion in 2008-09, but still it is considered very low compared to India's merchandise engagement with China.