Indian textiles gain more market access in Japan

Business News Agency February 21: Japan and India signed an economic cooperation agreement (EPA) in Tokyo on the 16th to promote the liberalization of trade and investment between the two countries. According to the agreement, tariffs on products that account for 94% of the total trade volume between the two countries will gradually decline to zero within the next 10 years.

Japanese Foreign Minister Maehara Maeda and visiting Indian Minister of Commerce and Industry Sharma signed an agreement on behalf of the two governments. Former Prime Minister stated that he hopes that Japan and India can use this opportunity as a strategic partner to achieve mutual benefit and common development. Sharma said: "The partnership between the two countries is very important to Asia and the world. The fast-growing Indian economy welcomes Japanese companies." The agreement signed not only covers trade and investment, but also includes intellectual property protection, government procurement, and the economy. Cooperation environment and service industry personnel exchanges and other fields. The agreement will become the 12th economic cooperation agreement signed so far by Japan after it has been ratified by the Japanese parliament. At the same time, Japan has become another Asian country that has signed economic cooperation agreements with India after South Korea, Singapore and other countries.

According to the agreement, the two countries promised to gradually remove the tariff of 94% of products in the next 10 years, among which Japan is expected to achieve zero tariff on auto parts, steel products and machinery exported to India. However, some agricultural and livestock products such as rice, wheat, beef, and pork are not subject to cancellation of tariffs. At the same time, India also promised to grant national treatment to companies from Japan both before and after investment. This means that Japanese companies investing in India will enjoy all preferential policies for Indian companies, which will help stimulate Japanese investment in India.

Japan and India started EPA negotiations since early 2007. During Indian Prime Minister Manmohan Singh’s visit to Japan in October last year, the heads of government of the two countries officially reached agreement on the EPA. At present, Japan is India’s fifth largest trading partner. According to the statistics of the Indian side, in the financial year from 2009 to 2010 (as of March 31, 2010), the bilateral trade volume between India and Japan was US$ 10.36 billion, which was 5% lower than the previous year. The Economic Times of India, published on the 16th, believes that after the EPA comes into effect, India’s textile, pharmaceutical and service industries will gain greater market access in Japan, but the agreement may also bring Indian auto parts manufacturers Big competition pressure.

The "basic policy for economic cooperation" set by the Japanese cabinet meeting in November last year pointed out that the economic cooperation agreement must be strengthened. Japanese media analysis said that the agreement is expected to promote Japan’s “huge market” of 1.2 billion people in India to expand trade and investment. Strengthening relations with India is conducive to expanding Japan’s voice and influence in international and regional affairs. India also believes that India is trying to broaden the trade market by signing economic and trade agreements with Asian countries.