Realising that their two-way trade did not match the potential, India and Japan today decided to give push the negotiations on the proposed Comprehensive Economic Partnership Agreement, with an aim to conclude it by next year.
Prime Minister Manmohan Singh and his Japanese counterpart Yukio Hatoyama instructed officials to sort out the “remaining issues” in the way of the market-opening pact, negotiations for which began in 2007.
“We have decided to expedite our negotiations on the Comprehensive Economic Partnership Agreement (Cepa) in order to conclude a high-quality and balanced agreement. We are hopeful that this can be completed in time for the next Annual Summit meeting,” Singh said addressing a joint press conference with Hatoyama after their talks here.
Agreeing with Singh on the need to firm up Cepa as soon as possible, Hatoyama said “main concerns” in the way of the pact needed to be addressed to facilitate this.
He, however, did not elaborate, but the sides are believed to have differences on opening up of sectors like services and pharmaceuticals, particularly because of Japan’s apprehensions. To make a point, Hatoyama said Japan’s investments in India were 5 per cent of that in China.
A joint statement said the two leaders had instructed their officials to accelerate the negotiations by “energetically working towards resolving the remaining issues with a view to concluding a mutually beneficial agreement at the earliest”.
According to Indian official figures, the two-way trade for 2008-09 stood at $10.6 billion, with imports accounting for $7.6 billion. Comparatively, India-China trade stands at over $40.6 billion. “The two prime ministers shared the view that economic relations between India and Japan would develop further as a result of the conclusion of Cepa,” the statement said.
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Singh said he had conveyed to Hatoyama that India welcomed Japanese investments into the country, and the growth of India’s economy offered huge opportunities to substantially increase bilateral trade and economic cooperation.
In particular, there was great scope for expansion of cooperation in the areas of urban infrastructure, high technology, and renewable and energy-efficient technologies, he added.
While favouring enhanced business exchanges, Hatoyama raised the issue of liberal visa norms.
“I asked for cooperation in the procedure of visa issuance,” he said, adding this was important, considering that several major projects were being undertaken in India for the benefit of both the countries.
Some of the major projects being undertaken with Japanese collaboration are two Dedicated Railway Freight Corridors and a Delhi-Mumbai Industrial Corridor (DMIC).
The Rs 3,60,000-crore DMIC would involve building of eco-friendly business and industrial hubs alongside the 1,483-km rail line between Delhi and Mumbai.