India has asked Japan, South Korea to renegotiate FTAs: Piyush Goyal

Commerce and industry minister Piyush Goyal on Thursday said that India has asked Japan and South Korea to renegotiate the comprehensive economic partnership agreement (CEPA) to make the trade more balanced and equitable.

While both the trade agreements were signed more than a decade ago, the pacts have been often discussed in the context that the Indian industry has failed to benefit from the agreements and the gains mostly have been one-sided.

During FY23, India’s trade deficit with Japan rose to $11.03 billion from $8.22 billion a year ago as exports grew at a slower pace as compared to imports. In the case of South Korea, the deficit widened to $14.57 billion in FY23 from $9.39 billion a year ago. This is because exports contracted nearly 18 per cent, while imports grew over 21 per cent.

“They have not allowed their exports into the country…what it was 10 years ago, it is the same today with Japan…Japan’s exports to India have meanwhile grown 200 per cent,” Goyal said at an industry event.

The minister also said that the trade agreement with ASEAN was an “ill conceived” agreement and unfair to Indian industry.