Friday, December 26, 2008

Trade pact with Japan

India & Japan are moving closer in their economic relationship. Trade between the two countries has grown by 250% in the last 4 years yet it lags well behind the trade with China. Indo-Chine trade has already crossed USD 20 Billion but Indo-Japan trade is merely at USD 10 Billion. This is despite the fact that Indo-Chine trade started to accelerate at the same time! The article on livemint.com provides more details below. Editor.

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New Delhi: Trade officials of India and Japan will try again in February to resolve some ticklish issues blocking the tariff-breaking bilateral pact.Commerce ministry officials will engage with their Japanese counterparts to bridge the gap on issues such as recognition of Indian pharmaceutical products by Japan and services.

India is keen on gaining market access through a free trade agreement for the $19 billion (Rs93,100 crore) pharmaceutical industry in Japan, which is one of the major importers in the world.Indian firms say their products are not recognized by Tokyo in terms of quality and safety standards despite the approval by the US authorities.
India also wants wider reach for its services sector, which the Japanese are a bit circumspect about.

While India’s trade with Japan has more than doubled in the last four years from about $4 in 2003-04 to almost $10 billion in the last fiscal, many products such as oilseeds, dairy products, sugar and sugar products face tariff peaks in Japan.

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