Commerce Secretary Khullar calls India, Japan CEPA a major step for East Asian Partnership

New Delhi, Aug 1 (ANI): Commerce Secretary Rahul Khullar on Monday said that India and Japan Comprehensive Economic Partnership Agreement (CEPA) is a major step in the direction of larger vision of an East Asia partnership.

Khullar was speaking after co-chairing the first meeting of the Joint Committee of India Japan CEPA with Akitaka Saiki Ambassador of Japan in India, here. The CEPA enters into force today.

This is India's third Comprehensive Economic Partnership Agreement (after Singapore and South Korea) and India's first with a developed country. The agreement is most comprehensive of all the agreements concluded by India so far as it covers more than 90 per cent of trade, a vast gamut of services, investment, IPR, customs and other trade-related issues.

Under the India- Japan CEPA only 17.4 per cent of the tariff-lines have been offered for immediate reduction of tariff to zero per cent by India. Tariffs will be brought to zero in 10 years on 66.32 per cent of tariff lines to give sufficient time to industry to adjust to the trade liberalization.

Under India-Japan CEPA the Japanese government shall accord no less favourable treatment to the applications of Indian companies than that it accords to the like applications of its own persons for drug registration. This will greatly help Indian pharmaceutical companies.

Under the India- Japan CEPA, India will be benefited by Japanese investments, technology and world-class management practices that come with it. Japan can take advantage of India's huge and growing market and resources, especially its human resources.

The agreement, which is comprehensive in nature, will further strengthen India- Japan economic ties to the benefit of both countries immensely. CEPA provides a win-win situation for both the countries.

The current bilateral trade between India and Japan is a little over 12.6 billion dollars and it is expected that it will touch 25 billion dollars by 2014. (ANI)