India Pushes Review of 15-Year Japan Trade Pact
India has renewed its push to review and expand its 15-year-old Comprehensive Economic Partnership Agreement with Japan, arguing that the pact needs to become more contemporary and deliver better opportunities for Indian exporters. Commerce and Industry Minister Piyush Goyal said both countries are now discussing how to broaden the agreement.
India Seeks Review of Japan CEPA
India and Japan implemented the Comprehensive Economic Partnership Agreement in August 2011, but New Delhi has been seeking a review for several years.
Goyal said he discussed the issue with Japanese Economy, Trade and Industry Minister Akazawa Ryosei and that both sides were looking at expanding the pact’s scope, scale and overall economic engagement.
The two countries have yet to agree on detailed terms of reference for the review.
India-Japan Trade Deficit Widens
Bilateral trade between India and Japan stands at about $27.5 billion, with Indian exports accounting for roughly $6 billion.
This leaves India with a trade deficit of around $15.5 billion, up from approximately $11 billion in 2022-23.
Indian industry has argued that the existing trade agreement has not generated sufficient gains for goods and services exporters, with certification, registration procedures and other non-tariff barriers making access to the Japanese market difficult.
India Flags Export Barriers in Japan
Goyal has asked Indian industries to identify specific problems encountered while exporting to Japan, including regulatory processes, language barriers and delays.
Pharmaceutical companies have particularly raised concerns over product registration requirements in the Japanese market.
Investment ties are meanwhile expanding rapidly. India and Japan have set a target of 10 trillion yen in Japanese private investment into India, with significant investment already flowing into sectors including financial services, manufacturing and technology.
