PM’s visit to give Indo-Japan trade a big boost
25 Oct 2010
The centrepiece of his stay in Japan will be the signing of a document that concludes negotiations on the Comprehensive Economic Partnership Agreement (CEPA). The other highlight will be the inking of a memorandum of understanding on easing the visa procedures.
The 850-page CEPA will not, however, be actually signed during this visit, because though the text has been frozen, the agreement is yet to be scrutinised by the Japanese cabinet legal bureau.
''It has to conform to our existing laws and other international agreements. Japan's EPAs with other countries are normally signed three to four months after finalisation of negotiations. This will take one to two months. These are necessary procedures. There is nothing political behind the delay,'' a Japanese diplomat said.
The omnibus EPA goes far beyond a normal free trade agreement, whose usual components are investment, goods and services. The CEPA covers facilitation of business environment and the rules of origin, which are used to determine the country of origin of a product for international trade.
''This will mark the economic alignment of the second and third largest economies of Asia. This is an important message it sends. That is why we say the conclusion of the EPA is the centrepiece of this visit,'' Indian officials said.
More importantly, the CEPA will help India make inroads into the areas of its strength: information technology and pharmaceuticals. It will ensure national treatment for Indian companies in registering drugs, making it easier for them to get over this barrier, a deterrent in most countries. For instance, Indian diplomats have for some time been trying without success to get Russia and Central Asian countries, both potentially lucrative markets, to ease registration norms.
