While talks between India and China to further negotiate on a regional trade pact were deferred after Beijing frequently changed dates for the meeting planned for April 2, another Asian economic powerhouse — Japan — has taken the cue to revive ‘stalled’ talks on a comprehensive economic partnership agreement (CEPA) with New Delhi. Meanwhile, the Sino-Indian talks may now take place sometime in May after the Chinese admitted their ‘planning blunder’ in informal discussions.
Negotiations between India and Japan had begun after Prime Minister Manmohan Singh’s Tokyo visit in 2006, but hit a roadblock late last year after the two sides couldn’t reconcile differences on reduction commitments for tariff lines. However, four months later, Japan has reconsidered its position to accommodate India’s viewpoint and resolve the deadlock.
A team of senior government officials is now scheduled to visit Tokyo on April 11 to discuss CEPA issues including a free trade pact as well as agreements on services, investment and bilateral co-operation.
Consider this — 40 per cent of Japan’s tariff lines have zero duty. For instance, mangoes have had zero import duty for 18 years, but imports from India only began last year after a two-decade ban was lifted. “Initially, the Japanese wanted to negotiate tariff reductions, but that’s irrelevant for us. Their laws mandate which firms can import goods - so unless they decide to source from India, tariff lines are irrelevant,” an official in the Commerce Ministry told The Indian Express.