Japanese Imports To Become Cheaper.

The FTA is expected to come into force from April this year. Import of consumer goods like electronics — indicator panels of LCDs and LEDs, mobile phones including SIM and memory cards, calculators, electrical — battery chargers, compact discs and DVDs, from Japan to India will become duty free as soon as the agreement is implemented. Textiles like woven and silk fabrics will also become part of duty free items.

The pact will provide access to Indian professionals like accountants, researchers, yoga and english teachers and management consultants to Japanese market hit by ageing population.

The Comprehensive Economic Partnership Agreement (CEPA), was signed by Japanese Foreign Affairs Minister Seiji Maehara and Commerce & Industry Minister Anand Sharma. “The agreement will ensure access to a highly developed Japanese market for the (Indian) pharmaceutical sector with Japan for the first time committing to give the same treatment for Indian generics as their domestic industry.”

Besides, Indian agricultural products like instant tea, seafood would also find their way into the Japanese market at concessional duties.

India’s textiles products including readymade garments stand to gain significantly in terms of market access to Japan. Japan would also lower tariffs on petrochemicals, chemical products, jewellery and cement. Though passenger cars have been kept in the negative list and will not be subject to concessional duties, some of the critical car parts imported by India-based automobile plants like that of Suzuki would get duty free treatment. The CEPA will also cover easing of rules for mutual investments. “India stands to gain significantly through this agreement where 90 per cent of tariff lines are covered, while Japan has covered five per cent more tariff lines than India.”

The CEPA is expected to give a boost to US$12.35 billion bilateral trade. “I am confident that through this agreement our bilateral trade would double by 2015 and touch US$25 billion,” Sharma said. The statement also said Japan has committed to cover not only computer engineers but also mechanical, electrical, construction, industrial and design engineers besides project management specialists.

The FTA  also covers intellectual property rights for the first time “and the parameters of our commitments on these are circumscribed by national legislation and agreement in TRIPS.”The pact provides access to each others telecom networks, besides facilitating establishment of financial services like banks.

Source : deccanherald.com