ID :
20480
Mon, 09/22/2008 - 09:53
Auther :

India moving fast to complete F.T.A. talks with Japan, S.Korea

New Delhi, Sep 21 (PTI) After clinching a deal for an F.T.A. with A.S.E.A.N., India will move fast to complete negotiations in the next few months for pacts with Japan and South Korea that will open trade in goods as also services for Indian firms.

"We are hopeful. We will try to conclude Free Trade
Agreements with Japan and Korea this year," Commerce Secretary
G.K. Pillai told PTI.

Pillai hoped negotiations with Japan and South Korea
could be completed fast as there were no apprehensions for
India over Japan seeking large access in agriculture sector.

"With Japan, the advantage is - our agricultural
sensitivities are not there. We are not worried that Japan
would export rice or dairy products to India," Pillai said.

Asked whether there would be any impact on the Indian
automobile sector in which Japanese firms themselves have
pumped in investment, Pillai said there were no concerns on
that count. India enjoys a big cost advantage in manufacturing
automobiles, he said.

Moreover, India is hoping that more Japanese investment
will flow into the country through the trade agreement. "The
whole purpose of the F.T.A. is that it would attract more
Japanese investments into India," he said.

The lucrative pharmaceutical market in Japan is also on
India's radar. Japan imports pharmaceuticals of about USD 50
billion, of which India's share is only USD 200 million.

"We can supply pharma products to them. It will be an
advantage if we get that market," he said.

With Daiichi Sankyo buying controlling stake in Ranbaxy,
which gets bulk of its total revenue from exports, Japan
should be interested in relaxing pharmaceutical imports from
India, officials feel.

Indian firms find it difficult to meet Japan's rigid
regulations for clearing drugs and pharmaceutical imports.

India concluded negotiations for a F.T.A. with the
10-nation Association of South East Asian Nations last month.
The two sides are expected to sign the deal at the
India-A..S.E.A.N. summit in December in Bangkok, to be
attended by Prime Minister Manmohan Singh.

While it would eliminate or substantially reduce duties
on almost 96 percent of the items it trades with A.S.E.A.N. it
is protecting its sensitive agriculture sector by keeping over
300 items out of the trade agreement.

India and Japan are targeting a trade turnover of USD 20
billion by 2010 from USD 8.5 billion in 2006. India's trade
with South Korea was USD 10 billion in 2007. PTI RR

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