Japan and India agree to tariff-cutting free trade agreement

JAPAN and India are expected to sign a free trade agreement (FTA) and scrap tariffs on products and remove other barriers to trade within the next decade.

The official Japan-India Economic Partnership agreement will be signed during Indian Prime Minister Manmohan Singh's visit to Tokyo next month.

Japanese foreign minister Katsuya Okada said that under the terms of the deal with India, Tokyo will cut 90 per cent of its tariffs on Indian products.

"India will abolish 97 per cent of tariffs on Japanese products during the same period. This is a very high-powered economic partnership agreement. But the two sides have yet to agree on further details, including a request for Japan to accept Indian nurses," said Mr Okada, according to London's Containerisation International.

Experts anticipate the FTA will likely cover a reduction in tariffs for Japanese auto parts, a move long demanded by Japan. The industry also expects that high quality, low-value pharmaceuticals produced in India will have ready access to Japan.
(Source:www.schednet.com)