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India, Japan aim to modernize 15-year-old trade pact
🇴🇲 Oman /Economy & Trade

India, Japan aim to modernize 15-year-old trade pact

From Times of Oman · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • India and Japan plan to modernize their 15-year-old Comprehensive Economic Partnership Agreement (CEPA) to expand bilateral trade and economic opportunities.
  • The review was discussed by Prime Ministers Narendra Modi and Sanae Takaichi in July, with a focus on making the agreement more contemporary and forward-looking.
  • Japanese apparel giant Uniqlo is reportedly interested in beginning business operations in India, with its chairman expressing significant enthusiasm.

India and Japan are set to modernize their 15-year-old Comprehensive Economic Partnership Agreement (CEPA), aiming to expand its scope and create new avenues for bilateral trade and economic cooperation. Union Commerce and Industry Minister Piyush Goyal announced the initiative, stating that the review was discussed by the leaders of both nations during the 16th India-Japan Annual Summit in New Delhi in July.

Since it is 15 years since the signing of CEPA, we should discuss and make it more contemporary.

— Piyush GoyalUnion Commerce and Industry Minister, explaining the need to update the India-Japan trade agreement.

"Since it is 15 years since the signing of CEPA, we should discuss and make it more contemporary," Goyal remarked during a media interaction in Nagoya, Japan. He added that discussions with his Japanese counterpart, Minister of Economy, Trade and Industry Akazawa Ryosei, are ongoing, with hopes to further broaden the agreement's scope. While specific terms of reference for the review are still being developed, India has expressed openness to a wider engagement.

The CEPA, signed in February 2011 and effective from August of that year, currently covers trade in goods and services, investment, and other economic cooperation areas. The joint statement following the July summit emphasized the need to enhance and diversify bilateral trade, with leaders agreeing to accelerate the review process to ensure the agreement remains forward-looking and effectively utilized.

I also discussed it with my counterpart minister and we are hoping to work towards further expanding the scope and providing new opportunities for this relationship to grow.

— Piyush GoyalUnion Commerce and Industry Minister, discussing the expansion of the CEPA.

In a significant development, Goyal also revealed that Japanese apparel giant Uniqlo is considering entering the Indian market. The company's chairman reportedly met with Goyal and expressed considerable interest and excitement about commencing business in India, appearing ready to begin sourcing from the country immediately. This potential expansion by Uniqlo, which operates 3,500-4,000 stores globally and has a turnover of $25 billion, could mark a notable step in strengthening economic ties between the two nations.

We haven't started working on the terms of reference of CEPA yet, but we are open to expanding the scope, scale and extent of engagement.

— Piyush GoyalUnion Commerce and Industry Minister, on the readiness for CEPA review.
DistantNews Editorial

Originally published by Times of Oman in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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