India, Japan clinch Comprehensive Economic Partnership Agreement

Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan at a joint press interaction in Tokyo on October 25, 2010.

India and Japan today concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), which Prime Minister Mamohan Singh described as a "historic achievement" that signalled the economic alignment of two of the largest economies in Asia.

"It will open up new business opportunities and lead to a quantum increase in trade and investment flows between our two countries," Dr Singh told mediapersons at a joint press interaction with Japanese Prime Minister Naoto Kan after their talks.

Dr Singh said his talks with Mr Kan had been "very productive and fruitful". He said the tradition of regular high-level dialogue was the hallmark of the India-Japan Strategic and Global Partnership.

"Our annual Summits have set the pace and direction of this partnership, which rests on the firm foundation of shared values of democracy, rule of law and respect for fundamental human freedoms," he said.

Dr Singh said he had suggested to Mr Kan that the two countries should redouble their efforts in progressing major infrastructure projects in India such as the Dedicated Freight Corridor project and the Delhi-Mumbai Industrial Corridor project. Both these are proceeding on schedule and will have a transformational impact on the two economies, he said.

He also conveyed to Mr Kan the gratitude of the Government and the people of India for Japan's Official Development Assistance (ODA) to India.

The two sides discussed ways to expand high technology trade and Dr Singh hoped that Japan would make its export control regulations for such trade easier and predictable.

He said he appreciated the Japanese government’s decision to cooperate with India on civil nuclear energy. He conveyed India's satisfaction with the High-Level Energy Dialogue between the two countries through which they are partnering in the development and utilization of new and renewable energy sources.

The two leaders reviewed the implementation of the Action Plan on Security Cooperation signed last December. The Defence Ministers of the two countries have agreed to meet annually. Dr Singh said he had discussed with Mr Kan the possibility of further deepening the strategic partnership.

Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan at the Indo-Japan delegation level talks in Tokyo on October 25, 2010.

The year 2012 will mark the 60th anniversary of the establishment of diplomatic relations between India and Japan and the two sides discussed ways to celebrate the occasion in a befitting manner including through expanded people-to-people exchanges, especially amongst their youth.

The two sides agreed to enhance their cooperation, both bilaterally and within the G-4, in the reform of the United Nations, and especially of the Security Council. They also agreed to continue to work together on global issues such as climate change, the Doha round of trade negotiations and the G-20.

"We will continue to work closely within the framework of the East Asia Summit and the region as a whole," Dr Singh said.

A joint declaration issued by the two leaders on the conclusion of the CEPA said the agreement would be signed at the earliest at the Ministerial level on completion of necessary formalities by both sides.

We noted with satisfaction that India and Japan have succeeded in rendering the India-Japan CEPA truly comprehensive, as indicated by its name, by including fields that range from Trade in Goods, Investment, Trade in Services, and Movement of Natural Persons to Intellectual Property, Competition, Improvement of the Business Environment, Bilateral Cooperation and so forth. We also expressed our determination to put the India-Japan CEPA into effect soon after its signing and the completion of necessary procedures in each country," they said.

Dr Singh and Mr Kan said the CEPA would elevate the Strategic and Global Partnership between India and Japan to a new level.

"The India-Japan CEPA will develop areas of potential mutual complementarity, further strengthen the bilateral economic relationship, and promote economic development by increasing the cross-border flows of goods, persons, investment and services. It will also strengthen the foundation for the economic development of India and Japan through closer cooperation between the two countries in various fields," the declaration said.

The two leaders hoped that, through the India-Japan CEPA’s implementation, India and Japan would be able to make maximum use of respective competitive advantages to promote the development of both economies.

"This will bring about increased prosperity and stability to the peoples of both countries, and thus, contribute to the peace and prosperity of the Asian region and the international community," they said.

Dr Singh and Mr Kan said the CEPA was also expected to foster new business opportunities, enhance competitiveness of the private sectors of both countries, and encourage closer partnership between those private sectors, from SMEs to infrastructure-related enterprises.

"We affirm the intention of the two Governments to support private sector efforts to fully utilize their potential," they added.

The two leaders also issued a joint statement unveiling their vision for the India-Japan Strategic and Global Partnership in the next decade.

"The two Prime Ministers reiterated the fundamental identity of values, interests and priorities between Japan and India. They reaffirmed the political commitment in both countries cutting across party lines and popular desire for upgrading bilateral relations, and valued their cooperation for sustained peace and prosperity in a changing and dynamic Asia and the world. In this context, they expressed their common desire to further consolidate, enhance and expand the Strategic and Global Partnership between them through the second decade of the 21st Century," it said.

The two leaders expressed satisfaction at the steady growth of political exchanges, dialogue and policy coordination at all levels, including the Ministerial-level annual dialogues and exchanges.

They also supported the establishment of a Ministerial Level Economic Dialogue between India and Japan to give strategic and long-term policy orientation to their bilateral economic engagement, taking into account the regional and global context and to coordinate economic issues of cross-cutting nature, including infrastructure development and financing. They welcomed the launch of the "2 plus 2" dialogue at Subcabinet / Senior Official level and the launch of a dialogue on Africa at the official level in 2010 as a reflection of wider policy consultation and coordination on foreign policy and security issues.

Dr Singh and Mr Kan welcomed India-Japan cooperation in development of new and renewable energy, and clean coal technology and enhancing energy efficiency in India’s power sector and encouraged the India-Japan Ministerial Level Energy Dialogue to facilitate pragmatic and mutually beneficial cooperation in other related areas to further strengthen energy security.

In this context, they also welcomed the establishment of a Nuclear Energy Working Group under the Energy Dialogue in April 2010 to exchange views and information on their respective nuclear energy policies from the energy, economic and industrial perspectives. They further welcomed the exchange of information between the nuclear energy industries of the two countries including through business missions.

The two Prime Ministers recognized the importance of promoting cooperation between the two countries’ industries in expanding bilateral energy cooperation on a commercial basis, including through the New Energy and Industrial Technology Development Organization (NEDO). Recognizing the importance of rare earths and rare metals for future industries, the two Prime Ministers decided to explore the possibility of bilateral cooperation in development, re-cycling and re-use of rare earths and rare metals and in research and development of their industrial substitutes.

Dr Singh and Mr Kan welcomed the commencement of negotiations between India and Japan on an Agreement for Cooperation in the Peaceful Uses of Nuclear Energy in June 2010. They affirmed that cooperation in this sector will open up new opportunities for further developing the India-Japan Strategic and Global Partnership. They encouraged their negotiators to arrive at a mutually satisfactory agreement for civil nuclear cooperation at an early date.

The two Prime Ministers condemned terrorism in all its forms and manifestations, committed by whomever, wherever and for whatever purpose. Mr Kan condemned terrorist attacks in and against India, such as the bomb blast in Pune on 13 February 2010 and in Kabul on 26 February 2010, in which Indians as well as other nationals were targeted. They decided to enhance greater cooperation in combating terrorism through information-sharing and counter-terrorism training as well as utilizing the India-Japan Joint Working Group on Counter-Terrorism. They recognized the urgent need to finalize and adopt the Comprehensive Convention on International Terrorism in the United Nations and called upon all States to cooperate in resolving the outstanding issues expeditiously. Japan welcomed India’s membership of the Financial Action Task Force (FATF) and India appreciated Japan’s support towards this.

The two Prime Ministers welcomed the progress made in Science and Technology cooperation, including the India-Japan Cooperative Science Programme.

The two Prime Ministers recognized the importance of strengthening cultural, academic and people-to-people exchanges between India and Japan to reflect their strategic partnership and popular goodwill.

The two Prime Ministers expressed their commitment to assisting Afghanistan to become a stable, democratic and pluralistic nation free of terrorism and extremism. They emphasized the importance of a coherent and united international commitment to Afghan-led initiatives.

Mr Kan expressed that such a commitment encompasses security assistance, including assistance towards Afghan National Police, reintegration of insurgents, and development. Dr Singh emphasized the importance of strengthening and adequate training of the Afghan National Security Forces so that they can defend the sovereignty and independence of Afghanistan. They concurred that the process of reintegration should not deviate from the principles expressed in the Kabul Conference. The two Prime Ministers pledged to explore opportunities for consultation and coordination on their respective civilian assistance projects, including those projects implemented in the neighboring countries, that advance Afghan leadership and ownership and build civilian capacity.

The two Prime Ministers reaffirmed their shared commitment to the total elimination of nuclear weapons. Mr Kan stressed the importance of bringing into force the Comprehensive Nuclear-Test-Ban Treaty (CTBT) at an early date. Dr Singh reiterated India’s commitment to a unilateral and voluntary moratorium on nuclear explosive testing.

They supported the strengthening of international cooperation with a view to addressing the challenges of nuclear terrorism and clandestine proliferation and expressed satisfaction with the outcome of the Nuclear Security Summit of April 2010, including the establishment by Japan of the Integrated Comprehensive Support Center for Nuclear Non-Proliferation and Nuclear Security to be established in Japan and the Global Centre for Nuclear Energy Partnership to be established by India.

The two Prime Ministers reaffirmed their commitment to working together for immediate commencement and an early conclusion of negotiations on a non-discriminatory, multilateral and internationally and effectively verifiable Fissile Material Cut-off Treaty (FMCT) in the Conference on Disarmament. They further reiterated that nuclear disarmament and nuclear non-proliferation are mutually reinforcing processes. They also underscored the importance of peaceful uses of nuclear energy and of further strengthening the nuclear non-proliferation efforts. They decided that both countries will enhance cooperation in nuclear disarmament and non-proliferation through close dialogues, including at regularly held bilateral nuclear disarmament and non-proliferation meetings as well as at the Conference on Disarmament.

NNN