India, Japan bilateral talks in Feb

New Delhi: Trade officials of India and Japan will make another attempt in February to resolve some of the ticklish issues blocking the tariff-breaking bilateral pact.

Commerce ministry officials will go to Tokyo and get engaged with their Japanese counterparts in their effort to bridge the gaps over issues like recognition of Indian pharmaceutical products by Japan.

India is keen on gaining market access through a free trade agreement for the $19-billion pharmaceutical industry in Japan, which is one of the major importers in the world.

The problem faced by the Indian pharmaceutical firms in Japan is that their products are not recognised by Tokyo in terms of quality and safety standards despite the approval by the US authorities.

“Once our products are recognised by the US, Japan should accept the same,” an industry official said. However, the Japanese insist on their own standards, which the Indian industry finds arbitrary.

Another area of discord relates to services. While India wants wider reach for its services sector, the mainstay of its economy, Japanese are a bit circumspect about it.

India’s trade with Japan has more than doubled over the past four years from about $4 billion in 2003-04 to almost $10 billion in the last fiscal.

Many products like oilseeds, dairy products, sugar and sugar products face tariff peaks in Japan.

The two countries have been engaged in talks for an agreement for the last three years.