The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan was signed on 16th February, 2011 and came into force from 1st August of the same year. A copy of this is available at Annexure I Copy of implementation agreement is available at Annexure II

The salient features of India-Japan CEPA are as follows:

      The Agreement is most comprehensive of all the agreements concluded by India so far as it covers more than 90% of the bilateral trade between India and Japan. Japan and India have liberalized 92 % and 87.16% of tariff lines at six digits respectively.

     The agreement covers Goods, Services, Rules of Origin, Movement of Natural Persons, Telecom, Financial services, Investment, IPRs, Government Procurement, Sanitary and Phytosanitary Measures, Customs Procedures and Cooperation in other Areas.

      India has offered only 17.4% of tariff lines for immediate reduction of tariff to zero duty, as against 87% of tariff lines offered by Japan for zero duty on 1st August, 2011.

      From Indian side Tariff will be brought to zero duty in 10 years on 66.32% of tariff lines to give sufficient time to Industry to adjust to the trade liberalization.

      India’s exclusion list covers 12.84% of all tariff lines and 9.9% of volume of trade, as against Japan’s exclusion list covering only 8% of all tariff lines and 3% volume of trade.

      CEPA provides for an institutional mechanism to encourage and improve Business/investment environment. India seeks greater investment by the Japanese companies. On April 30, 2012, the first India–Japan Ministerial-level Economic Dialogue was held in pursuit of the same objectives as stated in CEPA. The dialogue showed that the relationship between the two nations has become more equal—both are allowing for mutual concessions and compromises to help realize the expected gains. Both countries agree that the success of CEPA depends upon multiple dimensions. The identification of potential trade and investment areas between the two countries puts forth a major policy agenda before them for realizing the expected gains of the pact. Under CEPA a Sub-Committee on Improvement of the Business Environment has been formed. The business leaders have requested that in order to further improve the business environment to increase investment, manufacturing, and job opportunities in India, the Governments of both Countries should regularly hold meetings of this Sub-Committee.