TOKYO
India’s prime minister kicked off talks in Japan where the population giant and the high-tech nation planned to confirm a trade pact. Manmohan Singh, who arrived Sunday, and his counterpart Naoto Kan were also expected to stress the warm ties linking two of Asia’s biggest democracies at a time of high diplomatic tensions between Japan and China.
The two premiers are due to declare an economic partnership agreement at conclusion of their talks, with a formal signing expected early next year, under which tariffs on 94 percent of trade would be phased out within a decade.
The deal will help Japanese auto giants such as Suzuki who have opened plants in India by lifting tariffs on parts, while also easing access to the market in aging Japan for Indian generic drugs.
Speaking to Japanese business leaders, Singh said: “I have long believed that India and Japan must work together to create a business environment conducive to much greater trade and investment flows.”
“Our efforts have finally been crowned with success.” Japan and India are also engaged in talks which will eventually allow Tokyo to export its cutting-edge nuclear technology to the energy-hungry South Asian nation, a hotly contested market for atomic plants.
Japan’s energy industry is keen to help build nuclear plants for India, a huge market where it is competing with US and French suppliers. Singh said in Tokyo that “nuclear power can provide our growing economy with a clean and efficient source of power. Cooperation in this area will enable Japanese companies to participate in India’s ambitious nuclear energy programme.”
Japan has a shrinking population because of its low birth rate and is searching for new markets intrigued by the emerging giants China and India. Ties between Tokyo and Beijing have sharply deteriorated, following Japan’s arrest of a Chinese fishing boat captain, near a disputed island chain in the East China Sea.
Beijing has reacted furiously, cancelling high-level talks and civilian exchanges as well as suspending exports of rare earth minerals, which are crucial for Japan’s high-tech industries.
Singh, speaking before his departure, told Japanese media that New Delhi and Tokyo could cooperate on the production of rare earths in India. Hideaki Kase, a commentator on diplomatic issues, said the timing of the Indian leader’s visit, amid the Japan-China spat, would allow him to stress the shared democratic values of their countries.
“It is a very timely visit as it is during times of an anti-Japanese movement in China and as India’s presence is becoming bigger in Japan,” he said. “It’s almost a divine gift.” Singh started off his official talks in a meeting with Foreign Minister Seiji Maehara. He was also due to have an audience with Emperor Akihito, and on Tuesday meets Japanese parliamentarians.
