India requests Japan to remove non-tariff barrier on pharma exports

India has requested Japan to remove all non-tariff barriers to help the domestic industry take advantage of the free-trade agreement and raise share in the Japanese market. Both the ministers met on the 44th ASEAN Economic Ministers meeting and the issue was drawn attention to the Japanese minister of economy, trade and industry.

The Indian minister has strongly insisted on the Japanese side to remove all non-tariff barriers so that actual benefits will be envisaged under the Comprehensive Economic Partnership Agreement (CEPA). The CEPA between India and Japan came into effect from August 1, 2011. Both the sides anticipate that it will boost bilateral trade to $25 billion by 2014. The bilateral trade between the countries has increased to $18.31 billion in 2011-12 from $13.82 billion in 2010-11.

Though there is a significant increase of drugs exports to Japan. India's share is less than 1% of total Japanese pharmaceutical market. Indian pharmaceutical industry was set to gain in a big way from the agreement as Japan, the world's second largest market, had agreed to slash duties on imports of Indian generic drugs. The demand of generic medicines in the Japanese market and the capability of India to meet this demand will prove a win-win situation for both the sides.