INDIA & THE WORLD BILATERAL AFFAIRS FEBRUARY 2011

INDIA & THE WORLD BILATERAL AFFAIRS FEBRUARY 2011

• Uruguay Vice-President Danilo Astori with his country’s industry bodies visited India on 24 February to boost bilateral economic relations. Union commerce and industry minister Anand Sharma said in this regard, “Enough scope is available for enhancing economic cooperation between the countries in the areas such as chemicals, agro-business, pharmaceuticals, textiles, automobiles, machinery, IT and plastics’. Sharma further said the Indian government had initiated a programme, ‘FOCUS: LAC', which provided incentives and financial assistance to support and encourage Indian exporters and companies to boost trade with LAC (Latin American and Caribbean) nations. Both sides also agreed to increase the number of products in the India-MERCOSUR preferential trade agreement. MERCOSUR is South America's leading trading bloc. The Federation of Indian Chambers of Commerce and Industry and Uruguay's industry bodies have signed three pacts to enhance trade and cooperation between the nations in the presence of visiting Vice-President of Uruguay Danilo Astori. The pacts were signed between FICCI and three chambers of Uruguay — Uruguayan National Chamber of Commerce and Services, Uruguayan Chamber of Industries and Uruguayan Chamber of Commerce and Export of Agriproducts in the presence of visiting Vice-President of Uruguay Danilo Astori. India's main exports to Uruguay include chemicals, plastics, electronic goods, pharmaceuticals, cars, tractors, and apparel, while it imports wool, woven fabrics, wooden articles, paper, raw hide and skin and leather. In 2009-10, the two-way commerce between both countries stood at $64.37 million 
• India’s Commerce and Industry Minister Anand Sharma and Japanese Foreign Minister Seiji Maehara signed the bilateral Comprehensive Economic Partnership Agreement (CEPA) in Tokyo on 16 February. In this context Mr. Sharma proposed a two-way trade target of $25 billion by 2014, a doubling of the pre-CEPA level. The economic pact will come into force after the completion of national procedures.During the meeting Japan proposed the joint exploration with India for the development of Rare Earth Minerals.Tokyo also affirmed its commitment to “the steady implementation” of the Delhi-Mumbai Industrial Corridor (DMIC) and the related dedicated freight corridor. 
• Describing the CEPA as New Delhi's most ambitious economic pact so far, an Indian official said the country's sensitive sectors “are fully protected.” Agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products in the auto and auto-parts sector were cited. Significant access to the Japanese market was now possible for Indian textiles, petrochemicals, chemical products, jewellery and cement. Japan would now extend its own “national treatment” in respect of Indian generic medicines. The Indian pharmaceutical industry is set to gain in a big way with Japan, the world's second largest market, agreeing to open up by removing import duty on generic drugs shipped from here. As part of the Comprehensive Economic Partnership Agreement signed between India and Japan on 16 February, for the first time ever Japan has committed to give the same treatment to the pharma industry here as it gives to the domestic industry.
• Union commerce and industry minister Anand Sharma, and Malaysian International Trade and Industry Minister Mustapa Mohamed have signed the Comprehensive Economic Cooperation Agreement (CECA), at Putrajaya,the New Administrative Capital of Malaysia. The India-Malaysia trade target now was 15 billion dollar by 2015.