Comprehensive Economic Partnership Agreement Between India And Japan (Cepa)
On 30 April 2012, the first economic dialogue took place at India-Japan ministerial level in order to pursue the same objectives as CEPA. The dialogue has shown that relations between the two nations have now become more equal – they both allow for mutual concessions and compromises to achieve the expected benefits. Both countries agree that the success of CEPA depends on several dimensions. The identification of potential trade and investment areas between the two countries presents them with an important political agenda to realize the expected benefits of the Pact. However, the economic side of the relationship remains well below potential. With about 127 million inhabitants, Japan slipped behind China and became Asia`s second-largest economy. According to FDI, gross domestic product (GDP) was $5.5 trillion in 2010. In light of the agreement, Mukhopadhyay and Bhattacharyay (2011) assessed the overall economic impact of Japan-India trade integration using analysis by the Global Trade Analysis Project (GTAP). It was found that production, for both India and Japan, would increase slightly in 2020, after a reduction in tariffs compared to Business As Usual (BAU). The results expected marginal export growth, an appropriate amount of trade creation and an improvement in the well-being of both countries by 2020, with the successful implementation of CEPA. . . .