India considers US blueprint to forge new trade deal with Japan

Dhirendra Kumar dhirendra.kumar@livemint.​com NEW DELHI

- Dhirendra Kumar

India is set to pursue a new trade deal with Japan seeking greater market access modeled on the East Asian giant's pact with the US, as New Delhi seeks to correct the trade gap with its long-time partner, said two people aware of the development.

"The review of the existing free-trade agreement (FTA) with Japan is on the agenda and is expected to start soon. The discussions will be comprehensive, covering trade imbalances, market access, and tariff structures to make the agreement more balanced," said one of the two people cited above.

The second person said New Delhi aims to secure opportunities to export rice to Japan and address the widening bilateral trade deficit. Both spoke on the condition of anonymity.

Japan has allowed duty-free access to American products, while the US has imposed a 15% fixed tariff on exports from the Asian giant under their recent trade deal. Under the deal, Japan increased its US rice procurements by 75%.