Japan In Further Trade Talks With India

By Stewart Douglas

Japanese Prime Minister Shinzo Abe has been meeting delegate in India today on official state business, as Japan looks to further broaden its trade agreements.

Japan have shown interest in forming a strategic partnership with India, largely designed to help promote mutual growth through reciprocal trade links, as well as looking at global warming and nuclear defence issues.

The move comes as the third diplomatic crusade in as many days from the Japanese authorities, with Indonesia and the Philippines both involved in pending trade agreements with Japan this week.

While Japan could be seen to be strengthening pan-Asian links, many sceptics have levelled the move towards partnership as being designed to deliberately circumvent China, after it has seen astronomical growth over the last few years.

Analyst predictions reckon that should any form of a trade agreement come to fruition between the two nations, bi-lateral trade could amount to over $15 billion within the next five years, showing the level of importance of any trade deal.

The move would also pave the way for corporate investment in India by Japanese companies, and vice versa where possible, to extend the reach of the major corporations harbouring within these two Asian economies.

Shinzo Abe has publicly displayed wishes to enter into an alliance with Japan, the US, Australia and India over the coming years, with all agreements involving some security element.

However, the Chinese authorities look set to grow increasingly concerned, as other major world economies are seen to be forging closer ties.

Additionally, with Japan’s proposed investment plans throughout neighbouring economies, it could pave the way for further growth in the region, as competition for the booming Chinese economy.

With PM Abe set to continue his state visit over the next few days, only time will tell as to the extent of the new found friendship with India.