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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Singapore Asia Pacific World Japan, India to sign trade, investment deal By MALCOLM FOSTER,Associated Press - Monday, October 25 Send IM Story Print Indian Prime Minister Manmohan Singh arrives at Haneda Airport for his three-day visit to Japan, in Tokyo, Sunday, Oct. 24, 2010. (AP Photo/Shuji Kajiyama) TOKYO – The leaders of Japan and India were set to sign a broad economic partnership agreement Monday, seeking to slash import taxes on a range of goods from auto parts to bonsai plants and boost investment between the two major Asian economies. Indian Prime Minister Manmohan Singh, during his three-day visit to Japan, is also pushing for a civil nuclear energy deal with Japan, which has created a dilemma for Tokyo because of India's past atomic tests. The two countries began talks on the matter in June, but the subject is delicate because of India's refusal to sign the Nuclear Non-Proliferation Treaty. Anti-nuclear sentiment runs high in Japan, the only nation to suffer atomic bomb attacks. Singh called a civil nuclear pact, which would enable Japanese companies to export nuclear power generation technology and related equipment to India, a "win-win proposition" for both sides, according to Kyodo News agency. After Singh meets with Prime Minister Naoto Kan, they will sign papers showing that negotiations have finished for the comprehensive economic partnership agreement, said Shu Nakagawa, an official in the Ministry of Foreign Affair's Southeast Asia economic partnership agreement division. The EPA is broader than a free trade agreement because it includes steps to promote greater investment and also addresses on intellectual property rights. Japan and India had reached a basic EPA deal in September, nearly four years after starting negotiations in early 2007. Under the basic agreement, Tokyo will remove tariffs on 97 percent of Indian imports, with India eliminating tariffs on 90 percent of goods imported from Japan. Japan will also improve market access on most products in the industrial sector, as well as several agricultural products such as durian, curry, tea leaves, lumber, shrimp and shrimp products. India will improve Japan's market access in auto parts, steel panels, and other industrial materials, as well as DVD players, video cameras and industrial machinery. The country will also allow greater access to miniature "bonsai" trees, as well as Japanese yam, peach, strawberries and persimmons. Two-way trade between the countries was 635 billion yen ($7.7 billion) for the first six months of this year, with Japan running a surplus of 125 billion yen ($1.5 billion). To take effect, the deal needs ratification by Japan's parliament, which could take place by the middle of next year. Separately, the two leaders are also set to issue a joint statement confirming their strategic cooperation in economy, defense and cultural exchanges under "the Japan-India strategic global partnership plan" over the next decade, the Japanese foreign ministry said in a statement. The strategic partnership plan covers a wide range of fresh and continuing projects, including the EPA and steps to relax visa requirements and promote business, tourism and educational exchanges between the two countries. With its economy stagnating, Japan has been negotiating a framework for the peaceful transfer of nuclear power technologies to energy hungry nations, but India's situation has made the issue a sensitive one. New Delhi had faced a nuclear trade ban since conducting its first atomic test in 1974 and refusing to sign nonproliferation accords. It began emerging from the nuclear isolation in 2008 when it signed a civil nuclear cooperation agreement with the United States. The 45-nation Nuclear Suppliers Group then lifted a three-decade global ban on nuclear trade with India. When former Foreign Minister Katsuya Okada visited New Delhi in August, he cautioned India against any further testing of nuclear devices and said no timeline was set for the conclusion of a civil energy deal. During his talks with Singh, Kan plans to stress the need for further effort to bring the 1996 Comprehensive Test Ban Treaty into force to outlaw all nuclear test explosions, the Japanese foreign ministry said. Singh also was scheduled to meet with the Emperor Akihito and Empress Michiko on Monday afternoon. ____ Associated Press writer Mari Yamaguchi contributed to this report. 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