1.6. Issues to Address

♤ The burgeoning relationship needs to address a few issues to develop optimally:

o Bilateral trade —below $15 billion annually in the last two years—do not reflect the economic ties between the third and the fourth largest (on purchasing power parity terms) economies in the world. In this context it must be noted that China is Japan's biggest trading partner; the two have a bilateral trade of above $300 billion.

o Long pending defence deals—especially the sale of US-2 amphibious aircraft to India— too hasn’t moved forward.

o UNSC reforms: The cooperation of two countries as part of G-4 needs further momentum.

♤ However, these areas of slow growth cannot take away from the tremendous distance that has been covered elsewhere.