India, China to begin talks on regional trade pact
India and China are likely to start negotiations on a regional trade pact early next year during Prime Minister Manmohan Singh's visit to Beijing as the world's two fastest-growing economies seek to boost commerce.
By PTI |
NEW DELHI: India and China are likely to start negotiations on a regional trade pact early next year during Prime Minister Manmohan Singh's visit to Beijing as the world's two fastest-growing economies seek to boost commerce.
The two countries are also on track to increase bilateral trade to 40 billion dollars by next year, China's Ambassador to India Sun Yuxi said at a function organised by Federation of Indian Export Organisation here.
The Chinese envoy said although the two countries had set a target of 40 billion dollars of trade by 2010, "we expect to achieve the target by next fiscal". Trade volume by October 2007 has already crossed $27 billion. With the two countries moving toward a regional trade agreement (RTA), trade volume would reach $50 billion by 2010, he said.
Yuxi said final touches were being given to a framework RTA agreement which is expected to be signed during Singh's fortcoming visit to Beijing.
The envoy said "many of the terms of the agreement would be more or less like a Free Trade Agreement (FTA)". "This is our first step, lets go step by step... first RTA and then an FTA... the idea is to have a free trade area," he said.
The two countries had earlier set up a joint study group to explore the feasibility of an RTA aimed at dismantling tariff and non-tariff trade barriers and opening the markets.
While India has gone in for full-scale FTAs with several other trading blocs and countries, with China it wants to sign an RTA first in view of the opposition from local industry.
The two countries are also on track to increase bilateral trade to 40 billion dollars by next year, China's Ambassador to India Sun Yuxi said at a function organised by Federation of Indian Export Organisation here.
The Chinese envoy said although the two countries had set a target of 40 billion dollars of trade by 2010, "we expect to achieve the target by next fiscal". Trade volume by October 2007 has already crossed $27 billion. With the two countries moving toward a regional trade agreement (RTA), trade volume would reach $50 billion by 2010, he said.
Yuxi said final touches were being given to a framework RTA agreement which is expected to be signed during Singh's fortcoming visit to Beijing.
The envoy said "many of the terms of the agreement would be more or less like a Free Trade Agreement (FTA)". "This is our first step, lets go step by step... first RTA and then an FTA... the idea is to have a free trade area," he said.
The two countries had earlier set up a joint study group to explore the feasibility of an RTA aimed at dismantling tariff and non-tariff trade barriers and opening the markets.
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While India has gone in for full-scale FTAs with several other trading blocs and countries, with China it wants to sign an RTA first in view of the opposition from local industry.
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