India, China sign WTO agreement

India, China sign WTO agreement
PRESS TRUST OF INDIA

BEIJING, FEB 22: India and China China today signed a key bilateral trade agreement which would facilitate Beijing's early entry into World Trade Organisation and provide greater access for Indian exports to the vast but restricted Chinese market.

"It is a significant step in India-China relations, especially in bilateral trade relations," Commerce and Industry minister Murasoli Maran told PTI after the signing ceremony at the Chinese ministry of foreign trade and economic cooperation (MOFTEC).

Maran, leading a high-powered Indian delegation, said that New Delhi fully supports Beijing's entry into WTO and expressed confidence that both the countries could work in tandem to push for the rights of developing countries.

"After China enters the WTO, we will cooperate on issues of mutual interest. China's entry into WTO would strengthen the world trading system and also world trade," he said.

An Indian diplomat said on condition of anonymity China has agreed to a series of tariff reductions on Indian goods.

"China has agreed to lower general tariff rates for a range of agricultural, industrial and marine products from about 20 per cent to 10 per cent," he said.

With today's agreement, China has just one major hurdle - its largest trading partner European union with whom it must a sign similar trade agreement to pave the way for its entry into the world body.

China has to sign bilateral trade pacts with all 135 WTO members before its 14-year bid to enter the world body comes through.

The agreement was signed between Maran and MOFTEC minister Shi Guangsheng after which both ministers shook hands warmly and toasted the deal which is expected to propel Sino-Indian trade ties to a new phase.

Maran welcomed the pact and noted the negotiations between the two neighbouring countries went off without a hitch, unlike a similar agreement between the US and China last year, which was a long-drawn process.

Shi also noted that the two sides reached the agreement after "friendly consultations."

China appreciates India's support on Beijing's entry into WTO, he said, adding the agreement would provide further impetus to Sino-Indian trade ties.

Shi said the two countries would be able to substantially increase bilateral trade from the present figure of two billion dollars per annum.

Meanwhile, Chinese and EU negotiators today continued their new round of market-opening negotiations to try to hammer out a similar trade pact.

The EU is the most important WTO member yet to conclude a trade agreement with China.

MOFTEC officials were tight-lipped on the negotiations with the delegation from 15-member EU.

A foreign ministry spokesman, while confirming that technical-level talks were on, refused to divulge any details.