India, China target USD 100 bn trade target;steps to cut gap

New Delhi, Dec 16 (PTI) Addressing India's concern over
huge trade deficit with it, Beijing Thursday agreed to promote
imports of Indian products and the two countries also set an
ambitious USD 100 billion target for bilateral trade by 2015.
"The two sides agreed to take measures to promote greater
Indian exports to China with a view to reduce India's trade
deficit," according to a joint communique issued after talks
between Indian Prime Minister Manmohan Singh and visiting
Chinese Premier Wen Jiabao.
China will take measures for supporting India's exports
by enhancing cooperation in pharmaceuticals supervision. The
Chinese and Indian IT enterprises will also forge stronger
relationships. Indian participation in China's national and
regional trade fairs be supported, it said.
The two countries would speed up completion of phyto-
sanitary negotiations on agro products as well.
For enhancing mutual investment which has stood at less
than a USD one billion, the two sides also constituted an
India-China CEOs' Forum. "The forum will deliberate on the
business issues and make recommendations on expansion of trade
and investment cooperation," the communique said.
Officials said it would take some time before the names
in the CEOs' Forum are announced.
The two sides also agreed to establish a strategic
economic dialogue to enhance macro-economic policy
coordination and address the issues and challenges in the
world of commerce.
When asked whether the two sides discussed the
possibility of market-opening regional trade agreements
(RTAs), Indian Foreign Secretary Nirupama Rao said, "No we did
not ... a feasibility study has been done. As of now, that is
where the matter stands".
She told reporters that while the bilateral commerce has
grown phenomenally and is set to touch USD 60 billion this
year, "there is an imbalance in trade and deficit for India
has been growing. We have very legitimate concern in this
regard".
The trade imbalance was against India to the extent
of USD 19 billion in fiscal 2009-10.
She said India wants more market access for its
pharmaceuticals, agri commodities, IT services as "we are
brand leaders internationally" in these areas.
The two sides decided to grant permission to the banks
of the other countries to open branches and representative
offices, it said. The two countries have also agreed to
"jointly oppose protectionism in all forms".