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China ready to talk FTA with India

Chinese Premier Li Keqiang on Tuesday offered increased access to Indian goods in China and expressed the desire to start talks for a free trade agreement (FTA) with India

Premier Li promises to fix trade gap, give market access

Chinese Premier Li Keqiang on Tuesday offered increased access to Indian goods in China and expressed the desire to start talks for a free trade agreement (FTA) with India.

?We also understand India’s concerns over the trade deficit (it runs with China) . China is also willing to provide facilitation to India’s products to access Chinese markets. I am confident that we have the ability to mitigate the trade imbalance between our two counties and China never has any intention to seek trade surplus. China is willing to launch negotiations on a China-India regional trading arrangement,? he said at an event organised by Ficci and Indian Council of World Affairs.

In 2012, bilateral trade between the two countries was $66 billion, a decline from over the $74 billion mark in 2011. The two countries have set a target of $100 billion by 2015 for bilateral trade. The trade deficit has increased from $39.44 billion in 2011-12 to $40.78 billion in 2012-13, despite a contraction in total trade by 10.27%. The exports have fallen from $18.08 billion in 2011-12 to $13.53 billion in 2012-13.

Li added that the Chinese government supported the enterprises there to increase investments in India and expand trade in services and said both sides should work together to curb protectionism. While India’s export to China stood at only $13.52 billion in 2012-13, its imports from that country aggregated $54.3 billion, leaving a trade deficit of $40.78 billion.

On border issues, Chinese Premier Li said that the two countries have the wisdom to find solutions to problems including boundary row and assured to address India’s concern on crucial issues pertaining to rivers and trade imbalance. Li, who began his address with “Namaste” and recalled memories of his trip to India 27 years back as a youth leader, sought a handshake between the two countries over the Himalayas.

Li said that he was “satisfied” with the “candid, frank and fruitful” talks he held with PM Manmohan Singh and other Indian leaders during which both sides were able to put “all issues on the table”.

Underlining that India and China are “natural partners”, Li said: ?We should see each other’s development as major opportunities for ourselves and we have far more common interests than differences.?

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First published on: 22-05-2013 at 01:27 IST
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