New Delhi, Apr 11: India and China today agreed to
raise bilateral trade by 7 billion dollars to 20 billion
dollars by 2008 even as Beijing hinted at opening up markets
for Indian rice.
Besides agreeing to work together in energy security and
strengthen cooperation in the WTO, both the countries also
decided to support an "open, fair, equitable and transparent
rule-based multilateral trade system", said a joint statement
signed by Prime Minister Manmohan Singh and visiting Chinese
premier Wen Jiabao after their talks here.
"The two countries agreed to make joint efforts to
increase the bilateral trade volume to 20 billion dollars or
higher by 2008," the statement said.
At present, the bilateral trade between the two countries
stands at about 13 billion dollar.
"China positively evaluated market access to Indian rice
in the Chinese market and will launch as early as possible the
risk analysis procedure of the Indian rice in accordance with
relevant Chinese laws and regulations," the statement said.
The decision to increase bilateral trade follows a report
of the joint study group (JSG) that was set up to examine the
potential complementarities between the two countries in
expanded trade and economic cooperation.
Identifying a series of measures related to trade in
goods and services, investment and other areas of economic tie
ups, the JSG recommended expeditious implementation to remove
the impediments and facilitate enhanced economic engagement
between India and China.
In this context, both the prime ministers had asked the
ministerial-level India-China joint economic group (JEG) to
consider the recommendations and coordinate implementation.
The JEG would meet within the next six months to take up
these recommendations.
The JSG had suggested India-China regional trading
agreement comprising trade in goods and services, investments,
identified understandings for trade and investment promotion
and facilitation and measures for promotion of economic
cooperation in the identified sectors.
Regarding energy sector, the joint statement said India
and China agreed to cooperate in the field of energy security
and conservation, including, among others, encouraging
relevant departments and units of the two countries to engage
in the survey and exploration of petroleum and natural gas
resources in third countries.
On WTO, the statement said both the sides agreed to
conduct regular exchange of views on major international and
regional issues and work together to preserve stability and
growth in the global economy and reduce disparities between
developed and developing countries.
Observing that the agreement on establishment of a
financial dialogue mechanism would further facilitate the
dynamic and diversifying economic cooperation between the two
sides, India and China also vowed to continue consultations on
concluding the bilateral investment promotion and protection
agreement.
Satisfied over signing of the SPS (sanitary and
phyto-sanitary) protocols for the export of grade and bitter
gourd from India to China, both the sides agreed to constitute
a joint working group to implement expeditiously the MoU on
application of SPS between the Chinese general administration
of quality supervision, inspection and quarantine and the
Indian agriculture ministry.
Recognising the importance of strengthening mutual
connectivity, the two sides agreed to jointly work towards
further enhancement of direct air and shipping links, tourism
and people-to-people contacts.
An MoU on major liberalisation of civil aviation links
between the two countries was also concluded.
Both sides also reviewed the implementation of the MoU on
border trade through the Nathula pass between the Tibet
autonomous region of China and Sikkim.
India proposes to extend Iran-Pak-India gas pipeline to China
India today proposed to extend Iran-Pakistan-India gas pipeline to china and sought greater
collaboration between Indian and Chinese oil majors to build
energy security for two of the world's most populous and
energy-thirsty nations.
"There has been no separate detailed consideration of
energy cooperation between India and China (but) in my
interactions with Chinese officials (on sidelines of summit
meeting between Prime Minister Manmohan Singh and Chinese
premier Wen Jiabao) I raised the issue of extending Iran-India
gas pipeline to South China via Myanmar," Petroleum Minister
Mani Shankar Aiyar told reporters here.
India is pursuing gas imports from Iran through an onland
pipeline passing through Pakistan. The 2600-km pipeline which
would land in Rajasthan, is proposed to travel through the
heart of India and into Myanmar via Bangladesh and than travel
to China.
Supply disruption to India, by Pakistan or terrorist
organisations, would than mean the fuel supplies are also cut
to China and therefore such an arrangement would guarantee
greater stability to the project.
Aiyar said India and China can also collaborate in their
quest for oil and gas fields abroad. "While market will
dictate competition (between the two nations) on projects,
there is also a possibility that we collaborate in certain
places."
"We have the option to compete or collaborate with one
another to secure better deals," Aiyar said in an apparent
reference to competing bids for overseas upstream blocks by
Indian and Chinese oil majors.
"When the world's two top energy-thirsty countries pit
against each other, the bid price for the exploration
properties goes up," Aiyar said.
In the past few years, Chinese oil majors have outbid
their Indian counterparts to win exploration blocks in Angola,
Iran, Nigeria and Sudan, but they have reportedly paid higher
price for those rights. Indian oil firms find their Chinese
counterparts wherever they go to get upstream/downstream
projects.
Aiyar said Indian firms can look at investing in China
and invited Chinese oil majors to invest in oil and gas
exploration, refining and research and development in India.
The two nations can collaborate in areas such as pollution
control, increased and enhanced oil recovery programmes, coal
bed methane, underground coal gasification and bio-diesel.
Leaders of the two countries have agreed to expand
economic and trade relations. India is keen to ensure security
of oil and gas supplies, as it imports 100 million tonnes a
year of crude to supplement the domestic crude output of 33.50
million tonnes.
Bureau Report