Special tarrif treatment to boost Sino-Indian trade ( 2003-07-26 08:40) (China Daily)
The arrangement between China and India on mutual preferential tariffs is
expected to be put into practice soon, sources from the Ministry of Commerce
revealed.
With the arrangement, China and India, two developing nations, will offer
each other special tariff treatment, which is to be more preferential than their
most-favoured-nation (MFN) tariffs.
China will provide a list of reduced tariffs to India based on its 2003 MFN
tariffs, with the average tariff rate for goods in the list
13.5-percentage-points lower than its MFN tariffs.
The list will cover 217 items, including food, pharmaceutics and leather, as
well as chemicals, textiles and machinery.
Similarly, the Indian Government will also provide specifical preferential
tariffs for some products imported from China.
At the end of last month, just after Indian Prime Minister Atal Bihari
Vajpayee's official six-day visit, from June 21 to 27, in China and the signing
of a landmark declaration by the leaders of the two nations, the Indian
Government issued its list.
The Indian side promised to offer specific tariffs, lower than its MFN
tariffs, on 188 items from China.
They included aquatic products, paper, steel and other metals, chemical and
rubber products, electric equipment and toys.
The bilateral arrangement was made under the framework of the Sino-Indian
Bangkok Agreement signed in 1975, which set out the principles for preferential
trade arrangements between developing nations.
Chinese and Indian delegations commenced negotiations on the agreement in
Beijing and finalized the arrangement in February. Its implementation was set
for the end of this year, after the necessary investigations and approvals.
Xu Changwen, an expert from the Chinese Academy of International Trade and
Economic Co-operation, said China and India, the world's two most populous
nations, see the implementation of the agreement as a win-win deal for both
countries.
"The two sides both offer huge markets that should be economically
complementary,'' said Xu.
The bilateral co-operation in information industry, energy, electrical
appliances and transportation offers bright prospects, he said.
