India and China will begin discussions on tariffs and other concessions in Geneva today, according to senior commerce ministry officials. The talks will enable China to accede to the World Trade Organisation (WTO).
This follows a discussion between Union commerce and industry minister Murasoli Maran and his Chinese counterpart during the Seattle ministerial conference.
Earlier, a Chinese delegation was to visit India for technical discussions, but now it has been decided that talks will be held in Geneva itself between the two permanent missions. The Chinese delegation may not come to India if progress is made in the talks in Geneva.
However, an Indian trade delegation led by Maran is likely to visit China later this year to promote bilateral trade. WTO-related issues will not be on the agenda then.
There appears to be a convergence of views between India and China on various WTO issues, including opposition to inclusion of non-trade issues in trade talks. China, like India, is against inclusion of labour issues.
The controversy over linking trade with social issues was responsible for derailing the Seattle round of trade talks after protesting activists went on a rampage. Developing countries had alleged that the protests had the tacit supporter of the US and other developed countries. WTO director-general Mike Moore, who visited India recently, made a strong pitch for linking these issues and trade, but publicly acknowledged that India remained unyielding on the debate.
The Indo-China agreement, officials said, would be on the lines of the Sino-US pact signed recently, which opened up WTO entry for the Chinese after years of efforts on their part to win admission in the trade body. It is expected that China will offer certain trade concessions to India.
"To accede to the WTO, China is required to arrive at bilateral agreements with all WTO members. This is the beginning of the process between India and China, but it is early to say what the concessions may consist," a commerce ministry official said. Various items and tariff lines will be examined and concessions will be agreed upon.
Officials also said China's accession was welcome but it could lead to increased competition for Indian exports since all tariff concessions given to India by various WTO members will also be available to China on a most favoured nation basis. "We have to see how it works. Already, China's exports of textiles and other items are very competitive. Now the tariff and other concessions that India gets will also be applicable to Chinese exports," a source said.