labels: trade
Will Indo-China issues affect FTA?news
17 November 2006

The Cabinet has approved an investment protection agreement with China, which is miffed that its firms are being discriminated against for security reasons. But CNBC-TV18 reports that the Chinese have not had their way on a free trade agreement.

Chinese Ambassador, Sun Yuxi had complained of unequal treatment after three Chinese firms were barred from port projects on security grounds. He was preparing the grounds for an investor protection agreement during President Hu''s visit. That is now a certainty.

Priya Ranjan Dasmunshi, the I&B minister, says, "The Cabinet has given its approval for a bilateral investor protection agreement with China."

The Chinese were keen on a free trade agreement, but they have settled for something less, though they hesitate to acknowledge that there has been a climb down.

Sun Yuxi, Chinese ambassador, says, "Officials of our two commerce ministries are talking actively on a regional trading arrangement."

China and India have adopted a twin track strategy of pressing ahead with economic consolidation. But the border dispute has a way of insinuating itself into the apparent cordiality, as happened earlier this week, when Sun Yuxi said that Arunachal belongs to China.

Sun Yuxi says, "I was giving a historical background. But now we are going to abide by the principles in the political parameters and the guiding principles."

The Chinese also have a grouse about difficulty in getting visas to India. Overall, it is these niggling issues that are likely to be sorted out during the Chinese President''s visit.


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Will Indo-China issues affect FTA?