China and India, the two giants of Asia, have been talking (unconvincingly) of the possibility of a bilateral free trade agreement for several years. A feasibility study was completed in October 2008, but there is much opposition from India’s business sector as well as many other political complications that are likely to keep the idea on a very low flame for a while.
last update: May 2012
why is China so keen on an FTA and India less eager?
Chinese Premier Wen Jiabao will propose to establish the world’s biggest Free Trade Area (FTA) between China and India during talks with the Indian leadership next week.
Maintaining that establishment of a free trade area (FTA) between China and India has become a ‘‘logical agenda’’ item, Chinese Premier Wen Jiabao has expressed hope that the two sides will soon begin their feasibility study of FTA.
Maintaining that establishment of a free trade area (FTA) between China and India has become a "logical agenda" item, Chinese premier Wen Jiabao has expressed the hope that the two sides will begin their feasibility study of FTA soon.
India and China may opt for a regional trade arrangement (RTA) when the two heads of state, Dr Manmohan Singh and Wen Jiabao, meet next weekend in New Delhi.
Riding on a 79% growth in bilateral trade in 2004 at US$14 billion, China has expressed an interest in formulating a free-trade agreement (FTA) with India, saying that closer trade relations could make it easier to solve political differences. If the FTA is achieved, it would result in the biggest free-trade region in the world.
China is pushing for a free trade agreement (FTA) with India which, it claims, would result in the biggest free trade region in the world.
Notwithstanding border and other political problems and the low base, India’s trade with China has increased phenomenally. A preliminary study has been done on a possible free trade agreement (FTA) with China.