‘Sino-Indian FTA will not work’
Dalian, July 14 2005
India feels that a free trade agreement (FTA) with China will not work as it is not a market economy.
It, however, wants its relations with China to shift from the political to the commercial domain and has suggested both sides ensure they are not played against each other by the rest of the world.
“For a free trade agreement with China, both countries should have market economies. India will be ready for an economic cooperation agreement as China moves to become a market economy,” commerce minister Kamal Nath said in an interview.
Asked about the possibility of establishing a free trade area between India and China, he said since China was not a ‘market economy,’ it will not work.
Kamal Nath, who was here to attend the World Trade Organisation (WTO) informal ministerial meeting said China wants ties with India to flourish for which the relations must move from the political to the commercial domain
“This is the century of Asia and the partnership of India and China must flourish,” he said. “As China slowly moves towards a market economy, both countries will have to ensure that one is not played against the other by the rest of the world,” he added.