An apex body of Indian exporters today supported the establishment of a free trade agreement (FTA) between India and China with adequate safeguards, including a ‘negative list’ which must include items like textiles, auto components and leather.‘‘We support the establishment of an India-China FTA with a negative list which should include items like textiles in which the Chinese have a major advantage over their Indian counterparts,’’ Chairman of the Federation of Indian Export Organisations (FIEO), northern region R.K. Dhawan said.‘‘China is very keen in signing a FTA with India,’’ Dhawan, who is leading a multi-sectoral delegation of Indian exporters to China, said after talks with senior officials of the Beijing sub-council of the China council for the promotion of international trade (CCPIT).‘‘FIEO supports a FTA agreement with China with a checklist or a negative list which is very important,’’ he said and supported greater cooperation between Indian and Chinese exporters, who could emerge as a major force in international trade.A negative list is vital to protect the interests of the Indian industry against a possible import surge from China, currently the world’s third largest trading nation, he said, while noting that Chinese goods were often sold at two-thirds the price of an item produced by Indian manufacturers.The Chinese textile industry was highly advanced and Indian industry will be crippled if it allowed complete import of textile items.FIEO officials said the negative list should also include items like auto components and leather. ‘‘We are confident that the government of India will take a very careful view before deciding on the FTA with China,’’ Dhawan said.Interestingly, Commerce Minister Kamal Nath had last month said India-China FTA would not work since the Chinese economy could not be considered a ‘market economy.’The minister, who visited Dalian, a northeast Chinese city for a crucial round of World Trade Organisation (WTO) negotiations, said during Chinese premier Wen Jiabao’s state visit to India in April, the two governments had agreed to appoint a joint task force to study the feasibility and the benefits that may derive from an India-China FTA.Meanwhile, the FIEO delegation which is visiting major Chinese trading cities like Guangzhou and Shanghai, are highly impressed by the high-quality infrastructure built by China which has played a key factor in attracting billions of dollars of foreign investments.‘‘I am flabbergasted by the infrastructure China has got. We lack such infrastructure in India. I wish we concentrated first on developing infrastructure before we further liberalise our economy because infrastructure is one thing which can facilitate many things including trade and investment,’’ Dhawan said.Welcoming the booming bilateral trade, he said governments on both sides should facilitate more direct air connections and shipping lines. ‘‘If we are able to maintain the current growth of nearly 80 per cent, our trade volume will reach 462 billion by the year 2010,’’ Dhawan said. — PTI
