Is There a Free Trade Agreement between India and China
Posted on 2022年7月4日 | By pp-admin
As two of the largest economies in the world, India and China have a significant impact on global trade and commerce. Many wonder if there is a free trade agreement between these two countries. Unfortunately, the answer is no.
India and China have been in talks about a comprehensive free trade agreement since 2003. However, the negotiations have been ongoing for almost two decades without any concrete outcome. The talks have been stalled mainly due to the trade imbalances between the two countries and concerns over China flooding India’s market with cheap products.
India has been wary of entering into a free trade agreement with China, one of the world’s largest exporters, as it fears that its domestic industries will be unable to compete with cheaper products. On the other hand, China has been pressing for greater access to India’s pharmaceutical and IT services sectors.
Although the negotiations have been sluggish, both countries have taken steps to enhance trade between them. In 2005, they signed the Framework Agreement on Comprehensive Economic Cooperation, which aimed to boost bilateral trade and investment. Since then, several agreements have been signed to increase cooperation and reduce trade barriers.
Despite these efforts, the bilateral trade between India and China has been heavily skewed in favor of China. In 2020, the trade deficit between the two countries stood at over $50 billion. India exported around $20 billion worth of goods to China, while it imported over $70 billion worth of goods.
In conclusion, there is currently no free trade agreement between India and China. The negotiations have been ongoing for almost two decades, but have been stalled due to trade imbalances and concerns over market access. Although both countries have taken steps to increase cooperation, bilateral trade remains heavily skewed in favor of China. It is unclear when or if a free trade agreement will be reached between the two countries.