During the last two years, the rate of growth of India's trade with china has been in excess of 35%. If this trend is sustained, China Economy could become India's largest trading partner within the next two years. This was indicated by Shri Kamal Nath, Union Minister of Commerce & Industry and Mr. Bo Xilai, the visiting Chinese Minister of Commerce, at a press briefing here today following the India-China Joint Business Forum meeting. Currently, USA is India's largest trading partner with a total trade of US $ 21 billion while India's trade with china is projected at around US $ 16 billion for the current financial year 2005-06.

Shri Kamal Nath and Mr. Xilai further announced that it had been decided to set up a CEOs Forum in order to facilitate in-depth exchanges between the two countries at the business levels.

Referring to the deliberations of Seventh Session of India-China Joint Economic Group (JEG) which was co-chaired by the two Ministers here earlier today, they stated that it had been decided to constitute the following mechanisms as recommended in the Report of the Joint Study Group (JSG):

Joint Working Group between the Ministry of Agriculture and its counterpart AQSIQ of china to implement MOU of June 2002 and work towards MRAs (Mutual Recognition Agreements) in the field of agricultural products.

Joint Task Force on Harmonisation of Standards.

Joint Task Force on Non-Tariff Trade barriers

Joint Task Force on Reconciliation of Trade (data)

Joint Task Force on Rules of Origin

Consultation Mechanism on WTO / TBT (Technical Barriers to Trade)

Mr. Xilai indicated that the draft of a Bilateral Investment Promotion and Protection Agreement had also been finalised which would contribute to increased flow of investments between the two countries.