Posted on April 9, 2021
4. It was agreed that the general procedure lines for the clearance and movement of the products covered in the previous paragraphs can be defined as: (i) in order to facilitate customs clearance and transport, the Government of the People`s Republic of China will charge the Indian government in advance that these goods will be transported to the Tibet region of the People`s Republic of China. to determine whether authorizations and transfer opportunities can be granted, taking into account the availability of these products in India. Issues relating to the transport of these goods are discussed and resolved between the Chinese Embassy in New Delhi and the Indian government. (ii) Goods to be cleared are registered for import at the Calcutta port customs. (iii) Subject to Indian customs provisions and the filing requested by customs authorities, goods are processed under customs for continued travel to the Tibet region of the People`s Republic of China on agreed routes. (iv) the goods are manufactured with intact seals in front of the field customs officer at the final point of departure and are made available for export to the Tibet region of the People`s Republic of China. 21 China and India have recently begun discussions on the development of a bilateral free trade agreement (FTA). This demonstrates their willingness to go beyond the framework of the World Trade Organization and to further reduce tariffs and remove non-tariff barriers28. Indeed, at their meeting on 21-22 March 2004, senior officials in China and India had launched the first round of talks for the signing of a free trade agreement and a comprehensive economic cooperation agreement in Beijing. The idea was followed by Prime Minister Wen Jiabao during the visit to India from 9 to 12 April 2005.
However, unlike their government, some Chinese experts remain very concerned. To quote a well-known expert on South Asia, “While a free trade agreement between China and India is difficult to conclude in the short term, its importance in establishing a multi-party regional free trade system is evident, given the enormous population and size of the two countries.” Another Chinese expert believes that strengthening trade relations and complementary economic structures cannot guarantee the rapid implementation of a free trade agreement between the two countries.” India has its own reserves and the fact that cheap Chinese products are flooding Indian markets has also raised concerns in India`s business community31. 31 In fact, the growth rate of trade between China and India had already slowed by an average of 78% in the first eight years of the 1990s and by about 30% per year in the mid-1990s. It had fallen again in 1997 to 5.2%. In the context of the East Asian financial crisis in the late 1990s, Chinese exports also declined as a whole. Chinese exports to its major trading partners, such as Japan and South Korea, as well as its closest ally, Pakistan, have sent a very positive message to Indian politicians. Even in the difficult months of the summer of 1998, India signed agreements in 1998 for five joint ventures (two in China and three in Hong Kong), which invested US$8 million and six other joint ventures (one in China and five in Hong Kong) in 1999, with investments of $1.9 million ($40). Note: Any customs union, every common market, any economic union, the Customs and Monetary Union and the Economic and Monetary Union are also a free trade area. 4. However, payments for border trade between the People`s Republic of China and the Republic of India are made according to the usual practice.” The new Article VII came into force on July 1, 1957.