New Delhi, June 28: A day after Prime Minister Atal Bihari Vajpayee`s return from China, India tonight granted major tariff concessions to Beijing, which is termed as a "milestone" in bilateral trade, surging towards five billion dollars annually. The tariff concessions were offered under the 1975 Bangkok agreement which provides for trade expansion through such concessions among developing countries of the escape region. With the Cabinet approving China`s entry into the pact, India would be offering concessions on 106 Chinese items, while China is to extend concession on 182 Indian items including chemicals, leather, textiles and diamonds. After the exchange of concessions with China, India would be eligible for concessions on 722 items, which cover around 25 to 30 per cent of its total exports to China, Parliamentary Affairs Minister Sushma Swaraj told reporters after the Cabinet meeting here. The Cabinet also gave post facto approval to the bilateral Preferential Trade Agreement with Afghanistan which had been signed on March 6, 2003 during the Afghan President`s visit to India, Swaraj said.

The tariff concessions granted to Afghanistan were extended on a non-reciprocal basis keeping in mind the long term interest and to facilitate trade and economic ties between the two countries.

Bureau Report