Thursday, March 16 2006 15:56 Hrs (IST) - World Time -

New Delhi: India and China today(Mar 16,2006) agreed to look into the possibility of a regional trade agreement and an investment protection agreement besides deciding to set up a CEO's Forum as part of efforts to strengthen economic ties and enhance two-way trade to 50 billion dollars by 2010.

The two Asian giants also decided to establish six task forces related to WTO, harmonisation of standards, Rules of Origin, non-tariff barriers, agriculture and reconciliation of trade at a meeting of Joint Economic Group here.

"This was a significant meeting as it was being held after a gap of six years. The discussions were multi-faceted and covered a lot of issues," Commerce Minister Kamal Nathsaid later at a meeting of China-India Business Forum.

Nath said bilateral trade was growing at 30-40 per cent annually and would grow from 15 billion dollar at present to 20 billion dollar by 2007, a year before the target of 2008.

This would propel China into India's largest trading partner, overtaking the US, he added.

Chinese Commerce Minister Bo Xilai, however, expressed confidence that the 20 billion dollar target would be achieved in 2006 itself and expected it to grow significantly in the next few years to 50 billion dollars by 2010.

Nath said two sides agreed to set up a group which would look into the broad contours of a regional trade pact.

"A CEO's Forum would also be formed within the next three months to facilitate business relationships", he said.

The two countries have also reached a "Consensus on a Bilateral Investment Protection Agreement (BIPA)and have already initialled the draft pact," Xilai said.