India, Indonesia explore accord to boost trade to 10 billion dollars

India, Indonesia explore accord to boost trade to 10 billion dollars

India and Indonesia are exploring the possibility of an accord
that would boost bilateral trade threefold to 10 billion dollars
by 2010, visiting Indonesian Trade Minister Marie Elka Pangestu
(left in photo) said Monday.

"We have decided to set up a joint study group to examine the
possibility of a Comprehensive Economic Partnership Agreement,"
Pangestu told reporters after a meeting with Indian
industrialists, the Press Trust of India (PTI) news agency
reported.

"We want to see a threefold rise in bilateral trade to 10
billion U.S. dollars by the end of the decade," Pangestu said.

India's Commerce Minister Kamal Nath (right) said the India-
Indonesian Joint Business Commission would work out a timeframe
for exploring such an agreement. Mari also met with president of
the Federation of Indian Chambers of Commerce and Industry Onkar
Singh Kanwar (center) in New Delhi.

Both countries have a range of issues to sort out with the
other, with India campaigning for removal of non-tariff barriers
on its exports including meat and other processed food, PTI said.

Indonesia, on its part, wants to increase its palm oil exports
to India and is seeking a lowering of tariffs on processed oil.

"We have asked the Indian government to look into the issue of
differential duty structure on soya oil and processed palm oil
besides the conditions on sulfur content of coal," Pangestu said.

Indonesian companies could team up with Indian units in
textiles, steel, IT and telecoms, pharmaceuticals, health and
other services, she added. --AFP