China and India signed an agreement on Saturday allowing the two countries to lower trade tariffs between them, China's Ministry of Foreign Trade and Economic Cooperation said.
The agreement, signed in Beijing, will enable the two countries enjoy tariff rates lower than those they offer under the "most favoured nation" tag, MOFTEC said in a statement.
"(The agreement) will further reduce trade obstacles and accelerate bilateral trade growth," it said but gave few details.
The two countries would implement the new rates "as soon as possible within the year 2003", it said.
The agreement was in accordance with a pact signed in 1975 by the United Nations Economic and Social Commission of Asia and the Pacific, it said.
The pact allows developing nations belonging to UNESCAP, including China, India, South Korea, Bangladesh, Sri Lanka and Laos, to offer favourable tariffs to each other.
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