Underlining the importance of Sino, Pak ties, a senior Chinese official at Ministry of Commerce said here Wednesday that the Free Trade Agreement (FTA) between the two countries is a “milestone” in the history of our bilateral relations. Briefing the media delegation from SAARC countries, the Deputy Director General Liang Wengtao said that China is committed to enhance its bilateral trade with the South Asian countries.

“We are holding the South Asian Commodities Fair in Kunming from June 6, to encourage the exhibitors from our neighbouring South Asian countries to come and exhibit their products to tap Chinese markets”, he said.

This is for the second time that China is holding such fair, in which over 350 exhibitors were taking part, he said adding the first such exhibition was held in Beijing in 2007.

“By participating in such fair could help SAARC countries to find Chinese markets at the one hand and at other it would help to bridge the trade imbalance which is in favour of China”, he observed.

He said that last year, China dispatched three buyers delegations to Bangladesh, Sri Lanka and India and succeeded in signing $ 400 million deals with all these three countries.

Liang pointed out that China did not have intention to have balance of trade in its own favour, instead we are looking outside markets to find out how to utilize our mammoth foreign exchange reserves there.

To a question, he said that if South Asian countries should follow the steps China had adopted thirty years back while introducing reforms and opening up policies, they can also march toward progress and prosperity like China did.

China, has invested US$ 1.4 billion in SAARC countries, while it received $ 400 million investment from these countries till March 2009.

He said that China and India are the largest trading partners and surpassed USA.

Liang termed SAARC as investment destination and said that this is a very satisfying sign.