NEW DELHI: India and China agreed on Thursday to have a two-tier mechanism to enhance bilateral trade and economic cooperation. The issue was discussed between Indian Commerce Secretary G.K. Pillai, Chinese Vice Minister of Commerce Zhong Shan and senior officials from both the sides.

India also asked China to explore possibility of more diversified exports from India. “Given the immense potential the two countries have, in both production and the consumption capabilities, we need to work more closely to remove all the minor irritants that creep into our economic and trade relations,” Pillai said at the meeting.

The two sides also discussed restrictions placed by India on Chinese toy imports. India banned Chinese toy imports for six months in January. Later, India permitted these imports provided quality certificates accompanied them from internationally recognized laboratories and agencies. The two sides still retain differences on the issue.

During the meeting, India also sought access to Chinese market for 14 fruits and vegetables at the earliest. There is the possibility of India soon being allowed to export basmati rice to China. As China has agreed to send an inspection team for basmati rice, India may begin exporting the rice from this year itself, Pillai said.

“We have discussed the issue with the Chinese government. We are hopeful that we would get a formal approval in the near future,” he said.

The two sides agreed on a regular meeting every three months between officials from both countries to remove impediments in their bilateral trade.