China will reduce import tariffs on goods from India, South Korea, Bangladesh, Laos and Sri Lanka from July 1. The products on which the tariffs will be reduced include soybean from 3 per cent to zero, chemicals, agricultural products, medical supplies, clothing, steel and aluminium products. All imported products from these five countries will adapt a tariff rate of the Second Amendment of The Asia-Pacific Trade Agreement.

India has been pressurising China to open its markets more for Indian products, especially IT and pharmaceuticals, to reduce $51 billion in over $84 billion trade. During the India-China strategic dialogue in April, Rajiv Kumar, vice chairman of NITI Aayog, had pitched for export of soybean and sugar to China from India. Early this month, Premier Li Keqiang had announced that China will reduce the average tariff rate for clothing, shoes and hats, kitchenware and sports and fitness supplies from 15.9 per cent to 7.1 per cent from July 1