Trade Agreement Between China And Pakistan

On December 1, 2019, the protocol amending the China-Pakistan Free Trade Agreement came into force, which profoundly revised the China-Pakistan Free Trade Agreement (CPFTA), first signed in November 2006. (The full text of the minutes is available here in English and here in Chinese). The previous pooling program between the two countries, which came into force on 1 January 2006, has been merged into a bilateral free trade agreement. Throughout the package, Pakistan will have a zero right for market access for industrial alcohols, cotton fabrics, bed linen and other interior textiles, marble and other tiles, leather goods, sporting goods, mangoes, citrus fruits and other fruits and vegetables; Steel and mechanical products. China will also reduce its tariffs on the fishing and milk sectors by 50%; Frozen orange juice; Plastic products Rubber products Leather products knitting products Woven clothes, etc. On 9 April, the 11th meeting of the second phase of the negotiations of the “Freisa/Da” free trade agreement between China and Pakistan took place in Beijing. Wang Shouwen, China`s Vice Minister of Trade and Vice-Representative for Trade, met with delegations led by Sukhera, Pakistan`s Minister of Trade, and Mr. Dagha, Minister of Finance, respectively. The two sides have held extensive consultations on issues such as tariff reductions, investment and customs cooperation, and have made positive progress. [9] The CPEC refers to the Sino-Pakistan Economic Corridor, part of China`s Belt and Road Initiative, an ambitious project to link Asia to Africa and Europe through land and sea networks to promote trade and stimulate economic growth. According to official data, Pakistan`s bilateral trade volume increased to about $15.6 billion in fiscal 2019, up from $2.2 billion in 2005. This is in line with China`s free trade agreements with New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Georgia, Chile and Pakistan, as well as the Asia-Pacific trade agreement.

Awan added that the country`s textile sector will benefit the most under the agreement. The agreement contains the articles relating to the establishment of the free trade area, objectives, references to other agreements, the application of this agreement, Definitions, scope and coverage, national treatment, removal of tariffs, paratarifs and non-tariff barriers, rules of origin, trade measures, safeguards, health and plant health measures, TBTs, investments, dispute resolution, amendments, annexes, etc. Phase I – Reducing China`s reckless tariffs within five years of this agreement: the new phase will allow Pakistani producers and distributors to export approximately 313 new duty-free products to the Chinese market. In April 2005, during Prime Minister Wen Jiabao`s visit to Pakistan, China and Pakistan announced the opening of negotiations on the free trade area. The agreement came into force in July 2007. On 21 February 2009, the Chinese State Council Dai Bingguo and Pakistani President Asif Ali Zardari attended the signing of the China-Pakistan Trade in Services Agreement, which would come into force on 10 October 2009. In particular, the protocol introduces a new timetable for the abolition of tariffs in order to expand reciprocal market access, amend rules of origin and remedial measures provisions, and add a new chapter on customs cooperation. 3. Among the main features of the Phase II agreement is the volume of trade between China and Pakistan of $13.2 billion in fiscal year 2017-18, or 16.4% of The volume of Pakistani trade.

This entry was posted in Uncategorized. Bookmark the permalink.