China Pakistan Free Trade Agreement 2019

The new phase will allow Pakistani producers and distributors to export approximately 313 new duty-free products to the Chinese market. On 9 April, the 11th meeting of the second phase of the “Freisa/Da” free trade agreement between China and Pakistan was held 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] China Briefing is written and produced by Dezan Shira – Associates. The practice supports foreign investors in China and has since 1992 by offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen and Hong Kong. Please contact the support company in China at china@dezshira.com. Given that agriculture is the vital artery of Pakistan`s economy, local observers believe that duty-free access to the Chinese market will not only increase the income from export-oriented exports, but will also encourage local farmers to acquire modern methods to increase production. 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. The volume of trade resulting from an agreement between the two states amounted to $13 billion in 2013 and reached $20 billion in 2017, when the two countries signed 51 agreements and protocols for cooperation in various areas.

[5] China had already made a significant contribution to Pakistani imports prior to the signing of the free trade agreement and improved considerably after the implementation of the free trade agreement in 2007. Until 2012, it was the source of 15% of Pakistan`s total imports from the world, up from 9.8% in 2006. [6] [7] In the 2017-18 financial year, the volume of trade between China and Pakistan amounted to $13.2 billion, or 16.4% of Pakistan`s trade volume. The results obtained at the highest level indicate that the customs structure proposed in Pakistan under CPFTA2 is a marked improvement over the CPFTA1. On more than 80% of the CPFTA2 product lines imported by China, Pakistan will be offered tariffs lower or equivalent to those of China`s main trading partner. Nearly 40% of CPFTA2 products imported by China have been reduced under CPFTA2 compared to CPFTA2, and 45% of tariffs will now be available in China duty-free. A disaggregated analysis of Pakistan`s high-priority products shows considerable opportunities to expand and diversify exports to China, although there are still a small but significant number of product lines for which Pakistan still does not have competitive access to China, including rice, durum wheat, paper and cardboard and hormonal medicines. Pakistan already has zero tariffs on the export of 724 products to China under the first free trade pact signed between the two countries in 2006.

After the implementation of the second pact, Pakistan was allowed to export more than 1,000 products to China without tariffs. This round of review of the CPFTA expands and diversifies business opportunities for businesses on both sides while maintaining fair and equitable protection of local industrial interests. In 2007, China and Pakistan implemented the first phase of the China-Pakistan free trade agreement and initiated a reduction in bilateral tariffs. In the period following CPFTA1, bilateral trade flourished and grew by 242 percent between 2007 and 2018 – almost six times more than Pakistan`s growth with the rest of the world over the same period. It is with this in mind that cpFTA1 has achieved its objective of promoting bilateral trade relations. These are Pakistani products for which