Pak China Free Trade Agreement

 
 

However, while growth in Pakistani exports to China outpaced Pakistani exports to the rest of the world, Pakistani imports from China increased even more strongly (Table 1). As a result, the trade deficit with China has soared. It already accounted for a quarter of Pakistan`s total trade deficit in 2007. In 2018, it was 35%. The CPFTA has also been the subject of much criticism among Pakistani business groups that Pakistan has negotiated poorly, both in terms of access to products for which it was better able to export to China and the granting of access to Chinese products that have invaded the Pakistani market and contributed to premature deindustrialization. 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] In 2007, China and Pakistan implemented the first phase of the China-Pakistan Free Trade Agreement and launched 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. In the 2017-18 fiscal year, the volume of trade between China and Pakistan amounted to $13.2 billion, or 16.4% of Pakistan`s trade volume. In addition to our practices in India and Russia and in our commercial research centres along the Belt-Road initiative, we also have subsidiaries that support foreign investors in Vietnam, Indonesia, Singapore, the Philippines, Malaysia and Thailand. The agreement contains the articles relating to the establishment of the free trade area, the objectives, relations with 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 remedies, safeguards, health and plant health measures, TTTs, investments, dispute resolution, amendments, annexes, etc. The report then examines non-tariff barriers to access to the Chinese market, based on the results of a roundtable discussion and one-on-one interviews with exporters, some of whom had attempted to export to China. The main obstacles were Pakistan-specific issues, not non-tariff barriers in China.

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