ISLAMABAD – Pakistan and China trade get a big a boost with theimplementation of second phase of their free trade agreement from today,December 1.
According to China Economic Net, it will be a big way forward to correctbalance of trade between the two countries that is currently heavily infavour of China.
The free trade arrangements reflect the desire of the Chinese topleadership to promote their trade ties with Pakistan on equal basis and tohave a win-win situation in their economic relationship.
China has agreed for the immediate elimination of tariffs on 313 mostpriority tariff lines of Pakistan’s export interest giving treatment on apar with ASEAN.
These 313 tariff lines cover over US$ 8.7 billion worth of Pakistan’sworldwide exports and US$ 64 billion worth of Chinese global imports. Whilethis will help to lessen Pakistan’s trade deficit, it also provide asupport to the country’s overall economic growth.
In terms of the complete offer made by China, over US$19 billion ofPakistan’s exports will be covered, which corresponds to US$1.6 trillion ofthe Chinese global imports.
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The major products on which tariff have been eliminated are textiles,garments, seafood, meat, other animal products, prepared food, leather,chemicals, plastics, oilseeds, footwear as well as engineering goodsincluding tractors, auto parts, and home appliance machinery, etc.officials told China Economic Net on condition of anonymity.
Increase in the sensitive list from 10% to 25% which comes to 1760 tarifflines and covers 37% of Pakistan’s imports from China. This will give afair amount of production to Pakistan’s domestic industry from import fromChina.
The major protected industry includes textiles and clothing, iron andsteel, auto, electrical equipment, agriculture, chemicals, plastics,rubber, paper and paper board, ceramics, glass and glassware, surgicalinstruments, footwear, leather, wood, articles of the stones and plasticsand miscellaneous goods.
