BEIJING – Pakistan and China on Sunday signed the second phase of the Free Trade Agreement (FTA) to further enhance bilateral trade between the two countries.
Prime Minister Imran Khan and his Chinese counterpart Li Keqiang witnessed the signing ceremony held here at Diaoyutai State Guest House.
After eight years of negotiations, Pakistan has got access to China markets on similar lines to the ASEAN countries, with reduced duties and taxes to zero percent on 313 tariff lines.
All 313 items, with an estimated export potential of $3 billion, have now been incorporated in the renegotiated agreement, it said. These items comprise of tariff lines covering textiles, articles of apparel, agricultural produce, leather, and animal products.
This second phase of CPFTA is expected to become operational from July 1, 2019.
https://en.dailypakistan.com.pk/headline/pakistan-eyes-500m-jump-in-exports-after-duty-free-access-on-313-chinese-products-under-cpfta/
Pakistan has also agreed to provide incentives to China under the 2nd phase of CPFTA, which might take more time to become effective. Pakistan and China had signed the Free Trade Agreement (FTA) in November 2006 during the Musharraf regime and its first phase was implemented for five years with effect from July 1, 2007. The first phase of FTA ended on 2012. Pakistan largely remained in disadvantageous position because of the first FTA.
The Pak-China Agreement in Goods was signed on November 24, 2006 and implemented from 1st July 2007. The agreement envisaged two phases. Under Phase-I, Pakistan reduced tariffs to zero duty on 2,423 tariff lines, whereas China reduced duty to zero on 2,681 tariff lines. The agreement in Services was signed on 21st February 2009 and the first phase got implemented from 2007-2012.
Post CPFTA, the bilateral trade went up from $4.777 billion in 2007-8 to $16.597 billion, with Pak exports and imports at $1.463 billion and $15.143 billion respectively.
China has FTA with Chile, New Zealand, Singapore, Peru, Costa Rica, and ASEAN etc.
Free Trade Agreement Phase-II
The other memorandum of understanding and agreement signed on Sunday included Declaration for Completion of Preliminary Design of Phase-I for Up-gradation of ML-1 and Establishment of Havelian Dry Port under CPEC, MoU on Cooperation in the field of Marine Sciences between the China Geological Survey (CGS), Ministry of Natural Resources of China, the Institute of Oceanography, Ministry of Science and Technology, MoU between CIDCA and Ministry of Planning, Development and Reform on Implementation of the Projects under JWG of CPEC on Socio-Economic Development, China-Pakistan Economic and Technical Cooperation Agreement and Rashakai SEZ Joint Venture and License Agreement between KPEZMDC and CRBC.
Earlier, Prime Minister Imran Khan held a bilateral meeting with Chinese Premier Li Keqiang at the conclusion of the 2nd Belt and Road Forum (BRF).
The two premiers were accompanied by ministers and senior officials during the meeting. Both leaders reaffirmed the time-tested and strong friendship between Pakistan and China and exchanged views on the myriad facets of bilateral engagement.
#Pakistan is a peaceful country, we invite the International investors to invest in Pakistan, we’ll create ease for the investors and give concessions in tax :: Prime Minister @ImranKhanPTI #China pic.twitter.com/iMZYpN3PUR
— PTI (@PTIofficial) April 28, 2019
2. Declaration for completion of preliminary design of Phase-I for Up-gradation of ML-1 and establishment of Havelian Dry Port under #CPEC
3. China-Pakistan Economic and Technical Cooperation Agreement pic.twitter.com/hLol9iUxNA
— PTI (@PTIofficial) April 28, 2019
MoU on Cooperation in the field of Marine Sciences between the China Geological Survey (CGS), Ministry of Natural Resources of China, the Institute of Oceanography, Ministry of Science and Technology
Rashakai SEZ Joint Venture and License Agreement between KPEZMDC and CRBC pic.twitter.com/dPGpIngEXQ
— PTI (@PTIofficial) April 28, 2019
MoU between CIDCA and Ministry of Planning, Development and Reform on Implementation of the Projects under JWG of #CPEC on Socio-Economic Development#Pakistan #China pic.twitter.com/9Vwtwachwf
— PTI (@PTIofficial) April 28, 2019
PM Imran extended felicitations to the Chinese leadership on the successful holding of the 2nd Belt and Road Forum (BRF). Noting the depth and breadth of the Belt and Road Initiative (BRI), the Prime Minister said it was of immense significance for the world in terms of connectivity and shared prosperity.
The two sides exchanged views on bilateral collaboration in the context of CPEC and prospects of further deepening economic linkages.
Imran Khan underscored the importance of CPEC for Pakistan’s economy and noted with satisfaction its expansion into new areas of development – including industrial development; livelihood projects; social uplift; and agriculture in line with the priorities of government.
He hoped that Chinese investment in Specialized Economic Zones (SEZs) would expand Pakistan’s industrial base and assist in diversifying its export basket.
Underlining the steady growth of bilateral cooperation since the Prime Minister’s last visit to China in November 2018, Premier Li Keqiang expressed satisfaction at the positive momentum of CPEC projects.
He hoped that the conclusion of the Second Phase of China-Pakistan Free Trade Agreement (FTA), would give further boost to trade and economic relations between the two countries.
The two sides agreed to further deepen the political, security, economic, education, science and technology, cultural, and people-to-people relations.
It was agreed to maintain the existing momentum of high-level exchanges between the two countries.
The two leaders also exchanged views on regional issues including peace efforts in Afghanistan and peace and stability in South Asia. They also agreed to closely coordinate in their endeavours.
