The second phase of the China-Pakistan Free Trade Agreement (CPFTA) will be effective from December 1. It is expected to raise Pakistani exports to China and help reduce the bilateral trade deficit. It will allow Pakistan to export products worth an additional $1 bn to China, Badar uz Zama, Commercial Counsellor at the Pakistani Embassy in Beijing, said.
The products on which tariff has been waved off include textiles, garments, seafood, meat, prepared food, leather, chemicals, plastics, oilseeds, footwear, engineering goods including tractors, auto parts, and home appliance machinery. Zama said the second phase of the CPFTA would also provide a rare opportunity for Pakistani garment and textile traders to increase exports to China.
Under the agreement, China will immediately eliminate tariffs on 313 most priority tariff lines of imports from Pakistan. These 313 tariff lines cover over $8.7 bn worth of Pakistan’s worldwide exports and $64 bn worth of Chinese global imports, according to a report. The negotiations for the second phase began in 2011 and after 11 rounds, both sides concluded the agreement in April 2019 in Beijing.