The second phase of the China-Pakistan Free Trade Agreement (CPFTA) has come into effect, allowing Pakistani manufacturers and traders to export around 313 new products to the Chinese market on a duty-free basis.
Among the products are textiles, garments, seafood, meat, other animal products, prepared food, leather, chemicals, plastics, oilseeds, and footwear. Also included are engineering goods such as tractors, auto parts, and home appliance machinery.
“After the protocol’s coming into effect, the tax item ratio to carry out mutual zero-tariff goods will be increased from 35 percent to 75 percent,” China’s Ministry of Commerce said, adding: “Besides this, both parties will carry out a 20 percent partial tax decrease on other goods that occupy five percent of their respective tax items.”
Official data shows that the two countries’ trade turnover hit $15.6 billion in the 2019 financial year, up from $ 2.2 billion in 2005.
“I congratulate China on implementation of the second phase of free trade agreement which will enhance bilateral trade and facilitate Pakistani traders to export its products to the Chinese market on zero duty,” Firdous Ashiq Awan, special assistant to Pakistan’s prime minister on information and broadcasting, said on Twitter.
Also on rt.com Why China believes the World needs the new Silk Road: Beijing's ambitious mega-project explainedShe added that the country’s textile sector will benefit the most under the agreement.
Pakistan is already enjoying zero duties on the export of 724 products to China under the first free trade pact, which was inked in 2006. It was the first free trade agreement that Beijing signed with a South Asian country.
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