CPFTA second phase implementation set to come into effect from December 01

BEIJING, Nov 26 (APP):The second phase of the China-Pakistan Free Trade Agreement (CPFTA) set to come into effect from December 01 will enhance Pakistan’s exports to China and help decrease the trade deficit between the two countries.

“The implementation of the second phase of CPFTA will allow Pakistan to export products worth of an additional US $ one billion to China,” Commercial Counselor, Pakistan Embassy Beijing, Badar uz Zama said on Tuesday.

He said it would also provide a rare opportunity for Pakistani garment and textile traders to increase their export to China.

All major export products of the country, especially textile products, will be easier to enter the Chinese market, he added.

He said with the strong support of the government, the Pakistani garment industry is constantly moving forward and exports are steadily rising.

The Pakistani garment industry is strengthening R&D and production of high value-added products.

Pakistan, he opined, would overcome trade and current account deficits by expanding exports to promote economic development.

Under the agreement, China will immediately eliminate tariffs on 313 most priority tariff lines of imports from Pakistan.

These 313 tariff lines cover over US $ 8.7 billion worth of Pakistan’s worldwide exports and US $ 64 billion worth of Chinese global imports. This will help to cut down Pakistan’s trade deficit and give support to its economy.

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.

The commercial counselor said the negotiations for the second phase of the CPFTA began in 2011 and after 11 rounds of negotiations, both sides concluded the agreement on April 2019 in Beijing.