Pakistan, China discuss Free Trade Agreement expansion, minimize trade gap

Islamabad, March 22, 2011 (PPI): Pakistan and China will hold official level talks in June next at Beijing on expansion of Free Trade Agreement FTA and minimizing trade gap between two countries. They will also discuss minimizing trade gap, eliminating tariffs and prepare package for implementing second phase of FTA. First phase of FTA is due to end on December 31, 2012 and second phase begin from January 2013. Officials of two governments finalized modalities for talks on implementing second phase of FTA in meeting recently at Islamabad.

Commerce Ministry sources said both countries will eliminate tariffs on around 90% products in terms of tariff lines and trade volume within a reasonable period on basis of consultation and accommodation of concerns of both the countries.

Overall trade between Pakistan and China in 2010 was $8.67 billion. Chinese exports to Pakistan were US$6.9 billion and imports from Pakistan US$1.78 billion.

FTA proposals will be formulated in a way to help Pakistan boost exports to China to minimize gap. Pakistan and China signed FTA in June 2006 which came into effect from July 2007.