Free Trade Agreement Pakistan And China

Free Trade Agreement Pakistan And China

In particular, the Protocol introduces a new timetable for the elimination of customs duties in order to expand reciprocal market access, amends the rules of origin and trade aid provisions and adds a new chapter on customs cooperation. We also maintain offices to support foreign investors in Vietnam, Indonesia, Singapore, the Philippines, Malaysia and Thailand, in addition to our practices in India and Russia and our business research centers along the Belt & Road Initiative. A second phase agreement is being negotiated between China and Pakistan. The second phase will further reduce tariffs and standardize various trade procedures. [8] [needs to be updated] The Agreement contains the articles on the establishment of a free trade area, objectives, relationship with other agreements, application of this Agreement, definitions, scope and scope, national treatment, elimination of customs duties, para-tariff taxes and non-tariff barriers, rules of origin, trade measures, protective measures, sanitary and phytosanitary measures, OBT, investments, dispute settlement, amendments, annexes, etc. The volume of trade resulting from the agreement between the two countries amounted to $13 billion in 2013 and reached $20 billion in 2017, when the two countries signed 51 agreements and memoranda of understanding (MoUs) of cooperation in various fields. [5] China had already contributed significantly to Pakistani imports before the signing of the free trade agreement and had experienced a significant improvement in its ranking after the implementation of the free trade agreement in 2007. Until 2012, it was the source of 15% of pakistan`s total imports from the world, up from 9.8% in 2006. [6] [7] These concessions bring many benefits, both for China and for Pakistan`s trade development; It provides China with access to important agricultural, textile and mechanical goods to meet the needs of its growing middle class and enables Pakistan to improve its export competitiveness and improve industrial production. CPEC refers to the China-Pakistan Economic Corridor, which is part of China`s Belt and Road Initiative, an ambitious project to connect Asia with Africa and Europe through land and sea networks to increase trade and boost economic growth.

This is in line with China`s free trade agreements with New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Georgia, Chile and Pakistan, as well as the Asia-Pacific Trade Agreement. Last year, Pakistan signed an agreement with China to use the Chinese currency for bilateral trade, in order to get rid of the dollar`s burden in bilateral trade of $15 billion. The new phase will allow Pakistani manufacturers and distributors to export some 313 new duty-free products to the Chinese market. Chinese President Hu Jintao and his Pakistani counterpart Pervez Musharraf on Friday oversaw the signing of a free trade agreement between the two allies here in Islamabad on November 24, 2006. The document was signed by the trade ministers of both countries. .


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