China, Pakistan set to ink FTA-II by June 2019
Pakistan and China are set to ink much-awaited second free trade agreement by June 2019 and to this effect a technical experts’ delegation from Islamabad will leave for China by end of February.
“Yes, both the countries have progressed on this account and are set to ink the second FTA by June 2019 and to this effect, Pakistan’s experts’ team is to leave for Beijing to further fine tune the bilateral trade agreement. And in the month of March, Commerce Secretary of Pakistan Younas Dagha will hold a meeting with vice commerce minister of China to give final shape to the agreement.
As for the first FTA with China , concluded in 2012, but it didn’t yield the required dividends as the items on which China had provided tariff concessions at the very beginning but later it provided more concession on the said items to ASEAN countries for the reason that Pakistan’s products in Chinese market remained no more competitive. And at the same time, Pakistan’s exports to China continued to stay at $1.2 billion whereas import from China soars to over $15 billion. So this act of Pakistan mainly aimed at decreasing this huge trade gap.
There are 8,000 tariff lines that have been negotiated with Chinese counterparts and to better shape up the trade deal-II , Pakistan remained in talks as per the studies and models commerce ministry have had exclusively for China. The Chinese government has already extended the commitment to Islamabad during the visit of Prime Minister Imran Khan that China will double its imports from Pakistan.
According to Commerce Minister Razak Dawood, Chinese Premier Li Keianq, during the visit, clearly states that China is ready to double the imports from Pakistan and if Pakistani entrepreneurs have the capacity. He also adds that China is ready to triple the imports from Pakistan but it all depends upon the ability of Pakistani entrepreneurs. In addition, the Chinese government has also agreed to extend to Pakistan a special quota for export of sugar and rice which will also help to have a massive surge in exports to China.
According to the cabinet member, a crucial meeting of Pakistan top officials is going to take place in Beijing on November 9 in order to shape up the process to finalise placing the dollars in Pakistan’s account to improve reserves situation.
Pakistan’s export to china stands at $1.2 billion per annum which can go up to $2.2 billion and then to $3.2 billion after inking this agreement. Pakistan wants market access to China, and Chinese government also promise to increase its imports from Pakistan by 100 percent and later on it would also increase them by another 100 percent. This will help decrease trade deficit with China.
The official said that Pakistan can increase its exports by just $500 million by sending to Chinese market one million tons sugar and one million tons rice. China’s imports stands at $2 trillion but Pakistan entrepreneurs lacks the ability to harness even 1 percent share in China’s total imports. China is a huge market for Pakistan for its huge population. In order to increase the export volume to China. The most important goal for Pakistan entrepreneurs is to improve theirs production ability in order to meet the export needs to China.
When it comes to exporting to China, our new project–The New Foreign Trade and New Retail Start-up Incubator officially initiated on Jan.11th, has bonded warehouses and logistics services, therefore upgrades supply chain of import products.