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Pak-China FTA to become effective from Dec

The News | 9 November 2019

Pak-China FTA to become effective from Dec

ISLAMABAD: Pakistan-China Free Trade Agreement (FTA) would get effective from December 1, 2019, which would boost pakistani products’ exports to China and also reduce trade deficit with the friendly country.

China has approved the premature activation of the free trade agreement with Pakistan. This is the second phase of FTA with china that was signed in Beijing in April 2019.

"Now, it is start of CPEC Plus business to business [ties] with China,” Adviser to Prime Minister for Commerce, Textile, Industry & Production and Investment Abdul Razak Dawood announced this here on Friday. Pakistan hopes to increase trade with China following functioning of the second phase of FTA china

He said that it usually takes a year to make such an agreement operational, but due to special relationship with Pakistan, the China has agreed to make the FTA operational before time.

He informed about the negotiations held with Chinese side to export agriculture products during a recent visit to China. He said that he had taken up that matter with Chinese side to give market access to Pakistan agriculture products.

China has agreed to import fruits and vegetable from Pakistan for western part. However, he said that the Ministry of National Food Security did not have required capacity to address issues of quarantine. He said that matter had been taken up with Chinese side to train Pakistani officials. China agreed to give training to officials of Ministry of National Food Security and Research on quarantine issues.

He said that an international conference on textiles is being held in Lahore on Monday and around 35 Chinese companies will be attending the conference. He said the security situation stands improved in the country and we are ready to give tax benefits to the investors to invest in Pakistan.

During meeting with Chinese Commerce Minister, he has requested for additional quota of 0.5 million tons of rice from the last years quota of 250,000 tons. I have also requested Chinese commerce minister to give special quota of 300,000 tons of sugar for this year as the crushing is starting soon. He, however, made it clear that if the prices are increased due to export to China, export will be banned. China has also been requested to import tobacco and cigarette from Pakistan.

He further stated that during WTO’s ministerial summit, a group of developing countries and some other countries demanded that rule based multilateral system should continue , adding that China played good leadership role. He said, the next WTO moot will be held on June 8, 2020 in Kazakhstan.

Commerce adviser expressed his anger for not having Pavilion to be established by Pakistan in China International Import Expo in Shanghai held in November 5-10, 2019. Abdul Razak Dawood said that he has discussed this issue with the Chief Executive TDAP and told them this next year this shouldn’t happen. He said, Pakistan has requested China to allocate land for Pakistan’s’ Pavilion for next year and they have agreed. Pakistan has to deposit required by next month. To a question regarding resumption of trade with India, Razak Dawood did not comment on it.

 source: The News