Pak-China FTA talks continue
The News International (Pakistan) | 13 November 2006
Pak-China FTA talks continue
ISLAMABAD: An eight-member team of Pakistan is right now in Beijing to finalise the much-awaited Free Trade Agreement with China, which is expected to be formally inked during Chinese President Hu Jintao’s visit to Pakistan this month.
“The Free Trade Agreement is to cover the areas of trade in goods and investment that will help increase bilateral trade manifold,” Commerce Secretary Asif Shah told The News. “In economic terms, free trade will be a win-win deal,” he said.
The delegation currently in China is led by Joint Secretary Ministry of Commerce Shahid Bashir. Chinese President Hu Jintao will pay a four-day visit to Pakistan from November 23 and the FTA will be formally signed during the trip.
According to another official at the commerce ministry, Pakistan and China currently trade goods and services under the Preferential Trade Agreement and Early Harvest Programme.
The trade volume between the two countries stands at over $2.4 billion. In November 2005, Pakistan’s exports to China were worth $700 million while imports from China totalled $1.7 billion, showing a trade balance in favour of Beijing.
The free trade accord will help China and Pakistan widen the Silk Road between them. For Pakistanis, it will mainly be a “cotton road”. Currently, 70 per cent of Pakistan’s exports to China comprise cotton yarn and cotton fabric.
China’s main shipments to Pakistan include machinery equipment, chemicals, electronics and footwear. However, Islamabad is keen to promote other products ranging from mangoes to footballs in the Chinese market.
During Prime Minister Shaukat Aziz’s visit to Beijing in 2004, a protocol was signed for holding talks on striking an FTA between the two nations. Now Pakistan intends to sell more grains, fruits and vegetables to China.
For the Chinese side, a market of 150 million people in Pakistan is undoubtedly a source of great opportunities. An FTA, which will mean less or zero tariffs for many products, can make the market more attractive.
