Pakistan, China to exchange diplomatic notes on FTA
The News - International, Pakistan
Pakistan, China to exchange diplomatic notes on FTA
26 March 2007
ISLAMABAD: Pakistan and China would exchange diplomatic notes for initiation of trade under Free Trade Agreement (FTA) during the visit of Prime Minister Shaukat Aziz to Beijing from April 17 to 19.
Both the countries have already issued the notifications with regard to FTA expected to be effective from July 1, 2007 a senior official at Prime Minister secretariat told The News.Both the countries are currently trading under early harvest programme (EHP).
The trade volume under EHP during first six months of current fiscal was up 33 per cent as compared to similar period last year. Pakistan’s exports have reached $500 million while imports from China swelled to $2.76 billion showing a trade deficit of $2.260 billion.
Prime Minister will also attend the BOAO Forum for Asia scheduled on 20-21 April in China. Under the FTA that will be operational from July 1, 2007, China has extended zero percent duty concessions on 2,681 Pakistani items, 0-5 percent duty concession on 2,604 items, fifty percent margin of preferences of the existing tariffs on 604 items, 20 percent on margin of preferences of the existing tariffs on 529 items.
“Pakistan has extended zero percent duty concessions to 2,423 Chinese items which is the 35.6 per cent of the total tariff items, 0-5 per cent tariff concessions on 1,339 items which is 19.9 percent of the total items. Pakistan has also extended the 50 per cent margin of preferences on 157 items, which constitutes the 2 per cent of the total tariff lines and
20 per cent margin of preferences on 1768 items that is 26.1 percent of the tariff lines.” Islamabad will also be having No Concession List under which China would not export to Pakistan about 1,024 items, which include items of auto, polyester sector, home electrics, domestically manufactured raw material and textile sector. In addition, under Exclusion List of items, China would not be able to export to Pakistan 92 items.
Both the countries, in addition to trade under FTA, are all set to initiate the negotiations for trade in services sector in Beijing on April 10 to 12. “Both sides are currently in trade with each other under Free Trade Agreement (FTA) on goods and investment. Both the friendly countries are not in trade in services sector.” The official informed, “The said meeting would be the first one on trade in services sector.” The official said Pakistan and China are to start the negotiations on trade in services sector under Article 83 of FTA.
“During the visit to Beijing, Pakistani experts would also hold meeting of Joint Study group on economic cooperation. On behalf of government of Pakistan, a seven-member delegation headed by Joint Secretary FT Wing Shahid Bashir would participate in the meeting,” the official said.
