The second phase of China-Pakistan Free Trade Agreement (CPFTA) came into effect which will allow the Pakistani manufacturers and traders to export around 313 new products on zero duty to the Chinese market.
Pakistan was already enjoying zero duty on export of 724 products to China under the first FTA signed between the two countries in 2006. After the implementation of the second phase of FTA, Pakistan has been allowed to export a total of 1047 products to China on zero duty.
The new facility will particularly benefit the textile sector to enhance its export to China as textile exports to China will virtually be duty free.
There are a number of other items particularly leather and agriculture products as well as confectionery and biscuits etc which Pakistani manufacturers can export to China.
In the long-term, Pakistan can enhance its exports to China up to US$ 10 billion in the next few years as the volume of Chinese import market is around US$ 64 billion.
Currently, cotton yarn, copper, rice, chromites nephrite, seafood and ethylene alcohol are main products being exported to China.
Moreover, data shows that Pakistan’s mango exports to China jumped 42 percent year-on-year to 115,000 tons as of mid-September. Exports are further expected to reach a new high of 120,000 to 130,000 tons.
China wants to import quality products from different countries including Pakistan owing to which China has lowered tariff rates in accordance with the free trade agreements it has separately signed with Pakistan, New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, the Republic of Korea, Chile and Georgia.