ISLAMABAD: The second phase of China-Pakistan Free Trade Agreement (CPFTA) has come into effect, allowing Pakistani manufacturers and traders to export more than 300 new products to the Chinese market for zero duty charges.
The two neighbouring countries have already completed all legal procedures and formalities to start implementation of the agreement.
Pakistan and China signed a protocol for implementation of the agreement during the last visit of Prime Minister Imran Khan to China.
Pakistan is already enjoying zero duty on export of 724 products to China under the first FTA signed between the two countries in 2006.
The major products on which tariff has been eliminated are textiles, garments, seafood, meat, other animal products, prepared food, leather, chemicals, plastics, oilseeds, footwear as well as engineering goods including tractors, auto parts, and home appliance machinery.
In November, Adviser to the Prime Minister for Commerce and Investment Abdul Razak Dawood had said that the second phase of CPFTA would become operational from Dec 1.
“Once the agreement is in effect, Pakistan will be at par with the Association of South East Asian Nations in the Chinese market and provide a huge opportunity of tariff relaxation to the manufacturers especially the garment sector to enhance their exports by 20 times,” he had asserted.
Addressing the inaugural ceremony of the 35th International Apparel Federation Pakistan Readymade Garment Manufacturers Association World Fashion Convention, he had pointed out that garment exports are on upward trajectory due to additional market access secured by the current government.
In his talk to the media in November, Mr Dawood had said that once the CPFTA were implemented, Pakistan’s exports would enhance by USD 500 million in the first year.
He had spoken to the media after addressing the trade agreement signing ceremony between Pakistan’s Service Tyre Industries Limited (STIL) and China’s Chaoyang Long March Tyre Company Limited (CLMTCL) here Monday. Board of Investment (BoI) Chairman Zubair Gilani, Chinese Consul General Long Ding Bin, STIL CEO Arif Saeed and CLMTCL Chairman also addressed the ceremony.