ISLAMABAD – Negotiation between Pakistan and China on Free Trade Agreement (FTA) concluded yesterday with special onus placed on reducing Pakistan’s trade deficit in bilateral trade and tariff concessions to each other. The first phase of the FTA between the two countries will conclude on 31 December, 2012 and respective organisations of both governments have begun negotiations to finalise modalities for the second phase which would be implemented from January 2013.
The current discussion focused on devising a comprehensive plan to encourage exports from Pakistan to China and help reduce the huge trade gap between the two neighboring countries. Although the trade between the two countries has witnessed growth following the signing of the FTA, the balance is very much in favour of China, exports of which have increased by 36 percent on year-on-year basis.
The overall trade between the two countries in 2010 was at $8.67 billion, showing an increase of 28 percent, said Deputy Director Chinese Ministry of Commerce, Zhu Hong while addressing the session here. Out of the total trade, Chinese exports to Pakistan stood at $6.9 billion, showing an increase of 36 percent while its imports from Pakistan were recorded at $1.78 billion, showing upward trend of 37 percent, Hong added. He said that tariff concessions would be negotiated for the second phase of the FTA to help Pakistan enhance its exports to China.
