China reduces tariff rates pursuant to its various FTAs with India, New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Canada, the Republic of Korea, Chile and Georgia, as well as the Asia-Pacific Trade Agreement from Wednesday (today).
According to official sources here, the second phase of the China-Pakistan Free Trade Agreement (CPFTA) enables Pakistani producers and traders to sell about 313 new zero-duty goods to the Chinese market.
As part of the first FTA signed between the two countries in 2006, Pakistan already had zero duty on exports of 724 goods to China. Pakistan was authorized to export a total of 1047 goods to China on zero duty after the introduction of the second phase of the FTA.
The new facility would support the textile industry in particular by increasing its exports to China as textile exports to China are practically duty-free.
There are a number of other items that can be exported to China by Pakistani manufacturers, particularly leather and agricultural products as well as confectionery and biscuits etc.
According to experts, Pakistan is now able to increase its exports by around US$ 1 billion in the short term, while exports of these items are likely to reach US$ 4-5 billion in the medium term, following the establishment of a new industry in the key industries being built in Pakistan under the flagship project China-Pakistan Economic Corridor.
In the long run, Pakistan will be able to increase its exports to China by up to US$ 10 billion in the coming years as the Chinese import market volume is around US$ 64 billion.
China wants to import high-quality products from various countries, including Pakistan.
“If our traders are actively involved in selling their products at various trade fairs in China, they can get orders for imports at good prices.” The current government has solved the issue of export rebates and offers incentives to electricity and gas exporters. As part of the export refinancing program, the State Bank of Pakistan has also expanded funding limits for traders and manufacturers that will help to increase exports.
Currently, the main products being shipped to China are cotton yarn, copper, corn, chromite nephrite, seafood and ethylene alcohol.
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