Pakistan export to China will increase as tariff rates are decreased as per Vice Minister, Chinese Ministry of Commerce, Wang Shouwen. This would attract more Chinese companies to invest in Pakistan.
China will import products worth $8 trillion in Pakistan in the upcoming five years. After the second phase of FTA is completed, Pakistan will be able to export many more items to China due to low tariff rates. Shouwen informed about it while addressing the 8th meeting of second phase negotiations of China-Pakistan FTA at Chinese Ministry of Commerce.
China has one of the biggest markets in the world and it is home for 1.3 billion individuals. Pakistan will find many opportunities to expand its export in China.
Shouwen said that in past few years, Pak-China cooperation has been fruitful and FTA has played its essential part in it. So much so that China has become the biggest trading partner of Pakistan. With the application of FTA investment in Pakistan increased from China.
By implementation of the first phase of FTA, trade between the neighboring nations increased, though the liberalization level was only 36%. So there is room for more trade. If liberalization level is increased it will be beneficial for both Pakistan & China.
Now China wants to speed up the implementation of the second phase of FTA. Chinese Vice Premier Wang Yang on his visit to Pakistan said, ‘To implement our leader’s guidance, we need to step up our efforts to conclude the negotiation with flexibility and creativity.’
Federal Commerce Secretary, Younus Dhaga gave him a warm response by saying it that the relationship between Pakistan and China is of great value to Pakistan.
In 2006-7 trade from China was worth $4 billion, now in 2016-17, it is worth $16 billion. The point of concern here was that though import from China has increased by 18.5% the exports declined by 1.6%. So trade gap between Pakistan and China needed to be reduced. Now low tariff would improve export to China from Pakistan thus bringing mutual benefit for both countries.