This round of CPFTA revisions expands and diversifies trade opportunities for businesses on both sides, while preserving fair and equitable protection of local industrial interests. Chinese President Hu Jintao and his Pakistani counterpart Pervez Musharraf on Friday oversaw the signing of a free trade agreement between the two allies here in Islamabad on November 24, 2006. The document was signed by the trade ministers of both countries. Awan added that it is the country`s textile sector that will benefit the most under the agreement. These concessions bring many benefits both to China and to Pakistan`s trade development; It provides China with access to important agricultural, textile and mechanical goods to meet the needs of its growing middle class and enables Pakistan to improve its export competitiveness and improve industrial production. Phase I – Tariff Reduction Modality of China within five years of the entry into force of this agreement: the volume of trade under the agreement between the two states amounted to $13 billion in 2013 and reached $20 billion in 2017, when the two countries signed 51 agreements and memoranda of understanding (MoUs) for cooperation in various fields. [5] China had already contributed significantly to Pakistani imports before the signing of the free trade agreement and had experienced a significant improvement in its ranking after the implementation of the free trade agreement in 2007. Until 2012, it was the source of 15% of pakistan`s total imports from the world, up from 9.8% in 2006. [6] [7] According to official data, Pakistan`s bilateral trade volume increased to about $15.6 billion in FY2019, up from $2.2 billion in 2005.

In the 2017-2018 fiscal year, the volume of trade between China and Pakistan amounted to $13.2 billion, or 16.4% of Pakistan`s trade volume. CPEC refers to the China-Pakistan Economic Corridor, which is part of China`s Belt and Road Initiative, an ambitious project to connect Asia with Africa and Europe through land and sea networks to increase trade and boost economic growth. In particular, the Protocol introduces a new timetable for the elimination of customs duties in order to expand reciprocal market access, amends the rules of origin and trade aid provisions and adds a new chapter on customs cooperation. This is in line with China`s free trade agreements with New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Georgia, Chile and Pakistan, as well as the Asia-Pacific Trade Agreement. The amending protocol, also known as Phase II of the CPFTA, aims to deepen china-Pakistan trade relations by strengthening merchandise trade liberalization, securing domestic industry mechanisms, and facilitating the international balance of payments and electronic data exchange. The new phase will allow Pakistani manufacturers and distributors to export about 313 new duty-free products to the Chinese market. . . .