2nd phase of CPFTA to come in effect from 1st December 2019


Prime Minister’s Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood has said that China Pakistan Free Trade Agreement–II (CPFTA-II) will be operational from December 1, 2019.

Addressing a press conference, Dawood, who accompanied Prime Minister Imran Khan during his recent visit to China, said that during the meeting with the Chinese Prime Minister, the issue of FTA-II also came under discussion, wherein Chinese Prime Minister stated it would be operational within weeks. However, based on his experience, he reckons the trade pact will be operational from December 1, 2019.

Under the Phase-II of CPFTA, both countries will liberalize 75% of tariff lines for each other in a period of 10 years by China and 15 years by Pakistan. China will immediately eliminate tariffs on 313 most priority tariff lines of Pakistan’s export interest. Overall, China has granted concessions to products which include textiles and garments, seafood, meat and other animal products, prepared foods, leather, chemicals, plastics, oil seeds, footwear as well as engineering goods including tractors, auto parts, home appliances, machineries, etc.

25% of tariff lines i.e., 1760 TLs have been placed in the protected list. The major protected industry includes: textiles and clothing, iron and steel, auto, electrical equipment, agriculture, chemicals, plastics, rubber, paper and paper board, ceramics, glass and glassware, surgical instruments, footwear, leather, wood, articles of stones and plaster, and miscellaneous goods.