The 11th round of the China Pakistan Free Trade Agreement (FTA) are expected to be delayed due to sudden transfer of Secretary Commerce Younis Dagha. The talks were scheduled to be held 1d on April 2-3, 2019 but Secretary’s transfer will delay the process. Pakistan will seek new dates from China for this purpose.
In the 10th round of CPFTA held on March 12-13 both countries held technical talks in Beijing under the leadership of Joint Secretary Commerce, Shafiq Shahzad Baloch whereas China’s team was led by Deputy Director General of Department of International Trade and Economic Affairs, Ms Liang Hong.
In the CPFTA Pakistan has sought market access in wheat, potato, onion and cherry, in addition to $ 1 billion export of sugar, rice and yarn.
On overall liberalization level, China has offered exemption on 75 per cent tariff lines, 67 percent in trade value in addition to Margin of Preference (MoP) at 5 per cent. Current offer in Tariff Exemption stands at 74.2 per cent in tariff lines, 67.8 percent in Trade Value (TV) and Preference of 5.2 per cent in tariff lines.
The market access of trade in goods as final offer by Pakistan has been divided into three categories. Category 1- Entry Into Force (EIF) will be on 45 percent tariff lines. The EIF in Category 2 will be on 15 per cent tariff lines to be implemented in 7 years. Category 3 which will comprise 15 percent in tariff lines will be implemented in 15 years. Pakistan’s current offer-(C1) Entry Into Force is 44.5 percent in tariff lines, C2- 14.9 per cent in tariff lines and C3 is 14.7 percent in tariff lines in 15 years.
China’s final offer on overall liberalization level was as follows; (i) Trade Exemption- 75 percent in tariff line and 90 per cent in trade value and preference of 5 percent in tariff lines. Current offer- Trade Exemption 75 percent in tariff lines, 90.3 percent in trade value and preference of 5 per cent in tariff lines.
