What is a Free Trade Agreement?

Engineering Post Report

Pakistan and China were engaged in  negotiations for revising the existing  Free trade Agreement (FTA) between the two time-tested friendly countries in order to balance  the bilateral  trade which was currently  largely in favour of China.

For the interest of the readers,  it is pertinent to briefly state here as to what is an FTA ?

 Free Trade Agreement (FTA)  are pacts  between two friendly or more countries for facilitating  trade by reducing or eliminating tariffs, quitas,  and other trade barriers between the  signatory countries.

Pakistan has FTAs with Sri Lanka, China, Malaysia.  Pakistan is also a part of the South Asian Association  for Regional Cooperation (SAARC) and has preferential trade agreements with Iran, Indonesia, Turkey and Mauritius. .

China and Pakistan had signed the Free Trade Agreement   (FTA) in 2006 which became effective in 2007 aiming at enhancing  bilateral  trade by eliminating  tariffs on a wide range  of products over time. Under this agreement, both countries  had agreed to  gradually reduce  tariffs on various goods,  promoting trade and economic cooperation   between them.  The FTA so signed between China and Pakistan was revised and two countries had signed CPFTA-11 in April 2019 which was implemented only from January 2020. 

Both the countries  aimed to take the bilateral to $15-20 billion by the time the  FTA second phase was completed. More information in this regard as to what is FTA between any two or more countries is being gathered from official sources concerned and will be printed on these pages in due course of time , please.