Pakistan China Free Trade Agreement List Items 2018

These products, imported by China but not exported by Pakistan, could be potential new exports for Pakistan and offer opportunities for diversification and expansion of Pakistan`s export supply for the world, starting with China. These products are the most promising for a real commercial creation instead of diverting them. For these products, more competitive tariff access is a necessary but insufficient condition. Other prerequisites for the success of the Chinese market are that Pakistan must (i) have a latent competitive advantage in the production of these products and (ii) be able to remove non-tariff barriers that have prevented access so far. Compared to tariffs offered to the country that had the highest level of exports to China in 2018, Pakistan has already faced a reduction in tariffs on 60% of these products, which have now risen to just over 70%. However, 12% of product lines continue to face higher tariffs than those offered to this product by China`s trading partner. In order to pre-select the possibilities for Pakistan, several filters are applied to Priority 3 products. These include frozen meat and seafood, dried fruits, chemicals, plastics, oilseeds, building materials, appliances and machinery, leather, auto parts, household appliances and machinery. (The full list of Pakistan`s Ministry of Commerce is available here.) v. Electronic data exchange: In order to avoid misrepresentation and under-invoicing of imports from China, an electronic data exchange system for trade has been set up under the Free Trade Agreement. On more than 80% of the CPFTA2 product lines imported by China, Pakistan is now hit with tariffs lower or equivalent to China`s main trading partner. Nearly 40 percent of CPFTA2 products imported by China have experienced a reduction in tariffs under CPFTA2 compared to CPFTA1, and 45 percent of customs lines now enjoy duty-free access to China. A disaggregated analysis for Pakistan`s high-priority products shows considerable opportunities for export expansion and diversification to China, although there are still a small but considerable number of product lines for which Pakistan still does not have competitive access to China, including rice, durum wheat, paper and cardboard items, and hormonal medicines.

. . .