$7.5b imports against $2.5b exports to China: Business community expresses concern over FTAs

[Kabira]

LAHORE: The All Pakistan Business Forum (APBF), expressing concerns over Free Trade Agreements (FTAs) signed with Malaysia, Sri Lanka and China without consulting the stakeholders, has said that the stance is destroying the local industry.

APBF Executive Committee, in a meeting under the chairmanship of President Ibrahim Qureshi, has urged the government to take business community in confidence before finalising FTAs with other countries.

Qureshi said that the business community is the real stakeholders which should be consulted in preparing trade policies. The APBF has been receiving complaints from its members about the dumping of Chinese products, he said, adding that dumping is the main concern of local industries, particularly of steel products, polyester staple fiber and many other products.

The APBF president said that Pakistan imported products of $7.5 billion from China against exports of $2.5 billion. He added that Pakistan had been continuously suffering a loss of Rs22 billion on account of tax exemptions granted to imports from China. Free trade access to China could not be fully utilized in favour of Pakistan, because Beijing did not reduce duties on products where Pakistani sectors enjoyed a competitive advantage.

$7.5b imports against $2.5b exports to China: Business community expresses concern over FTAs | Customs Today Newspaper

 

[Bouncer]

This reminds me of what someone from India said about their trade with China. It went something like "the Chinese are flooding our market with cheap imports. Soon our factories will close down and the locks on their gates will be made in China too "

 

[Gazi]

This reminds me of what someone from India said about their trade with China. It went something like "the Chinese are flooding our market with cheap imports. Soon our factories will close down and the locks on their gates will be made in China too "

That is the Cheap way for Complaining because instead of asking for Infrastructure in Pakistan they are asking for sacking Trade Agreement. Do you even know how Much of Chinese Imports are Actually MACHINES and RAW MATERIAL instead of Finished Goods.

 

[SrNair]

Well.This is what happen when you are obliged to an FTA with China.They will flood your market with cheap consumer goods churning out from their sweat shops.
And for a small natiin like Pakistan that would be quite disastrous.

 

[IndoUS]

Well nothing surprising, it is your own fault of going into a agreement without taking everything into account, China is only doing business.

 

[Gazi]

Well.This is what happen when you are obliged to an FTA with China.They will flood your market with cheap consumer goods churning out from their shops.
And for a small natiin like Pakistan that would be quite disastrous.

Most of their Exports to Pakistan are Industrial Machines and Industrial Raw Material instead of Consumer Goods(Electronic Consumer goods are exception because Pakistan doesnt have that Industry). Their Consumer Goods have no Demands in Pakistan and the reason for Pakistani Reliance on Machines are because Steel Industry of Pakistan is not competitive so it is our Infrastructure that is at fault not FTA with China.

 

[SrNair]

Most of their Exports to Pakistan are Industrial Machines and Industrial Raw Material instead of Consumer Goods(Electronic Consumer goods are exception because Pakistan doesnt have that Industry). Their Consumer Goods have no Demands in Pakistan and the reason for Pakistani Reliance on Machines are because Steel Industry of Pakistan is not competitive so it is our Infrastructure that is at fault not FTA with China.

Still that business is draining your sources .We were also faced these issue earlier that is why we increase import duties on their items.But like you said steel industry is a necessity .We have that industry.

 

[Gazi]

Still that business is draining your sources .We were also faced these issue earlier that is why we increase import duties on their items.But like you said steel industry is a necessity .We have that industry.

Indeed it is as WOT has also being the largest contributor to Pakistan's worse economic Condition and Most of all our so called Democratic Govt. and their Corruption had been worse in this regards. These Machines and Raw Material imported from China are at least Creating Jobs here because they are use in Manufacturing Industry while Govt. arent even taking any interest in Removing Power Crisis at least which can revive Pakistan Economy to some extent.

 

[Bouncer]

That is the Cheap way for Complaining because instead of asking for Infrastructure in Pakistan they are asking for sacking Trade Agreement. Do you even know how Much of Chinese Imports are Actually MACHINES and RAW MATERIAL instead of Finished Goods.

Honestly I don't know how much of this import bill is for machines and raw material, why don't you enlighten us with some sources to back up your claims please?

Here is some anecdotal evidence though, go to any market and you will find Chinese made clothes (Pakistan has its own established textile industry), Home Appliances (Pakistan has a decent home appliances industry with some notable companies like PEL, Dawlance etc) and a lot more. Here is some more anecdotal evidence; I have recently started working on building my own house and for everything except bricks, sand and steel you have two or three options; imported maal with top quality, Pakistani maal with medium quality and finally Cheeni maal with lowest quality and lowest prices.

So please prove me wrong that China is actually dumping products in every sector. They did in the US, EU (read about some anti-dumping duties slapped on Chinese exporters of solar panels and textiles), so what makes you think they will not do it in Pakistan?

This rant is not supposed to be anti-Chinese, just stating the harsh realities of business.

Edit: Here is a recent and relevant news link from Dawn

Industry seeks higher import trade price on tiles - Newspaper - DAWN.COM

Edit 2 for clarity

 

[Echo_419]

Indeed it is as WOT has also being the largest contributor to Pakistan's worse economic Condition and Most of all our so called Democratic Govt. and their Corruption had been worse in this regards. These Machines and Raw Material imported from China are at least Creating Jobs here because they are use in Manufacturing Industry while Govt. arent even taking any interest in Removing Power Crisis at least which can revive Pakistan Economy to some extent.

That's all okay but common senses dictates that you don't sign FTA with a country like China which manufactures every single damn thing at very low prices
Unless you are a developed nation like Japan or South Korea

 

[zip]

Survival of fittest ..China is competetive enough to tilt the equation in their favour ..rather than asking for import duty our lazy human resource should perform or perish ..They cant enjoy riches at consumer expense ..Globalisation is one way street ..Let us open our system to world to identify and rectify our faults

 

[Rocky25]

Survival of fittest ..China is competetive enough to tilt the equation in their favour ..rather than asking for import duty our lazy human resource should perform or perish ..They cant enjoy riches at consumer expense ..Globalisation is one way street ..Let us open our system to world to identify and rectify our faults

It is my policy not to buy 'Made in China' products unless and untill I cannot find the same 'Made in India' product!