RT: Hundreds more goods from Pakistan to hit Chinese market duty-free

[beijingwalker]

RT: Hundreds more goods from Pakistan to hit Chinese market duty-free
2 Dec, 2019 14:34

The second phase of the China-Pakistan Free Trade Agreement (CPFTA) has come into effect, allowing Pakistani manufacturers and traders to export around 313 new products to the Chinese market on a duty-free basis.

Among the products are textiles, garments, seafood, meat, other animal products, prepared food, leather, chemicals, plastics, oilseeds, and footwear. Also included are engineering goods such as tractors, auto parts, and home appliance machinery.

“After the protocol’s coming into effect, the tax item ratio to carry out mutual zero-tariff goods will be increased from 35 percent to 75 percent,” China’s Ministry of Commerce said, adding: “Besides this, both parties will carry out a 20 percent partial tax decrease on other goods that occupy five percent of their respective tax items.”

Official data shows that the two countries’ trade turnover hit $15.6 billion in the 2019 financial year, up from $ 2.2 billion in 2005.

“I congratulate China on implementation of the second phase of free trade agreement which will enhance bilateral trade and facilitate Pakistani traders to export its products to the Chinese market on zero duty,” Firdous Ashiq Awan, special assistant to Pakistan’s prime minister on information and broadcasting, said on Twitter.

She added that the country’s textile sector will benefit the most under the agreement.

Pakistan is already enjoying zero duties on the export of 724 products to China under the first free trade pact, which was inked in 2006. It was the first free trade agreement that Beijing signed with a South Asian country.

https://www.rt.com/business/474845-china-pakistan-trade-agreement-products/

 

[dBSPL]

The Pakistani state accounts for 27% of all imports directly from China. China is the number one in this area and has more than twice that second place country.

On the other hand, the number one export market of Pakistan is Europe. 7.7% of total exports go to Germany and 6% to Britain. Only 7.5% of Pakistan's exports go to China.As a result, foreign trade deficit is becoming an important problem for Pakistani state. In recent years, foreign trade deficit has exceeded 30 billion dollars.

There is a trade balance of about $ 13.5 billion in favor of China, and this gap is increasing rapidly. In other words, the economic relations with Pakistan, which China attaches importance to in terms of military and geopolitics, are still weak(or one sided) compared to this field.

The Pakistani market is literally under the occupation of Chinese goods and the continued deterioration of this imbalance is not sustainable for Pakistan. Therefore, the Chinese state urgently needs to introduce more subsidies for the import of Pakistani goods. At least Pakistan should be able to export the goods to China at the rate it receives.

 

[denel]

The Pakistani state accounts for 27% of all imports directly from China. China is the number one in this area and has more than twice that second place country.

On the other hand, the number one export market of Pakistan is Europe. 7.7% of total exports go to Germany and 6% to Britain. Only 7.5% of Pakistan's exports go to China.As a result, foreign trade deficit is becoming an important problem for Pakistani state. In recent years, foreign trade deficit has exceeded 30 billion dollars.

There is a trade balance of about $ 13.5 billion in favor of China, and this gap is increasing rapidly. In other words, the economic relations with Pakistan, which China attaches importance to in terms of military and geopolitics, are still weak(or one sided) compared to this field.

The Pakistani market is literally under the occupation of Chinese goods and the continued deterioration of this imbalance is not sustainable for Pakistan. Therefore, the Chinese state urgently needs to introduce more subsidies for the import of Pakistani goods. At least Pakistan should be able to export the goods to China at the rate it receives.

Exactly this scenario decimated our textile industry in South Africa.

 

[Mrc]

This one is a golden opportunity for Pakistani exporters to up their game and capture worlds largest market

 

[beijingwalker]

The Pakistani market is literally under the occupation of Chinese goods and the continued deterioration of this imbalance is not sustainable for Pakistan.

Basically you can replace Pakistan with any country on this planet in this sentence, or even the whole world.

 

[dBSPL]

Basically you can replace Pakistan with any country on this planet in this sentence, or even the whole world.

Pakistan is not an "any country" , for China.

 

[Oracle]

a good step by china & Pakistan .
Pak imports in Billions from china as well, so we should have good export agreements as well .

The best thing will be only export finished products to china not raw materials.

 

[Indos]

The Pakistani state accounts for 27% of all imports directly from China. China is the number one in this area and has more than twice that second place country.

On the other hand, the number one export market of Pakistan is Europe. 7.7% of total exports go to Germany and 6% to Britain. Only 7.5% of Pakistan's exports go to China.As a result, foreign trade deficit is becoming an important problem for Pakistani state. In recent years, foreign trade deficit has exceeded 30 billion dollars.

There is a trade balance of about $ 13.5 billion in favor of China, and this gap is increasing rapidly. In other words, the economic relations with Pakistan, which China attaches importance to in terms of military and geopolitics, are still weak(or one sided) compared to this field.

The Pakistani market is literally under the occupation of Chinese goods and the continued deterioration of this imbalance is not sustainable for Pakistan. Therefore, the Chinese state urgently needs to introduce more subsidies for the import of Pakistani goods. At least Pakistan should be able to export the goods to China at the rate it receives.

Where do you get the data that Pakistan has 30 billion US trade deficit ? It is an incredible number and I dont believe it unless you provide some link to prove it. or is it an accumulated number ?

It is better to have more close economy than having a 30 billion deficit a year with an open market.

 

[dBSPL]

Where do you get the data that Pakistan has 30 billion US trade deficit ? It is an incredible number and I dont believe it unless you provide some link to prove it. or is it an accumulated number ?

It is better to have more close economy than having a 30 billion deficit a year with an open market.

https://oec.world/en/profile/country/pak/

 

[Syed1.]

Where do you get the data that Pakistan has 30 billion US trade deficit ? It is an incredible number and I dont believe it unless you provide some link to prove it. or is it an accumulated number ?

It is better to have more close economy than having a 30 billion deficit a year with an open market.

It was actually $38b in the fiscal year 2017-2018, now it is dropping drastically due to the policies of the present government.

 

[Pyara9]

Eventually Pakistan will become what Canada is to the U.S. which is 10th biggest Econmy in the world.

We will supply supply raw material for the next super power. We will grow with China.. it's a win-win for us

 

[Ritual]

The Pakistani state accounts for 27% of all imports directly from China. China is the number one in this area and has more than twice that second place country.

On the other hand, the number one export market of Pakistan is Europe. 7.7% of total exports go to Germany and 6% to Britain. Only 7.5% of Pakistan's exports go to China.As a result, foreign trade deficit is becoming an important problem for Pakistani state. In recent years, foreign trade deficit has exceeded 30 billion dollars.

There is a trade balance of about $ 13.5 billion in favor of China, and this gap is increasing rapidly. In other words, the economic relations with Pakistan, which China attaches importance to in terms of military and geopolitics, are still weak(or one sided) compared to this field.

The Pakistani market is literally under the occupation of Chinese goods and the continued deterioration of this imbalance is not sustainable for Pakistan. Therefore, the Chinese state urgently needs to introduce more subsidies for the import of Pakistani goods. At least Pakistan should be able to export the goods to China at the rate it receives.

That is our fault entirely, we have been too lazy for decades and not built our export base or industrial production so we have sat back and relied on cheap imports.

We can’t blame China for increasing imports, it is entirely our issue. Hopefully now this is starting to change in the Pakistani economy for good.

 

[Indos]

It was actually $38b in the fiscal year 2017-2018, now it is dropping drastically due to the policies of the present government.

This is a serious problem, I hope Pakistani solve this issue as soon as possible. Drastic measure like scraping FTA with China should be under consideration. I suggest protection for several key industries, this is also what has been done by Indonesia during Soeharto regime.

Korea also do the same during their early industrialization period with several companies get preference so that they can accumulate their capital and then compete world wide after getting stronger. If those Chaebols dont get protection at home, Korean economy will not be like it is Today.

State owned enterprise also should be build up just like China build their SOE and many of them have become Fortune 500 companies now.

Indonesia also enter trade deficit zone after ASEAN-China FTA in 2009 and score first deficit in 2012, we are now struggling to improve our industry. We dont back down as the effect is still mild and trade balance become positive again in 2015-2017.

In 2018 we get the highest trade deficit in our history with 8, 5 billion USD that I think is caused by our trade ministry policy, particularly on relaxing some regulation on steel import. But Alhamdulillah we are able to fix the regulation and replace it with older one in the beginning of 2019 after our state owned steel company CEO meet our President. Our trade minister now has been changed (October 2019) and we are slowly fixing our trade deficit problem with 1,79 billion dollar trade deficit for the last 10 months.

 

[Pakistan Space Agency]

The US is the largest export market for Pakistan and this is Pakistan's single biggest economic weakness.

Despite China's $61 Billion CPEC project, they're not willing to replace the US in this matter.

To ensure it stays the way it is, the US is planning to send it's biggest economic delegation to Pakistan next year.