In compliance of the second phase of the China-Pakistan Free Trade Agreement (CPFTA), China will not charge any kind of duties on 313 new Pakistani products including textiles and meat products. Beijing’s import bill for these 313 products is around $64 billion.
China and Pakistan have implemented the second phase of a free trade agreement on. Its implementation will have a major impact on the Indian textile sector, meat products, and some others areas, according to a report.
The two countries have completed all the legal procedures and formalities to start the implementation of the agreement.
With the implementation of the new tariff line, cotton yarn, textiles, and garments, seafood, meat and other animal products, will be duty-free.
On 28 April, the two countries agreed to further “enrich China-Pakistan all-weather strategy cooperation partner relations”, which upgraded the original free trade agreement’s goods trade market admittance and tariff cutting table.
The new phase of the agreement may harm Indian interests, as cotton yarn exports to China constitute around 30 percent of India’s cotton yarn exports.
Signed in November 2006, the first phase of the China-Pakistan Free Trade Agreement came into effect in July 2007. In March 2011, China and Pakistan started the second phase negotiations in the free trade agreement.