China-Pakistan Free Trade Agreement (Cafta)

The China-Pakistan Free Trade Agreement (FTA) officially entered into force in July 2007. The two countries signed the agreement on 24 November 2006. During former Chinese Prime Minister Wen Jiabao`s visit to Pakistan, negotiations began in April 2005. These concessions have great benefits for both China and Pakistan`s trade development; It provides China with access to important agricultural, textile and engineering products to meet the needs of its growing middle class while enabling Pakistan to improve its export competitiveness and improve its industrial production. The amendment protocol, also known as phase II of the CPFTA, aims to deepen trade relations between China and Pakistan through increasing liberalization of trade in goods, guaranteeing mechanisms for its domestic industry and facilitating the balance of payments between countries and electronic data exchange. The China-Pakistan Free Trade Agreement is an important free trade agreement signed between the People`s Republic of China and Pakistan. [1] [2] [3] [4] It was completed in 2006 and came into force in July 2007. In 2002, when CAFTA had just been established, the volume of bilateral trade was $54.8 billion. In 2014, the volume of bilateral trade increased to $480.4 billion, and increased ninefold in 12 years, with annual growth of 20%. China and New Zealand formally began free trade negotiations in December 2004 and concluded negotiations in December 2007 after 15 rounds of negotiations.

Under the agreement, all products exported by China to New Zealand will be duty-free from 1 January 2016, while tariffs on most New Zealand exports to China will be abolished from 1 January 2019. The free trade agreement between China and South Korea officially entered into force on December 20, 2015. Under the agreement, South Korea will eliminate tariffs on 92% of all Chinese products within 20 years of implementation, in exchange for China`s abolition of tariffs on 91% of South Korean products. In particular, the protocol introduces a new timetable for the abolition of tariffs in order to expand reciprocal market access, amend rules of origin and remedial measures provisions, and add a new chapter on customs cooperation. v. Electronic data exchange: In order to avoid misrepresentation and under-billing of imports from China, an electronic data exchange system for trade was set up as part of the free trade agreement in the 2017-18 financial year, representing a volume of trade between China and Pakistan representing 16.4% of Pakistan`s trade volume. The China-ASEAN Free Trade Agreement (CAFTA) is the first free trade agreement for foreign negotiations in China and the largest free trade area. CAFTA has strongly encouraged the long-term stable and rapid development of bilateral trade and economic relations.