”China-Pakistan Free Trade Agreement” likely to damage India’s cotton exports
The agreement was signed by Prime Minister Imran Khan on his last trip to China.
In a significant progress, 313 Pakistani products have been granted tax-free access in China as the implementation of the ”China-Pakistan Free Trade Agreement” starts today. The trade agreement was signed by Prime Minister Imran Khan on his last visit to China and is expected to further strengthen ties between both friend countries.
Previously, Advisor to Prime Minister on Commerce, Razak Dawood, informed that the second phase of FTA (free trade agreement) with China will start from December 1st.
“The phase-II is going to facilitate the access of 313 top export items into the Chinese market,” Dawood said while speaking at the world fashion convention.
Increasing the export volume 20 times:
$1 billion in export increase immediately and $5 billion of export increase in short term
BRAVO BRAVO BRAVO
— Mir Mohammad Alikhan (@MirMAKOfficial) December 2, 2019
“Government’s major economic agenda is to increase country’s exports, which would strengthen the economy by overcoming trade and current account deficits,” Dawood said.
Likely to harm Indian interests:
The new phase of the agreement is likely to harm Indian interests most because cotton yarn exports to China constitute around 30 percent of India’s cotton yarn exports.
“After the protocol’s coming into effect, the tax item ratio to carry out mutual zero-tariff goods will be increased from 35% to 75%. Besides this, both parties will carry out a 20% partial tax decrease on other goods that occupy 5% of their respective tax items”, China’s Ministry of Commerce stated while providing speaking about the second phase.
Pakistan’s garment exports are on an upward trajectory due to additional market access secured by the current government. China and Pakistan are establishing new trade relations, that will change the socio-economic sphere of Pakistan.
Recently, China has also provided Pakistan with an opportunity to export engineering and chemical goods. Along with reclaiming traditional markets, Pakistan is tapping untapped export opportunities.
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