On December 1, 2019, the “Protocol between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan on Amending the Free Trade Agreement” (hereinafter referred to as the “Protocol”) officially came into effect. At present, China and Pakistan have completed relevant domestic procedures, and the tax reduction arrangements under the Protocol will be implemented from January 1, 2020.
According to the provisions of the “Protocol”, after the implementation of the tax reduction arrangement, the proportion of mutual zero-tariff product tax items between China and Pakistan will gradually increase from the previous 35% to 75%. In addition, both parties will implement a partial tax reduction of 20% on other products that account for 5% of their respective tax items. Specific tax reduction arrangements can be found on the China Free Trade Zone Service Network.
The implementation of the tax reduction arrangements under the “Protocol” will further expand the opening of the markets between the two countries, enable enterprises and consumers of the two countries to enjoy more preferential treatment, and promote China-Brazil cooperation. The construction of free trade zones has entered a new stage.
