“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 on December 1, 2019.
The revision of the China-Pakistan Free Trade Agreement is an important measure to implement the consensus reached by the leaders of the two countries and further enrich and enrich the China-Pakistan all-weather strategic cooperative partnership. The vivid practice of “One Belt, One Road” construction and building a community with a shared future for mankind is a model for the construction of free trade areas among developing countries and a concrete action to implement the United Nations series of consensus on South-South cooperation. It will further enhance the level of trade liberalization and facilitation between the two countries. , Deepen bilateral economic and trade cooperation.
The “Protocol” upgrades and updates the goods trade market access and tariff concession schedule, rules of origin, trade remedies, investment and other contents in the original free trade agreement. Revised and added a new chapter on customs cooperation. The core content is to significantly increase the level of liberalization of trade in goods on the basis of the original free trade agreement. The “Protocol” stipulates that the proportion of tax items on mutually implemented zero-tariff products 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. After consultation between China and Pakistan, tariff reductions will be implemented as soon as possible after completing necessary domestic procedures.
The China-Pakistan Free Trade Agreement was signed in November 2006 and came into effect in July 2007. In order to further improve the level of trade liberalization and facilitation between the two countries, China and Brazil launched the second phase of negotiations on the Free Trade Agreement in March 2011, and concluded the negotiations and signed the Protocol in April 2019.
