Date and Time: 1 Jan 2020 06:51 am
A newly implemented deal between Beijing and Islamabad will eliminate tariffs on hundreds of products, a move that is expected to provide a billion-dollar boost to bilateral trade.
The Free Trade Agreement (FTA)–II, which started on Wednesday, will waive or ease 75 percent of tariffs imposed by each country, over a period of 15 years. Beijing will immediately drop tariffs on more than 300 Pakistani exports, including textiles and garments, seafood and leather.
In exchange, Islamabad has provided greater market access to Chinese raw materials and heavy machinery.
The deal, inked in April 2019, will increase Islamabad’s exports to China by between $500 million and $600 million in the short-term, according to an official from Pakistan’s Commerce Ministry. The figure is expected to rise to $4 billion over the next five years.