FTA to expand Pakistan exports to China

Source: CCTV.com | 11-27-2006 10:11

China has released plans to increase imports from Pakistan, including an agreement that has been signed between the two countries on the creation of a free trade area. China and Pakistan signed the deal Friday at the presence of top leaders from both countries. The agreement projects to triple current bilateral trade to 15 billion US dollars within five years.

Hu said: "I am convinced that with shared efforts of our two governments, the economic cooperation and trade cooperation between the two countries will make new progress and the friendship among our people will be handed down from generation to generation."

According to the agreement due to take effect on July 1, 2007, China and Pakistan will reduce tariffs and remove non-tariff barriers to improve the trade environment for both countries.

China has arranged tax rebates for high-volume Pakistani exports to China. It will also grant favorable status to Pakistani products with export potential, such as stones and rocks, leather, textiles, drugs and chemical products.

Pakistani president Pervez Musharraf said: "I am happy to know that there was a unanimity of views on all issues. The future lies in strengthening economic bonds, and when we talk of economic bonds, strengthening or enhancing trade relations, joint ventures and investment opportunities in Pakistan."

China would also facilitate the participation of Pakistani companies in Chinese expos for showcasing their products.

The agreement is the third of its kind that has been reached between China and foreign countries after the China-ASEAN FTA on goods liberalization, as well as the China-Chile FTA.

Editor:Wang Ping