The Belt and Road Initiative (BRI) of China would promote and build a new platform for international cooperation and create new drivers of shared development with Pakistan, as China-Pakistan Economic Corridor (CPEC) is one of the examples of BRI.
This has been stated in the report (Trade Policy Review of China) released by World Trade Organization (WTO) on Wednesday. According to the WTO report on Trade Policy Review of China, China's President announced the building of the Silk Road Economic Belt and 21st Century Maritime Silk Road in 2013.
These two initiatives have since come to be known as the Belt and Road Initiative (BRI, or, alternatively, the One Belt and One Road Initiative (OBOR)).
From China's perspective, the BRI is intended to promote and build a new platform for international cooperation and create new drivers of shared development. As such, the BRI is seen as an effective and integrated way to stimulate trade and exports within BRI participants.
One critical factor in determining how the BRI translates into broad-based growth will be whether small and medium enterprises (SMEs) are able to take advantage of the new trade opportunities. Because SMEs account for the vast majority of enterprises and jobs in any country, their ability to become more competitive and succeed in international markets helps ensure the gains from trade are broadly shared across society.
For example, China and Pakistan are to jointly build the China-Pakistan Economic Corridor (CPEC). Under the CPEC, the two sides are to build a fleet of power plants, construct road and rail links, set up special economic zones where companies are to be accorded tax breaks and other business incentives, and expand the Gwadar port on Pakistan's south coast, which is financed, built and operated by China.
Estimates from the Pakistan Business Council suggest the projects could account for 20% of the country's GDP over the next five years and boost growth by about 3 percentage points.
Currently, China is negotiating seven free trade agreements (FTAs), namely the Regional Comprehensive Economic Partnership Agreement, the China-Japan-Republic of Korea FTA, the China-Gulf Cooperation Council FTA, the China-Sri Lanka FTA, the China-Israel FTA, the China-Norway FTA and the China Mauritius FTA.
In addition, China is negotiating a second phase for three of its FTAs namely the China-Pakistan FTA, the China-Singapore FTA and the China-New Zealand FTA. Meanwhile, revisions to the China-Pakistan, China-Singapore, China-Chile, and China-New Zealand FTAs are under negotiation, WTO report added.
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