83 percent of global exports liberalised in CPFTA-II: Commerce ministry

Pakistan projects $3.2 billion exports growth in case of minimum 5 percent realisation of the free market access of 313 Pakistan's high priority tariff lines given by China under the Phase-II of China Pakistan Free Trade Agreement (CPFTA-II) which has been operationalised by January 01, 2020.

Dr M Hamid Ali Joint Secretary (Foreign Trade-1) Ministry of Commerce in his presentation at a seminar said CPFTA-II has greatly secured Pakistan's export interest as around 83 percent of the country's global exports have been liberalised in the CPFTA-II as against 41 percent of the same in Phase-I.

Similarly, 91 percent of Pakistan's exports to China have been liberalised in Phase-II as against 30 percent liberalised in Phase-I. This liberalisation covers 88.3 percent of China's global imports or $ 1.6 trillion.

"If we captured only five percent market share out of the 313 tariff lines, our exports would surge up to $3.2 billion and these projections are based on Chinese global imports in 2016." Hamid said.

The sensitive list has been enhanced from 1410 in CPFTA-I to 1760 in the CPFTA-II after thorough consultation with the stakeholders.

The event titled 'China Pakistan Free Trade Agreement Phase-II, Business and Export opportunities for Pakistan' was jointly organised by TDAP and MoC here at a local hotel.

While highlighting the gains of CPFTA Phase-II, Hamid said provision has been introduced to address the Balance of Payment (BoP) difficulties. Effective enforcement of Electric Data Exchange will also ensure sharing of the real time trade data to discourage under invoicing and misreporting.

China has granted concessions to a set of products including textiles and garments, seafood, meat and other animal products, prepared foods, leather, chemicals, plastics, oil seeds, footwear as well as engineering goods including tractors, auto parts, home appliances, machineries, etc..

Safeguard Measures (SGM) have been invoked to temporarily restrict imports of a product which cause injury or threaten to cause injury to the domestic industry. SGM in CPFTA-I were inadequate to address the concerns of the industry.

Chief Executive (CE) TDAP Arif Ahmad Khan in his welcome address said that CPFTA-II offers enhanced and deeper market access to Pakistan as China has eliminated the tariff on 313 tariff lines of Pakistan's export interest, giving treatment at par with ASEAN.

The CE further remarked that CPFTA-II will help Pakistan in enhancing export from Pakistan to China in coming years.

Economic and Commercial Counsellor, Consulate General of China in Karachi Guo Chunshui briefed the audience about the trade profile between two countries and efforts involved in finalising the CPFTA. He assured the support of Chinese Government in smooth implementation of FTA Phase-II.

The Vice President FPCCI Shaikh Sultan Rehman highlighted the role of FPCCI in finalising the CPFTA Phase-II. He also shared his concerns that a lot is needed to be worked out from Trade and other government institutions in addition to MoC to realise the gains out of the 2nd phase of CPFTA.

The seminar was attended by businessmen from FPCCI, KCCI, women chambers, major trade associations and export sectors including textile, leather, agro food, chemicals industry, engineering etc..