On December 1, 2019, the Protocol of the Government of the Peoples Republic of China and the Government of the Islamic Republic of Pakistan on Amending the Free Trade Agreement (hereinafter referred to as the Protocol) entered into force. A
On December 1, 2019, the Protocol of 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") entered into force. At present, China and Pakistan have completed relevant domestic procedures, and the Protocol's tax reduction arrangements will be implemented from January 1, 2020.
According to the "Protocol", after the implementation of the tax reduction arrangements, the proportion of tariff lines for products that implement zero tariffs between China and Pakistan will gradually increase from 35% to 75%. In addition, both parties will implement a 20% reduction in taxes on other products that account for 5% of their respective tax items. Specific tax reduction arrangements can be found in the China Free Trade Area Service Network.
On the basis of mutual benefit and win-win results, China and Pakistan have included 80% of the products in their respective tariff lines into tariff concessions, and have given full consideration to the main export products that each one focuses on. Pakistan has included the export advantageous key products of China, such as machinery, furniture, textiles, phosphate fertilizers, glass products, automobile and motorcycle parts and components into tariff reductions. China has included the export advantages of cotton yarn, leather, clothing, aquatic products, and nuts that Pakistan is focusing on into its tariff concessions. The implementation of the Protocol's tax reduction arrangements will further expand the market opening between the two countries, enable enterprises and consumers in the two countries to enjoy more preferential treatment, and push the construction of the China-Pakistan Free Trade Zone into a new stage.
At present, China has signed 19 free trade zones, 12 free trade zones under negotiation, 8 free trade zones under research, and 1 preferential trade is on arrangement.
China has signed an agreement on a free trade zone, and self-inquiry on the agreed tax rate: