How do crane manufacturers view the implementation of the second-phase protocol of the China-Pakistan Free Trade Agreement

According to Pakistan's "National News" reported on May 13, Pakistan Business Forum (PBF) Vice Chairman Jawad said that the implementation of the second phase of the China-Pakistan Free Trade Agreement Protocol provides a good opportunity for Pakistan. Pakistan expects that within the next three years Exports to China from industries such as agriculture, leather and confectionary products are expected to increase by US$4 billion to US$6 billion. In the first quarter of 2021, Pakistan's exports to China rose to US$888 million, an increase of 69% over the same period in 2020 (US$526 million); since the implementation of the second phase of the China-Pakistan Free Trade Agreement Protocol, Pakistan's total exports to China in 2020 reached US$2.12 billion, a year-on-year increase of 17.5% over 2019.

China and Pakistan will gradually increase the number of tariff lines for zero-tariff products between China and Pakistan from the previous 35% to 75%. In addition, the two sides will also implement a partial tax reduction of 20% on other products that account for 5% of their respective tax items. After consultation between China and Pakistan, the tariff reduction will be implemented as soon as possible after completing the necessary domestic procedures.

The China-Pakistan Free Trade Agreement was signed in November 2006 and came into effect in July 2007. In order to further improve the level of trade liberalization and facilitation between the two countries, China and Pakistan launched the second phase of the FTA negotiation in March 2011, and concluded the negotiation and signed the Protocol in April 2019.

The impact of China-Pakistan FTA on the crane industry

As a Chinese crane service provider with more than ten years of crane service experience in Pakistan, Dongqi is very recognized for the role of the "Protocol". Manufacturing is the backbone of Pakistan's economy. The contribution rate to the country's GDP in fiscal years 2017-18 was 13.6%. Judging from the output of large-scale manufacturing products, the share of the growth value of seven large-scale manufacturing industries, including textiles, food, coke and petroleum products, steel, automobiles, fertilizers, and medicine, remained above 55%. The textile industry is the most important industry in Pakistan's manufacturing industry, with a complete industrial chain, including raw cotton, cotton ginning, spinning, fabrics, printing and dyeing, and garment manufacturing. The textile industry contributes nearly a quarter of the industrial added value, provides employment for 40% of the industrial workforce, and accounts for 40% of the country's bank credit. And all of these industries will be associated with the crane industry. For example, we sell a lot of overhead cranes in the steel smelting industry, and we sell a lot of electric hoists and electric winches in the food and textile industries. We believe that with the further deepening of China-Pakistan trade cooperation, it will bring us more and more opportunities. We will also win the trust and more cooperation of Pakistani customers with the best quality products and services.

From the Protocol, we can see that on the basis of mutual benefit and win-win results, China and Pakistan have included products that account for 80% of their respective tariff lines into tariff reductions, and have given full consideration to the major export products that each other focuses on. The Pakistani side has included the export advantages of electromechanical, furniture, textiles, phosphate fertilizers, glass products, automobile and motorcycle parts and other products that China is focusing on in the tariff reduction. The Chinese side will include the cotton yarn, leather, clothing, aquatic products, nuts and other export advantages that Pakistan focuses on in the tariff reduction.

Chia sẻ trên Facebook

Thấy

Theo chúng tôi

Tiết kiệm