ISLAMABAD: China has further eased export of Pakistani agriculture produce, especially citrus and mangoes, by dropping the condition of pre-clearance.

The protocols signed earlier between the Chinese General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and Pakistan’s Ministry of National Food and Security (MNFSR) are applicable and export can be done without any pre-clearance.

The understanding was reached during the fourth meeting of the second phase of negotiations of China-Pakistan Free Trade Agreement (FTA), said a commerce ministry announcement issued here on Wednesday.

Tariff reduction, regulatory duties, trade in services and investment, e-commerce and visa facilitation remained the focus of the negotiations.

The easy access of farm produce will benefit fruit growing areas, including Gilgit-Baltistan. It was agreed to expedite registration of rice millers / exporters, but the process will not hamper the trade flows.

Trade of rapeseed meal and cherry would be streamlined after completion of formalities.

The first China-Pakistan Free Trade Agreement was concluded in 2006 and came into effect in July 2007.

The first phase of bilateral free trade agreement included trade in goods and investment and negotiations are currently under way on trade in services to enlarge the coverage of FTA.

It was agreed in the fourth round of meeting to fasten the completion of the internal requirements as soon as possible so that protocol of banking services can be signed at the earliest.

Both the sides are negotiating the FTA afresh after reservations expressed by Pakistani industry that found the previous agreement tilted in favour of China.

Four broad principles for implementing the second phase of FTA have been agreed upon. One of the main principles is that the tariff concessions will not be on reciprocal basis, rather these would be in favour of Pakistan as China agreed to give more incentives to Pakistan to make up for the adverse impact of the first phase.

Published in Dawn, April 9th, 2015

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