‘Breakthrough’ in Sino-Pak FTA talks
105
KARACHI: China agreed to address major concerns of Pakistan about the preference erosion of its exports and meaningful market access during the latest round of negotiations over the China-Pakistan Free Trade Agreement (FTA) held in Beijing on Sept 14-15.
The negotiation hit an impasse in the last few rounds, but the eighth meeting of the second phase of negotiations over the FTA concluded with a ‘breakthrough’, according to a statement issued by the Ministry of Commerce on Friday.
Also read: Pakistan's trade deficit with China swells to $6.2bn
The meeting was co-chaired by Commerce Secretary Mohammad Younus Dagha and Chinese Vice Minister for Commerce Wang Shouwen.
In the last seven rounds, Pakistan pleaded the case for the restoration of its preference under the FTA that had been eroded due to subsequent FTAs of China. Mr Dagha pointed out that the preference on 79 per cent of Pakistan’s exports to China had been eroded. Pakistan has also shown concern about not being able to get meaningful market access during the first phase of the FTA.
Also read: Chinese ‘rigidity’ rattles Pakistani businesses
Pakistan had been raising this issue with the Chinese side time and again during the previous rounds without any consensus to address these concerns.
Pakistan shared a list of around 70 high-priority items of its export interest for immediate market access. The Chinese side agreed to consider the list favourably. These tariff lines constitute more than 80pc of Pakistan’s current exports to China.
Published in Dawn, September 16th, 2017
Read more
On DawnNews
Comments (105) Closed
Sep 16, 2017 07:41am
So China said they would look if they could adjust the deal and pakistan government presents it as if all its demands were met. Talk about low expectations.
Recommend
0
Sep 16, 2017 07:43am
Where is Breakthrough? They may review... nothing concrete.
Recommend
0
Sep 16, 2017 07:52am
Slowly but surely all the Trade Negotiations,Contracts are becoming Transparent.The acknowledgement and credit
goes to the Pakistani Media for emphasizing its implementation.
Recommend
0
Sep 16, 2017 08:02am
Good job Pakistan, more employment will result in less people taking weapons
Recommend
0
Sep 16, 2017 08:04am
Not much of a promise ... Chinese have been saying the same things to all countries.
Please review India-Japan Bullet Train for Pointers on CPEC
1. Local Content 80%
2. Low Interest Rates
3. Institute to Train Pakistanis on Road/Rail/Pipeline Technologies - Construction and Management and Operation in First Phase itself - so graduates work on CPEC
4. Institutes for Manufacturing Technologies at all Free Trade/Industrial Zones in First Phase itself.
Best of Luck Pakistan.
Recommend
0
Sep 16, 2017 08:07am
Good Job!! Now,Pakistan market will be even more "flooded" with Chinese made goods. Looks like India doesn't want to do anything to bring down Pakistan, it is on self destruction mode. Good Luck!!
Recommend
0
Sep 16, 2017 08:10am
China is pure business country. Difficult to get breakthrough.
Wish best for pakistan
Recommend
0
Sep 16, 2017 08:12am
Pakistan should trade with China in Pakistani rupees before opening it market completely to them. This would force China to do imports from Pakistan so that the excess rupees earned by them can be used. This is the best way to balance one sided foreign trade. This requires high level of trust between the countries which exists between China n Pakistan anyways. So, this gives a perfect platform for this trade.
Recommend
0
Sep 16, 2017 08:39am
Election gimmick to fool the business community & the public at large.
Recommend
0
Sep 16, 2017 08:40am
Small-scale local industries are destroying in region due to lower rate items are available ,China products .. from a to z. In competition all have to work Hard for low cost and durable quality goods .
Recommend
0
Sep 16, 2017 08:40am
Basis for this breakthrough has to be the geo-political considerations. The significance of this should be recognised by China.
Recommend
0
Sep 16, 2017 08:55am
All pacts, treaties and agreements should be reached after a through legal dissection, nothing should be based on hyper actions which can damage the national rights & interests...
Recommend
0
Sep 16, 2017 08:57am
When original FTA was signed was considered breakthrough and look how that ended up.
Recommend
0
Sep 16, 2017 09:01am
Pak. should adopt a strict step in this regard.
Recommend
0
Sep 16, 2017 09:07am
Don't buy quarrel with any country! any country. Don't be dependent on any country! any country. That is key to success.
Recommend
0
Sep 16, 2017 09:08am
China need to understand our concerns. Friendship is not one way street. Our trade deficit is marginally more with China than any other country. We need tariff concessions on the competetive advantage products lines. China Pakistan FTA is a first test of the success of CPEC. Lets fail our critics.
Recommend
0
Sep 16, 2017 09:12am
pure smoke!
Recommend
0
Sep 16, 2017 09:13am
@Jabbar,the breakthrough is in the past were not ready to renegotiate but now they will discuss it. CPEC is more valuable to China so they will be open for discussion.
Recommend
0
Sep 16, 2017 09:30am
Awesome. Now the businessmen can rejoice in getting huge market potential
Recommend
0
Sep 16, 2017 09:36am
Better make now the agreement before cpec start... Otherwise no profit for pak.. Make sure pak export increase with cpec.. We dont need to be port only. Make use of obor to export Pak product not even to China but to Europe by the railway
Recommend
0
Sep 16, 2017 09:43am
Pakistan and India should also comeup with FTA, would benefit each other. Onion nownsold for 1$/kilo in India.. Why not we import from Pakistan?
Recommend
0
Sep 16, 2017 09:48am
China is famous for unfair trade practices. They may open the market on paper but will control the imports in a manner that we cannot point a finger.
Recommend
0
Sep 16, 2017 09:51am
I think it's not explained well. Pak and china already have FTA but the discounts given under fta is equal to the Other regional countries like India, Bangladesh. What Pakistan wants is more preference to its goods by making china to levy additional import tax to other regional countries goods so it become more expensive. China said it will look in to it because it doesn't want to depend only on Pakistan for its supply.
Recommend
0
Sep 16, 2017 10:10am
Can we also talk about what was the breakthrough.
Recommend
0
Sep 16, 2017 10:10am
Chinese are our brothers. Just agree to whatever they want. Chinese will always keep Pakistani interest first.
Recommend
0
Sep 16, 2017 10:15am
Good luck Pakistan.
Recommend
0
Sep 16, 2017 10:22am
China should also allow Pak citizens to work in China, especially in the bordering state of Xinjiang. This shall help develop good trade and services relations and help Uighars of the region grow economically.
Recommend
0
Sep 16, 2017 10:23am
@Dhaval Employment is the main concern. So far weapon is concerned, I think every American have enough stock of weapons for their protection .
Recommend
0
Sep 16, 2017 10:25am
@Abc good sarcasm.
Recommend
0
Sep 16, 2017 10:25am
Is it ,in any way be rejoiced by trade wizards of Pakistan
Recommend
0
Sep 16, 2017 10:43am
Didn't Pakistan discuss these issues before signing the deal?
Recommend
0
Sep 16, 2017 10:44am
@Jabbar Where is Breakthrough? They may review... nothing concrete.
reply : Breakthrough is that china agreed to relook the FTA in previous meetings they simply refused
Recommend
0
Sep 16, 2017 11:21am
Maybe next time raise the interests before you sign the dotted line. Just saying.
Recommend
0
Sep 16, 2017 11:21am
a Free trade agreement means we kill our local industry, produces everything from word go. China is massive and we are not even a match forget being on same scale. Our FTA should be with Bangladesh, Myanmaar or similar country of our scale
Recommend
0
Sep 16, 2017 11:25am
The coming days will give news on the breakthrough. We keep our hopes high and InshAllah the news will be good for the industry. Salams
Recommend
0
Sep 16, 2017 11:31am
Even a review of a signed FTA is a breakthrough. Trump can't even get this much from Canada or Mexico.
Recommend
0
Sep 16, 2017 11:47am
@Vasan Great suggestion..
Unfortunately international trade privileges between countries are mutual.
Pakistan has not been able to provide privileged trading rights to India even though gave Most Favored Nation status to Pakistan long back. The trading community of pakistan believes that Indian products would overshadow the Pakistan market and kill the local industry.. But due to some weird reason, they dont feel the same threat from China.
Recommend
0
Sep 16, 2017 11:47am
@Vasan Great suggestion..
Unfortunately international trade privileges between countries are mutual.
Pakistan has not been able to provide privileged trading rights to India even though gave Most Favored Nation status to Pakistan long back. The trading community of pakistan believes that Indian products would overshadow the Pakistan market and kill the local industry.. But due to some weird reason, they dont feel the same threat from China.
Recommend
0
Sep 16, 2017 11:49am
There is a huge demand of Pakistani textiles, spices, agro products in India.
Recommend
0
Sep 16, 2017 11:51am
One doesn't need jargons like CPEC, OBOR, BRI, etc to do preferential business. Japan loaned India Rs. 88,000 crores (80% of the project cost) at a ROI of 0.1% to be repaid in 50 years. Of the entire project, Japanese imports will be 35%. This entire exercise has no acronyms.
Recommend
0
Sep 16, 2017 11:51am
Fta is done always when there is equal trade between 2 partners.
In our case our export to china may increase by 20% but our import from china will increase much more.
The government won't earn import taxes from this and so less money to spend on our welfare.
It will be loss of common citizens and win for china.
CPEC under current circumstances is a nail in our coffin.
Recommend
0
Sep 16, 2017 11:58am
China has just agreed to start considering our concerns.
And we think we won?
Recommend
0
Sep 16, 2017 12:14pm
Good job. Sincerity in discussion always bring results.
Recommend
0
Sep 16, 2017 12:16pm
Pakistan slipping quietly into quagmire of Chinese business.
Recommend
0
Sep 16, 2017 12:17pm
All local industries are down now. They have started selling imported tax free goods. Some have advanced with own local stickers. Nice break though
Recommend
0
Sep 16, 2017 12:39pm
Cepec will sort all problems
Recommend
0
Sep 16, 2017 12:46pm
We can never compete with a China. Their work ethic is legendary.
Recommend
0
Sep 16, 2017 12:48pm
You can not fool China and get access to your good. And even if they allow, you won't match the price. Chinese are dumping anything at cheapest cost that will nobody will buy your goods.
Recommend
0
Sep 16, 2017 01:01pm
It cannot be considered a "breakthrough" - Chinese have not agreed to any changes in the FTA. Why were the detailed terms and conditions not negotiated appropriately and realistically when the agreement was signed in the first place? After the fact re-opening negotiations shows that the existing treaty was not thought through in terms of its impact on mutual trade. Chinese side is being more than considerate to re-open the talks to address the issues which were originally ignored by the Pakistani bureaucrats in a rush to sign the FTA.
Recommend
0
Sep 16, 2017 01:12pm
All negotiations can be done from a state of strength otherwise it is a surrender. It is necessary to realise the inherent strength anf further build upon it.
Recommend
0
Sep 16, 2017 01:30pm
The business between both friendly countries FTA should be equitable basis
and excess value should be chargeable of custom duty.
We should facilitate and support our local industries and also give subsidies on electricity and gas to cut down cost of production to compete with international markets
It good to have business with china considering interest of both countries, we should not allow china to setup industries in Pakistan on their one sided interest.
They should bound to employ our engineer’s technician, management professional and logistics and pay all taxes which are paying our local industries
We have observed that some project under CEPAC are under progress and the manpower are totally Chinese so it important that Treatment should be equal
Recommend
0
Sep 16, 2017 01:33pm
@baga "Chinese are dumping anything at cheapest cost that will nobody will buy your goods." If some one can make profit by producing goods that are in demand, at the least possible cost, you can that practice as you like. We cannot benefit from trade because we are not ready to provide a better life to our workers. At the end of day, you trade work, not products. Our businessmen have to understand that they cannot get work for free, they will have to pay for it or disappear.
Recommend
0
Sep 16, 2017 01:37pm
We can mearn a great deal from the Chinese way of doing business. But the first command is to protect your own interests!!
Recommend
0
Sep 16, 2017 01:49pm
don't understand what kind of ' breakthrough' it is. pl abandon self congratulatory tendencies and address the real meaty points like trading in local currencies, reduction in import duty, etc.
Recommend
0
Sep 16, 2017 01:50pm
@Vasan Gone down to 30 cents per kilo . Farming is becoming more efficient .
Recommend
0
Sep 16, 2017 02:18pm
It is only one way trade i.e China to Pakistan, visa-versa is an eyewash.
Recommend
0
Sep 16, 2017 02:29pm
Why we make our people fool all the time? There was no promise from China except they will review. As of now it is just Break and Through.
Recommend
0
Sep 16, 2017 02:33pm
@Jabbar - it's enough to be called as breakthrough
Recommend
0
Sep 16, 2017 03:10pm
Welcome to the club.
Recommend
0
Sep 16, 2017 03:12pm
Nothing happened in the previous seven rounds. Same as before!. What "Breakthrough"?.
Recommend
0
Sep 16, 2017 03:19pm
@JPG Still you are happy to suggest India getting dumped with goods its local industries produce too. E.g Our own Muslim brethren produce exquisite handmade fashion goods in Charminar area of Hyderabad, Kasi silk etc.
Recommend
0
Sep 16, 2017 03:21pm
Why is there such a rush to announce every minuscule step?
Recommend
0
Sep 16, 2017 03:25pm
@scientist You are half right - India never wanted or wants to bring down Pakistan. It has enough on ts plate tolook after.
Recommend
0
Sep 16, 2017 03:34pm
@Senman India is a huge export market for China. What do you think India's reaction will be for imposing higher tariff on the few things that India exports to China?
Recommend
0
Sep 16, 2017 03:35pm
China will loose her market in Pakistan and Bangladesh if the country continue her open and hiding support to genocide on Rohingya Muslims in Myanmar . About one million Rohingya Muslims are now refugee in Bangladesh and 2.5 lakhs in Pakistan. China has a big role to put pressure on Myanmar to take back citizens at home.
Recommend
0
Sep 16, 2017 03:44pm
The business between both friendly countries FTA should be equitable basis
and excess value should be chargeable of custom duty.
We should facilitate and support our local industries and also give subsidies on electricity and gas to cut down cost of production to compete with international markets
It good to have business with china considering interest of both countries, we should not allow china to setup industries in Pakistan on their one sided interest.
They should bound to employ our engineer’s technician, management professional and logistics and pay all taxes which are paying our local industries
We have observed that some project under CPAC are under progress and the manpower are totally Chinese so it important that Treatment should be equal
Recommend
0
Sep 16, 2017 03:47pm
Chinese will allow you to sell, but not to profit.
Recommend
0
Sep 16, 2017 03:52pm
@Alam Masud CPEC is a good thing going for Pakistan. Remember that.
Recommend
0
Sep 16, 2017 03:53pm
The Chinese side agreed to consider the list favourably. Breakthrough!
Recommend
0
Sep 16, 2017 04:21pm
Chinese deal 2 ways. One in news media, other privately. This statement reflects second private information. China will accept all requests because China wants Pakistan financially strong as it has a bigger regional role in mind for Pakistan.
Recommend
0
Sep 16, 2017 04:41pm
@Alam Masud When there is a fire make sure it is not in your backyard.Pakistan is tired of taking care of Refugees.
Let Bangladas and India take care of the Rohingyas as they are the neighbouring countries.I am glad to see that
Pakistan politically is becoming more practical than emotional now than in the past?
Recommend
0
Sep 16, 2017 04:44pm
In all the FTAs/PTAs signed by Pakistan thanks to negotiators Pakistan is facing huge Trade Deficits. Especially FTA with China is not only facing huge Trade Deficit but also menace of underscoring and mis-declaration, which needs to be arrested on top priority . Lets see there is some breakthrough now as claimed by the Ministry.
Recommend
0
Sep 16, 2017 04:47pm
The Chinese side agreed to consider the list favorably. Where is the breakthrough ?? This is how hype is generated which is illusarry and gives the false impression to the general public that the issue is sorted in Pakistan s favour.
Recommend
0
Sep 16, 2017 04:49pm
Same pattern, just another day...as soon as article relating to Sino-Pak relations comes up, the comments section is flooded with hysterical hindustanis pretending to show sudden deep concern for the economic well-being of Pakistan. Of course, a couple of gullible Pakistanis fall for it, and start expressing fears of their own.
So the Chinese agreed to reconsider some aspects of our trading relationship...of course it's good news, and it shows that there is mutual respect between the two partners. Is that why hindustanis are having a nose bleed? Or is it because just a few years after shouting "make in india" to everyone, they're spending $10bn on US weaponry and paying the Japanese to build a bullet train?!
Hasan
Recommend
0
Sep 16, 2017 05:23pm
It seems Pakistani negotiators are quite naive since they don't look familiar with Chinese negotiations style. In Chinese business culture they never say no, instead they'd say, "okay we'll see". In many situations by this they actually mean, "no".
Hence this by no means is a victory for Pakistan. It actually means NO in Chinese way.
Recommend
0
Sep 16, 2017 06:04pm
India is getting loan from Japan at the rate of 0.1% plus free transfer of technology...It is call DEAL
Recommend
0
Sep 16, 2017 07:04pm
@scientist
Pakistan still will be stronger with China . India can't touch Pakistan.
Recommend
0
Sep 16, 2017 07:28pm
In the last seven rounds, Pakistan pleaded the case for the restoration of its preference under the FTA that had been eroded due to subsequent FTAs of China.
Pleaded????
the accused/guilty pleads
Recommend
0
Sep 16, 2017 07:31pm
@Vasan Pakistan and India should also comeup with FTA, would benefit each other. Onion nownsold for 1$/kilo in India.. Why not we import from Pakistan?
its 2.5 kg for a dollar in mumbai
Recommend
0
Sep 16, 2017 07:57pm
Chinese will never anything which will harm Pakistan. China is our best friend. we have very high hopes on China.
Recommend
0
Sep 16, 2017 08:00pm
Welcome to the Club
Recommend
0
Sep 16, 2017 08:19pm
Beijing is not the Chinese consumer. All the goods Pakistan sells to retailers in China must look perfect.
Recommend
0
Sep 16, 2017 08:48pm
We will talk about this breakthrough next year. Gullible Pakistani & Promising Chinese! The best combination ever.
Recommend
0
Sep 16, 2017 09:00pm
@Hasan One needs a brain to know the economics as to why India is spending $10bn on US weaponry and paying the Japanese to build a bullet train.
Recommend
0
Sep 16, 2017 09:23pm
Gwadar was a Omani territory . Pakistan purchased it..
Now it is turn of China to own it , due to loan default payment by Pakistan.
Recommend
0
Sep 16, 2017 09:35pm
@Mustafa "So China said they would look if they could adjust the deal and pakistan government presents it as if all its demands were met. Talk about low expectations." -- Unfortunately the SAsia cultures (all cultures in Ind/Pak) are too much of begging/pleeding/pandering/over-dramatizing/stooging/emotional in nature. Indian politicians does behave the same way too. I think centuaries of occupation has clouded the mind. Cultures that did not succumb to these phenomenon: Haiti, Vietnam etc.
Recommend
0
Sep 16, 2017 09:45pm
Very much like the breakthrough India Pak Indus water talk in Washington
Recommend
0
Sep 16, 2017 09:47pm
Trade beyween china and pakistan were always unfavorable to Pakistan. but we chant slogan of friendship and we are getting profit to export to america and European countries,but this hypocrite nation always show hate to them
friendship to china is total hazard/loss for pakistan,
Recommend
0
Sep 16, 2017 10:15pm
Mark my words, CPEC is a "East India Company" in the making for Pakistan.
Recommend
0
Sep 16, 2017 10:23pm
@Mustafa even though i agree with the benefits of bullet train and totally agree with a thought that let the relevant tech come to india, it is a small thought of letting indian companies like beml, texmaco etc get the contracts and not the japanese companies in a through closed bidding process and the low end executers of the contracts should be only indians except for high end japanese engineers needed on the project aided by young indian engineers only. Rab rakha
Recommend
0
Sep 16, 2017 10:27pm
@Wahab "Maybe next time raise the interests before you sign the dotted line. Just saying."
I think when it was signed, Pakistan got the preferential duty it wanted. Now that other countries like Bangladesh and India also have negotiated relatively low duties on items of interest to Pakistan - the margin of preference for Pakistan has shrunk. So it wants China to either reduce duties for Pakistan further (which are already low at 5%) or increase duties on other countries.
China may say it will look into it. But it is not going to change rates with other countries to please Pakistan.
Recommend
0
Sep 16, 2017 11:11pm
@Hasan We hysterical Hindustanis are more into business then what is CEPC is to you with China. We know and that is why we are hysterical and warring you. The future and decision is yours.
Recommend
0
Sep 16, 2017 11:48pm
Pakistan should try for VISA free access like EU to China. Being brotherly country, Chinese will definitely consider favourably. This will encourage Pakistan china relations to develop further as there will be many Pakistan Chinese in future who will be citizens of China.
We need free movement of people between Pakistan and China.
India already have such arrangement with Nepal and Bhutan.
Recommend
0
Sep 17, 2017 01:30am
Pakistan should play smart.
Recommend
0
Sep 17, 2017 02:09am
First deserve and then desire. Pakistan should raise the quality of its goods and then demand access to Chinese markets. Here is Canada, we have goods from China, India Pakistan, Bangla Desh, Thailand, Vietnam, Mexico. At the same time, there are high quality goods from Canada also in the market. For example: Leather jackets from China are worth CN$ 175 to $350, Pakistani jackets from CN$ 350 to 650 and really high quality Canadian jackets from CN$ 550 to 1000. Now it is up to me to buy what I like or what I can afford.
Recommend
0
Sep 17, 2017 02:19am
So exactly what does Pakistan make that China needs? The only item of consequence that China buys is low margin yarn which it turns into high margin textiles which compete with Pakistan. Trade sounds great - but like many 3rd World countries Pakistan only has textiles and agriculture both are in ready supply in China.
Recommend
0
Sep 17, 2017 03:49am
Truth is china is investing in Pakistan and no one else is doing that ; now the lecture on loans need to repaid its not charity will start but that is how all investments work . Someone takes a risk and gets a premium for underwriting the risk in the form of interest rates . If the whole world is dying to lend to Pakistan the Chinese interest rates would be low too . This is a fundamental difference between comparing projects funded in India vs Pakistan . India has a choice and access to a lot more debt than Pakistan has today . However if the Chinese investment does provide economic opportunities other countries of the world will soon follow . We need to do the best we can with CPEC and turn it into a flagship poster that shows Pakistan is open for business and your money will grow with Pakistan .We should stop being so worried about CPEC because without that we will only have to live on charitable donations from GCC.
Recommend
0
Sep 17, 2017 07:43am
I'd hate to see the Chinese take advantage of Pakistan. I feel certain empathy with Pakistanis because of culture, language and a shared history; I feel no common bonds with the Chinese.
Recommend
0
Sep 17, 2017 08:13am
No one even cares all useless dramas are not going to save this gutter country. Every rat wants to escape this wretched place
Recommend
0
Sep 17, 2017 12:02pm
@Your Friend, Good for India, please enjoy the train ride. Pakistan is well aware of its national interest and need. We are doing OK.
Recommend
0
Sep 17, 2017 01:20pm
@Junaid The Chinese love Uighurs.
Recommend
0
Sep 17, 2017 03:45pm
Please also embrace and enhance trade relations with Iran immediately before India take them in to the US club, I'm very disappointed with the progress of our trade and foreign ministry, some time I think maybe some powers stopping us to do so and the benefits of this dirty game are going in to the pockets of a bunch of ignorant officials. I am not against Saudi Arabia but we should go along with all regional powers to achieve some prosperity.
Recommend
0
Sep 17, 2017 05:48pm
Winning negotiations happen from a position of strength. We all know who is in a stronger position.
Recommend
0
Sep 18, 2017 06:01am
Looking at the photograph the Pakistani team looks very subdued and glum in the negotiations.
Recommend
0
Sep 18, 2017 02:04pm
@Udayan Mitra "I'd hate to see the Chinese take advantage of Pakistan." You want someone else to take that? We know many want to take advantage of Pakistan, we tried to "oblige" many but they couldn't. So now we try the Chinese, if they couldn't either, we'll try some else. You may advise some names we can try instead of China. Thanks for your concern anyway, really appreciate your feeling.
Recommend
0
