BEIJING, Nov 12: Pakistan and China will sign a protocol during the expected visit to China by Prime Minister Shaukat Aziz next month to give a definite shape to their future trade relations.

An understanding to this effect was arrived at a meeting held here between Commerce Secretary Tasneem Noorani and Chinese Assistant Commerce and Trade Minister Yi Xiaozhun.

During the meeting, it was decided to deepen their bilateral economic ties by establishing Free Trade Area (FTA), expanding the existing Preferential Trade Agreement (PTA) and exploring new investment opportunities in each other country, besides undertaking joint ventures.

The meeting was also attended by Pakistan Ambassador Riaz Mohammad Khan, a senior official of the Commerce Ministry Shahid Bashir and Commercial Counsellor Shahid Mahmood.

In an interview with APP here on Friday before returning home, Tasneem Noorani termed his meeting with the Chinese side as highly productive and said the two sides reiterated their resolve to take all possible measures giving boost to their economic relations.

The proposed protocol, he said will cover various areas of bilateral interest to enhance the bilateral trade. "We have decided to launch the study and negotiation on FTA. A joint experts level committee had already started working on it," he added.

Noorani had a brief stay in Beijing to hold preparatory meeting with the Chinese side before the forthcoming visit of the Prime Minister. The bilateral trade relations have been on high pitch since the two countries signed the PTA last year, he said adding, "now we are negotiating with each other to increase the number of items on which the two governments will give tariff concession under the PTA."

About the FTA, he said China has reached such an agreement only with Asean countries. Pakistan is the one of the first countries with whom China has also decided to have similar arrangements. However, an agreement to this effect will take some time, because it involves a number of issues, which need to be resolved.

Under the FTA, he said the trade between the two countries will ultimately become totally duty-free and it will allow each country to normally have sensitive list up to maximum of 20 per cent, so 80 per cent of the commodities would be freely traded.

Both the countries will have the right to decide on which 20 per cent of their commodities, they would like to have some kind of protection. So there will be negative list on which some items would be subject to duty and the rest would be duty free.

To another question, Mr Noorani said the two sides are also in the process of expanding the list of the PTA and it is hoped that they will reach to some effective conclusion at the time of the Prime Minister's visit. They have already indicated the items for inclusion in the PTA for getting as much tariff concession as possible.

The Chinese Minister during the meeting reiterated that the Chinese government would like to cooperate with Pakistan in whatever form, necessary to encourage its economic development.

Replying to another question about export of food items to China, the Secretary Commerce said, "we are expecting to start export of rice to China next year, after fulfilling the quarantine requirements."

In this connection, the negotiation is under way and it is expected that a protocol for the export of Pakistani rice will also be signed during the prime minister's visit. Chinese are interested to see the Pakistani rice and it is hoped that Pakistani exporters will come forward to explore the local market, he added.

Similarly, he said, Pakistan is also making effort to meet the quality requirements of the government of China for export of fresh fruit including orange and citrus. He said the potential of Pakistani food as well as vegetable is quite rich, if these are exported in bulk through the land route.

About the holding of joint ministerial-level meeting on regular basis between the two countries, Noorani said, "we feel that meetings which are issue-oriented sometime prove more fruitful, than having periodical meetings without identifying the issues. "Therefore we feel that whenever there is an issue, we can meet at the operational level to resolve it," he added.

To another question about joining of Bangkong agreement, he said Pakistan is certainly willing to become part of it. However, he added the Chinese side has always been giving us the same treatment as it was extending to the members Bangkok agreement. -APP