China and Pakistan will reduce tariffs on each other''s imports beginning 1
July, in line with their free trade agreement (FTA), a senior Chinese trade official
countries will carry out tariff reduction in two phases. In the first five years,
the two sides will cut tariffs on up to 85 per cent of imports in five categories.
In the following five years, China will eliminate or cut tariffs on Pakistan-origin
products, ranging from farm goods to textiles and electronic goods, while Pakistan
will remove or cut tariffs on Chinese food, electronics and machinery, commerce
ministry spokesman Wang Xinpei said.
average tariff on imports from Pakistan post reduction will be lower at eight
per cent, 0.67 percentage points below the MFN rate.
two countries will review the implementation of the first phase in a bid to finalise
the timetable for tariff reduction in the FTA''s second phase, which was described
as an "open agreement".
aim to adopt zero tariffs on up to 90 per cent of imports, in terms of categories
and trade volume, from each other in a short period," the China Daily
quoted a commerce ministry official as saying.
FTA, signed last November, is China''s third, following FTAs with Chile and the
enterprises will largely benefit from the FTA as market access increase and trade
and investment environment improve, the official said.
agreement provides opportunities for Chinese companies to invest in Pakistan,
the ongoing talks on services, the two sides are discussing how to reduce trade
barriers in the service sector," he added. "We hope enterprises will
keep an eye on the talks to make full use of the agreement."
will lower import taxes on 3,975 categories of goods from Pakistan, by 11 per
cent to an average tax rate of 8 per cent, also effective July 1.
will also exempt imports from 26 ''under developed'' African countries from tariffs
in an attempt to promote mutual trade, its finance ministry said.
regulation, approved by the state council, or the cabinet, will exempt 256 items
China imported from the 26 countries effective on July 1. The move would "further
enlarge China''s imports from African countries, and promote the better development
of mutual trade," the ministry said.
did not name the 26 countries or the items. China similarly lowered tariffs on
range of imports from 29 African countries effective January 1, 2005. China is
broadening trade ties with Africa, an important source of minerals, crude oil,
cotton and other natural resources, and has offered its African allies a variety
of investments and financial packages.