China - Pakistan trade deals escalate

23 Jun '05

2 min read

Negotiations on a free trade agreement (FTA) between China and Pakistan are expected to move forward during Premier Wen Jiabao's visit to the South Asian neighbour.

Premier Wen's trip to Pakistan, the first stop in an eight-day tour of four countries in the region, is expected to see the signing of a number of economic and trade agreements.

Among them is an Early Harvest Programme, which would see tariff-free trade in a number of goods, paving the way towards an FTA between the two countries.

A possible FTA would facilitate trade and further consolidate bilateral trade relations.

Bilateral trade between China and Pakistan has been enjoying fast growth since 2000, and Pakistan has grown into China's second-largest trade partner in South Asia following India.

The two countries chalked up a record trade volume of some US$3.06 billion last year, an increase of 26 per cent.

China's exports to Pakistan reached US$2.47 billion, up 33 per cent year-on-year.

China's imports from Pakistan reached US$5.95 billion, 3.5 per cent up year-on-year.

China mainly exports machinery equipment and components, mechanical and electrical equipment, audio-visual products, and vehicles, accounting for over 40 per cent of the nation's total exports to Pakistan.

The growth rate of China's exports to Pakistan exceeded that of nation's imports from the country.
The growth in China's exports was due to Pakistan'sroaring demand resulting from its economic recovery and development.
roaring demand resulting from its economic recovery and development.

China's imports from Pakistan grew much slower over the past two years because the country only imports some raw materials, such as cotton, feathers and fur.

Economic co-operation between the two countries had been diversifying into sectors such as services, technology, investment, resource exploitation and contracting projects.

Ministry of Commerce - China

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