A second phase agreement is being negotiated between China and Pakistan. In the second phase, tariffs will be further reduced and the various trade procedures will be standardised.  [It is necessary to update] “Together, Pakistan and China are entering the next phase of the CPEC, with a greater emphasis on socio-economic growth, poverty reduction, agricultural cooperation and industrial development,” Khan said during his visit to Beijing. In addition, both parties will introduce a partial 20% reduction on other products representing 5% of taxable items in the other country`s tariff lists. The protocol provides that the share of customs lines with zero-tariff products between China and Pakistan will gradually increase from 35% to 75% over a 10-year period, as implemented by China, and by 15 years in Pakistan. The volume of trade resulting from an agreement between the two states amounted to $13 billion in 2013 and reached $20 billion in 2017, when the two countries signed 51 agreements and protocols for cooperation in various areas.  China had already made a significant contribution to Pakistani imports prior to the signing of the free trade agreement and improved considerably after the implementation of the free trade agreement in 2007. Until 2012, it was the source of 15% of Pakistan`s total imports from the world, up from 9.8% in 2006.   The China-Pakistan Free Trade Agreement is an important free trade agreement between the People`s Republic of China and Pakistan.
    It was completed in 2006 and came into force in July 2007. Pakistan already has zero tariffs on the export of 724 products to China under the first free trade pact signed between the two countries in 2006. After the implementation of the second pact, Pakistan was allowed to export more than 1,000 products to China without tariffs. Phase I – Reduction of China`s tariffs within five years of the agreement`s entry into force: according to official figures, Pakistan`s bilateral trade volume increased to about $15.6 billion in fiscal 2019, up from $2.2 billion in 2005. China Briefing is written and produced by Dezan Shira – Associates. The practice supports foreign investors in China and has since 1992 by offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen and Hong Kong. Please contact the support company in China at firstname.lastname@example.org. This round of review of the CPFTA expands and diversifies business opportunities for businesses on both sides while maintaining fair and equitable protection of local industrial interests. This is in line with China`s free trade agreements with New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Georgia, Chile and Pakistan, as well as the Asia-Pacific trade agreement.