ISLAMABAD, 27 February 2005 — Pakistan and China want an “early harvest program” finalized before signing a free trade agreement (FTA) between the two countries.
The two sides are actively pursuing various options, including a list of items to be traded zero-rated duty under the early harvest program, promotion of bilateral trade in border areas, expanded investment cooperation and facilitating export of Pakistani rice, fruits and vegetables to China.
Pakistan hopes it would succeed in expanding its economic ties with China further when Chinese Premier Wen Jiabao visits Islamabad in April.
Signing of the FTA and attracting Chinese investment in major infrastructure projects could be part of the agenda. Pakistan and China have very close cooperation in the field of defense, including an extensive defense production program.
Yi Xiaozhun, assistant commerce minister of China, discussed ways to expand trade with Pakistani Commerce Minister Humayun Akhtar Khan.
The talks covered means to deepen and broaden existing preferential trade agreement (PTA), the early harvest program and the FTA.
“The objective of the visiting Chinese delegation is to participate in the first meeting of Pak-China Joint Study Group (JSG) on the FTA between the two countries. On the agenda is also the early harvest program. Other items in the existing and extended PTA will also be added to the early harvest package,” an official statement of the Ministry of Commerce said.
The early harvest program would serve as foundation stone toward conclusion of the free trade agreement. China also seeks Pakistan’s support on accession to the WTO.
Pakistan also sought Chinese investment in agriculture, food processing, livestock, fisheries, dairy farming, housing, IT, telecom, construction & engineering and packaging industries, and investment in export-oriented industries especially in manufacturing of fabrics and garments.
China is expected to sign a formal protocol in April paving the way for export of Pakistani rice to China.
The export is likely to be a breakthrough in trading food items between the two countries.
