The second phase protocol of China Pakistan FTA entered into force on December 1, 2019. At present, China and Pakistan have completed relevant domestic procedures, and the tax reduction arrangement of the protocol will be implemented on January 1, 2020. The implementation of zero tariff products between China and Pakistan will gradually increase from 35% to 75%.

On the basis of mutual benefit and win-win results, China and Pakistan have incorporated 80% of their total tax items into tariff concessions, and have given full consideration to the major export products that they focus on. Pakistan has included in tariff reduction the export advantageous products, such as Electromechanical, furniture, textile, phosphate fertilizer, glass products, automobile and motorcycle parts, which China focuses on. China has included in tariff reduction the priority export products of Pakistan, such as cotton yarn, leather, clothing, aquatic products and nuts. See below for the detailed tax reduction list.h

China Pakistan Free Trade Agreement phase II, reduced to zero tariff product list download address

http://fta.mofcom.gov.cn/pakistan_phase2/pakistan_phase2_special.shtml

According to the protocol, after the implementation of the tax reduction arrangement, the proportion of tax items of zero tariff products between China and Pakistan will gradually increase from 35% to 75%. In addition, the two sides will implement a partial tax reduction of 20% for other products accounting for 5% of their respective tax items. For specific tax reduction arrangements, please refer to China free trade area service network.

The implementation of the tax reduction arrangement of the protocol will further expand market opening between the two countries, enable enterprises and consumers of the two countries to enjoy more preferential policies, and promote the construction of China Pakistan Free Trade Area to enter a new stage.