Negotiations
began 2006 Provisional
application 2007 Ratification status Ratified and in force | Signed 2007 Signatories 2 (Pakistan and China) | |
The China–Pakistan Free Trade Agreement is a major free trade agreement signed between the People's Republic of China and Pakistan. It was concluded in 2006 and entered into effect in July 2007.
Trade volume due to agreement between the two states was $13 billion in 2013, and reached to $20 billion by 2015 when both countries signed 51 agreements and Memorandums of Understanding (MoUs) for cooperation in different fields. China had been contributing significantly to Pakistan’s imports even before the FTA was signed and has seen considerable improvement in its ranking after the FTA was implemented in 2007. By 2012, it was the source for 15% of Pakistan’s overall imports from the world as compared to 9.8% in 2006.
Second Phase
A Second Phase agreement is currently being negotiated between China and Pakistan. The second phase will lower tariffs further as well as normalize various trade procedures.