Study on China-Sri Lanka Free Trade Agreement

http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=8
http://artnet.unescap.org/APTIAD/viewagreement.aspx?id=CHINA-PAKISTAN
The Agreement contains no explicit transition period as the tariff elimination on imports of goods for
both Parties is to be completed within a period of five years (January 2012). Duty eliminations take
place on the date of entry into force of the Agreement and on 1 st January of the following years for
both countries (2007, 2008 and 2010). 136
Liberalization of Tariff Lines:
Both the countries have gradually eliminated their tariff lines from the date the agreement came
into force in 2007. As shown in Table 3.14, In the case of Pakistan, 5.8 per cent of total tariff lines
were already duty-free on an MFN basis in 2006. 137 A further 7 per cent of tariff lines have become
duty-free for imports from China in 2007. By the end of the transition period in 2012, a further 23.6
per cent of tariff lines were liberalized, accounting for 23.4 per cent of imports from China for the
period 2004-2006. 138 Thus, a total of 36.4 per cent of tariff lines were liberalized under the
Agreement, corresponding to 44.4 per cent of imports by value from China for the period 2004-
2006.
Table 3.14: Pakistan’s Tariff elimination commitments under the Agreement and corresponding
average trade
Duty phase-out period No. of
lines
% of total lines in
Pakistan's tariff
schedule
Value of Pakistan's imports
from China (2004-2006)
in million US$
% of Pakistan's
total imports
from China 2004-
2006
MFN duty free (2007) 399 5.8 226.4 11.6
2007 486 7.0 184.4 9.4
2008 31 0.4 0.8 0.0
2010 1,601 23.2 457.0 23.4
Remain dutiable 4,394 63.6 1,088.3 55.6
Total 6,911 100.0 1,956.9 100.0
Source: WTO Secretariat, Factual Presentation of Free Trade Agreement Between Pakistan and China
(Goods), 2008.
China has also allowed duty-free access to 8.4 per cent of total tariff lines 139 on an MFN basis in
2007, before the agreement came into force (Table 3.15). A further 9.4 per cent of tariff lines have
become duty-free for imports from Chile in 2007. By the end of the transition period in 2012, a
further 23.6 per cent of tariff lines were liberalized, accounting for a further 23.4 per cent of imports
from Pakistan for the period 2004-2006. Thus, a total of 36.4 per cent of tariff lines were liberalized
136 WTO Secretariat, Factual Presentation of Free Trade Agreement Between Pakistan and China (Goods), 2008,
available at: [http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=8]
137 Pakistan's tariff is composed of 6,911 tariff lines at the HS 8-digit level, of which 6,867 contain ad valorem
rates; the remaining 44 lines are subject to specific duties.
138 2010 is the last year when tariffs are scheduled to be fully liberalized. Further tariff reductions are
scheduled to take place in 2011 and 2012.
139 China's tariff is composed of 7,605 tariff lines at the HS 8-digit level, of which 7,556 are subject to
ad valorem rates. For the 49 lines subject to specific duties, China has provided ad valorem equivalent rates.
Such lines occur in HS Chapters 2, 5, 37, and 85.
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