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