Study on China-Sri Lanka Free Trade Agreement

18. Precision equipment 9.4 274 7 183 84 15.5
19. Arms and ammunition 20.2 52 52 5.0
20. Misc. manufactured 20.5 186 1 4 181 11.6
articles
21. Works of art, etc. 5.7 7 5 2 7.5
Total 14.5 6,911 399 486 31 1,601 4,394 16.1
Source: WTO Secretariat, Factual Presentation of Free Trade Agreement Between Pakistan and China
(Goods), 2008.
China has also allowed duty-free access to 640 tariff lines under HS 8-digit level out of the total 7,646
tariff lines on an MFN basis in 2007 (Table 3.17). An additional 720 tariff lines were liberalized upon
entry into force of the Agreement (comprising both agricultural and industrial products). China
maintains a negative list with a total of 4,936 tariff lines covering all HS categories, for instance live
animal, vegetable products, vegetable and animal fats and oils, prepared food, chemicals, plastics
and rubber, hides and skins, wood products, pulp and paper, textiles, and machinery.
The tariff concessions given to Pakistan appear impressive but nearly all top performing products,
including those where Pakistan holds a comparative advantage, China has awarded higher or same
reduction in tariffs to ASEAN members. 140 By 2011, tariffs under the 100 per cent concession
category, that constitutes more than 35 per cent of the total products part of the FTA, were reduced
to 0 per cent for Pakistan. Yet, the average tariff along these products for ASEAN was also 0 per
cent. 141 This indicates that tariff reductions for Pakistan were not Pakistan specific even along
products that Pakistan enjoys 100 per cent concessions, but were offered to Pakistan’s competitors
as well.
140 The Pakistan Business Council (2013), “Preliminary study on Pakistan and China trade partnership post FTA”,
available at: [http://www.pbc.org.pk/assets/pdf/21-Oct_Pakistan_China_Trade_<strong>Study</strong>_2013.pdf]
141 Ibid.
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