China Pakistan FTA talks in doldrums

China Pakistan Free Trade Agreement (CPFTA) hit yet another roadblock today after the two sides failed to sort out differences in granting incentives to help prop up each other’s exports. The sides could not even agree to sign the minutes of the meeting after talks on 10^th round of finalizing second phase of CPFTA went late into the night.

The talks were unsuccessful as both sides have been making their pitch to be granted incentives in order to help gain a share of each other’s markets. Pakistani side has been extremely reluctant to offer anymore berth to China as the deficit between Pakistan and China soared to new highs reaching $14 billion.

Pakistan’s deficit with China makes up for more than 43.75 percent of entire trade deficit of the country. Pakistani businesses have been wary of Chinese imports and have urged government to be strict in negotiations with the Chinese delegations.

General Body of Federation of Pakistan Chambers of Commerce & Industry on 3rd April 2018, passed a resolution on Free Trade Agreements by Pakistan and demanded that FPCCI should be taken on board while negotiating bilateral agreements particularly FTA with China.