China says trade with Pakistan could double within five years
BEIJING, July 9 (Xinhua) — A senior Chinese trade official said Friday that trade between China and Pakistan could double within five years to hit 15 billion U.S. dollars in 2015.
Chinese Minister of Commerce Chen Deming made the remarks when addressing the China-Pakistan Economic Cooperation Forum, held on the sidelines of Pakistani President Asif Ali Zardari’s working visit in China.
Hailing the smooth development of China-Pakistan trade and economic cooperation in recent years, Chen said there’s enormous potential for trade growth.
He called on companies of the two countries to learn more about and give full play to the existing free-trade agreement, expand investment and bilateral trade.
He also urged the two sides to make full use of bilateral cooperation mechanisms and make them serve the two countries’ trade and economic cooperation.
Highlighting the traditional friendship between China and Pakistan, Zardari echoed Chen saying that the two countries should join hands and strengthen cooperation in all areas and work for common development.
Pakistan is China’s second largest trading partner in south Asia, while China is Pakistan’s fourth largest trading partner, second largest source of imports and seventh largest exporting market.
Bilateral trade in the first five months of this year reached 3.3 billion U.S. dollars, up 31 percent. China’s investment in Pakistan has expanded from resources, home appliances to communications and finance.
China and Pakistan signed a free trade agreement in November 2006, which came into effect on July 1 2007. Background China and Pakistan signed a free trade agreement (FTA) on Friday, which is projected to triple their current bilateral trade to 15 billion U.S. dollars within five years. Under the agreement, China and Pakistan will begin to reduce or eliminate tariffs on all products in two phases from July 1, 2007. During Phase I, both sides will reduce the tariffs on 85 percent of the products based on different extents of tariff reduction within five years of the agreement entering into force, and 36 percent of the products will be tariff free within three years.
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