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China and Pakistan have agreed to lower and perhaps drop tariffs between the two nations, to boost bilateral trade, Xinhua reports.
The move this month is in line with a free trade agreement signed by the two Asian nations last November, which aimed to triple the value of Sino-Pakistan trade to US$15 billion within five years.
Under the accord, both sides in Phase One will slash tariffs on 85 per cent of trade goods within five years, as well as eliminating tariffs on 36 per cent of goods over three years, Xinhua said.
China will mainly reduce tariffs on livestock, aquatic products, vegetables, minerals and textiles, while Pakistan will largely lower tariffs on beef and mutton, chemicals and machinery products.
Phase Two will commence in the sixth year of the agreement's implementation to further cut tariffs on trade goods. The ultimate goal will be to remove tariffs on up to 90 per cent of products within a "reasonable" period given that both nations' interests will be protected.
The value of trade between China and Pakistan reached $5.3 billion last year, an increase of 23 per cent over the previous year. Bilateral trade volumes have grown by nearly 20 per cent annually over the past decade, according to statistics provided by the central government.
China mainly exports high-tech products, chemicals, plastics and household appliances to Pakistan, and imports textiles, leather and aquatic products from the south Asian nation.
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