Free trade accord with China signed: High-performance aircraft to be jointly produced-Business

Pakistan and China on Friday signed 18 agreements and memoranda of understanding, including a landmark free trade pact that could triple bilateral trade to $15 billion within five years and a key accord for developing aircraft equipped with long-range early warning radars.

President Gen Pervez Musharraf and his Chinese counterpart Hu Jintao, who earlier held one-to-one talks, stood behind commerce ministers and officials of the two countries as they signed the agreements, including a five-year development programme.

揟his serves the fundamental interests of our two peoples and is also conducive to the peace and development of our region,?Mr Hu told a joint news conference with Gen Musharraf.

揥e want to work with Pakistan to raise our strategic ties to a new level,?he said.

President Musharraf said the 揺vergreen relationship of Pakistan and China will remain for all time?

Mr Hu said his country would continue to help Pakistan in the field of nuclear power and provide assistance in sectors of hydro-electricity, coal and alternative sources of energy.

He said China had already developed 搃n very close cooperation?Chashma-I nuclear power plant and was aiding in the construction of another plant.

Pakistan, after Chile, on Friday became the second country to have an FTA with China. Both sides agreed to scale down customs duty to zero per cent on 5,104 tariff lines (products) in three years and on 3,942 items from zero to five per cent within five years after the implementation of the agreement.

Separately, Pakistan Air Force said it signed a memorandum with a Chinese aviation company, CETC, to jointly develop aircraft equipped with long-range early warning radars.

The PAF and the Chinese aviation industries agreed for long-term collaboration and co-development in aircraft manufacturing and other related fields, including Awacs.

PAF is already collaborating with another Chinese aviation company for co-development and co-production of JF-17 Thunder fighter aircraft. Eight JF-17s are expected to be delivered to Pakistan during 2007.