Undergoing Re-negotiations between Pakistan and China for Free Trade Agreement

Abstract

China-Pakistan Free Trade Agreement ("CPFTA") has been more favorable for China. Chinese exports to Pakistan have increased to an alarming situation, while Pakistani exports to China have not been increased significantly. Therefore, Pakistan's trade deficit with China has gained the shocking situation. Pakistani producers complain that the CPFTA 2006 was only favoring China. Currently, both countries are re-negotiating the CPFTA in order to create a balanced situation of bilateral trade and investment. The re-negotiations are aimed at overcoming the imbalance of trade that exists between the two countries. This essay encompasses the latest developments made under the re-negotiations of CPFTA.