13-Pak-China FTA Report Final Version 4

EVALUATION OF PAKISTAN-CHINA FTA
Evaluation of Pakistan-China FTA
Adil Khan Miankhel Sadia Hissam M Rizwan Aslam Hammad Mughal
Acknowledgment
We greatly acknowledge the PITAD Survey Team especially Mr. Badar ud Din Tanweer, Survey Coordinator and Mr. Osman Bin Saif, Senior Research Associate for their support in conducting the survey. We highly appreciate the support provided by Mr. Sohail Paracha, Research Associate to the survey team in the survey analysis. Particularly, we are grateful to Mr. Asaf Ghafoor, Director General, PITAD for his cooperation, guidance and support all along.
Table of Contents
Executive Summary..................................................................................................................................... 10 1. 2. 3. Introduction ........................................................................................................................................ 12 Objectives............................................................................................................................................ 14 Trade profiles ...................................................................................................................................... 15 3.1. Chinas Trade Profile ................................................................................................................... 15 Chinas Export Product Composition .................................................................................. 15 Geographical Composition of Chinas Exports .................................................................... 16 Chinas Import product Composition .................................................................................. 16
3.1.1. 3.1.2. 3.1.3.
3.1.4 Geographical Composition of Chinas Imports .......................................................................... 17 3.2. Pakistans trade Profile ............................................................................................................... 18 Pakistans Export Product Composition .............................................................................. 18 Geographical Composition of Exports ................................................................................ 19 Pakistans Import product Composition ............................................................................. 19 Geographical Composition of Pakistans Imports ............................................................... 20
3.2.1. 3.2.2. 3.2.3. 3.2.4. 4. 5.
Pakistan and Chinas Tariff Profile ...................................................................................................... 21 Pakistan-China Bilateral Trade profile ................................................................................................ 22 5.1. 5.2. Product Composition of Pakistans Exports to China.................................................................. 22 Product Composition of Pakistans Imports from China ............................................................. 23
6. 7.
Tariff Liberalization program of Pakistan-China FTA .......................................................................... 25 Pre / Post FTA Analysis (Overall Trade Performance) ......................................................................... 27 7.1. Trade Performance across different Concession Categories ...................................................... 27 Pakistans Exports Performance across Different Concession Categories.......................... 27 Pakistans Import Performance across Different Concession Categories ........................... 28
7.1.1. 7.1.2. 7.2.
Trade Performance across Different Concession Categories by HS section ............................... 29 Import Performance in different Categories by HS sections .............................................. 30 Export Performance in Different Categories by HS sections .............................................. 33
7.2.1. 7.2.2. 7.3.
Trade Performance at Product level ........................................................................................... 37 Overall Top 20 Loser and Gainers in Exports at HS 8 digit .................................................. 38 Overall Top 20 Loser and Gainers in Imports at HS 8 digit ................................................. 39
7.3.1. 7.3.2. 7.4.
Concession Category Wise Analysis of Top 20 Export and Import Gainers ................................ 40 4
EVALUATION OF PAKISTAN-CHINA FTA 7.4.1. 7.4.2. 8. Export Gainers in Each Category ......................................................................................... 40 Import Gainers in Each category ......................................................................................... 41
Analysis of Significant Chapters in Pakistan Exports and Imports ...................................................... 42 8.1. 8.2. HS 52 Cotton ............................................................................................................................... 42 HS 85 Pakistans Major Import.................................................................................................... 43
9.
Pak-China FTA Utilization Analysis ...................................................................................................... 44 9.1. 9.2. Overall Utilization Rate ............................................................................................................... 44 Utilization Rate of Pak-China FTA (HS 4-digit level) .................................................................... 46 Revenue Impact of Pakistan-China FTA .......................................................................................... 48 Pakistans Export Competitiveness and Potential in China ............................................................ 50 Intra-Industry Trade- Grubel Lloyd Index................................................................................ 50 Pakistans Comparative Advantage in the Chinese Market: Pre and Post FTA period ........... 52 Pakistans Top 25 BRCA ranking HS 6 level: (2005-2009) ................................................... 52 Competitive Positioning of Pakistans Export products in the Chinese Market ................. 54 Pakistans Export potential in the Chinese Market ................................................................. 56 Potential Bilateral Trade (PBT) ............................................................................................ 56 China Offer Category-5 (No Concession List): Potential Products for Future Negotiations 57
10. 11.
11.1. 11.2. 11.2.1. 11.2.2. 11.3. 11.3.1. 11.3.2.
11.3.3. China Offer Category-3 (Reduction on margin of Preference of 50% (5 years): Potential Products for Future Negotiations ....................................................................................................... 59 11.3.4. China Offer Category-4 (Reduction on margin of Preference from 20% (5 years): Potential Products for Future Negotiations ....................................................................................................... 61 11.3.5. 12. Others-Potential Products for Future Negotiations............................................................ 63
Survey analysis of Pakistan-China FTA ............................................................................................ 65 Survey Methodology ............................................................................................................... 65 Response of Exporters: ........................................................................................................... 66 General Trade Information ..................................................................................................... 66 Product Coverage:............................................................................................................... 66 Product Composition: ......................................................................................................... 67 Proportional Exports to China: ............................................................................................ 69 Competitors in Chinese Market .......................................................................................... 70 Intra-industrial trade: .......................................................................................................... 71 Trade Creation .................................................................................................................... 72 5
12.1. 12.2. 12.3. 12.3.1. 12.3.2. 12.3.3. 12.3.4. 12.3.5. 12.3.6.
EVALUATION OF PAKISTAN-CHINA FTA 12.4. 12.5. 12.6. 12.6.1. 12.6.2. 12.6.3. 12.6.4. 12.7. 12.8. 12.8.1. 12.8.2. 12.8.3. 12.8.4. 12.8.5. 12.8.6. 12.8.7. 12.9. 12.9.1. 12.9.2. 12.9.3. 13. 14. Awareness/Perception of Pak-China FTA ............................................................................... 73 Tariff Concessions and Rules of Origin .................................................................................... 74 Technical and Non-Technical Barriers (Export Impediments) ................................................ 74 Trade Regulation Issues ...................................................................................................... 74 Quality Assurance: .............................................................................................................. 75 Package labeling:................................................................................................................. 76 Transshipment Issues:......................................................................................................... 76 Other Issues and Suggestion by the Exporters ....................................................................... 76 Response of Importers ............................................................................................................ 76 Product Coverage under Imports........................................................................................ 77 Import's Growth/Escalation: ............................................................................................... 78 Input Composition: ............................................................................................................. 80 Trade Creation and Trade Diversion ................................................................................... 82 Import's Impediments:........................................................................................................ 83 Trade Facilitation Issues: ..................................................................................................... 84 Custom Clearance Issues:.................................................................................................... 85 Trade Organizations response: ............................................................................................... 85 Karachi Chambers Of Commerce & Industry (KCCI) ........................................................... 85 Pakistan Leather Garments Manufacturers & Exports Association (PLGMEA)................... 86 Sialkot Chamber Of Commerce & Industry (SCCI) .............................................................. 86
Conclusion ....................................................................................................................................... 88 Policy Recommendations ................................................................................................................ 92
List of Figures
Figure 1: Product Composition of China's Exports to the World ............................................................... 15 Figure 2: Geographical Composition of China's Exports ........................................................................... 16 Figure 3: Product Composition of China's Imports from the World ........................................................... 17 Figure 4: Geographical composition of China's Imports ............................................................................ 17 Figure 5: Product Composition of Pakistans Exports to the World ........................................................... 18 Figure 6: Geographical Composition of Pakistan's Exports ....................................................................... 19 Figure 7: Product Composition of Pakistans Imports from the World ...................................................... 20 Figure 8: Geographical Composition of Pakistan's Imports ....................................................................... 21 Figure 9: Product Composition of Pakistan's Exports to China .................................................................. 23 Figure 10: Product Composition of Pakistans Imports from China........................................................... 24 Figure 11: Revenue Impact/Cost of Exemption of Pakistan-China FTA.................................................... 48
List of tables
Table 1: Tariff profiles of Pakistan and China ............................................................................................ 21 Table 2: Pakistan-China Bilateral Trade 2003-2009 ................................................................................... 22 Table 3: Tariff Reduction Modality of China ............................................................................................. 25 Table 4: Tariff Reduction Modality of Pakistan ......................................................................................... 26 Table 5: Pakistan's Exports to China in Different Concession Categories and % Share in Total exports to China: 2005 to 2009 .................................................................................................................................... 28 Table 6: Pakistans Imports from China in Different Concession Categories and % Share in Total Imports from China: 2005 to 2009 ........................................................................................................................... 29 Table 7: Pakistans Imports of products Under Category-1 (Elimination of tariff: Three years) by HS Section Classification.................................................................................................................................. 30 Table 8: Pakistans Imports of products Under Category-2 (0-5%: five years) by HS Section Classification............................................................................................................................................... 31 Table 9: Pakistans Imports of products Under Category-3 (Reduction on Margin of Preference from 50%: five years) .......................................................................................................................................... 31 Table 10: Pakistans Imports of products Under Category-4 (Reduction on Margin of Preference from 20%: five years) by HS Section Classification ........................................................................................... 32 Table 11: Pakistans Imports of products Under Category-5 (No Concession) by HS Section Classification............................................................................................................................................... 33 Table 12: Pakistans Exports of Products under Category-1 (Elimination of tariff: Three years) by HS Section Classification.................................................................................................................................. 34 Table 13: Pakistans Exports of Products under Category-2 (0-5%: five years) by HS Section Classification............................................................................................................................................... 34 Table 14: Pakistans Exports of Products under Category-3 (Reduction on Margin of Preference of 50%: five years) by HS Section Classification..................................................................................................... 35 Table 15: Pakistans Exports of Products under Category-4 (Reduction on Margin of Preference from 20%: Five years) by HS Section Classification .......................................................................................... 36 Table 16: Pakistans Exports of Products under Category-5 (No Concession) by HS Section Classification .................................................................................................................................................................... 36 Table 17: Top 20 Export products in Each Concession Category: Export value and % Share................... 37 Table 18: Top 20 Import Products in Each Concession Category: Import value and % Share .................. 38 Table 19: HS 52 Top Importers in the Chinese Market: Import Value and % Share in Total Imports of China ........................................................................................................................................................... 42 Table 20: HS 85 Top Importers in the Pakistani Market: Import Value and % Share in Total Imports of Pakistan ....................................................................................................................................................... 43 Table 21: Pakistan-China FTA Overall Utilization Rate ............................................................................ 45 Table 22: Utilization rate by Free Trade Agreements of China .................................................................. 46 Table 23: Utilization Rate at HS 4 level: 2009-10 ...................................................................................... 47 Table 24: Intra-Industry Trade: GLI for Pakistan and China ...................................................................... 51 8
EVALUATION OF PAKISTAN-CHINA FTA Table 25: Pakistans top 25 BRCA ranking at HS 6 level .......................................................................... 53 Table 26: Criteria for Positioning Product lines ......................................................................................... 55 Table 27: Top 10 HS 2 level codes across Different Competitive, Threatened, Emerging and Weakened Lines at HS 6 level ...................................................................................................................................... 56 Table 28: CN Offer Cat-5 (No Concession) Export Potential and Tariff margins ..................................... 58 Table 29: CN Offer Category-3-Export Potential and tariff Margins ......................................................... 60 Table 30: China Offer Category 4-Export Potential and Tariff Margin ..................................................... 62 Table 31: Others-Export Potential and tariff margins ................................................................................. 63 Table 32: Frequency Table Product Type ................................................................................................... 67 Table 33: Product Composition .................................................................................................................. 68 Table 34: Percentage Total Export to China ............................................................................................... 70 Table 35: Composition in Chinese Market ................................................................................................. 71 Table 36: Intra industry Trade and Composition ........................................................................................ 72 Table 37:Trade Creation ............................................................................................................................. 73 Table 38: Awareness of Pakistan China FTA ............................................................................................. 73 Table 39: Nos of days Acquiring ROO ..................................................................................................... 74 Table 40:Export Impediment ...................................................................................................................... 75 Table 41:Trade Regulation Issues ............................................................................................................... 75 Table 42:Product Coverage under imports ................................................................................................. 77 Table 43:Total Imports from China ............................................................................................................ 78 Table 44: Increase in imports to China since 2007 due to the FTA ............................................................ 79 Table 45: Percentage of your total Imports you import from China ........................................................... 79 Table 46:Trend of Post FTA imports .......................................................................................................... 79 Table 47: Composition of Imports .............................................................................................................. 81 Table 48: Product wise composition of Imports ........................................................................................ 81 Table 49: Trade Creation and Diversion in Imports ................................................................................... 83 Table 50: Local Industry Imports................................................................................................................ 83 Table 51: Reasons of import diversion towards china ................................................................................ 84 Table 52: Problems in imports from China ................................................................................................. 85 Table 53: Nos of Days for Custom clearance ............................................................................................ 85
Executive Summary
Pakistan- China Free Trade Agreement (FTA) has been active since last 5 years and the Phase-I of the FTA will end in 2012. Tariff concessions were offered by both countries to each other under the FTA, which are spread over different concession categories (Five for Pakistan and six in case of China). After the implementation of the FTA, an assessment of the FTA actual versus projected impact was most crucial for determining whether the FTA objectives have been met and what kinds adjustments are needed for capitalizing on the benefits and for minimizing the cost of the FTA. For this purpose, Pakistan Institute of Trade and Development conducted a study titled, Evaluation of Pakistan-China FTA by Adil Khan Miankhel, Sadia Hissam, M Rizwan Aslam and Hammad Mughal. The study presents ex-post evaluation of Pakistan-China FTA and provides recommendations for FTA Phase II trade negotiations. The study has investigated the impact of Pak-China FTA on the trade performance and export competitiveness of Pakistan exports in the Chinese market. Further, the effect of rapidly increasing imports from China on the domestic industry of Pakistan was also analyzed by conducting a survey of stakeholders (exporter, importers, trade bodies etc). The results suggest that China has been able to make inroads in all concession categories and imports from China have been persistently rising even in the No Concession category. On the contrary, Pakistan has been able to increase its exports only in the first two categories while in the remaining three categories; it is either losing its export share or has not been able to significantly increase its exports. The major reason for Pakistan inability to increase its exports significantly in all concession categories is the more favorable tariff concessions granted by China to its other trading partners due to which Pakistan exports become uncompetitive in the Chinese market. The marginal tariff concessions provided by Chinese authorities would not help Pakistan make inroads in the Chinese market unless and until tariff concessions granted to Pakistani exporters place them at par with other countries exporters with which China has preferential trading arrangements. Therefore caution may be exercised while deepening the tariff cuts in the next round of FTA negotiations. Products in which Pakistan exports to China increased in the post FTA period include cotton products of Chapter 52, Chromium ores and concentrates of chapter 26, Fish prepared or preserved and fish fillet of chapter 16, Copper wire of chapter 74, Frozen flat fish of chapter 03, Waste, Parings and Scrap of Plastics of chapter 39 and Marble and travertine of chapter 25. This product composition reveals the lack of export diversification and concentration in raw material and intermediate exports product to China. Analysis of Pakistan export specialization by using the Revealed Comparative Advantage (RCA) approach at HS 6 digit level further reinforced that there has been little shift in the comparative advantage pattern of Pakistans export products in the Chinese market. The Imports figures from China suggest that there have been significant increase in it from China and the imports were valued at around US $ 1 billion in 2003, which rose to around US $ 3.7 billion in 2009. The products which registered the highest import value in the Post-FTA period include Telephone sets, including telephones for cellular networks or for other wireless networks: Cellular mobile phone; of chapter 85, Telephone sets, including telephones for cellular
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networks other apparatus of chapter 85, Electric generating sets and rotary converters of chapter 85, Electric and Electronic products of chapter 85, Synthetic filament yarn of chapter 54, Polyesters not exceeding 2.22 decitex of chapter 55, Light-vessels, fire-floats, dredgers, floating cranes of chapter 89, Other pneum tyre rubber for bus of chapter 40, Other pneum tyre rubber for bus Ingredients for pesticides of chapter 29, Onions, shallots, garlic, leeks& alliaceous vegetables, of chapter 07, Machines and mechanical appliances nes. Other of chapter 84, Ginger of chapter 09, and And other, antibiotics of chapter 29. Pakistan is a developing country and tariff is one of the major sources of revenue. The revenue loss incurred to Pakistan due to exemptions offered to Chinese products in post FTA period was to the tune of 139 million rupees in 2006-07 during Early Harvest Program (EHP) period which increased to a staggering figure of 6.1 billion rupees in 2009-10. In order to gauge the attractiveness of the preferential regime between Pakistan and China relative to MFN treatment, the utilization rate of Pakistan-China FTA was computed. The results reveal that Pakistan-China FTA is the most utilized FTA among all other FTAs of Pakistan. The survey findings suggest that China's specific provision of low tariffs and other exemptions to the ASEAN and APTA countries has to some extent eroded the FTA preferences of Pakistani exporter's in the Chinese market. According to our targeted sample, our exporters mainly face competition from India (APTA member), Bangladesh (APTA) and Egypt in the Chinese market. At product level, Pakistani grey fabric producer face higher competition from India, Bangladesh and Egypt. Pakistan cotton yarn and fish exports also reported tough competition from Bangladesh and India. Exporter of knitwear, Leather, surgical instruments, pure oxygen, football and chemical industry reported India as major competitor in Chinese market, while exporter of tyre manufacturers report competition from Sri-Lanka. There is considerable evidence of trade diversion as importers have shifted their imports from other countries like Germany towards China. Similarly, trade creation effect is also observed as importers reported low per unit price as the major reason for importing from China. As survey is just an indication however, response from exporters using machinery and intermediate goods suggested trade creation behavior. The exporters interviewed have switched their preferences from buying locally to indicative cheaper destination of China. Therefore, FTA has generated an indicative local impact to some extent. Based on the analysis and the stakeholders feedback, the study recommends that more tariff concessions may be sought from China in the Phase II which will place Pakistani exporters at par with other countries exporters with which China has relatively more preferential trading arrangements. Furthermore, stakeholders have recommended that China single entry visa system needs to be relaxed and trans-shipment regulations of Pakistans exports to China and further facilitation for Direct Shipment Rule needs to be taken up with Chinese authorities. The industry has also recommended that more awareness campaigns and seminars on Pakistan-China FTA needs to be arranged and the trade potential of the adjoining regions needs to be explored and catered for in the Phase II of trade negotiations.
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1. Introduction
Free trade Agreements (FTAs) usually promote trade in goods and services and investment by creating an improved environment for business between the partners (Kawai and Wignajara 2008). In the absence of a Doha Trade deal, comprehensive, well designed FTAs may be a means to achieve regional liberalization and structural reforms, which can facilitate the development of production networks. Accordingly, Comprehensive FTAs may constitute building blocks-rather than stumbling blocks-to multilateralism liberalization.1 However, theoretically, FTAs may also prompt diversion of trade and investment away from countries with less favorable business conditions (Zhang 2010).
With the deepening of Asian regionalism, different tariffs and rules of origin in multiple FTAs have resulted in an Asian noodle bowl problem of criss-crossing agreements that are characterized by excessive exclusion and special treatment. This noodle bowl, the argument goes, may distort trade towards bilateral channels, thereby threatening to erode the multilateral trading system. However, large administrative burdens for the trading firms, such as the need to deal with multiple tariffs and rules of Origin (ROOs) also mean that FTAs may stay underutilized.2
China has emerged as a major player in the global economy and views FTAs as an important part of its global trading strategy. The Chinese export industries are embedded in existing regional and global production networks and are reliant on foreign direct investment flows and external supplies of material and intermediate goods.3
Pakistan and China signed a free trade agreement on 24th November, 2006. This bilateral Free Trade Agreement covers Trade in Goods and Investments in the first Phase. Phase II starts from the sixth year of the entry into force of the agreement. Both the countries negotiated on Trade in Services during 2007 to enlarge the coverage of the Free Trade Agreement. The Early Harvest Program was initiated on 1st January 2006 which was later merged in to the bilateral FTA. In Phase-I of the FTA, tariffs are to be reduced over 5 years across different concessions with zero
1 2 3
See kawai, Wignaraja(2011) See Kawai, Wignaraja (2011)

See Zhang (2010)
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duty on almost 36% of the product lines within three years. The aim is to eliminate the tariffs of no less than 90% of products, both in terms of tariff lines and trade volume.
Pakistan gave market access to China mainly on machinery, organic, and inorganic chemicals, fruits & vegetables, medicaments and other raw materials for various industries including engineering sector, intermediary goods for engineering sectors, etc. Whereas, China eliminated tariffs on industrial alcohol, cotton fabrics, bed linen and other home textiles, marble and other tiles, leather articles leather articles, sports goods, mangoes, citrus fruit and other fruits and vegetables, iron and steel products and engineering goods. Products on which China reduced its tariff by 50% include fish, dairy sectors; frozen orange juice, plastic products, rubber products, leather products, knitwear, woven garments etc.
Policy making in connection with free trade agreements should start and end with impact assessment. After the FTA is implemented, an assessment of the FTAs actual versus projected impact is necessary for determining whether the FTAs objectives have been met and what adjustments are needed. There is dearth of proper know-how and wherewithal for conducting proper assessments of FTAs specifically in developing countries. Due to lack of resources, developing countries may either forgo these evaluations or rely on anecdotal observations and thus, fail to fully benefit from FTAs (Plummer et.al 2010). The purpose of this study is to present ex-post evaluation of Pakistan-China FTA and provide recommendations for trade negotiations in the Phase II. This study tries to investigate the impact of Pak-China FTA on the trade performance and export competitiveness of Pakistans exports in the Chinese market. Further, the effect of rapidly increasing imports from China on the domestic industry of Pakistan is also analyzed by conducting a survey of stakeholders.
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2. Objectives
In order to investigate the impact of Pak-China FTA at the sectoral level as well the effect of rapidly increasing imports from China on the domestic industry of Pakistan, an evaluation study is conducted. The broad objectives of the study are as follows: To assess the success or failure of the FTA in enhancing bilateral trade with China To identify further potential/opportunities (at product HS level 6) in the FTA for enhancing the market share of Pakistans exports in the Chinese market To assess the impact of Pak-China FTA on Pakistans domestic industry To capture the local industries awareness and perception of Pak-China FTA To analyze the utilization rate of the FTA and various causes To calculate the Revenue impact of the FTA To provide policy inputs to MOC for future bilateral trade negotiations with China
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3. Trade profiles
3.1. Chinas Trade Profile During the past decade, china has experienced massive growth in its exports making a global leader in exports. China had a share of 9.7% in world exports in 2009. China also ranked third in worlds total imports in 2009 with a share of 7.9%4. Chinas total exports in 2010 were valued at US$ 1578.284 billion compared to US$ 438.23 billion in 2003. Similarly, Chinas Imports in 2010 were valued at US$ 1394.291 billion rising from just US$ 412.75 billion in 2003. The above figures show the growth trend and potential of the Chinese economy. 3.1.1. Chinas Export Product Composition China specializes in the export of Electric, electronic equipment and Machinery, nuclear reactors, boilers etc (see figure 1). The share of electric, electronic equipment and machinery of chapter 85 has been rising persistently in Chinas total exports and currently account for 25% of total exports. The second top export category is machinery, nuclear reactors, boilers, etc of Chapter 84 which has a share of 20% in Chinas total exports. Chinas other major export commodities include Articles of apparel, accessories, knit or crochet, furniture, optical, iron ships and boats footwear and vehicle other than railway. Figure 1: Product Composition of China's Exports to the World
70% 60% 50% 40% 30% 20% 10% 0% Y2003 Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 Vehicles other than railway, tramway of Chapter'87 Footwear, gaiters and the like, parts thereof of Chapter'64 Ships, boats and other floating structures of Chapter'89 Articles of iron or steel of Chapter'73 Optical, photo, technical, medical, etc apparatus of Chapter'90 Furniture, lighting, signs, prefabricated buildings of Chapter'94 Articles of apparel, accessories, not knit or crochet of Chapter'62
Source: Authors own calculations based on Trade Map Data

4
Source for this data is ITC-Trade Map
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3.1.2. Geographical Composition of Chinas Exports Chinas leading exports destinations are US, Hong Kong, China and Japan, which absorb 40% of total exports of China (see figure 2). The export commodities to these countries mainly consist of electric, electronic equipment of Chapter 85, article of apparel of chapter 62 and machinery of chapter 84. In recent years, the shares of Hong Kong and Japan in Chinas Exports have experienced a decline (see figure 2).
Figure 2: Geographical Composition of China's Exports
80% 70% 60% 50% 40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009
France India Singapore United Kingdom Netherlands Germany Republic of Korea Japan Hong Kong, China United States of America
Source: Authors own calculations based on Trade Map data
3.1.3. Chinas Import product Composition Chinas total imports in 2009 were valued at US$ 1005.56 billion compared to US$ 412.23 billion in 2003. As Figure 3 depicts, Chinas major Import products comprise of Electric, electronic equipment of Chapter 85, mineral fuel of Chapter 27, and Machinery nuclear reactors of chapter 84, which had a combined share of 50% in total imports for the year 2009.
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Figure 3: Product Composition of China's Imports from the World

Iron and steel of chapter '72
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009
Vehicles other than railway, tramway of chapter '87 Copper and articles thereof of chapter '74 Organic chemicals of chapter '29 Plastics and articles thereof of chapter '39 Optical, photo, technical, medical, etc apparatus of chapter '90 Ores, slag and ash of chapter '26 Machinery, nuclear reactors, boilers, etc of chapter '84 Mineral fuels, oils, distillation products, etc of chapter '27 Electrical, electronic equipment of chapter '85
Source: Authors own calculations based on Trade Map Data
3.1.4 Geographical Composition of Chinas Imports China is importing almost 20% of its total imports from Japan and Korea followed by United States, Australia and other countries as shown in Figure 4. The two leading countries Japan and Korea mainly supply products in the category of machinery and electric, electronic equipment and mineral fuel, oils etc to the Chinese market. Figure 4: Geographical composition of China's Imports
70% 60% 50% 40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009
Thailand Brazil Malaysia Australia Germany United States of America Chinese Taipei China Republic of Korea Japan
Source: Authors own calculations based on Trade Map Data 17
3.2. Pakistans trade Profile Pakistans economy registered a trade deficit of US $ 14 billion in 2009 compared to US $ 9 billion in 2005. The trade figures for Pakistan have been fluctuating with exports reaching US $ 20.27 billion in 2008 and then dropping to US $ 17.55 billion in the year 2009. The imports also experienced a decline from US $ 42.32 billion in 2008 to US $ 31.58 billion in 20095.This low level of trade also stems from a half-century of protectionist policies and political-military tensions in the region (World Bank). Pakistans exports are also seen to be highly concentrated in a few sectors as majority of exports originate in the textiles and apparels sectors. Pakistans share in world exports is 0.1% (ranked 65) and share in world imports is 0.2% (ranked 58) for the year 2009. 3.2.1. Pakistans Export Product Composition A glance at Pakistans export product composition reveals the dominance of apparel products and cotton yarn in total exports of Pakistan (see figure 5). The leading export commodities for the year 2009 are also apparel products of chapter 63 with a share of 33 % and Cotton yarn of chapter 52 with a share of 18.25% in total exports followed by Rice with a share of 10.39% in total exports. Figure 5: Product Composition of Pakistans Exports to the World
Product Composition of Pakistan's Exports

80.00% 60.00% 40.00% 20.00% 0.00% 2003 HS52 Cotton HS10 Cereals 2004 2005 2006 2007 2008 2009
HS63 Other made textile articles, sets, worn clothing etc HS61 Articles of apparel, accessories, knit or crochet
HS62 Articles of apparel, accessories, not knit or crochet

HS42 Articles of leather, animal gut, harness, travel goods HS71 Pearls, precious stones, metals, coins, etc
HS27 Mineral fuels, oils, distillation products, etc

HS25 Salt, sulphur, earth, stone, plaster, lime and cement HS39 Plastics and articles thereof
Data Taken from ITC-Trade map
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EVALUATION OF PAKISTAN-CHINA FTA Source: Authors own calculations based on Trade Map data
Other export products include leather products of chapter 42 with a share of 3.2% and marble & cement (3.21%). Cement is a relatively new product in Pakistans export basket with exports commencing from the year 2005 onwards.
3.2.2. Geographical Composition of Exports Pakistans leading export destination is United States with a share of 18.35% in Pakistans total exports for the year 2009 (see figure 6). Pakistans export basket to the US is composed mainly of apparel products, cotton and leather products. The second leading export destination is United Arab Emirates followed by Turkey. China has a 5.6% share in Pakistans total exports dominated heavily by products of cotton yarn and leather hides. Figure 6: Geographical Composition of Pakistan's Exports
Geographical Composition of Pakistan's Exports

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 Bangladesh Netherlands Belgium Spain Turkey Saudi Arabia Italy Germany United Kingdom China Afghanistan United Arab Emirates
3.2.3. Pakistans Import product Composition Pakistans total imports were valued at US$ 31 billion in 2009 and comprised mainly of petroleum products with a very significant share of 28% in total imports. Other major imports included industrial machinery (9.8%) and electronic equipment (8.2%), iron and steel (5.3%) and organic chemicals (4.8%).
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Figure 7: Product Composition of Pakistans Imports from the World
Product Composition of Pakistan's Imports

80.00%
60.00%
40.00% 20.00% 0.00% 2003 2004 2005 2006 2007 2008 2009
HS27 Mineral fuels, oils, distillation products, etc HS85 Electrical, electronic equipment HS29 Organic chemicals
HS84 Machinery, nuclear reactors, boilers, etc HS72 Iron and steel HS15 Animal,vegetable fats and oils, cleavage products, etc
HS39 Plastics and articles thereof

HS31 Fertilizers
HS87 Vehicles other than railway, tramway

HS30 Pharmaceutical products
3.2.4. Geographical Composition of Pakistans Imports China is ranked as the top import partner with a share of 11.97% in Pakistans overall imports. Pakistan imports a wide range of manufactured items from China including electrical equipment and appliances, machinery, organic chemicals, manmade fibers and iron. Saudi Arabia is the second largest supplier for Pakistan with a share of 11.08% in total imports comprised of petroleum products. UAE with a share of 10% and Kuwait with a share of 5% in Pakistans import profile also supply petroleum products to Pakistan. The United States has a share of 5.7% in Pakistans total imports, supplying mostly Industrial machinery. Malaysia has a share of 5.09% and supplies mainly palm oil.
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Figure 8: Geographical Composition of Pakistan's Imports
Geographical Composition of Pakistan's Imports

70.00% 60.00% 50.00% 40.00% Iran (Islamic Republic of) India Germany Japan Malaysia United States of America Kuwait United Arab Emirates Saudi Arabia 0.00% 2003 2004 2005 2006 2007 2008 2009 China
30.00%
20.00% 10.00%
4. Pakistan and Chinas Tariff Profile

China is actively engaging itself in bilateral/regional free-trade agreements, although preferential margins provided by China are still small and trade with FTA partners still accounts for a minor share of its total trade. China's average applied MFN tariff was 9.6% in 2009, slightly lower than in 2007 (9.7%). Bound rates are close to the applied rates, giving the tariff a high degree of predictability. Nonetheless, the tariff could be complex, as, for example, the applied MFN tariff contains 60 different ad valorem rates6. A considerable variation in applied tariffs can be seen in case of Agriculture (15.6%) and Non-Agriculture (8.7%) sectors. Table 1: Tariff profiles of Pakistan and China
2009 Pakistan China Tariff Applied Simple average MFN applied Simple average MFN applied Total 13.9 9.6 Agriculture 17.1 15.6 Non-Agriculture 13.4 8.7
Source: WTO Tariff profiles
The tariff is Pakistan's main trade policy instrument and, despite widespread concessions, is an increasing source (about one fifth) of tax revenue, which is mainly to import growth. Almost all rates are ad valorem, which significantly enhances transparency. The average applied MFN tariff rate was reduced from 20.4% in 2001/02 to 13.9% in 2009. Since 2001/02, applied MFN tariffs
WTO Trade Policy review of China 2010
21
have declined most on agricultural products (WTO definition), falling continuously from 22.1% to 14.8% in 2007/08 but registered a rise in 2009 to 17.1% (13.4% on non-agricultural goods)7.
5. Pakistan-China Bilateral Trade profile

Pakistans exports to China have increased steadily from US $ 259 million in 2003 to US $ 1 billion in 2009. The average growth rate of exports to China during this period was registered at 25%. On the other hand imports from China have increased significantly from 2003 to 2008 periods, though witnessed a decline in 2009. The imports were valued at around US $ 1 billion in 2003, which rose to around US $ 3.7 billion in 2009 (See table 2).
Table 2: Pakistan-China Bilateral Trade 2003-2009

Pre EHP Markets Pakistan Exports to China Growth Pakistan Imports from China Growth -697.694 Trade deficit Source: Trade Map ITC ---Unit US$M 957.331 Year 2003 259.637 Year 2004 300.581 16% 1488.774 56% 1188.19 Year 2005 435.682 45% 2349.395 58% 1913.71 EHP Period Year 2006 506.642 16% 2914.926 24% 2408.284 FTA Period Year 2007 613.759 21% 4164.23 43% 3550.471 Year 2008 726.711 18% 4738.055 14% 4011.34 Year 2009 997.854 37% 3779.769 -20% 2781.915
China is the leading supplier for Pakistan with a share of 17% in total imports of Pakistan for the year 2009. Pakistan has a share of 0.1% in total imports of China, being the 4rth largest export destination for Pakistani products. 5.1. Product Composition of Pakistans Exports to China The product composition of Pakistans exports to China has remained the same over the last 6 to 7 years showing lack of export diversification in the Chinese market. Figure 9, shows that the major section of Exports is concentrated in Cotton products of Chapter 52, taking a share of around 70% in 2003 and reaching to more than 75% share in total exports of Pakistan to China in 2009. In second place is Ores, slag and ash of Chapter 26 with a share of around 10% in 2009 followed by salt, sulphur, earth, stone, plaster, lime stone and cement of chapter 25.
WTO Trade policy Review of Pakistan
22
Figure 9: Product Composition of Pakistan's Exports to China

100% 90% 80% 70% 60%
39 Plastics and articles thereof 63 Other made textile articles, sets, worn clothing etc 25 Salt, sulphur, earth, stone, plaster, lime and cement 84 Machinery, nuclear reactors, boilers, etc 29 Organic chemicals
50%
74 Copper and articles thereof
40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009
41 Raw hides and skins (other than furskins) and leather 03 Fish, crustaceans, molluscs, aquatic invertebrates nes 26 Ores, slag and ash 52 Cotton
5.2. Product Composition of Pakistans Imports from China China is the top Import partner of Pakistan with US $ 3.7 billion worth of imports in 2009. Nearly 60% of Imports from China are concentrated in Electrical and Electronic Equipment of Chapter 85 and Machinery, Nuclear Reactors of Chapter 84 (see figure 10). Other major products being imported from China include manmade staple fibers of Chapter 55 and Ships, boats and other floating structures of Chapter 89.
23
Figure 10: Product Composition of Pakistans Imports from China

100% 90% 80% 70% 60% 50% 73 Articles of iron or steel 40% 54 Manmade filaments 30% 29 Organic chemicals 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 84 Machinery, nuclear reactors, boilers, etc 85 Electrical, electronic equipment 89 Ships, boats and other floating structures 55 Manmade staple fibres 39 Plastics and articles thereof 38 Miscellaneous chemical products 72 Iron and steel
24
6. Tariff Liberalization program of Pakistan-China FTA

Chinas Free Trade agreements with developing economies tend to center upon the redu ction of tariffs and non-tariff barriers to trade due to their focus on market liberalization and facilitation of trade. However, agreements with developed economy partners, such as the China-New Zealand and China Singapore FTAs, extend to incorporate other policy and institutional issues, for example, intellectual property rights, transparency measures, quality assurance standards, and competition policy etc (Zyang 2010).
Pakistan- China Free Trade agreement (FTA) was signed in 2006. The Early Harvest Program (EHP) continued for a year and the FTA was implemented in 2007. The FTA has been active for about 4 years and tariffs are to be phased out till 2012. However, in 2011 mid-way negotiations are expected. Pakistan-China FTA is based on tariff reductions spread over various concessions categories. Table 3 and 4 present the Tariff reduction Modalities of Pakistan and China.
Table 3: Tariff Reduction Modality of China
Category No. I II III
Track
No. of Tariff Lines 2681 2604 604
% of Tariff lines at 8 digit 35.5% 34.5% 8%
Elimination of tariff (Three years) 0-5% ( five years ) Reduction on Margin of Preference of 50%( five years ) Reduction on Margin of Preference from 20% (five years) No Concession
IV
529
7%
1132
15%
25
Table 4: Tariff Reduction Modality of Pakistan
Category No.
Track
No. of Tariff Lines
% of Tariff lines at 8 digit
I II III
Elimination of tariff (Three years) 0-5% ( five years) Reduction on Margin of Preference from 50%( five years) Reduction on Margin of Preference from 20%( five years) No Concession Exclusion
2423 1338 157
35.6% 19.9% 2.0%
IV V VI
1768 1025 92
26.1% 15.0% 1.4%
26
7. Pre / Post FTA Analysis (Overall Trade Performance)

In this section we analyze the Pre and Post FTA trade performance across different concession categories. Further, we also examine the trade performance and contribution of different HS section in each Concession Categories in order to determine the relative performance of different product groups. Product level Top gainers and losers in exports to and Imports from China are also examined.
7.1. Trade Performance across different Concession Categories The tariff reduction modality of China covers a total of 7550 product lines at HS-8 digit with 1132 product lines falling in the No concessions list, which is 15% of the total product lines covered in the FTA. Looking at the overall distribution of concessions in the FTA we see the trade value coverage, rather than the product coverage which is significant in estimating the value of concessions exchanged. The methodology used is to consider all the negotiated products at HS-8 digit being traded bilaterally. The value is aggregated across all categories of products exchanged concessions and its share in total trade is estimated over the period 2005-2009. The estimates are derived using trade data from ITC-Trade Map. Post 2009 data is not available for all the products, so we have to rely on the data up to 2009 for analysis. 7.1.1. Pakistans Exports Performance across Different Concession Categories
The largest category of items liberalized by China was category-2 (0-5%: five years) accounting for 50 to 60% of total exports of Pakistan to China. Next in importance was the category-1 (Elimination of tariff: Three years) which accounts for 20-35% of total exports of Pakistan to China. Looking at the trend of last five years and specifically in the post FTA period from 2007 to 2009, we notice that export share of Category-1 products in Pakistans total exports to China has increased from 23% in 2005 to 36% in 2008 but a steep decline of 22% in export share of total exports to China was witnessed in 2009. The products in Category-2 have been the major gainers registering a share of 59% in total exports to China in 2009 from 48% in 2005. The export share of products in category-3 in total exports of Pakistan to China showed no
27
improvement. The products covered in Category-4 (Reduction on Margin of Preference from 20%: five years) have a negligible share in Pakistans total exports even in the Post FTA period. The number of Product lines on which China offered no concession (Category -5) constituted 15% of Pakistans total exports to China in the year 2005 and the share of these products has further declined to 6% in the year 2009 (See Table 5).
Table 5: Pakistan's Exports to China in Different Concession Categories and % Share in Total exports to China: 2005 to 2009
Export Values & % Share (US $ 000) Pre FTA Category CN Offer Cat.-1 (Elimination of tariff :Three years) CN Offer Cat.-2 (0-5%: five years ) CN Offer Cat.-3 (Reduction on Margin of Preference of 50% :five years ) CN Offer Cat.-4 (Reduction on Margin of Preference from 20% :five years) CN Offer Cat.-5 (No Concession) Others Grand Total
8
Post FTA Y2007 169181 28% 327614 53% 2214 0% 2020 0% 43277 7% 69451 11% 613757 Y2008 265839 36% 330116 45% 6987 1% 254 0% 51830 7% 77066 11% 732092 Y2009 217900 22% 579494 59% 4646 0% 1611 0% 60559 6% 119237 12% 983447
Y2005 98894 23% 210309 48% 823 0% 528 0% 67185 15% 57941 13% 435680
Y2006 92891 18% 315839 62% 1154 0% 344 0% 45058 9% 51358 10% 506644
7.1.2. Pakistans Import Performance across Different Concession Categories
The largest category of items liberalized by Pakistan was category-1 (Elimination of tariffs in 3 years) accounting for 30 to 40% of total imports of Pakistan from China. The second relevant is Category-2 (0-5% in 5 years) which accounts for 15-20% of total imports of Pakistan from China. Imports in all categories have increased in the year 2009 compared to their share in 2005 accept for Category-4 (Reduction on Margin of Preference from 20%: five years) which showed
8
The Free Trade Agreement between Pakistan and China was signed in 2006 based on HS codes of 2004-05. There was major HS code Revision in 2007 by World Custom Organization (WCO) because of which codes at even HS 6 digit got changed. The updated Information regarding HS codes covered under the FTA was taken from Chinas Ministry of Commerce website. Others include those products which are traded with China but could not be found in the FTA list. The detail of these products is given in the Annex
28
a decline from a share of 23% in 2005 to 20% in 2009(see table 6). Import share of products in the No concession category has also been rising persistently even in the absence of any tariff reduction. However, the share of Pakistans export products in the no concession category in Pakistans total exports to China has declined by more than half (see table 6).
Table 6: Pakistans Imports from China in Different Concession Categories and % Share in Total Imports from China: 2005 to 2009
Import Values & % Share (US $ 000) Pre FTA Category PK Offer Cat.-1 (Elimination of tariff :Three years) PK Offer Cat.-2 (0-5%:five years) PK Offer Cat.-3 (Reduction on Margin of Preference from 50%:five years) PK Offer Cat.-4 (Reduction on Margin of Preference from 20%:five years) PK Offer Cat.-5 (No Concession) PK Offer Cat.-6 (Exclusion) Others Grand Total
9
Post FTA Y2007 1296249 31% 927611 22% 65267 2% 771738 19% 608510 15% 1476 0% 493359 12% 4164210 Y2008 1839579 39% 753961 16% 125951 3% 1001297 21% 650943 14% 709 0% 316563 7% 4689003 Y2009 1410790 37% 652808 17% 105937 3% 763423 20% 633460 17% 1440 0% 241338 6% 3809196
Y2005 787881 34% 321969 14% 20674 1% 543839 23% 319023 14% 1341 0% 354638 15% 2349365
Y2006 976165 33% 526537 18% 22643 1% 540112 19% 427628 15% 1863 0% 419935 14% 2914883
7.2. Trade Performance across Different Concession Categories by HS section We have seen how Pakistans Exports to China and Imports from China have increased across different concession categories since 2005. We will now analyze the distribution of export and
The Free Trade Agreement between Pakistan and China was signed in 2006 based on HS codes of 2004-05. A major HS code Revision took place in 2007 by World Custom Organization (WCO) because of which codes at even HS 6 digit got changed. The updated Information regarding HS codes covered under the FTA was taken from latest version of Pak-China FTA SRO from Pakistan Ministry of Commerce. Others include those products which are traded with China but could not be found in the SRO list. The detail of these products is given in the Annex)
29
Import share in each concession category across different HS sections. The analysis would highlight major HS sections in 2009 as compared to their share in each category in 2005.
7.2.1. Import Performance in different Categories by HS sections
The Imports of products under zero duty category has increased rapidly from US $ 787 million 2005 to US $ 1.4 billion in 2009. The share of Machinery and Mechanical Appliances (Section XVI) under the category had increased from 51% in 2005 to 59% in 2009 (see Table 7). The other major section in this category are Products of the Chemical or Allied Industries (Section VI) having a share of 20% in 2009 within the category compared to 15% in 2005.
Table 7: Pakistans Imports of products Under Category-1 (Elimination of tariff: Three years) by HS Section Classification
HS
Sections
Import Value in 2005 400359 119462
Import Value in 2009 834672 275715
% Share in 2005 51% 15%
% share in 2009 59% 20%
XVI VI
Machinery and Mechanical Appliances Products of the Chemical or Allied Industries Vehicles, Aircraft, Vessels and Associated Transport Equipment Plastics and Articles thereof; Rubber and Articles Thereof Base Metals And Articles or Base Metals Vegetable Products Optical, Photographic, Cinematographer, Measuring, Checking, Precision, Medical Or Surgical Instruments And Apparatus; Clocks And Watches, Musical Instruments; Parts And Accessories Thereof.
XVIII
48018
89194
6%
6%
VII XV II
59265 32164 28931
65911 41042 43137
8% 4% 4%
5% 3% 3%
XVII
21896
35719
3%
3%
Source: Authors own calculations based on Trade Map data (Values in US $ 000)
The Imports of products under the Category-2(0-5%: Five years) have increased from a value of US $ 321 m in 2005 to US $ 652 million in 2009 registering an increase of 100%. The two most important groups of products Imported under this category in 2009 were Machinery and
30
Mechanical Appliances (Section XVI), whose share doubled from 15% in 2005 to 30% in 2009, and the second place was taken by Products of the Chemical or Allied Industries (Section VI) gaining in terms of Value but declined in terms of Import share within the category (see table 88). Base Metals and Articles or Base Metals (Section XV) came up as the third major Import product group in Category-2 taking a share of 14 % in 2009 from a meager 3% in 2005.
Table 8: Pakistans Imports of products Under Category-2 (0-5%: five years) by HS Section Classification
HS XVI VI XV XI II XX VII Sections Machinery and Mechanical Appliances Products of the Chemical or Allied Industries Base Metals And Articles or Base Metals Textile and Textile Articles Vegetable Products Miscellaneous Manufactured Articles Plastics and Articles thereof; Rubber and Articles Thereof Import Value in 2005 46951 142856 10405 18382 43476 22194 10763 Import Value in 2009 193047 147752 90475 57854 61447 37080 18147 % Share in 2005 15% 44% 3% 6% 14% 7% 3% % share in 2009 30% 23% 14% 9% 9% 6% 3%
Under category-3 (Reduction on margin of Preference from 50%: five years) the imports from China increased to US $ 105 million in 2009 from a value of US $ 20 million in 2005. The major share holder in this category were Machinery and Mechanical Appliances (Section XVI) which registered a very steep increase in import share within the category from 1% in 2005 going to 38% in 2009 followed by Products of the Chemical or Allied Industries (Section VI) 28%, Articles of Stones, Plaster, Cement. Asbestos, MICA or Similar Materials, Ceramic Products, Glass and Glass Ware (section XIII) 19% and Textiles And Textile Articles (Section XI) 10% (see Table 9).
Table 9: Pakistans Imports of products Under Category-3 (Reduction on Margin of Preference from 50%: five years)
HS XVI VI Sections Machinery and Mechanical Appliances Products of the Chemical or Allied Industries Import Value in 2005 120 12969 Import Value in 2009 39889 29460 % Share in 2005 1% 63% % Share in 2009 38% 28%
31
XIII XI VII X
Articles of Stones, Plaster, Cement. Asbestos, MICA Or Similar Materials; Ceramic Products; Glass And Glass Ware. Textiles And Textile Articles Plastics and Articles thereof; Rubber and Articles Thereof Pulp Of Wood Or Of Other Fibrous Cellulosic Material; Waste And Scrap Of Paper F Paperboard; Paper And Paperboard And Articles Thereof
6707 217 200 199
19929 10121 3323 1470
32% 1% 1% 1%
19% 10% 3% 1%
The import value of products in category-4 (Reduction on Margin of Preference from 20%: five years) has increased from US $ 543 million in 2005 to US $763 million in 2009. In Category -4, Machinery and Mechanical Appliances (Section XVI) accounts for more than 40% of imports followed by Base Metals and Articles or Base Metals (Section XV) whose share increased to 18% in 2009 compared to only 9% in 2005 and Textiles And Textile Articles (Section XI) with 14% import share in 2009 (see table 10).
Table 10: Pakistans Imports of products Under Category-4 (Reduction on Margin of Preference from 20%: five years) by HS Section Classification
Import Value in 2005 Import Value in 2009 % Share in 2005 % share in 2009
HS
Sections
XVI XV XI VII XX VI
Machinery and Mechanical Appliances Base Metals And Articles or Base Metals Textiles And Textile Articles Plastics and Articles thereof; Rubber and Articles Thereof Miscellaneous Manufactured Articles Products of the Chemical or Allied Industries Pulp Of Wood Or Of Other Fibrous Cellulosic Material; Waste And Scrap Of Paper F Paperboard; Paper And Paperboard And Articles Thereof
230879 48819 81308 17417 24487 19685
316102 133899 106487 35228 34336 30731
42% 9% 15% 3% 5% 4%
41% 18% 14% 5% 4% 4%
6932
33500
1%
4%
IV
Prepared Food Stuff; Beverages, Spirits And Vinegar; Tobacco And Manufactured; Tobacco substitutes
84032
19623
15%
3%
Source: Authors own calculations based on Trade Map data (Values in US $ 000) 32
The Imports coming from China have been persistently increasing over the past years and even in the No Concession category Imports have gone up from US $ 319 million in 2005 to US $ 633 million in 2009 increasing 100%. The top product groups in this category are Textiles and Textile Articles (Section XI) with a share of 34% and Mechanical Appliances (Section XVI) with share of 19% in 2009 (see table 11).
Table 11: Pakistans Imports of products Under Category-5 (No Concession) by HS Section Classification
Import Value in 2005 Import Value in 2009 % Share in 2005 % share in 2009
HS
Sections
XI XVI VI
Textiles And Textile Articles Machinery and Mechanical Appliances Products of the Chemical or Allied Industries
61177 75797 38407
217024 118853 69164
19% 24% 12%
34% 19% 11%
XVIII
Vehicles, Aircraft, Vessels and Associated Transport Equipment
32320
62150
10%
10%
VII XV
Plastics and Articles thereof; Rubber and Articles Thereof Base Metals And Articles or Base Metals Articles of Stones, Plaster, Cement. Asbestos, MICA Or Similar Materials; Ceramic Products; Glass And Glass Ware.
43020 18232
45204 41733
13% 6%
7% 7%
XIII
35047
37436
11%
6%
XII
Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking Sticks. Seat Sticks, Whips, Riding-Crop And Parts Thereof; Prepared Feathers And Articles made therewith; Artificial Flowers; Articles Of human Hair.
6617
24260
2%
4%
7.2.2. Export Performance in Different Categories by HS sections
If we look at the export performance of Pakistan in Different Concession categories by classification of HS sections the major product group overall is Textiles and Textile Articles
33
(Section XI). In case of category-1 (Elimination of tariff: Three years) Pakistans exports to China have increased from US $ 98 million to US $ 217 million in 2009. The top product group within this category is Textiles and Textile Articles (Section XI) with a share of 43% in 2009. Although the share has declined relative to 60% share in 2005 but volume of exports have registered an increase (see table 12). The share has somewhat shifted to Mineral products (Section V) whose share went up from 27% in 2005 to 39% in 2009.
Table 12: Pakistans Exports of Products under Category-1 (Elimination of tariff: Three years) by HS Section Classification
HS 11 05 15 04 Sections Textiles And Textile Articles Mineral Products Base Metals And Articles or Base Metals Prepared Food Stuff; Beverages, Spirits And Vinegar; Tobacco And Manufactured; Tobacco substitutes Optical, Photographic, Cinematographer, Measuring, Checking, Precision, Medical Or Surgical Instruments And Apparatus; Clocks And Watches, Musical Instruments; Parts And Accessories Thereof. Export Value in 2005 59692 26810 6101 88 Export Value in 2009 94212 84755 23609 7080 % Share in Year 2005 60% 27% 6% 0% % Share in Year 2009 43% 39% 11% 3%
17
1465
3128
1%
1%
The exports of products covered in Category-2 (0-5%: five years) increased from US $ 210 million in 2005 to US $ 579 million in 2009. Textiles And Textile Articles (Section XI) is the only major product group taking a share of 98% in 2009. The export value for this product group has increased from US $ 204 million in 2005 to US $ 569 million in 2009.
Table 13: Pakistans Exports of Products under Category-2 (0-5%: five years) by HS Section Classification
HS XI VII Sections Textiles And Textile Articles Plastics and Articles thereof; Rubber and Articles Thereof Export Value in 2005 204911 1470 Export Value in 2009 569579 7257 % Share in Year 2005 97% 1% % Share in Year 2009 98% 1%
34
Similar situation can be seen in category-3 (Reduction on Margin of Preference of 50%: five years ) where Textiles And Textile Articles (Section XI) takes 97% of the Export Share in 2009 from only having 30% in 2005. The total exports in this category were valued at US $ 46 million in 2009 rising from US $ 823000.
Table 14: Pakistans Exports of Products under Category-3 (Reduction on Margin of Preference of 50%: five years) by HS Section Classification
HS XI I Sections Textiles And Textile Articles Live Animals; Animals Products Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking Sticks. Seat Sticks, Whips, Riding-Crop And Parts Thereof; Prepared Feathers And Articles made therewith; Artificial Flowers; Articles Of human Hair. Articles of Stones, Plaster, Cement. Asbestos, MICA Or Similar Materials; Ceramic Products; Glass And Glass Ware Export Value in 2005 247 164 Export Value in 2009 4502 93 % Share in Year 2005 30% 20% % Share in Year 2009 97% 2%
XII
178
15
22%
0%
XIII
150
10
18%
0%
In Category-4 (Reduction on Margin of Preference from 20%: Five years) the export performance has not been significant. The exports in this Category were valued at US $ 1611000 in 2009 compared to a value of US $ 528000 in 2005. Articles of Stones, Plaster, Cement. Asbestos, MICA Or Similar Materials; Ceramic Products; Glass And Glass Ware (Section XIII) is the most Dominant product group in this Category having a share of 81% in 2009 compared to only 1% in 2005. The product groups which lost their share are Textiles and Textile Articles (section XI), Base Metals and Articles or Base Metals (section XV) and raw Hide and Skins (Section VIII).
35
EVALUATION OF PAKISTAN-CHINA FTA Table 15: Pakistans Exports of Products under Category-4 (Reduction on Margin of Preference from 20%: Five years) by HS Section Classification
HS Sections Export Value in 2005 Export Value in 2009 % Share in Year 2005 1% 46% 14% % Share in Year 2009 81% 7% 4%
13 11 15
Articles of Stones, Plaster, Cement. Asbestos, MICA Or Similar Materials; Ceramic Products; Glass And Glass Ware. Textiles And Textile Articles Base Metals And Articles or Base Metals Raw Hide And Skins, Leather, Fur skins And Articles Thereof; Saddlery And Harness; Travel Goods. Handbags And Similar Containers; Articles Of Animal Guts(Other Than Silk Worm Gut)
4 245 74
1305 115 57
08
202
61
38%
4%
The Export of products in the No Concession category were valued at US $ 60 million in 2009 falling from a value of US $ 67 million in 2005. With a share of 45% of exports within this product group Raw Hide And Skins (Section VIII) takes the top place followed by Products of the Chemical or Allied Industries(section VI) 23% and Live Animals; Animals Products (section I) 19%.
Table 16: Pakistans Exports of Products under Category-5 (No Concession) by HS Section Classification
HS Sections Export Value in 2005 Export Value in 2009 % Share in Year 2005 % Share in Year 2009
08
Raw Hide And Skins, Leather, Fur skins And Articles Thereof; Saddlery And Harness; Travel Goods. Handbags And Similar Containers; Articles Of Animal Guts(Other Than Silk Worm Gut) Products of the Chemical or Allied Industries. Live Animals; Animals Products Textiles And Textile Articles Vegetable Products
11821
27150
18%
45%
06 01 11 02
47435 1752 4751 482
14113 11576 4787 2713
71% 3% 7% 1%
23% 19% 8% 4%
36
7.3. Trade Performance at Product level In order to analyze trade performance at the product level we take top 20 Export products in each concession category. It is interesting to see that these Top 20 products take a share of more than 70% in total Exports of that Category (see table 17). These Top 20 Products are ranked on the basis of highest Export value in 2009.
Table 17: Top 20 Export products in Each Concession Category: Export value and % Share
Category CN Offer Cat.-1 (Elimination of tariff :Three years) CN Offer Cat.-2 (0-5%: five years ) CN Offer Cat.-3 (Reduction on Margin of Preference of 50% :five years ) CN Offer Cat.-4 (Reduction on Margin of Preference from 20% :five years) CN Offer Cat.-5 (No Concession) Others Y2005 38556 39% 185161 88% 5 1% 0 0% 12786 19% 2928 5% Y2006 59298 64% 296220 94% 12 1% 0 0% 23494 52% 10340 20% Y2007 125791 74% 295787 90% 1204 54% 639 32% 29461 68% 28752 41% Y2008 233725 88% 323931 98% 6645 95% 16 6% 45841 88% 60512 79% Y2009 189194 87% 570918 99% 4626 100% 1407 87% 46332 77% 106670 89%
Similar methodology has been adopted for analyzing the Imports from China and Top 20 import products were selected on the basis of highest Import value in the year 2009. The share of these top 20 products in total imports of that category ranges from 5 to 35% (see table 18). This shows that there is more variation in import products as compared to our Exports which are more concentrated in a few product lines.
37
EVALUATION OF PAKISTAN-CHINA FTA Table 18: Top 20 Import Products in Each Concession Category: Import value and % Share
Category PK Offer Cat.-1 (Elimination of tariff :Three years) PK Offer Cat.-2 (0-5%:five years) PK Offer Cat.-3 (Reduction on Margin of Preference from 50%:five years) PK Offer Cat.-4 (Reduction on Margin of Preference from 20%:five years) PK Offer Cat.-5 (No Concession) PK Offer Cat.-6 (Exclusion) Others Y2005 85411 33% 52025 20% 6696 3% 33602 13% 80347 31% 429 0.2% 0 0% Y2006 127337 30% 87008 21% 11029 3% 65336 16% 129758 31% 329 0.1% 0 0% Y2007 328510 36% 163900 18% 46522 5% 115597 13% 211669 23% 633 0.1% 34235 4% Y2008 640798 38% 227587 14% 104899 6% 285799 17% 280948 17% 638 0.0% 125848 8% Y2009 558752 33% 315864 19% 89721 5% 241463 14% 324966 19% 1418 0.1% 143886 9%
7.3.1. Overall Top 20 Loser and Gainers in Exports at HS 8 digit
The top 20 products of Pakistan to China at HS 8 level whose exports increased in the post FTA period are given in Table (see Annexure Table 13.1). The total export value of these 20 products stands at US $ 763 million which constitutes 76% of Pakistans total exports to China in the year 2009. Of these 20 products, 13 are cotton products falling under chapter 52. For example, Uncombed cabled cotton yarn has witnessed a steep rise in value rising from US $ 23 million in 2005 to US $ 264 in 2009. Second is uncombed single cotton yarn which values at US $ 127 million in 2009 when compared to US $ 108 million in 2005. Next is the Chromium ores and concentrates of chapter 26 which is valued at US $ 70 million in 2009 as against the value of US $ 25 million in 2005. Other distinct products which make the top 20 list are; Fish prepared or preserved and fish fillet of chapter 16, Copper wire of chapter74, Frozen flat fish of chapter 03, Waste, Parings and Scrap, of Plastics of chapter 39, Marble and travertine of chapter 25,
38
The export products of Pakistan which have lost their market share in China in the post FTA period are given in table (See Annexure Table 13.2). The products which had the highest export value in the year 2005 and now have registered a decline in export value in the year 2005 have been selected. The leading losers in terms of value are; Terepthalic acid of chapter 29 which has lowered to 10 million dollars in 2009 as against the value of US $ 47 million in 2005. Of these products, 10 cotton products of chapter 52 have witnessed a loss in terms of value which suggests that there may have been product diversion within chapter 52 where some products at HS-8 level have gained and others have lost their market share in post FTA phase.
7.3.2. Overall Top 20 Loser and Gainers in Imports at HS 8 digit The top 20 import products of Pakistan from China at HS 8 level whos Imports have increased in the post FTA period are given in table (See Annexure Table 13.3). The overall import of these top 20 products at HS-8 level has increased from US $ 126 million in 2005 to US $ 1.1 billion in 2009 making up to 29 % of total imports from China. Telephone sets, including telephones for cellular networks or for other wireless networks: Cellular mobile phone; of chapter 85 is the leading import product under the FTA valuing at US $ 139 million in 2009 as against no import in 2005. The second product in the top 20 is also Telephone sets, including telephones for cellular networks other apparatus of chapter 85 registering import value of 129 million dollar in 2009 from no imports in 2005. Third in place is Electric generating sets and rotary converters of chapter 85 valuing at US $ 119 million in 2009 as against US $ 1.1 million in 2005 showing increase of more than 100 times. Other products include; Electric and Electronic products of chapter 85, Synthetic filament yarn of chapter 54, Polyesters not exceeding 2.22 decitex of chapter 55, Light-vessels, fire-floats, dredgers, floating cranes of chapter 89, Other pneum tyre rubber for bus of chapter 40, Other pneum tyre rubber for bus Ingredients for pesticides of chapter 29, Onions, shallots, garlic, leeks& alliaceous vegetables, of chapter 07, Machines and mechanical appliances nes. Other of chapter 84, Ginger of chapter 09, Other, antibiotics of chapter 29
39
7.4.Concession Category Wise Analysis of Top 20 Export and Import Gainers 7.4.1. Export Gainers in Each Category
Analyses of MFN tariffs, tariff concessions under EHP and FTA phase, current tariffs and value of top 20 exporting products at HS 8 digit of Pakistan in different categories is given in Table (See Annexure Table 14 to onwards).
Under Category 1, Chromium ores and concentrates of chapter 26 registered highest growth with an export value of US $ 70 million in 2009 as against the value of US $ 25 million in 2005. Unbleached thread twill from chapter 52 is valued second best at US $ 21 million in 2009 while it was not traded before the FTA.
In Category 2, the top 6 best performing products come from chapter 52 valuing at nearly US $ 555 million dollar in 2009 which make up half of the total Pakistani exports to China in 2009. It may be noted that in 2005, the combined value of these 6 items from chapter 52 were valued at merely US $ 184 million.
In Category 3, the top 4 positions are captured by the new entrants in post FTA period valuing at around US $ 5 million in 2009. This is a very modest gain when compared to gains accrued in category 2. The new entrants are Sacks and bags of polyethylene of chapter 63, Mussels frozen dry of chapter 03, Mens and boy trousers of chapter 61, and Dry wood ears of chapter 07.
Under Category 4, Articles containing magnesite of chapter 68 registered highest growth valuing at 1.2 million dollars in 2009 while there were no exports of this product before FTA period.
In Category 5, the top export product is leather prepared after tane of chapter 41 which is valued at around 9.7 million dollar in 2009. Two Leather products of chapter 41 have registered increase in exports valuing at US $ 9 million each in 2009 whereas their exports were to the tune
40
of US $ 0.39 million in 2005. Frozen flat fish of chapter 03 has witnessed a rise in value to 9.5 million dollar in 2009 against the value of US $ 1.7 million in 2005.
7.4.2. Import Gainers in Each category Analyses of MFN tariffs, tariff concessions under EHP and FTA phase, current tariffs and value of top 20 importing products of Pakistan from China at HS-8 level in different categories are given in Table (See Annexure Table 14 to onwards).
In Category 1, the highest gain is observed in products related to electric and electronic equipment of chapter 85. The top two products of this category are cellular mobile phones of Chapter 85 and Telephone sets, including telephones for cellular networks or for other wireless networks as their combined Imports registered a value of US $ 268 million in 2009. Secondly, under Category-1 parts of nuclear reactors and other 4 products of chapter 84 which were not imported into Pakistan in 2005 are now imported at combined value of nearly 101 million dollar.
Under Category 2, top 2 import products from China are from electric and electronic products of chapter 85 valuing at 111 million dollars. Telephone sets, including telephones for cellular networks or for other wireless networks of Chapter 85 and Medicaments of Chapter 30 are the highest valued imports in Category 3 valuing at US $ 34 million and US $ 10 million respectively. In Category 4, imports of electric and electronic products of chapter 85 increased to US $ 110 million from US $ 8 million in 2005.Heat recovery steam generators of chapter 84 were also imported in Pakistan in post FTA period as against no imports before the FTA. Polyesters of chapter 54 make the top import product of Pakistan from China under Category 5, where no tariff concessions were given. The value of the product stands at US $ 73 million in 2009 as against US $ 9 million 2005 respectively.
41
8. Analysis of Significant Chapters in Pakistan Exports and Imports

8.1. HS 52 Cotton Chinas export industries are embedded in existing regional and global production networks and are reliant on foreign direct investment flows and external supplies of material and intermediate goods. Pakistans Exports to China are to a very large extent concentrated in the Cotton products of Chapter 52 (Zhang 2010). Pakistan was Chinas second largest supplier of Cotton products having a share of 14.9% in Chinas total Imports of HS 52 in 2008 (see table 18). However, Pakistans share declined in 2010 to 10.2% and India doubled its Share to 20.2% in 2010 taking the position of the largest supplier in Chinese market. The second place is taken by US with a share of 19.3% in Chinas total imports of Chapter 52.
Table 19: HS 52 Top Importers in the Chinese Market: Import Value and % Share in Total Imports of China
2003 World India US China Pakistan Uzbekistan 4649522 126910 2.7% 667075 14.3% 1072723 23.1% 453133 9.7% 157578 3.4% 2004 6897905 240547 3.5% 1775544 25.7% 1084913 15.7% 451383 6.5% 326886 4.7% 2005 7077507 274963 3.9% 1476342 20.9% 1227360 17.3% 580776 8.2% 379573 5.4% 2006 9109381 905261 9.9% 2300476 25.3% 1430785 15.7% 708295 7.8% 494097 5.4% 2007 7718195 1014762 13.1% 1615732 20.9% 1477178 19.1% 733787 9.5% 298408 3.9% 2008 7444854 1130399 15.2% 1668172 22.4% 1434275 19.3% 598644 8% 274161 3.7% 2009 6180050 642191 10.4% 880732 14.3% 1339631 21.7% 919284 14.9% 184515 3% 2010 10618329 2150039 20.2% 2044203 19.3% 1452100 13.7% 1087609 10.2% 772547 7.3%
42
8.2. HS 85 Pakistans Major Import Pakistans top Import product group from China is HS 85 having a share of almost 35% in Pakistans total imports from China. Pakistans total imports from the world stood at 669 million dollars in 2003 and increased to 2.6 billion in 2009. China maintained its place as the top supplier in high tech products within this product group consistently and since 2005 China has more than doubled its share to 37.8% in 2009.
Table 20: HS 85 Top Importers in the Pakistani Market: Import Value and % Share in Total Imports of Pakistan 2003 2004 2005 2006 2007 2008 2009 669600 1025284 2519999 3081303 3448241 121995 221775 428922 568060 1066856 18.2% 21.6% 17% 18.4% 30.9% 25914 62517 277467 376556 322502 Finland 3.9% 6.1% 11% 12.2% 9.4% 65681 81071 264490 363494 351409 Germany 9.8% 7.9% 10.5% 11.8% 10.2% 148047 236988 243984 253220 United States of America 62344 9.3% 14.4% 9.4% 7.9% 7.3 44852 40236 83246 87116 81423 United Kingdom 6.7% 3.9% 3.3% 2.8% 2.4% Source: Authors own calculations based on Trade Map data (Values in US $ 000) World China 3782307 1391957 36.8% 188371 5.0% 441960 11.7% 190182 5.0% 162628 4.3% 2618841 989658 37.8% 372284 14.2% 316664 12.1% 133012 5.1 106383 4.1%
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9. Pak-China FTA Utilization Analysis

Governments negotiate and sign FTAs in order to provide a better environment for business and the greater the rate at which firms utilize FTAs, the greater the benefits that can be realized. In order to gauge the attractiveness of a preferential regime relative to MFN treatment we can compute the utilization rate, which shows the degree to which preference-eligible dutiable imports enter under preferential rather than MFN tariffs. The higher the utilization rate, the more preference-eligible imports actually enter under preferential rather than MFN tariffs. A higher utilization rate also implies that the compliance costs of rules of origin are less of a constraint10.
The formula for the utilization rate is:
Where: i is a tariff line Mi is the value of total exports Ui M is the value of exports that actually utilized the FTAs preferential rate in the tariff line i P is the set of all dutiable tariff lines that are eligible for preferences under the FTA 9.1. Overall Utilization Rate Based on the Utilization Rate formula discussed above we compute the overall utilization of Pakistan -China FTA by Pakistani exporters only as data for the Chinese side is not available. The data is taken from The Trade Development Authority of Pakistan (TDAP) which is the competent authority for issuing Certificate of Origin.
10
See Cheong (2010)
44
Results suggest that Pakistan China FTA is most utilized among all other Free trade agreements and preferential trade agreements of Pakistan. The utilization rate was 53.4% in FY2008-09, which decreased to 48.7% in FY2009-10 (see table 21). Trade Development Authority of Pakistan issued 7185 certificate of origin (COO) in FY 2008-09 which further increased to 8085 certificates in 2009-10. This shows an increasing trend in the utilization of Pakistan-China FTA.
Table 21: Pakistan-China FTA Overall Utilization Rate

2008-09 Agreements Country Export under Agreement Pak-China FTA Total Export to China Utilization Rate No's of COO 7185 Value $ 000 372,153 2009-10 No's of COO 8085 Value $ 000 561,179
697,388 53.4%
1,152,232 48.7%
Source: Authors Own calculation based on data from Federal Bureau of Statistics, Trade Development Authority of Pakistan, Trading Economics
According to the results of the study conducted by Asian development bank in 2010 titled The Impact of Free Trade Agreements on Business Activity: A Survey of firms in the Peoples Republic of China11, the ASEAN-China CECA was by far the most popular agreement with a utilization rate of 65.7%. The China-Hong Kong, China CEPA had the second highest usage rate at 46.1% (47 firms), followed by the China -Chile FTA (32.4%) and Pakistan-China FTA (21.6%). Among prospective users, 22.1% of responding firms anticipated using the ASEANChina CECA in the future; 16.4% planned to use the China-New Zealand FTA; 14.2% planned to use the China-Hong Kong, China CEPA; and 13.7% planned to use the China-Pakistan FTA (see table 22).
The lower number of firms that used or planned to use either the China-Chile or China-Pakistan FTAs may reflect the fact Chile and Pakistan do not constitute significant markets for firms
11
This study has analyzed data from interviews undertaken with 232 firms that were randomly selected to cover a range of businesses, representative in terms of size, ownership, age, industry, and location. The selected firms were all characterized by high or relatively high dependence on export markets for their products. 45
exports at this time. Although FTAs have become an important part of Chinas trade and economic policies and China plans to take part in more FTAs in the future.
Table 22: Utilization rate by Free Trade Agreements of China

Use Agreement Signed or in Effect AEAN-PRC CECA PRC-Hong Kong, China China-Chile FTA China-Pakistan FTA China New Zealand FTA China-Macau, China CEPA 67 47 33 22 15 15 65.7 46.1 32.4 21.6 14.7 14.7 50 32 28 31 37 25 22.1 14.2 12.4 13.7 16.4 11.1 Number of firms Share of FTA user, % (n=102) Plan to Use Number of firms Share of Respondents% (n=226)
Source: ADBI Working Paper Series, The Impact of Free Trade Agreements on Business Activity: A Survey of Firms in the People's Republic of China, Yunling Zhang, 2010
9.2. Utilization Rate of Pak-China FTA (HS 4-digit level) In order to analyze the utilization of Pakistan-China FTA at the product level we calculate the utilization rate at HS 4 level. A more disaggregated analysis could not be done as data maintained by TDAP is at HS-4 digit only. Table 23 presents utilization rate of 18 products out of which Cotton products take the top rank with a utilization rate of 70%, this further highlights the massive surge in exports of Cotton Products to China (section 3 presents a detail analysis of the export performance) . Other product categories include Guargum (69%), Copper wire (66%), Salt (59%), Herbs (44%) and Marble (36%). Products with very low utilization rates i-e, 5% or below include Towel 5%, Fishmeal (3%), Gryfabric (2%), Cotton Fabrics (0%) and Handicrafts (0%).
46
EVALUATION OF PAKISTAN-CHINA FTA Table 23: Utilization Rate of Pak-China FTA 2009-10 (HS 4-digit level) S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. HS CODE 5205 1302 7408 2501 1211 6802 5102 2917 2301 7615 1006 2619 8212 6302 0305 5209 5208 2515 PRODUCT COTTONYARN GUARGUM COPPERWIRE SALT HERBS MARBLE GOATHAIR ACID FISHMEAL KITCHENWARE RICE MILLSCALE BLADES TOWEL FISHMEAL GRYFABRICS COTTONFABRICS HANDICRAFT No of Exports COO Under FTA 6619 443,583,693 111 4,042,653 24 6,559,690 28 23 25 8 1 4 2 2 9 3 4 1 8 1 1 113,565 236,079 587,744 55,851 983,572 969,371 7,676 54,400 891,973 193,510 348,415 328,483 756,395 53,074 Total Exports 629426562.2 5832855.568 9937602.432 193152.3585 535057.6596 1636187.014 173807.3244 3441127.566 3746953.127 53529.60458 413885.9918 7458613.189 1680383.802 7646175.393 10073482.52 36093435.44 20672761.41 Utilization Rate 70% 69% 66% 59% 44% 36% 32% 29% 26% 14% 13% 12% 12% 5% 3% 2% 0% 0%
15342399.95 11,350 Source: Calculations based on data from FBS and TDAP
47
10.
Revenue Impact of Pakistan-China FTA
There might often be a disagreement on the impact of eliminating or reducing tariffs and the desirability of an FTA. As business and industrial sector is usually interested in the impact on the level of domestic production and the impact on trade volume is sometimes emphasized by policy makers and researchers. However, customs officials major concern is the FTAs impact on tariff revenue. In this section we estimate the Cost of Pakistan-China in terms of Revenue forgone due to tariff elimination and/or reduction. Cost of Exemption estimates in figure 11 indicates the loss of Customs duty (or amount of revenue forgone) as result of implementation of Pak-China FTA, since 2006 (right after coming into force of this agreement).12
Figure 11: Revenue Impact/Cost of Exemption of Pakistan-China FTA
Cost of Exemption (In Million PKR)

7000 6,142 6000 5000 4000 3000 2000 1,104 1000 139 0 2006-07 (EHP/PTA) 139 2007-08 (FTA) 1,104 2008-09 (FTA) 1,940 2009-10 (FTA) 6,142 1,940
Cost of Exemption (In Million PKR)
Source: FBR/Customs
12
The estimation does not include the loss of revenue on account of other duty and taxes collected at import stage (i.e. Sales Tax, FED, withholding tax etc).
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The revenue loss incurred to Pakistan due to exemptions offered to Chinese products in post FTA period was to the tune of 139 million rupees in 2006-07 during EHP period which increased to a staggering figure of 6.1 billion rupees in 2009-10 (see figure 11).
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11.
Pakistans Export Competitiveness and Potential in China
In this section we make use of trade indicators13 to draw specific inferences about the possible effects of Pakistan-China FTA on Pakistans export competitiveness and put forth further areas of export potential in the Chinese market. The analysis focuses on answering questions like, Is there Intra industry trade between Pakistan and China? What has been the trend of comparative advantage of Pakistans export products in the Chinese market? What is the competitive positioning of different products in the Chinese market? And what are the products in which there lies export potential in the Chinese market? The main advantage of using this methodology is that the data requirements for trade indicators are minimal, and therefore this method is easy to implement (Cheong 2010).14 The trade data used for calculating the trade indices discussed in the following sections is taken from ITC Trade Map.
11.1.
Intra-Industry Trade- Grubel Lloyd Index
Intra-industry trade takes place if a country simultaneously imports and exports similar types of goods or services. Similarity is identified by the goods or services being classified in the same product group. We investigate the presence of Intra-industry trade between Pakistan and china with the help of Grubel Lloyd Index (GLI). This Index is used to measure the share of intra industry trade in total trade of a country. The formula used for calculating the GLI index is as follows:
GLI = 1 - [Xi Mi]/ [Xi+Mi]

Where, Xi is the exports of a particular product group and Mi are the imports within the same product group. The value of the GLI varies between 0 (when there is no intra-industry trade) and 1 (all trade is Intra-industry. Table 24 presents the GLI index for Pakistan and China calculated at HS section level in the pre and post FTA period. Results show that there no significant Intra-Industry trade
13
A trade indicator is an index or a ratio used to describe and assess the state of trade flows and trade patterns of a particular economy (Mikic and Gilbert, 2007).
14
However, the main drawback of these trade indicators is that they do not provide precise numbers that quantify the effects of an FTA on trade, production, consumption, or welfare.
50
between Pakistan and China with the exception of Textile and Textile articles (section 11), Minerals (section 5) and Raw Hides and Skin (section 08). Pakistan is mainly exporting raw materials and Intermediate products such as cotton yarn, woven fabric, Gry fabric etc to china. The Chinese manufacturing Industries further processes and exports as finished goods to the World.
Table 24: Intra-Industry Trade: GLI for Pakistan and China
Pakistan GL Index Pre FTA Row labels 01 live animals; animals products 02 vegetable products 03 animal or vegetable fats and oils and their cleavage products; 04 prepared foodstuffs; tobacco substitutes 05mineral products 06products of the chemical or allied industries. 07plastics and articles thereof; rubber and articles thereof 08raw hide and skins, 09wood and articles of wood; wood charcoal; 10pulp of wood or of other fibrous cellulosic material; waste and scrap of paper f paperboard; paper and paperboard and articles thereof. 11textiles and textile articles 12footwear, headgear, umbrellas, sun umbrellas, walking sticks. Seat-sticks, whips, riding -crop and parts thereof; 13articles of stone, plaster, cement. Asbestos, mica or similar materials; ceramic products; glass and glassware. 15base metals and articles or base metal 16machinery and mechanical appliances; 2005 0.02 0.08 0.00 2006 0.06 0.18 0.01 2007 0.04 0.23 0.00 Post FTA 2008 0.01 0.26 0.00 2009 0.01 0.22 0.00 2005 0.15 0.13 0.00 China GL Index Pre FTA 2006 0.11 0.13 0.01 2007 0.16 0.20 0.00 Post FTA 2008 0.04 0.32 0.45 2009 0.03 0.14 0.00
0.02 0.57 0.24 0.04 0.32 0.00 0.01
0.37 0.39 0.09 0.07 0.33 0.00 0.00
0.28 0.91 0.02 0.13 0.37 0.01 0.00
0.50 0.98 0.01 0.15 0.37 0.02 0.00
0.54 0.26 0.05 0.20 0.49 0.01 0.09
0.08 0.70 0.24 0.04 0.42 0.01 0.00
0.68 0.65 0.10 0.06 0.55 0.00 0.00
0.72 0.77 0.06 0.09 0.64 0.03 0.00
0.60 0.96 0.02 0.12 0.58 0.02 0.00
0.73 0.27 0.06 0.14 0.73 0.02 0.01
0.75 0.02
0.82 0.00
0.96 0.01
0.97 0.01
0.75 0.00
0.98 0.00
0.92 0.00
0.80 0.00
0.66 0.00
0.81 0.00
0.03
0.05
0.02
0.02
0.06
0.00
0.00
0.00
0.00
0.00
0.12 0.00
0.09 0.00
0.06 0.01
0.13 0.00
0.15 0.02
0.61 0.00
0.53 0.00
0.34 0.00
0.02 0.00
0.21 0.00
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EVALUATION OF PAKISTAN-CHINA FTA Source: Authors own calculations based on Trade Map data
11.2.
Pakistans Comparative Advantage in the Chinese Market: Pre and Post FTA period
This study analyses export specialization of Pakistan's top products during the period 2005 and 2009 by using the revealed comparative advantage (RCA) approach at HS 6 digit level. The aim is to analyze the trend and changes in Pakistans comparative advantage in the Chinese market and examine the shifts if any in Pakistans leading product lines in the Chinese market. This analysis is important to envisage if past specialization patterns have witnessed any change, or if they are being reinforced over time. We use the following bilateral trade Revealed Comparative Advantage (BRCA) formula:
BRCA Pak-China= [X px / X p] / [X cx / X c]
Where, Xpx = Pakistan Exports of product x to China Xp = Total exports of Pakistan to China Xcx = World Exports of product x to China Xc = Total World exports to China The bilateral RCA gives an indication of how much a given country is exporting to a given market relative to how much the world is exporting to that market. A bilateral RCA above one in a particular product signifies that Pakistan has a revealed Comparative Advantage in the Chinese market. 11.2.1. Pakistans Top 25 BRCA ranking HS 6 level: (2005-2009) In order to see the changes in the revealed comparative advantage of Pakistans export products in the pre (2005) and post (2009) FTA period we examine the top 25 high BRCA ranking product lines a HS 6 level in both the periods (see table 25)
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EVALUATION OF PAKISTAN-CHINA FTA Table 25: Pakistans top 25 BRCA ranking at HS 6 level
Product code 520515 780200 521221 071320 630210 600521 120890 521211 630299 401213 030510 761511 360500 520819 030569 521021 520535 960190 520513 520512 521052 420321 630232 520710 521215
BRCA 2005 34855.55 22468.91 22096.23 21206.61 17277.71 9878.38 9787.66 7219.77 5626.24 5352.14 4822.49 2759.02 2583.99 2216.79 2205.7 1286.64 1258.41 1218.64 1090.40 912.90 855.39 850.26 757.37 718.75 666.02
Rank 2005 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Product code '521221 '521211 '630239 '520420 '120720 '520633 '521019 '690990 '520911 '520300 '030510 '521112 '520813 '030530 '030339 '611530 '230690 '521212 '960200 '520532 '521021 '630231 '520819 '520512 '520419
BRCA 2009 48004.48 15195.45 9324.25 5019.18 4653.35 3557.38 3519.36 2628.92 2528.38 2253.06 2162.86 1272.81 1037.76 1015.52 922.92 916.49 837.47 807.55 805.64 770.90 749.64 696.65 608.93 599.75 584.32
Rank 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Source: Authors own calculations based on data from Trade Map ITC
Changes in the revealed comparative advantage pattern can be examined by analyzing the list of top-25 product lines, ranked by their BRCA indices presented in Table 24. In the year 2005, 15 out of the top 25 high ranking BRCA products were from the textiles and clothing sector. This number increased to 18 products in the year 2009. Out of these 18 products 15 belonged to the
53
HS Chapter 52 which shows the specialization of Pakistans exports in textile and Clothing sector but within low- value added products. However, two product lines from Chapter 63 of bed linen make the top 25 list. Other products in the Top 25 list are from Chapter 12, 69, 03, 61, 23, and 96 (detail description of these products is given in the annex See Annexure Table 28). The BRCA ranking of top 25 product lines indicate that there has been little shift in the comparative advantage pattern of Pakistans export products to China. These export specialization patterns reveals lack of export diversification and concentration of Pakistans export basket to China in low-Value added products even in the post FTA period. 11.2.2. Competitive Positioning of Pakistans Export products in the Chinese Market
Trade liberalization and market access is a necessary but not a sufficient condition, to achieve competitive advantage at the enterprise and industry level. Achieving export competitiveness in the rapidly globalize markets requires efforts at the micro and macro level (Mehmood 2005). We use the bilateral Revealed Comparative Advantage approach at HS 6-digit levels to see the export specialization and comparative advantage/disadvantage of Pakistans exports in the Chinese market. The objective of the analysis is to identify those export categories in which Pakistan is losing, gaining or maintaining its comparative advantage.15 The criteria used for the positioning of the product lines as Competitive, Emerging, Threatened, and Weakened across different export sectors is presented in table 26.
15
The methodology is adopted from Mehmood (2005)
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EVALUATION OF PAKISTAN-CHINA FTA Table 26: Criteria for Positioning Product lines
Position of the product lines (BRCA) C RCA > 1 T <0 Declining competitiveness over time. Criteria Average BRCA (2006-9) Difference in BRCA of two regimes (Avg.BRCA 2006-09 minus Avg. BRCA 2003-06) >0 Implications
Improvement over time has occurred.
Future potential in terms of export competitiveness exist. E 1 > RCA > 0.5 >0 Comparatively less competitive but position in international market is improving. Pakistans competitiveness in these W 1 > RCA > 0.5 <0 product lines is eroding over time. *C=Competitive product line, T=Threatened product line, E =Emerging product line, W = Weakened Product line
Based on the above criteria we calculated BRCA for a total of 1076 product lines at HS 6 digit level. The traded lines for which trade values in the Pre FTA period i-e 2003-2006 or in the Post period i-e 2007-09 was not available were excluded from the analysis. Out of these 1076 lines the number of competitive product lines in the Chinese market are 330, 102 lines are threatened, Emerging are 298 and weakened are 346.
We take a look at the distribution of the categories mentioned in table 25 across different products at HS 2 level. Results show that in the Competitive category Chapter 52 takes the top rank with a total of 64 competitively positioned product lines followed by Chapter 03( 21 lines) at the second and Chapter 55 (16 lines) at the third place. In case of the threatened category it is interesting to see that Chapter 52 takes the top rank with 18 product lines. This shows that even though HS 52 is our leading export product in the Chinese market but the competitiveness of some products within this chapter is declining over time. Similar, situation for Chapter 03 (7 lines) can also be seen. In the emerging product line category 85,84 and 44 take the top three positions indicating a potential in high-end products (a detail analysis of potential products is discussed in the following section).The weakened category constitutes of Chapter 84, 39 and 52 at the top three places.
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EVALUATION OF PAKISTAN-CHINA FTA Table 27: Top 10 HS 2 level codes across Different Competitive, Threatened, Emerging and Weakened Lines at HS 6 level Competitive Emergi S.N HS ly HS Threatened HS HS Weakened ng o code Positioned Code lines Code Code lines Lines lines 52 64 52 18 85 38 84 34 1 03 21 03 7 84 33 39 19 2 55 16 62 6 44 23 52 18 3 41 15 39 6 54 13 73 15 4 63 15 55 5 73 11 54 15 5 62 14 61 4 68 11 85 14 6 25 14 63 4 38 11 29 14 7 61 14 74 4 61 10 62 10 8 74 9 82 4 29 9 32 9 9 12 7 41 3 55 9 61 9 10 Source: Authors own calculation based on Trade Map data
The above analysis put forth the relative competitive strengths and weakness of Pakistans overall export profile to China. Pakistan export competiveness in the Chinese market is highly concentrated in Raw material and intermediary goods. In case of the Textile and Clothing sector HS 52 Cotton takes the top place and reinforces the outflow of industrial raw material. As China continues its strategy on signing more free trade agreements the trade liberalization in China will exert further competitive pressure on Pakistani products unless and until we diversify within the Chinese market . 11.3. Pakistans Export potential in the Chinese Market
11.3.1. Potential Bilateral Trade (PBT) We have used the Potential Bilateral trade Formula which refers to the maximum trade amount when the trade barriers between countries are completely removed if the current production level and export/import capability are maintained.16 The following formula is used for measuring the potential bilateral trade: PBTi = min (PXi, CMi)-PCMi
Where,
16
See Sung and Nyung (2005)
56
PXi means Pakistans global exports of product i; CMi denotes Chinas global imports of product I; and PCMi means the existing imports of China from Pakistan
Potential Products in Category 3, Category 4 and No concessions list are calculated using the above PBT formula which could be considered in Future negotiations for further tariff reductions.
11.3.2. China Offer Category-5 (No Concession List): Potential Products for Future Negotiations
No Concession List constitutes 15% of the total product lines covered in the FTA. The trade performance of theses product lines has consistently been deteriorating. Table 27 presents the TOP 20 products at HS-6 digit in terms of having highest potential in the Category. Products which make the top 3 places include light petroleum of Chapter 27, Rice of Chapter 10 and Tshirts, singlet and other vests, of cotton of Chapter 60. If we take a look at the preferences granted to these Top 20 products in ASEAN17-China FTA, the tariffs are much lower (mostly tariffs are zero) than the tariffs faced by Pakistani products, which adds further competitive pressure on our exports.
The important point to consider for future negotiations is that any marginal tariff concession by Chinese authorities would not help Pakistan make inroads in the Chinese market unless and until tariff concessions granted to Pakistani exporters place them at par with other countries exporters with which China has preferential trading arrangements. For example, China has so far concluded nine FTAs18 with other countries and negotiations are underway with five other countries19. In addition, FTAs with four other countries are under consideration20. However, for
17
Association of Southeast Asian Nations includes Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Burunei, Burma, Cambodia and laos 18 Chinas signed FTAs include Asia-pacific Trade Agreement (1976), China-Thailand PTA (2003), China Hongkong, CEPA(2004), China-Macau, CEPA (2004), ASEAN-China FTA (005), China-Chile FTA (2006),Pakistan-China FTA (2007), China-New Zealand FTA (2008), China-Singapore FTA (2009) and China-Peru FTA 19 Chinas FTAs Under Negotiations include China-GCC FTA (2005), China-Australia FTA(2005), China-Iceland FTA(2006), China-Norway FTA (2007) and China-Costa Rica FTA (2009) 20 Chinas FTAs under Consideration include China-India FTA (2003), Japan-China-Korea FTA (2003), China-Korea FTA (2005). and China-Switzerland FTA (2009)
57
comparative tariff concessions analysis, we choose concessions granted under China-ASEAN FTA and Asia Pacific Trade Agreement (APTA). The analysis is done on the basis of estimated tariffs of 2009 because of the issue of data availability. Ideally, the comparative tariff concession analysis may be done considering existing Chinas free trade arrangement. Nonetheless, tariff concessions offered under ASEAN could provide good benchmark for tariff concession analysis due to low level of tariffs and ten countries in the group.
The analysis provided in the Table 27 clearly shows that in no concession category, Pakistan would not be able to make inroads into Chinese market in future if China grants piecemeal concessions under next round of negotiations. The only way to gain some market share is by putting Pakistani exporters at the level playing field with exporters of other countries.
Table 28: CN Offer Cat-5 (No Concession) Export Potential and Tariff margins
CN Offer Cat.-5 (No Concession) Hs Code & Description Import of China from Pakistan 0
Trade Values 2009 Export of Pakistan to World 707092 Import of China from World 15401571 Potential Bilateral Trade 707092
Tariff (estimated 2009) applied by China (%) Pakistan ASEAN Singapo re 1.3, Other 3 33 APTA India 6, Others 4.8 33 India 14, other 9.4 India 14, other 9.8 16 13
271019, Light petroleum distillates nes 100630, Rice, semi-milled or wholly milled, whether or not polished or glazed 610910, T-shirts, singlets and other vests, of cotton, knitted 411310, Leather further prepared after tanning or crusting "incl. parchmentdr 610510, Mens/boys shirts, of cotton, knitted 030374, Mackerel, frozen, excluding heading No 03.04, livers and roes 841451,Fans: table,roof etc w a self-cont elec mtr of an output nt excdg 125W 081340, Fruits, dried nes
4.1
339
1636714
172661
172322
33
15
260314
84312
84297
9.4
11952
95589
126247
83637
9.8
14 0
285084 32053
73876 84362
73862 32053
24.2
15 0
0 0
32041 29082
129377 95617
32041 29082
24.2
10 6
10 37
58

610990, T-shirts,singlets and other vests,of other textile materials,knitted 291736, Terephthalic acid and its salts 411200, Leather further prepared after tanning or crusting "incl. parchmentdr 100590, Maize (corn) nes 170490Sugar confectionery nes (includg white chocolate),not containg cocoa 030339, Flatfish nes, frozen, excluding heading No 03.04, livers and roes 210690, Food preparations nes 870390, Automobiles nes including gas turbine powered 520210, Cotton yarn waste (including thread waste) 340111, Toilet soap&prep,shaped;papers &nonwovens impreg with soap toilet use 610432, Womens/girls jackets, of cotton, knitted 411390, Leather further prepared after tanning or crusting "incl. parchmentdr
2 12832
26853 36534
31949 5009010
26851 23702
9.3 5.8
0 3.3
8.15 6.4
12697 0 1
31730 31601 13799
114776 18367 43032
19033 18367 13798
5.6
0 33
6.2 33 8.6
8.2
0 0 0 2877
47464 11623 14098 13497
12495 325201 11071 14247
12495 11623 11071 10620
8 16.5 22.5 10
0 2.3 0 0
9 17.1 23 10
14
9992
17204
9978
8.3
5.2 India 16, Others 13.6 14
22
11970
8751
8729
13.6
189
40725
8538
8349
14
11.3.3. China Offer Category-3 (Reduction on margin of Preference of 50% (5 years): Potential Products for Future Negotiations
Table 28 portrays that Pakistani products included in category 3 have not been able to increase its exports in Chinese market since 2007 despite significant exports to other countries and any deepening of FTA through tariff concessions in future negotiations would not help unless and until Pakistani exporters face lowest tariffs.
59
Table 29: CN Offer Category-3-Export Potential and tariff Margins

CN Offer Cat.-3 Import Value of China from Pakistan 0 Trade Values 2009 Export Value of Pakistan to World 32041 Import Value of China to World 129377 Potential Bilateral Trade Tariff (estimated2009) applied by China (%)
Hs Code & Description
Pakistan
ASEAN
APTA
841451,Fans: table,roof etc w a self-cont elec mtr of an output nt excdg 125W 610990,T-shirts,singlets and other vests,of other textile materials,knitted 610610,Womens/girls blouses and shirts, of cotton, knitted 610332,Mens/boys jackets and blazers, of cotton, knitted 610462,Womens/girls trousers and shorts, of cotton, knitted 620520,Mens/boys shirts, of cotton, not knitted 350300,Gelatin and gelatin derivs; isinglass; glues of animal origin, nes 620333,Mens/boys jackets and blazers, of synthetic fibres, not knitted 610520,Mens/boys shirts, of manmade fibres, knitted 620469,Womens/girls trousers & shorts,of other textile materials,not knitted 420500,Articles of leather or of composition leather, nes 640419Footwear o/t sports,w outer soles of rubber/plastics&uppers of tex mat 610442,Womens/girls dresses, of cotton, knitted 620630,Womens/girls blouses and shirts, of cotton, not knitted
32041
10.7
13.1 Ind14, others 9.3 9.9 Ind16, others 12 10 Ind16, others 8 12 Inda17. 5,other s 12.3 Ind17. 5, others 12.3 Ind 16, others 12 Bang7. 9, others 10.7 Ind 24 others 12 Ind 16 others 13.6 12.4
2 0 9 0 1
26853 48596 29751 32189 7917
31949 17071 9637 8055 93877
26851 17071 9628 8055 7916
9.3 10.7 10.7 10.7 8
0 0 0 0 0
7403
6925
6925
16
6411
42513
6395
11.7
10345
6356
6356
11.7
25378
6043
6043
10.7
5861
49685
5859
7.3
4938
98649
4937
12
2 0
4529 4499
5190 19976
4527 4499
10.7 10.7
0 0
60

Ind 16 others 11.7 Ind17. 5, others 0 and 12.3 Ind19 , other 0 and 13.6 14 11.7 5
610439,Womens/girls jackets, of other textile materials, knitted
14291
4296
4296
10.7
610343,Mens/boys trousers and shorts, of synthetic fibres, knitted
6102
4278
4278
11.7
610333,Mens/boys jackets and blazers, of synthetic fibres, knitted 620920,Babies garments and clothing accessories of cotton, not knitted 610590Mens/boys shirts, of other textile materials, knitted 841490Parts of vacuum pumps, compressors, fans, blowers, hoods
4089
4010
4010
12.7
3 0 1
4997 170851 3082
3737 3220 706670
3734 3220 3081
10.8 10.7 5
0 0 0
11.3.4. China Offer Category-4 (Reduction on margin of Preference from 20% (5 years): Potential Products for Future Negotiations Products in Concession Category-4 also depict the same scenario as of no-concession and category 3 products and have performed poorly in the post FTA period indicating that tariff reductions have not contributed towards increasing exports of these products, even though these products have significant potential in the Chinese market (see table 29). The tariff preferences granted to Pakistan have a negligible impact when there are other countries having much lower tariffs within the Chinese market. In future negotiations, we may be cautious in opening our market through further tariff reductions unless China provides us a competitive field vis--vis its other trading partners. The implications of unilateral concessions on Pakistans side and without significant tariff concessions on Chinese side would only increase trade imbalance in Chinas favor.
61
EVALUATION OF PAKISTAN-CHINA FTA Table 30: China Offer Category 4-Export Potential and Tariff Margin
CN Offer Cat.-4 Import Value of China from Pakistan 852 Trade Values 2009 Export Value of Pakistan to World 220357 Import Value of China to World 64009 Potential Bilateral Trade Tariff (estimated 2009) applied by China (%)
Pakistan
ASEAN
APTA
620462Womens/girls trousers and shorts, of cotton, not knitted 611120Babies garments and clothing accessories of cotton, knitted 620332Mens/boys jackets and blazers, of cotton, not knitted 620452Womens/girls skirts, of cotton, not knitted 640319Sports footwear,o/t ski,outr sole of rbr/plas/leather&upper of leather 761519Table, kitchen, household goods nes, of aluminium 610711Mens/boys underpants and briefs, of cotton, knitted 040120Milk not concentrated & unsweetened exceeding 1% not exceeding 6% fat 190590Communion wafers,empty cachets f pharm use&sim prod&bakers' wares nes 700529Float glass etc in sheets, non-wired nes 620432Womens/girls jackets, of cotton, not knitted 731029Cans, iron or steel, capacity <50 litres nes 040900Honey, natural 620442Womens/girls dresses, of cotton, not knitted 841181Gas turbines nes of a power not exceeding 5000 KW 700490Drawn glass in sheets nes
63157
13.9
14.4
14 7 57
18367 13663 16613
15083 26486 10821
15069 13656 10764
12.2 13.9 12.2
0 0 0
14 14 14
9119
13016
9119
13
15
32552
6795
6795
10
10 Bang 5.6, others 14 15 India 20, others 17.1 15 Bang 6.7, other 16 17.5 15 16 India 2 others 1.9
13290
6659
6659
12.2
16479
5659
5659
13
5629
64333
5629
17.1
5609
77765
5609
13
53
4913
20176
4860
13.9
0 0 2 0 0
4295 3850 3794 9244 3134
7342 5325 15327 3489 64763
4295 3850 3792 3489 3134
15.2 13 13.9 13 15.2
0 0 0
17.5
62

Bang 5.6, others 14 16 Bang 6.4, others 16 15
610831Womens/girls nightdresses and pyjamas, of cotton, knitted 630539Sacks & bags,for packing of goods,of other man-made textile materials 611420Garments nes, of cotton, knitted 091099Spices nes
13680
3014
3014
12
2997
7373
2997
13.9
9 0
13873 10704
2953 2837
2944 2837
13.9 13
0 0
11.3.5. Others-Potential Products for Future Negotiations
Others include those products which are traded with China but are currently not part of the FTA preferential tariff list. There lies significant export potential in these products; table 30 presents TOP 20 at HS 6 digit with the highest export Potential in the Chinese market. These products face high tariffs in the Chinese market as compared to ASEAN countries.
Table 31: Others-Export Potential and tariff margins

Others Import Value of China from Pakistan 0 Trade Values Export Value of Pakistan to World Import Value of China to World Potential Bilateral Trade Tariff (estimated) applied by China (%)
Pakistan
ASEAN
APTA
711319Articles of jewellry&pt therof of/o prec met w/n platd/clad w prec met 390760Polyethylene terephthalate 520100Cotton, not carded or combed 151620Veg fats &oils&fractions hydrogenatd,inter/reesterifid,etc,ref'd/not 620342Mens/boys trousers and shorts, of cotton, not knitted
470828
193663
193663
Sing 0, Other 3.3 6.5 6.5 4.3 6.5 Indo25, Mal, Sing 0, other 5
Ind 30, Korea 23.7 6.5 6.5 Ind0, Others 25 Ind16, bangl11. 2, Sri and Korea 12.9
0 18918
155769 171576
314756 2113792
155769 152658
95014
88805
88805
397
535223
82913
82516
10.7
63

620462Womens/girls trousers and shorts, of cotton, not knitted 300490Medicaments nes, in dosage 420310Articles of apparel of leather or of composition leather 080450Guavas, mangoes and mangosteens, fresh or dried 730890Structures&parts of structures,i/s (ex prefab bldgs of headg no.9406) 630710Floor-cloths,dishcloths,dusters & similar cleaning cloths,of tex mat 940490Articles of bedding/furnishing, nes, stuffed or internally fitted 050400Guts, bladders and stomachs of animals except fish whole or in pieces 410719Leather "incl. parchment-dressed leather" of the whole hides and skins 630790Made up articles, of textile materials, nes, including dress patterns 870190Wheeled tractors nes 100640Rice, broken 392390Articles for the conveyance or packing of goods nes, of plastics 940600Prefabricated buildings 620343Mens/boys trousers and shorts, of synthetic fibres, not knitted
852 0 696
220357 57342 348808
64009 2912096 37274
63157 57342 36578
24.2 13.2 21.7
11 2 17
16.6 7 12.5
33179
152789
33171
2.5
30
32553
461310
32553
20
10
246561
27977
27977
24.2
11
12
435
69200
28183
27748
23
13
17.5
26070
164917
26070
11.2
5.6
384
39528
25740
25356
3.5
30 0 0 0 0 1
23843 23521 127822 17059 15185 14849
65982 79533 23492 197369 35631 21049
23813 23521 23492 17059 15185 14848
12.2 6 33 6.7 6.7 11.7
0 0 33 0 0 0
14 8
Ind 10, other 7 Ind10, other 7 Ind 17.5, others 13.1
64
12.
Survey analysis of Pakistan-China FTA
In order to analyze the economic impact of Pak-China FTA, a survey was carried out in Pakistan from the leading exporters, importers and various trade organizations trading with China. The main purpose of this survey was to know the perception and awareness of the traders and trade bodies about the FTA policies, regulations, problem/concerns, impact on the industry and preference they would have before and after the implementation of the Pak-China FTA.
12.1.
Survey Methodology
The main stakeholders of the survey were identified on the basis of Pakistan's top 20 leading exporters and importers in terms of absolute value (at HS-8 digit level) having approximately 6070% of their exports and 40-50% of their imports traded with China under the Fagin addition, the views of the trade organizations were also kept into consideration during survey exercise in Pakistan's major trading cities of Karachi, Lahore, Faisalabad and Sialkot.
Keeping
in
view
the
targeted
stakeholders,
exporters,
importers
and
trade
organizations/associations, five different types of questioners were designed with open and closed ended questions. The empirical results of the survey are analyzed by using multiple descriptive statistics like frequency tables, averages and cross tabulation on the software SPSS Sample design: Stratified sampling is adopted in our Pak-China FTA evaluation survey and strata has been created based on type/value of products exported or imported, the territory from where it is either exported/imported or even manufactured and the size of the industry (LSM or SMEs). Random sample from each stratum is taken in a number proportional to the stratum size when compared to the population.
Strata: Product type_ Territory (Area) _Firm size (LSM/SMEs) e.g.; Strata: Cotton Yarn _ Lahore _ LSM (Nishat Chunian)
65
Here it is also important to describe that the selected sample of exporter's and importer's have a share of almost 15% and 1% in Pakistan's total trade value to China respectively. Due to limited time and large no of exporters/importers in the same category, the focus was on the horizontal coverage, size of firms and geographical locations. Size was an important factor because challenges faced by large and small firms are different. Therefore, reason low considering low percentage of firms in terms of import value is to give maximum coverage to SMEs. In addition, we sent the questionnaires to 30 exporting firms and only 22 firms replied. Similarly, the questionnaires were also sent to 30 importing firms and only 18 replied. The sample also contained a total of 10 trade organizations out of which only 7 responded. Questionnaires were also sent to the Embassy and Consulates of Pakistan in China and response from two Consulates was received.
The detailed empirical analysis of the survey is thoroughly explained under the Exporters, importers and trade authority's responses. 12.2. Response of Exporters:
The questionnaires designed to get feedback from the exporters were divided into six different sections covering Exporter's profile, General trade Information, Awareness/perception of PakChina FTA, Tariff concession, Rules of Origin, Technical and non Technical barriers. The last section covers the issues highlighted and suggestion proposed by the exporters.
12.3.
General Trade Information
12.3.1. Product Coverage: Based on Pakistans export statistics to China, 50% coverage in our total survey is given to textile industry exporters to get an indication of their problems/concerns about the policies & regulations of Pak-China FTA and its impact on domestic industry performance. The frequency distribution of our sample size is given below. About 18.2% of our total sample size export grey fabric to China, followed by 13.6% export cotton yarn and 9.1% knitwear as major exports to
66
China. While exporters of made up of fabrics and grey fabric to China account for 4.5 % of exports in sample size.
Apart from textile items, the remaining 50% of our targeted sample was from the following industries. Fish product is the second major exporting sector of Pakistan to China, so therefore 9.1% of our sample reported that they exports fish products to China. While coverage of 4.5% each is given to the respondents of 9 potential industries of Pakistan exporting to China, which includes, leather industry, football industry, energy saving lamps, pure oxygen, surgical instruments, Tyres manufacturers, vertical chillers, Pharmaceutical and Treet blades manufacturers. (Table 32) Table 32: Frequency Table Product Type
Frequency Cotton Yarn Pharmaceutical Energy Saving Lamp Fish Products Football Grey Fab Cotton Yarn Grey Fabric Knitwear Leather Made-up Fabric Pure oxygen Surgical Instruments Treet Blades Tyres Vertical Chillers Total 3 1 1 2 1 1 4 2 1 1 1 1 1 1 1 22 Percent 13.6 4.5 4.5 9.1 4.5 4.5 18.2 9.1 4.5 4.5 4.5 4.5 4.5 4.5 4.5 100.0 Valid Percent 13.6 4.5 4.5 9.1 4.5 4.5 18.2 9.1 4.5 4.5 4.5 4.5 4.5 4.5 4.5 100.0 Cumulative Percent 13.6 18.2 22.7 31.8 36.4 40.9 59.1 68.2 72.7 77.3 81.8 86.4 90.9 95.5 100.0
12.3.2. Product Composition:
In survey design the product composition is categorized into three categories, high value added product, intermediate product and raw material.
67
a) High Value added Category: From the product composition frequency distribution, it is worthwhile to note that about 50% of our targeted sample expressed their views as exporter of high value added products to China. The reason of targeting the value added exporters because it has been observed over the period that the exports of these products to china are declining. The respondents who stated as high value added exporters to China were from Fish industry with maximum share, followed by leather industry, made-up of fabrics, sports industry, Pharmaceutical manufacturers, Treet blade manufacturers, pure oxygen manufacturers, vertical chillers manufacturers and tyres manufacturers. b) Intermediate/Semi-finished Category: However, 13% respondents stated that they export intermediate goods to China. The intermediate goods exporters were mainly from surgical instrument, grey fabric and knitwear industry. c) Raw material Category: Out of our total sample distribution 31% of the exporters responded that they export raw material of Cotton yarn (13%) and grey fabric (18%) to China. (Table 33) Table 33: Product Composition
Please state the percentage composition of your export commodities? High Value Added Products Cotton Yarn Pharmaceutical Energy Saving Lamp Fish Products Football Grey Fab Cotton Yarn Grey Fabric Knitwear Leather Made-up Fabric Pure oxygen Surgical Instruments Treet Blades Tyres Vertical Chillers Total 0 1 0 2 1 0 0 1 1 1 1 0 1 1 1 11 Intermediate 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 3 Raw Material 3 0 0 0 0 0 4 0 0 0 0 0 0 0 0 7 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 Total 3 1 1 2 1 1 4 2 1 1 1 1 1 1 1 22
68
12.3.3. Proportional Exports to China: According to survey, 30% of respondents reported that they export less than 10% of their total production to China. These exporters are exporting cotton yarn, knitwear, football, surgical instruments and Treet blade , while 35% respondent's reported that they export 11 to 35% of their total production exported to China in the items of grey fabric, leather, tyres, vertical chillers and chemical. On the other hand, exporters of cotton yarn, grey fabric, knitwear and fish reported that they export more than 35% of their total production to China. Out of our total targeted sample of exporter's, about 20% of grey fabric exporter's, 15% of cotton yarn exporter's, 10% of knitwear exporters and 10% of fish exporter reported that they export more than 30% of their total production to China. (Table 34)
69
Table 34: Percentage Total Export to China

What percentage of your total Exports go to China? Less than Between 11 Greater 10% to 30% than 31% Total Cotton Yarn Pharmaceutical Fish Products Football Grey Fabric Cotton Yarn Grey Fabric Knitwear Leather Pure oxygen Surgical Instruments Treet Blades Tyres Vertical Chillers Total 1 0 0 1 0 0 1 0 1 1 1 0 0 6 0 1 0 0 1 2 0 1 0 0 0 1 1 7 2 0 2 0 0 2 1 0 0 0 0 0 0 7 3 1 2 1 1 4 2 1 1 1 1 1 1 20
Products
12.3.4. Competitors in Chinese Market
China's specific provision of low tariffs and other exemptions to the ASEAN and APTA countries made it difficult for the Pakistanis exporter's to compete in Chinese market. According to our targeted sample, major competition faced by our exporters in Chinese market is mainly from India (APTA member), Bangladesh (APTA) and Egypt. At product level, Pakistani grey fabric producer face higher competition from India, Bangladesh and Egypt. Pakistan cotton yarn and fish exports also reported tough competition from Bangladesh and India.
Exporter of knitwear, Leather, surgical instruments, pure oxygen, football and chemical industry has reported India as major competitor in Chinese market, while exporter of tyre manufacturers report competition from Sri-Lanka. (Table 35)
70
Table 35: Composition in Chinese Market

Your major competitors in the Chinese market are Other 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 Bangladesh 2 0 0 1 0 0 1 0 0 1 0 0 0 0 0 5 Egypt 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 2 India 1 1 0 1 1 0 2 2 1 0 1 1 0 0 0 11 Japan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 Korea 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 Sri Lanka 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 Total 3 1 1 2 1 1 4 2 1 1 1 1 1 1 1 22
Products Cotton Yarn Pharmaceutical Energy Saving Lamp Fish Products Football Grey Fab Cotton Yarn Grey Fabric Knitwear Leather Made-up Fabric Pure oxygen Surgical Instruments Treet Blades Tyres Vertical Chillers Total
12.3.5. Intra-industrial trade:
About 86.36% of the exporter responded in our survey that they imports raw material, intermediate goods and machinery from China. Out of total targeted respondents about 36.36% exporter's reported they import's industrial inputs in the form of raw material from China, while 27.27% of the sample reported they imports machinery from China and 13.63% of sample reported they import intermediate/semi-finished goods from China, while 9.09% sample responded import of unspecified products from China. However, 13.64% of the sample reported that they imports raw materials, intermediate goods and machinery from other destinations.
(Table 36)
71
Table 36: Intra industry Trade and Composition

If yes, then which of the following product categories your imports from China fall in? Intermediate Raw Material Goods Machinery Any Other Total Do you Import Yes from China? No Total 8 1 0 9 3 0 0 3 6 1 0 7 2 0 0 2 0 0 1 1 19 2 1 22
12.3.6. Trade Creation In order to cater the impact of trade creation and trade diversion effect, 68% of the sample reported that they were trading with China before the Pak-China FTA came into force However, the imports industrial inputs (import of raw material, intermediate goods and finished goods mainly machinery) from China has increased after the implementation of the Pak-China FTA. About 40% of the exporter's sample reported that they import raw-material as an input from China, similarly 18% of the targeted exporters reported that they import finished goods (machinery), while the 10% of the sample reported they import intermediate goods from China as an industrial input for their exports has also increased over the period from China. As survey is just an indication due to limited coverage, we observed trade creation behavior from the response exporters using machinery and intermediate goods. The exporters have switched their preferences from buying locally to indicative cheaper destination of China. Therefore, FTA has generated an indicative local impact to some extent. (Table 37)
72
EVALUATION OF PAKISTAN-CHINA FTA Table 37: Trade Creation

Were you buying the above mentioned products from China Before the FTA? * If yes, then whi ch of the followi ng product categories your imports from Chi na fal l i n? * If No, then who were buying from, local Industry or any other country? Crosstabul ation Count If N o, t hen who were buy ing f rom, loc al Indust ry or any other country ? Were y ou buy ing t he Yes abov e mentioned product s f rom China Bef ore the FTA? Loc al Market Tot al Were y ou buy ing t he No abov e mentioned product s f rom China Bef ore the FTA? Tot al If y es , t hen whic h of t he f ollowing product cat egories y our import s f rom China f all in? Intermediate Raw Material Goods Mac hinery Any Other 7 2 9 2 0 2 1 1 4 0 4 3 3 2 0 2 0 1 1
Tot al 15 3 18 4 4
12.4.
Awareness/Perception of Pak-China FTA
Out of our total survey sample, about 36.6% of the exporters are completely aware, while 41% of the exporter reported that they are partially aware about the terms and conditions of Pak-China FTA. The survey indicated that 9% of the exporters enjoying the benefits of Pak-China FTA without having even knowing the terms and conditions of the agreement. The respondent exporters with complete and partial awareness about Pak-China FTA reported that they are fully availing the low tariffs and concessions of the FTA, which ultimately boosted their export performance in Chinese market.
While 10% of the exporter who were not at all familiar about the terms and conditions of the Pak-China FTA reported decline in their exports to China after the agreement came into force.
(Table 38) Table 38: Awareness of Pakistan China FTA
How familiar are you with the terms and conditions of Pak-China FTA? Completely Have your exports to China Increased since 2007? Total Yes No 8 1 9 Partially 9 0 9 Not at all 2 1 3 1 0 1 Total 20 2 22
73
12.5. Tariff Concessions and Rules of Origin In the past, to acquire the ROO certification was quite difficult process for the exporters, but due to efficient and liberal government policies (one window operation); it became possible for the exporters to collect ROO certification in a single day.
Survey based empirical result show that about 45.5% of exporters responded that they can receive ROO certification from TDAP in one day, while 18.2% exporters are of the view that it takes 2 days in acquiring ROO certification from TDAP. However, 36.4% exporters have not shared their views. (Table 39)
Table 39: Nos of days Acquiring ROO
Frequency Valid 1 2 Total 8 10 4 22 Percent 36.4 45.5 18.2 100.0 Valid Percent 36.4 45.5 18.2 100.0 Cumulative Percent 36.4 81.8 100.0
12.6.
Technical and Non-Technical Barriers (Export Impediments)
The exporter face multiple TBTs and NTBs from governments like regulations, entry point procedures problems, administrative rulings, trade procedures, fees and charges, import quotas, subsidies, tax concession and trade remedies, which directly or indirectly affects their export performances. In our questionnaire all of the above concerns are incorporated to get the feedback of the exporter, which hinder their exports to partner country.
12.6.1. Trade Regulation Issues
Based on Pak-China survey analysis, about 54.5% of the exporters responded that they faced no regulatory or non tariff problems while trading with China, while 9.1% are having concerns about trade procedures. Similarly, 9.1% of Pakistani exporters had issues with fees and charges imposed by the customs at ports. 4.5% of exporters reported that they face problems at entry
74
point procedures, while 4.5 percentage of exporter reported concerns about administrative ruling and 4.5% exporters had issue with laws and regulations. While 13.6% targeted exporter show their concerns about the lingual issues, issuing of single entry visa by the partner country China.
(Table 40)
Table 40:Export Impediment

Frequency Valid laws, regulations Entry-point procedures Administrative rulings Trade Procedure Fees and Charges Any Other Please Specify Total 12 1 1 1 2 2 3 22 Percent 54.5 4.5 4.5 4.5 9.1 9.1 13.6 100.0 Valid Percent 54.5 4.5 4.5 4.5 9.1 9.1 13.6 100.0 Cumulative Percent 54.5 59.1 63.6 68.2 77.3 86.4 100.0
About 27.3% exporters reported trade remedy measure like the production subsidies provided by the China to protect its domestic industry is the main hurdle for their inability to penetrate into Chinese Markets. While 13.6% of the exporter reported that they face import quotas imposed by Chinese authorities on their exports industry, which indirectly results in low performance of their export growth. While 4.5% exporter reported that they had to face trade remedy practices by the Chinese authorities. (Table 41)
Table 41:Trade Regulation Issues
Frequency Valid Import Quotas Production Subsidies Import Monopolies Trade Practices Total Remedies 11 3 6 1 1 22 Percent 50.0 13.6 27.3 4.5 4.5 100.0 Valid Percent 50.0 13.6 27.3 4.5 4.5 100.0 Cumulative Percent 50.0 63.6 90.9 95.5 100.0
12.6.2. Quality Assurance:
Some of the exporter's highlighted that in order to meet the quality assurance of their exports to China; a sample of their exportable product is delivered to the Chinese importer. If he is satisfied with the quality of the product, then an order is placed, but after exporting the
75
consignment to the respective Chinese importer, the vessel is checked again by the importer with respect to the sample delivered earlier and if the exported product exactly matches with the sample, then they accept the consignment and if not, then they reject t the consignment.
12.6.3. Package labeling:
Some of the exporters stated that they had to bear additional cost for package labeling. However, according to a Pakistani exporter, the Chinese importers provide a sample of packaging label, which contains the product name and other information given in Chinese and English languages which is paste on product packaging before export to China. 12.6.4. Transshipment Issues:
The exporters also reported that, there are multiple entry points for their exports to China and if someone wants to export consignment to Shanghai, China, the consignment is transshipped via Hong Kong port, where their consignment is first unloaded and again reloaded and exported to Shinghai, China. According to experience of one exporter, when their consignment reached China and in order to confirm the non manipulation of their imports, the Chinese importers
asked him to produce NMC certificate from Hong-Kong, which cost him US $ 100. According to exporter, such kind of hurdle hinders their exports to China. 12.7. Other Issues and Suggestion by the Exporters
Most of the exporters have highlighted the issue of single entry visa by the Chinese authorities as compared to EU and US authorities, where multiple entrances Visa is granted to Pakistani exporters 12.8. Response of Importers
In order to cater the impact of Chinese imports on the performance of Pakistan's domestic industry, a survey was carried out from the leading Pakistani importers trading with China. The importers questionnaire is disaggregated into five different sections to get the maximum input
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from the importers includes importer's profile, General trade Information, Awareness/perception of Pak-China FTA, Administrative processes and trade procedures and the last section covering other issues and suggestion of the importers.
The sample selection was based on value percentage of imports out of Pakistan's total imports from china and the locality of importer's in major trading city of Pakistan, like Karachi, Lahore, Faisalabad and Sialkot by using multiple methodologies like frequency tables, cross tabulations to evaluate their response on the Pak-China FTA. The detailed views of the importers on PakChina FTA survey are discussed under the mentioned sections 12.8.1. Product Coverage under Imports Based on the survey empirical result, Pakistan's leading importers highlighted the following facts about their imports from China. According to our Importers, beside other products, Pakistan is mainly importing machinery and Textile Chemicals from China. The importer of machinery reported that about 33.3% of their imports came from China, while 11.1% of importers are of the view that they imports Textile Chemicals from China. However, Pakistan's other major imports from China include, Chemicals, Pharmaceutical, Electronics equipments, Garments, Iron & Steel, tube of IVSP, Polyester PRC, Pure Oxygen & Imports, Tyres and Window glass, each had a 5.6% share in our imports based on the views of our targeted respondent importer's from China. (Table 42) Table 42:Product Coverage under imports
Frequency 1 1 1 1 1 6 1 1 1 2 1 1 18 Percent 5.6 5.6 5.6 5.6 5.6 33.3 5.6 5.6 5.6 11.1 5.6 5.6 100.0 Valid Percent 5.6 5.6 5.6 5.6 5.6 33.3 5.6 5.6 5.6 11.1 5.6 5.6 100.0 Cumulative Percent 5.6 11.1 16.7 22.2 27.8 61.1 66.7 72.2 77.8 88.9 94.4 100.0
Valid
Chemicals Pharmaceutical Electronics Garments Iron Steel Machinery Products Needles, Tube of IVSP Polyester PRC Pure O2,Nitrogen Textile Chemical Tyre Window Glasses Total
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12.8.2. Import's Growth/Escalation:
Form importer's point of view; about 39.72% of their total imports come from China. In addition, 55.6% of the targeted importer's reported that their imports growth is less than 11% after signing Pak-China FTA (2007) while 11.1% of the importer reported import growth between 11-20% and 16.7% importer's reported their growth between 21-30%. Furthermore, 16.7% importers reported their import growth of more than 41% since the Pak-China FTA came into effect
The industries who reported less than 11.1% import growth are importer of garments products, polyester PRC importer and window glass import from China. Similarly, importer of Textile Chemical reported import growth between 11-20%, while the importers of Pharmaceutical, electronics products, iron & steel, tube of IVSP reported their import growth between 21-30%. However, importer's of Chemicals, pure Oxygen & Nitrogen, textile chemicals and tyres reported their import growth is more than 41% since the implementation of Pak- China FTA (2007), which means Pakistan is the high consumer of these goods.
Chinese machinery, due to its high demand by the industry had a highest share in Pakistan's total imports. Through Pak-China FTA, for Pakistani importers, the privilege of having low tariffs or concessions on machinery made it possible for them to fulfill the need of the domestic industry. About 33% of total sample distribution reported they import only machinery from China and their import growth is more than 41% since 2007. (Table 43, 44, 45, 46)
Table 43: Total Imports from China
N What percentage of your total Imports you 18 import from China? Valid N (list wise) 18
Minimum 5
Maximum 100
Mean 39.72
Std. Deviation 30.121
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EVALUATION OF PAKISTAN-CHINA FTA Table 44: Increase in imports to China since 2007 due to the FTA
Frequency Valid Less than 11% 11-20 % 21-30 % 41% and above Total 10 2 3 3 18
Percent 55.6 11.1 16.7 16.7 100.0
Valid Percent 55.6 11.1 16.7 16.7 100.0
Cumulative Percent 55.6 66.7 83.3 100.0
Products Section * What percentage of your total Imports you import from China? Cross -tabulation
Table 45: Percentage of your total Imports you import from China
What percentage of your total Imports you import from China? Less than 11% 11-20 % Products Section Chemicals Pharmaceutical Electronics Garments Iron Steel Machinery Products Needles, Tube of IVSP Polyester PRC Pure O2,Nitrogen Textile Chemical Tyres Window Glasses Total 0 0 0 1 0 1 0 1 0 0 0 1 4 0 0 0 0 0 1 0 0 0 1 0 0 2 21-30 % 0 1 1 0 1 1 1 0 0 0 0 0 5 41% and above Total 1 0 0 0 0 3 0 0 1 1 1 0 7 1 1 1 1 1 6 1 1 1 2 1 1 18
Have your imports from China Increased since 2007?
Table 46:Trend of Post FTA imports

Frequency Valid Yes No Total 14 4 18 Percent 77.8 22.2 100.0 Valid Percent 77.8 22.2 100.0 Cumulative Percent 77.8 100.0
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12.8.3. Input Composition:
In survey design, the imports composition is categorized into raw material, intermediate goods, finished goods and machinery category. (Table 47 & 48)
a)
Raw material Category
Out of total sample about 38.88% Pakistani traders reported that they import raw materials as input for their exports. Industries of chemicals, Pharmaceutical, iron & steel, Tyres, pure oxygen and nitrogen, Textile chemicals stated that they import raw materials only from China, while tyre industry imported raw material from other destinations.
b)
Intermediate goods category:
As a percentage composition of exports, about 16.66% Pakistani traders reported that they import intermediate goods from the world. The industry like machinery products, and needles (tube of IVSP) reported that they import intermediate goods for their industry only from China, while Window glasses industry imported their intermediate goods from other destinations.
c)
Finished goods category:
Similarly, 11.11% of the traders of machinery industry and electronic goods reported their imports only from China.
d)
Machinery Category:
Similarly, 33.33% of the trader's from garments industry, machinery products and Polyester PRC reported machinery imports for their industry. The garments and machinery producer industry reported that they import machinery for their industry only from China But industry of polyester PRC imports machinery from other destination.
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Please state the percentage composition of your import commodities? * Have your imports from China Increased since 2007? Cross tabulation
Table 47: Composition of Imports

Have your imports from China Increased since 2007? Yes Please state the percentage composition of your export commodities? Total Raw Material Intermediate goods Finished goods Machinery 5 2 2 5 14 No 2 1 0 1 4 Total 7 3 2 6 18
Table 48: Product wise composition of Imports

Products Section * Have your imports from China I ncreased si nce 2007? * Pl ease state the percentage composi tion of your export commodi ties? Crosstabulation Count Please stat e t he percent age compos it ion of y our export commodities? Raw Material Hav e y our import s f rom China Inc reas ed s ince 2007? Y es No Chemicals 1 0 Dex tose, glax so 1 0 Iron Steel 1 0 Pure O2,Nit rogen 1 0 Tex tile Chemical 1 1 Ty res 0 1 5 2 Mac hinary Product s 1 0 Needles,Tube of IVSP 1 0 Window Glasses 0 1 2 1 Electronics 1 Mac hinary Product s 1 2 Garments 1 0 Mac hinary Product s 4 0 Poly ester PRC 0 1 5 1
Tot al 1 1 1 1 2 1 7 1 1 1 3 1 1 2 1 4 1 6
Products Section
Intermediat e goods
Tot al Products Section Tot al Products Section Tot al Products Section Tot al
Finished goods
Mac hinery
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12.8.4. Trade Creation and Trade Diversion From survey l data analysis, traders predicted that about 72.22% of their input in the form of raw material, intermediate goods and machinery were imported from multiple destinations before the FTA, but 55.55% of the industry reported that the import of raw material, intermediate goods and machinery from China had increased after the FTA, while 16.66% of the industry reported that their imports of the same products decreased after the FTA. It is also interesting to note that 22.22% industry who had no trade before the FTA are now importing intermediate goods, finished goods and machinery from China after the agreement came into force. But out of these new traders 5.55% of the importer of machinery reported decline in their import growth. Similarly, 11.11% industry who were importing raw material, machinery or intermediate goods either from Germany and local market before 2007 are now importing of the raw material China.
Trade diversion effect is indicated from the response of two exporters who shifted their imports from Germany to China after coming into effect of Pak-China FTA. Similarly, trade creation effect is also observed when one manufacturer shifted from local buying to Chinese market. (Table 49 & 50)
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Table 49: Trade Creation and Diversion in Imports

Were you buying the above mentioned products from China Before the FTA? * Have your imports from Chi na Increased since 2007? * I f N o, then who were buyi ng from, l ocal I ndustry or any other country? Crosstabulation Count If N o, t hen who were buy ing f rom, loc al Indust ry or any other country ? Were y ou buy ing t he Yes abov e mentioned product s f rom China Bef ore the FTA? Germany Tot al Were y ou buy ing t he No abov e mentioned product s f rom China Bef ore the FTA? Tot al Were y ou buy ing t he No abov e mentioned product s f rom China Bef ore the FTA? Tot al Hav e y our imports f rom China Increased since 2007? Yes No 10 10 2 2 1 1 1 1 3 3
Tot al 13 13 2 2 2 2
Loc al Market
Are the local producers of your imported products still in market?
Table 50: Local Industry Imports

Frequency Valid Yes No Total Missing Total System 7 9 16 2 18 Percent 38.9 50.0 88.9 11.1 100.0 Valid Percent 43.8 56.3 100.0 Cumulative Percent 43.8 100.0
12.8.5. Import's Impediments:
The Pakistani traders who are importing products from China has raised some interesting facts,
About 38.9% of the importer's were of the opinion that they shifted their business towards China because of its cheap products and had lower per unit price. 33.3% of the importer's stated that Chinese products are better in Quality
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22.2% of the importer's declared that the cost of importing (transportation cost or may be other reason) is less as compared to other markets 5.6% of the importer notify that they face lower tariffs on the products they import from China
What are the reasons because of which you import from china? Please rank from the most prevalent.
Table 51: Reasons of import diversion towards china
Frequency Valid Chinese products have lower per unit price Chinese products are better in quality Cost of improving from Chine is less as compared to other ma You face lower tariffs on products imported from China Total 7 6 4 Percent 38.9 33.3 22.2 Valid Percent 38.9 33.3 22.2 Cumulative Percent 38.9 72.2 94.4
1 18
5.6 100.0
5.6 100.0
100.0
12.8.6. Trade Facilitation Issues: Based on survey results, Pakistani importers highlighted the following problems and concerns while importing from China. These views are shared by 77.8% of the importers while rest of the 22.2% importers gave no remarks and some of them stated that these matters are handled by their corresponding agents. 16.7% of the importer's were complaining about the port congestion 5.6% of the importer's had a criticized about road infrastructure 22.2% of the importer whine about long shipping time 27.8% of the importers anguished about delays in shipments 5.6% of the importers are annoyed about the customs formalities
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Which of the following problems you face while importing from China? Please rank form the most prevalent.
Table 52: Problems in imports from China

Frequency Valid Port congestion Road Infrastructure Long shipping time Delays in shipment Custom formalities (Pls Specify) Total Missing Total System 3 1 4 5 1 14 4 18 Percent 16.7 5.6 22.2 27.8 5.6 77.8 22.2 100.0 Valid Percent 21.4 7.1 28.6 35.7 7.1 100.0 Cumulative Percent 21.4 28.6 57.1 92.9 100.0
12.8.7. Custom Clearance Issues:
Based on survey results, 88.88% of importers tinted that their shipment acquire custom clearance on average 6-7 days, while it takes maximally 15 days to minimally in 3 days to get clearance at Pakistani ports.
Descriptive Statistics
Table 53: Nos of Days for Custom clearance

N How many days does it take for your goods to get custom clearance at Pakistan port? Valid N (list wise) Minimum Maximum Mean Std. Deviation
16
15
6.19
3.619
16
12.9.
Trade Organizations response:
12.9.1. Karachi Chambers Of Commerce & Industry (KCCI)
According to KCCI, Pak-China FTA is giving more benefits to China. The contribution of Pakistans exports to China in the total trade that exists between Pakistan and China is less than 30%. Trade with China is acting as a slow poison to Pakistans industry. Pakistans local industry is not able to face the competition of the Chinese industry in Pakistans domestic and foreign markets. If Pakistan wants to utilize the Pak-China FTA in its favor then it must have to restrict the FTA to imports of raw material from China only.
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12.9.2. Pakistan Leather Garments Manufacturers & Exports Association (PLGMEA)
Pakistan Leather Garments Manufacturers & Exports Association expressed their views that China is a competitor to Pakistans Leather industry. Chinas export in worlds leather export is almost 24-26% whereas Pakistans share is only near 1.5%. Pakistans exports of finish leather to china has increased over the past few years that has caused a lack of input for leather garments manufactured in Pakistan. PLGMEA had requested to ban the export of raw material but on continuous pressure government had only applied 20% duty that was zero percent before. Government should increase the export duty on finished leather to support the leather garments industry.
PLEGMEA reported that export of leather increased to about 18.53% during July-February 2011 as compared to last year and due to this increase the European and North American buyers are not accepting the high prices and showed decline in their buying power as compared to last year. But on the other hand the export of leather to China has increased; China showed a great interest in importing more finished leather from Pakistan because of its strong buying power they offered high prices for finished leather goods (leather garments) but they want to import these leather products in bulk. 12.9.3. Sialkot Chamber Of Commerce & Industry (SCCI)
The SCCI proposed the following measure with respect to the Pak-China FTA evaluation; 1. Awareness raising seminars/workshops on FTA should be arranged especially in industrial city of Pakistan. 2. Exchange of business information between the countries, especially research and development reports should be shared. 3. Human resource development and establishment of joint ventures should be promoted as it is included in "Article No. 39-Cooperation Area" which is discussed during the session of inputs for second free trade commission (FTC) meeting in Beijing, China.
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The SCCI also shared a list of raw materials which are being used in Sialkot based industry and suggested to include it in the offer list of Pakistan, while negotiating with China on FTA.
87
13.
Conclusion
Pakistan- China Free Trade agreement was signed in 2006 and was implemented in 2007. Tariff concessions were offered by both countries to each other under FTA, which are spread over different concession categories (Five for Pakistan and six incase of China). The FTA has been active since last 5 years and the Phase-I of the FTA will end in 2012. After the FTA is implemented, an assessment of the FTAs actual versus projected impact was most crucial for determining whether the FTAs objectives have been met and what adjustments are needed for capitalizing on the benefits and for minimizing the cost of the FTA.
The research study conducted is an evaluation of Pakistan-China FTA. The analysis has been conducted on a dataset up to the year 2009 due to recent data availability limitations. The comparative analysis was done considering time periods 2005-2006 as the Pre-FTA period and 2007-2009 as the Post-FTA period. The export and import performance of Pakistan was analyzed in detail, across all concession categories at HS 2- digit and HS-8 digit levels. The results suggest that China has been able to make inroads in all concession categories and imports from China have been persistently rising even in the No Concession category. On the contrary Pakistan has been able to increase its exports only in the first two categories while in the remaining three categories; it is either losing its export share or has not been able to significantly increase its exports. Products in which Pakistans exports to China increased in the post FTA period include cotton products of Chapter 52, Chromium ores and concentrates of chapter 26, Fish prepared or preserved and fish fillet of chapter 16, Copper wire of chapter 74, Frozen flat fish of chapter 03, Waste, Parings and Scrap of Plastics of chapter 39 and Marble and travertine of chapter 25. This product composition reveals the lack of export diversification and concentration in raw material and intermediate product exports to China even in the Post FTA period. Analysis of Pakistans export specialization by using the revealed comparative advantage approach at HS 6 digit level further reinforced that there has been little shift in the comparative advantage pattern of Pakistans export products in the Chinese market.
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There is no significant Intra-Industry trade between Pakistan and China with the exception of Textile and Textile articles (section 11), Minerals (section 5) and Raw Hides and Skin (section 08). Pakistan is mainly exporting raw material and intermediate products such as cotton yarn, woven fabric, Gry fabric etc to China. The Chinese manufacturing Industries further processes and exports as finished goods to the World.
The Imports figures from China suggest that there have been significant increase in it from China and the imports were valued at around US $ 1 billion in 2003, which rose to around US $ 3.7 billion in 2009. The products which registered the highest import value in the Post-FTA period include Telephone sets, including telephones for cellular networks or for other wireless networks: Cellular mobile phone; of chapter 85, Telephone sets, including telephones for cellular networks other apparatus of chapter 85, Electric generating sets and rotary converters of chapter 85, Electric and Electronic products of chapter 85, Synthetic filament yarn of chapter 54, Polyesters not exceeding 2.22 decitex of chapter 55, Light-vessels, fire-floats, dredgers, floating cranes of chapter 89, Other pneum tyre rubber for bus of chapter 40, Other pneum tyre rubber for bus Ingredients for pesticides of chapter 29, Onions, shallots, garlic, leeks& alliaceous
vegetables, of chapter 07, Machines and mechanical appliances nes. Other of chapter 84, Ginger of chapter 09, and And other, antibiotics of chapter 29.
In order to gauge the attractiveness of the preferential regime between Pakistan and China relative to MFN treatment, the utilization rate of Pakistan-China FTA was computed. The utilization rate was 53.4% in FY2008-09, which decreased to 48.7% in FY2009-10. Cotton products ranked at the top with a utilization rate of 70%.
Pakistan is a developing country and tariff is one of the major sources of revenue. The revenue loss incurred to Pakistan due to exemptions offered to Chinese products in post FTA period was to the tune of 139 million rupees in 2006-07 during EHP period which increased to a staggering figure of 6.1 billion rupees in 2009-10.
The exports performance analysis to China across different concession categories revealed the poor performance of Pakistans exports in category 3 (Reduction on Margin of Preference from
89
50% (five years), category 4 (Reduction on margin of Preference from 20% (five years) and category 5 (No Concession). The bilateral export potential of the products in these categories was estimated and the results indicated significant potential in the Chinese market. Most of these products are being exported to other countries but there is no export to China. Further, a comparative analysis was also done on the tariff concessions offered by China to Pakistans on export products in the above mentioned categories with those of China-ASEAN-FTA. The comparative analysis revealed that ASEAN countries face much lower tariffs than Pakistan, which puts competitive pressure on our export products rendering them more costly.
The marginal tariff concessions provided by Chinese authorities would not help Pakistan make inroads in the Chinese market unless and until tariff concessions granted to Pakistani exporters place them at par with other countries exporters with which China has preferential trading arrangements. Therefore, caution may be exercised in the next round of negotiations because in the previous round, especially in category 3 and 4, despite tariff concessions provided by China , Pakistan remained uncompetitive vis--vis Chinas other FTA partners (China offered 0 tariff in most of the products of the above categories to ASEAN). The result was that we could not increase our market share in those products in Chinese market and trade deficit kept on increasing due to slow export growth to China in the above categories to China.
The positive aspect of Pak-China FTA is that it has exposed Pakistani products to Chinese competitors and the products that have sustained the pressure may also be considered in negotiations with countries. It would help the local manufacturers to have quality inputs. For example, by allowing few of such products at MFN rate from India may widen the import choices for Pakistani importers in terms of low cost quality inputs.
A survey of Stakeholders including exporters, importers, trade organizations, customs and Pakistans Consulates in China was conducted in order to assess the business impact of PakistanChina FTA. The main purpose of this survey was to know about the perception and awareness of the traders and trade bodies with respect to Pakistan-China FTA, problems related to rules and regulations and trade procedures practiced in both countries, non tariff barriers and other trade restrictions. Further, the survey was targeted to gauge the possible impact on local industry.
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The survey findings suggest that China's specific provision of low tariffs and other exemptions to the ASEAN and APTA countries has to some extent eroded the FTA preferences of Pakistani exporter's in the Chinese market. According to our targeted sample, our exporters mainly face competition from India (APTA member), Bangladesh (APTA) and Egypt in the Chinese market. At product level, Pakistani grey fabric producer face higher competition from India, Bangladesh and Egypt. Pakistan cotton yarn and fish exports also reported tough competition from Bangladesh and India. Exporter of knitwear, Leather, surgical instruments, pure oxygen, football and chemical industry reported India as major competitor in Chinese market, while exporter of tyre manufacturers report competition from Sri-Lanka.
More than 50% of the exporters interviewed responded that they faced no problems related to regulatory or non tariff barriers while trading with China. While, others highlighted concerns about trade procedures, issues with fees and charges imposed by the customs at ports, entry point, administrative rulings, laws and regulations and issuing of single entry visa by the partner country China. Trade remedy measure like production subsidies provided by China to protect its domestic industry was also indicated as the main hurdle for their inability to penetrate into Chinese Markets as well as specific import quotas.
The main findings from the survey of Importers of Chinese products revealed that beside other products, Pakistan is mainly importing machinery and Textile Chemicals from China and these individual firms reported double-digit import growth from China.
There is considerable evidence of trade diversion as importers have shifted their imports from other countries like Germany towards China. Similarly, trade creation effect is also observed as importers reported low per unit price as the major reason for importing from China
As survey is just an indication however, response from, exporters using machinery and intermediate goods suggested trade creation behavior. The exporters interviewed have switched their preferences from buying locally to indicative cheaper destination of China. Therefore, FTA has generated an indicative local impact to some extent.
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14.
Policy Recommendations
The important point to consider for future negotiations is that any marginal tariff concession by Chinese authorities would not help Pakistani exports penetrate in the Chinese market, as can be seen from the performance of Pakistans exports in category-3, category-4 and category-5, unless and until tariff concessions granted to Pakistani exporters place them at par with other countries exporters with which China has preferential trading arrangements.
The exporters interviewed have recommended that the visa issue policy with China needs up gradation; especially in the single entry visa system. Such initiatives will facilitate the exporters participation in trade shows and exhibitions held in China and will be helpful in reducing the time delays for exports.
There are multiple entry points for exports entering in China and if someone wants to export consignment to Shanghai, China, the consignment is transshipped via Hong Kong port, where the consignment is first unloaded and again reloaded to be exported to Shanghai, China. A non manipulation certificate (NMC) is also required to be shown at Hong Kong port. However most of the exporters prefer to use the Direct Shipment Rule. In the second phase of negotiations, regulation of trans-shipment process of Pakistans exports to China and further facilitation for Direct Shipment Rule should be taken up with Chinese authorities.
SCCI highlighted that awareness raising seminars/workshops on FTA should be arranged especially more often and a proper mechanism should be developed for communicating trade information to all stakeholders.
SCCI also shared a list of raw materials which are being used in Sialkot based industry for further tariff reductions (see list in annex).
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Exchange of business information between the countries, especially research and development (R&D) programs should be promoted for creating more awareness and effectiveness of the FTA.
Pakistan shares a border with China and while entering into Phase-II of trade negotiations under Pakistan-China FTA, adjoining regions trade potential needs to explored and catered for.
References Amir Mahmood (2005), Export competitiveness and comparative advantage of Pakistans nonagricultural production sectors: Trends and analysis, Twentieth annual general meeting & conference, Pakistan society of development economists, January 10-12, 2005. Asian development bank. (2010), Methodology for impact assessment of free trade agreements, all rights reserved. Printed in the Philippines. David Cheong. (2010), Methods for ex ante economic evaluation of free trade agreements, ADB working paper series on regional economic, no. 52 | June 2010. Hubert Gabrisch and Maria Luigia Segnana. (2002), Why is trade between the European Union and the transition economies vertical? discussion paper no. 7, University of Trento. Indra Nath Mukherji Tilani Jayawardhana , Saman Kelegama , Indo- sri lanka free trade agreement: an assessment of potential and impact. Kawai and Wignaraja, 2011, Asias Free Trade Agreements: How is business Responding?, Asian development bank Institute Masahiro Kawai, Ganeshan Wignaraja. (2008), Regionalism as an engine of multilateralism: A case for a single east Asian FTA, Working paper series on regional economic integration, February , No. 14. Myong-Keun, Kin, Bae-Sung Heo,Joo-Nyung. (2005), Effects of FTA among China Japan and Korea on agriculture, Journal of rural development 28 (summer 2005) Report by the secretariat China. (2010), Trade policy review, wt/tpr/s/230, 26 April 2010
WORLD TRADE ORGANIZATION,
Report by the secretariat Pakistan (2007), Trade Policy Review, WORLD ORGANIZATION, wt/tpr/s/19, 10 December 2007.
TRADE.
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Utilization under Thailands FTAs: Agricultural and related export products, (2008), Thailand development research institute (TDRI). Yunling Zhang. (2010), Impact of free trade agreements on business activity: A survey of firms in the people's republic of china , ADBI working paper series.
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ANNEXURE: Annexure Table 1: CN-Offer Cat-1 Top 20 Gainers in Exports to China

CN-Offer Cat-1 Top 20 Gainers in Exports to China Tariff Pref Rate 2011 0 0 * Pre EHP EHP Status 2005 25475 0 Pakistan Export Value to China EHP 2006 27831 2850 FTA 2009 70678 21523 FTA 154% 655% % Change Since 2005 177%
HS-CODE --Description
MFN 2011 0 10
26100000 52091200Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing more than 200 g/m2: Unbleached: 3-thread or 4-thread twill, including cross twill 52122100Other woven fabrics of cotton: Weighing more than 200 g/m2: Unbleached 52091100Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing more than 200 g/m2: Unbleached: Plain weave 74081100Copper wire: Of refined copper: Of which the maximum cross-sectional dimension exceeds 6 mm 25151200Marble, travertine, ecaussine and other calcareous monumental or building stone of an apparent specific gravity of 2.5 or more, and alabaster, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape: Marble and travertine: Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape 52081200Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2: Unbleached: Plain weave, weighing more than 100 g/m2 52121100Other woven fabrics of cotton: Weighing not more than 200 g/m2: Unbleached 74040000 52081300Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2: Unbleached: 3-thread or 4-thread twill, including cross twill 54024410Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: Other yarn, single, untwisted or with a twist not exceeding 50 turns per metre: Elastomeric: Elastomeric yarn mainly composed of polyurethane (like spandex and lycra excluding other poly-urethane yarn). 23064100Oil cake/oth resid colza seeds 74081900Copper wire: Of refined copper: Other
12 10 4
0 0 0
* *
4595 806 0
1756 10925 0
17670 14380 9786
906% 32%
285% 1684%
914
1072
7903
637%
765%
10
222
641
7835
1122%
3429%
12 1.5
0 0
2121 3114
3484 6925
7095 5235
104% -24%
235% 68%
10
56
1623
4697
189%
8288%
3861
5 4
0 0
0 0
88 0
3567 2744
3953%
95

23012010Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption; greaves: Flours, meals and pellets, of fish or of crustaceans, molluscs or other aquatic invertebrates: Shrimp meal 26190000 72051000Granules and powders, of pig iron, spiegeleisen, iron or steel: Granules 52081100Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2: Unbleached: Plain weave, weighing not more than 100 g/m2 52094200Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing more than 200 g/m2: Of yarns of different colours: Denim 90189090Oth inst,app medical/sur/veten 25151100Marble, travertine, ecaussine and other calcareous monumental or building stone of an apparent specific gravity of 2.5 or more, and alabaster, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape: Marble and travertine: Crude or roughly trimmed
2583
4 2
0 0
0 0
0 0
2101 1755
10
704
1664
136%
166300%
10 4
0 0
* *
267 814
104 692
1545 1354
1386% 96%
479% 66%
171
603
1218
102%
612%
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Annexure Table 2: CN-Offer Cat-1 Top 20 Losers in Exports to China

CN-Offer Cat-1 Top 20 Losers in Exports to China Tariff Pref Rate 2011 0 Pre EHP EHP Status * 2005 Pakistan Export Value to China EHP 2006 FTA 2009 % Change FTA Since 2005 -91%
MFN 2011 10
52081900Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2: Unbleached: Other fabrics 82122000Razors and razor blades (including razor blade blanks in strips): Safety razor blades, including razor blade blanks in strips 52103100Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with manmade fibres, weighing not more than 200 g/m2: Dyed: Plain weave 52105100Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with manmade fibres, weighing not more than 200 g/m2: Printed: Plain weave 52101100Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with manmade fibres, weighing not more than 200 g/m2: Unbleached: Plain weave 52121300Other woven fabrics of cotton: Weighing not more than 200 g/m2: Dyed 55051000Waste (including noils, yarn waste and garnetted stock) of man-made fibres: Of synthetic fibres 55093200Yarn (other than sewing thread) of synthetic staple fibres, not put up for retail sale: Containing 85 % or more by weight of acrylic or modacrylic staple fibres: Multiple (folded) or cabled yarn 30049090Oth medicament therapeutic use 54077400Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04: Other woven fabrics, containing 85 % or more by weight of synthetic filaments: Printed 54078100Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04: Other woven fabrics, containing less than 85 % by weight of synthetic filaments, mixed mainly or solely with cotton: Unbleached or bleached 72042900Ferrous waste and scrap; remelting scrap ingots of iron or steel: Waste and scrap of alloy steel: Other 63021090Oth bed linen,knitted/croch 90248000Machines and appliances for testing the hardness, strength, compressibility, elasticity or other mechanical properties of materials (for example, metals, wood, textiles, paper, plastics): Other machines and appliances
35467
11988
3327
-72%
14
926
1436
1113
-22%
20%
10
1636
825
786
-5%
-52%
10
2454
1068
341
-68%
-86%
12
1340
288
304
6%
-77%
10 5
0 0
* *
788 85
1233 15
140 0
-89% -100%
-82% -100%
5 4 10
0 0 0
* * *
97 136 147
993 23 365
0 0 0
-100% -100% -100%
-100% -100% -100%
10
249
-100%
0 14
0 0 *
257 365
0 0
0 0
-100% -100%
401
-100%
97

42031000Articles of apparel, of leather or composition leather (excl. clothing accessories, footware and headgear and parts thereof, and goods of chapter 95, e.g. shin guards, fencing masks) 52105200Woven fabrics of cotton, containing predominantly, but < 85% cotton by weight, mixed principally or solely with man-made fibres and weighing <= 200 g/m, in three-thread or four-thread twill, incl. cross twill, printed 60052100Wrap knit fab of cot unbl/blea 13019020Guwar gum 41044100Hide,skin full grain dry state 52102100Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with manmade fibres, weighing not more than 200 g/m2: Bleached: Plain weave
10
543
895
-100%
-100%
10
768
-100%
-100%
10 3 5 14
0 0 0 0
* *
913 1337 1424
0 917 944 63
0 0 0 0
-100% -100% -100%
-100% -100% -100% -100%
1709
98
Annexure Table 3: CN-Offer Cat-2 Top 20 Gainers in Exports to China

CN-Offer Cat-2 Top 20 Gainers in Exports to China HS-CODE --Description 52053200Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single yarn) 52051200Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number) 52051100Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring 714.29 decitex or more (not exceeding 14 metric number) 52053100Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn 714.29 decitex or more (not exceeding 14 metric number per single yarn) 52052200Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of combed fibres: Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number) 52051300Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number): 39041090Polymers of vinyl chloride or of other halogenated olefins, in primary forms: Poly(vinyl chloride), not mixed with any other substances: Other 52041900Cotton sewing thread, whether or not put up for retail sale: Not put up for retail sale: Other 39151000Waste, parings and scrap, of plastics: Of polymers of ethylene 52061200Cotton yarn (other than sewing thread), containing less than 85 % by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number) Tariff Pref Rate 2011 Pre EHP EHP Status 2005 Pakistan Export Value to China EHP 2006 FTA 2009 % Change FTA Since 2005
MFN 2011
3.5
3.5
23671
115762
264376
128%
1017%
3.5
3.5
108732
99274
127456
28%
17%
3.5
3.5
19700
34841
58968
69%
199%
4.5
4.5
723
23936
54746
129%
7472%
3.5
3.5
26965
18344
35228
92%
31%
3.5
3.5
5062
3513
14687
318%
190%
6.5 5
5.5 5
0 0 38
0 0 21
4961 3087 2037 9600% 5261%
3.5
3.5
66
1806
2636%
99

74072900Copper bars, rods and profiles: Of copper alloys: Other 52071000Cotton yarn (other than sewing thread) put up for retail sale: Containing 85 % or more by weight of cotton 52061100Cotton yarn (other than sewing thread), containing less than 85 % by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring 714.29 decitex or more (not exceeding 14 metric number) 74072100Copper bars, rods and profiles: Of copper alloys: Of copper-zinc base alloys (brass) 52063200Cotton yarn (other than sewing thread), containing less than 85 % by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single yarn) 41039090Other raw hides and skins (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared), whether or not dehaired or split, other than those excluded by Note 1 (b) or 1 (c) to this Chapter: Other: Other 03031900Oth sockeye salmon frozen 52041100Cotton sewing thread, whether or not put up for retail sale: Not put up for retail sale: Containing 85 % or more by weight of cotton 08030000 52062200Cotton yarn (other than sewing thread), containing less than 85 % by weight of cotton, not put up for retail sale: Single yarn, of combed fibres: Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number)
5.3 6
5.3 5
0 214
0 0
498 452 111%
3.5
3.5
47
444
845%
5.3
397
384
5.6
314
10 5 10
5.83 5 5.83
6.7
9 0
319 106 0
313 309 263
-2% 192%
3378%
6.9
38
192
405%
100

CN-Offer Cat-2 Top 20 Losers in Exports to China HS-CODE Description 52052300Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of combed fibres: Measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number) 52052100Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of combed fibres: Measuring 714.29 decitex or more (not exceeding 14 metric number) 52051400Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number) 52051500Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 125 decitex (exceeding 80 metric number) 40151100Gloves,rubber,surgical 29173690Oth,terphthalic acid/its salts 03031100Sockeye salmon frozen 42040000Articles for technical use, of leather or composition leather 52053400Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn) 52053300Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number per single yarn) 52079000Cotton yarn (other than sewing thread) put up for retail sale: Other 03049000Frozen fish meat, whether or not minced (excl. fillets) 52053500Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn) Tariff Pref Rate 2011 Pre EHP EHP Status 2005 Pakistan Export Value to China EHP 2006 FTA 2009 % Change FTA Since 2005
MFN 2011
3.5
3.5
5090
2957
1197
-60%
-76%
3.5
3.5
4049
1419
702
-51%
-83%
3.5
3.5
3178
1463
345
-76%
-89%
3.5
3.5
2163
1478
182
-88%
-92%
8 6.5 10
5.5 5.2 5.8 6.7
164 269 427 57
550 0 0 12
81 17 2 0
-85%
-51% -94% -100%
-100%
-100%
82
98
-100%
-100%
120
313
-100%
-100%
6 10
5.2 5.8
121 124
539 1634
0 0
-100% -100%
-100% -100%
162
-100%
101

39249000Annexure Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Other 03022300Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 03.04: Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae and Citharidae), excluding livers and roes: Sole (Solea spp.) 20091100Fruit juices (including grape must) and vegeAnnexure Table juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Orange juice: Frozen 84388000Machinery for the industrial preparation or manufacture of food or drink, n.e.s. 03051000Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption: Flours, meals and pellets of fish, fit for human consumption 39233000Carboys, bottles, flasks and similar articles for the conveyance or packaging of goods, of plastics 82059000Hand tools (including glaziers' diamonds), not elsewhere specified or included; blow lamps; vices, clamps and the like, other than accessories for and parts of, machine-tools; anvils; porAnnexure Table forges; hand- or pedal- operated grinding wheels with frameworks: Sets of articles of two or more of the foregoing subheadings
10
5.8
166
-100%
12
6.2
244
-100%
7.5
5.4
274
83
-100%
-100%
8.5
5.6
8.1
294
-100%
10
5.8
468
369
-100%
-100%
6.5
5.2
1021
1787
-100%
-100%
10.5
5.9
1064
-100%
Annexure Table 5: CN-Offer Cat-3 Top Gainers in Exports to China

CN-Offer Cat-3 Top Gainers in Exports to China HS-CODE --Description 63053300Sacks and bags, of a kind used for the packing of goods: Of man-made textile materials: Other, of polyethylene or polypropylene strip or the like 03073900Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption: Mussels (Mytilus spp., Perna spp.): Other 61034900Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted: Trousers 07123200Dried wood ears "auricularia spp.", whole, cut, sliced, broken or in powder, but not further prepared 64042000Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: Footwear with outer soles of leather or composition leather 68010000 62031910Suit men/boys cotton not knit Tariff Pref Rate 2011 9.4 Pre EHP EHP Status 13.6 2005 Pakistan Export Value to China EHP 2006 FTA 2009 % Change FTA Since 2005
MFN 2011 16
4447
14
8.3
9.8
90
16 13 24 12 17.5
9.4 7.7 12 7.1 10.3
11.7
0 0
0 0 0 0 12
38 19 12 10 10 -17% 100%
12
0 0
12.3
102

CN-Offer Cat-3 Top 20 Losers in Exports to China HS-CODE Description 56081900Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials: Of manmade textile materials: Other 84414000Other machinery for making up paper pulp, paper or paperboard, including cutting machines of all kinds: Machines for moulding articles in paper pulp, paper or paperboard 61059000Men's or boys' shirts, knitted or crocheted: Of other textile materials 62052000Men's or boys' shirts of cotton (excl. knitted or crocheted, nightshirts, singlets and other vests) 70200090Other, articles of glass, n.s. 05119190Other products of fish 64051000Other footwear: With uppers of leather or composition leather Tariff Pref Rate 2011 7.1 Pre EHP EHP Status 2005 Pakistan Export Value to China EHP 2006 FTA 2009 % Change FTA Since 2005 -100%
MFN 2011 12
16
30
-100%
12 16 16 13 12 24
7.1 9.4 7.1 7.7 7.1 12 12 11.7 8 12.8
44 63 111 150 164 178
73 0 5 194 459 3
0 0 0 0 0 0
-100%
-100% -100%
-100% -100% -100% -100%
-100% -100% -100% -100%

CN-Offer Cat-4 Top 20 Gainers in Exports to China HS-CODE --Description 68159100Articles of stone or of other mineral substances (including carbon fibres, articles of carbon fibres and articles of peat), not elsewhere specified or included: Other articles: Containing magnesite, dolomite or chromite 62042200Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Ensembles: Of cotton 74199990Other articles of copper: Other: Other: Other 62032200Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Ensembles: Of cotton 74181900Annexure Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper; sanitary ware and parts thereof, of copper: Annexure Table, kitchen or other household articles and parts thereof; pot scourers and scouring or polishing pads, gloves and the like: Other Tariff Pref Rate 2011 12.6 Pre EHP EHP Status 2005 Pakistan Export Value to China EHP 2006 FTA 2009 % Change FTA Since 2005
MFN 2011
15
1291
17.5 20 17.5
14.7 17 14.7 17
0 0 0
0 0 0
45 28 22
18
15
21
103

CN-Offer Cat-4 Top 20 Losers in Exports to China HS-CODE --Description 69120010Annexure Tableware & kitchenware 61159200Full-length or knee-length stockings, socks and other hosiery, incl. stockings for varicose veins and footwear without applied soles, of cotton, knitted or crocheted (excl. panty hose and tights, women's full-length or knee-length stockings, measuring per single yarn < 67 decitex, and hosiery for babies) 63053900Sacks and bags, of a kind used for the packing of goods: Of man-made textile materials: Other 83013000Padlocks and locks (key, combination or electrically operated), of base metal; clasps and frames with clasps, incorporating locks, of base metal; keys for any of the foregoing articles, of base metal: Locks of a kind used for furniture 61149000Other garments, knitted or crocheted: Of other textile materials 62033200Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Jackets and blazers: Of cotton 63101000Used or new rags, scrap twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials: Sorted 76151100Annexure Table, kitchen or other household articles and parts thereof, of aluminium; pot scourers and scouring or polishing pads, gloves and the like, of aluminium; sanitary ware and parts thereof, of aluminium: Annexure Table, kitchen or other household articles and parts thereof; pot scourers and scouring or polishing pads, gloves and the like: Pot scourers and scouring or polishing pads, gloves and the like 41069200Oth skins dry state crust 61142000Other garments, knitted or crocheted: Of cotton Tariff Pref Rate 2011 12.6 Pre EHP EHP Status 2005 4 Pakistan Export Value to China EHP 2006 0 FTA 2009 0 % Change FTA Since 2005 -100%
MFN 2011 15
14
11.7
-100%
-100%
16
13.4
12
-100%
14
11.7
23
-100%
16 16
13.4 13.4 14.4
24 25
1 2
0 0
-100% -100%
-100% -100%
14
11.8
39
41
-100%
-100%
18
15.1
51
-100%
14 16
11.4 13.4
58 138
15 190
0 0
-100% -100%
-100% -100%
104

CN-Offer Cat-5 Top 20 Gainers in Exports to China HS-CODE --Description 41139000Oth lea further prep.aftr tane 03033900Fish, frozen, excluding fish fillets and other fish meat of heading 03.04: Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae and Citharidae), excluding livers and roes: Other 41131000Leather prep.after tann goat 41120000Prepared leather sheep/lamb 29031500Halogenated derivatives of hydrocarbons: Saturated chlorinated derivatives of acyclic hydrocarbons: Ethylene dichloride (ISO) (1,2-dichloroethane) 52021000Cotton waste (including yarn waste and garnetted stock): Yarn waste (including thread waste) 03037400Fish, frozen, excluding fish fillets and other fish meat of heading 03.04: Other fish, excluding livers and roes: Mackerel (Scomber scombrus Scomber australasicus, Scomber japonicus) 41079200Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 41. 14: Other, including sides: Grain splits 08029090Other edible nuts 41053000Sheep/lamb skin no wool crust 61161000Gloves, mittens and mitts, knitted or crocheted: Impregnated, coated or covered with plastics or rubber 43021990Tanned or dressed furskins (including heads, tails, paws and other pieces or cuttings), unassembled, or assembled (without the addition of other materials) other than those of heading 43.03: Whole skins, with or without head, tail or paws, not assembled: Other: Other 51051000Wool and fine or coarse animal hair, carded or combed (including combed wool in fragments): Carded wool 10051000Maize (corn): Seed 63109000Used or new rags, scrap twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials: Other Tariff Pref Rate 2011 14 Pre EHP EHP Status 14 2005 394 Pakistan Export Value to China EHP 2006 1825 FTA 2009 9763 % Change FTA 435% Since 2005 2378%
MFN 2011 14
10
1710
6273
9578
53%
460%
14 8 5.5 10
9.8 5.6 5.5 10
9.8 5.6
7317 2951 0 414
8824 3891 0 1858
9125 5939 3376 2456
3% 53%
25% 101%
32%
493%
10
6.7
6.7
45
1978
4296%
766
1873
145%
24 8 14
24 5.6 14 5.6
0 0 0
0 12 0
1459 211 154 1658%
10
10
143
38 20 14
38 20 14
0 0 0
0 0 0
115 110 52
105

CN-Offer Cat-5 Top 20 Losers in Exports to China HS-CODE --Description 29173610Pure terphthalic acid(pta) 52030000 61051000Men's or boys' shirts, knitted or crocheted: Of cotton 82142000Other articles of cutlery (for example, hair clippers, butchers' or kitchen cleavers, choppers and mincing knives, paper knives); manicure or pedicure sets and instruments (including nail files): Manicure or pedicure sets and instruments (including nail files) 73239900Annexure Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel: Other: Other 03033300Fish, frozen, excluding fish fillets and other fish meat of heading 03.04: Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae and Citharidae), excluding livers and roes: Sole (Solea spp.) 48196000Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Box files, letter trays, storage boxes and similar articles, of a kind used in offices, shops or the like 55063000Synthetic staple fibres, carded, combed or otherwise processed for spinning: Acrylic or modacrylic 40121300Retreated tyre for aircrafts 96020090Oth articles thereof h-96.02 10063090Rice other varieties 11081200Starches; inulin: Starches: Maize (corn) starch 39269090Other articles of plastics 41062100Goat/kid skin wet blue Tariff Pref Rate 2011 6 40 13.6 13.6 Pre EHP EHP Status 8 2005 47435 1358 707 Pakistan Export Value to China EHP 2006 16331 1583 38 FTA 2009 10717 113 39 % Change FTA -34% -93% 3% Since 2005 -77% -92% -94%
MFN 2011 7.6 40 16
18
16.2
16.2
265
37
311%
-86%
20
20
50
-92%
12
42
247
-100%
-100%
7.5
7.5
46
-100%
5 20 25 65 20 10 14
4.5 20 25 65 20 9.2 12
4.5
49 53 114 150 230
0 0 264 12 0 109 178
0 0 0 0 0 0 0 -100% -100% -100% -100%
-100% -100% -100% -100% -100% -100% -100%
9.2 12
321 1019
106
Annexure Table 11: Others Top 20 Gainers in Exports to China

Others Top 20 Gainers in Exports to China Tariff Pref Rate 2011 Pre EHP EHP Status 2005 1673 97 0 0 515 Pakistan Export Value to China EHP 2006 837 1145 0 509 1521 FTA 2009 22661 21028 10494 9352 8357 1737% 449% 1523% % Change FTA 2607% 1737% Since 2005 1255% 21578%
MFN 2011
52010090Other cotton 16042090Oth fish prepared or preserved 52042090Oth cotton thread for r/sale 16042020Fish fillet 39159000Waste, parings and scrap, of plastics: Of other plastics 13023210VegeAnnexure Table saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegeAnnexure Table products: Mucilages and thickeners, whether or not modified, derived from vegeAnnexure Table products: Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds: Guwar gum 03062400Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption: Not frozen: Crabs 63023130Bed covers of cotton mill-made 12074000Other oil seeds and oleaginous fruits, whether or not broken: Sesamum seeds 39076020Bottle grade 84314900Parts suiAnnexure Table for use solely or principally with the machinery of headings 84.25 to 84.30: Of machinery of heading 84.26, 84.29 or 84.30: Other 41071200Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 41. 14: Whole hides and skins : Grain splits 68022100Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 68.01; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate): Other monumental or building stone and articles thereof, simply cut or sawn, with a flat or even surface: Marble, travetine and alabaster
1955
4832
147%
105
4322
4016%
71933%
0 223 283 0
76 726 1222 0
3808 3377 2430 2378
4911% 365% 99% 1414% 759%
1626
2289
41%
50
1925
3750%
31983%
107

03062900Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption: Not frozen: Other, including flours, meals and pellets of crustaceans, fit for human consumption 41071900Oth whole hide/skin bov animal 39233010Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Carboys, bottles, flasks and similar articles: Bottles 74071090Oth profiles of copper 63023190Oth bed linen of cotton 55131100Woven fabrics of synthetic staple fibres, containing less than 85 % by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170 g/m2: Unbleached or bleached: Of polyester staple fibres, plain weave 41079900Oth leather further prepared
206
1740
745%
21650%
62 0 0 38 0
56 0 0 54 72
1457 1450 1398 1223 1130
2502%
2250%
2165% 1469%
3118%
17
180
1019
466%
5894%
108
Annexure Table 12: Others Top 20 Losers in Exports to China

Others Top 20 Losers in Exports to China Tariff Pref Rate 2011 Pre EHP EHP Status 2005 15346 20463 17.5 17.5 171 249 Pakistan Export Value to China EHP 2006 12738 11150 319 964 FTA 2009 711 580 55 20 % Change FTA -94% -95% -83% -98% Since 2005 -95% -97% -68% -92%
MFN 2011
41044900Other hides dry state(crust) 03037900Fish, frozen, excluding fish fillets and other fish meat of heading 03.04: Other fish, excluding livers and roes: Other 68159990Oth articl of ston/oth min sub 70109000Oth carboys bott,flask,jar,pot 68021000Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 68.01; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate): 54023300Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: Textured yarn: Of polyesters 95066990Other balls 73110000 12089090Oth flour/meal of oth oil seed 96019090Oth, animal carving mate arti. 87112000M-cycle cyl cap >50cc!>250cc 12073000Castor oil seeds, whether or not broken 74199900Articles of copper, n.e.s. 42050000Articles of leather or composition leather (excl. saddlery and harness bags; cases and similar containers; apparel and clothing accessories; articles for technical uses; whips, riding-crops and similar of heading 6602; furniture; lighting appliances; toys; games; sports articles; buttons and parts thereof; cuff-links, bracelets or other imitation jewellery; made-up articles of netting of heading 5608; and articles of plaiting materials) 42032900Gloves, mittens and mitts, of leather or composition leather (excl. special sports gloves) 03056900Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption: Fish, salted but not dried or smoked and fish in brine: Other 03055900Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption: Dried fish, whether or not salted but not smoked: Other 41051000Wet blue lamb,sheep skin 03026900Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 03.04: Other fish, excluding livers and roes: Other 52010010Cotton, american
119
146
13
-91%
-89%
331 48 79 84 107 115 117 176
639 137 161 2788 96 38 250 276
2 0 0 0 0 0 0 0
-100% -100% -100% -100% -100% -100% -100% -100%
-99% -100% -100% -100% -100% -100% -100% -100%
198
620
-100%
-100%
212
206
-100%
-100%
249
296
-100%
-100%
343
1385
-100%
-100%
398 3770 4529
57 461 1371
0 0 0
-100% -100% -100%
-100% -100% -100%
109
Annexure Table 13: Overall Top 20 Export & Imports Products Annexure Table 13.1: Top 20 Gainers in Exports to China
Top 20 Gainers in Exports to China HS-CODE Description 52051200Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric 26100000 Chromium ores & concentrates 52053200Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single 52051100Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring 714.29 decitex or more (not exceeding 14 metric number) 52051300Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 52122100Other woven fabrics of cotton: Weighing more than 200 g/m2: Unbleached 52121100Other woven fabrics of cotton: Weighing not more than 200 g/m2: Unbleached 03033900Fish, frozen, excluding fish fillets and other fish meat of heading 03.04: Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae and Citharidae), excluding livers and roes: Other 52010090Other cotton 25151200Marble, travertine, ecaussine and other calcareous monumental or building stone of an apparent specific gravity of 2.5 or more, and alabaster, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape: Marble and travertine: Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape 52091100Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing more than 200 g/m2: Unbleached: Plain weave Tariff Pref Rate 2011 Pre EHP EHP Status 2005 Pakistan Export Value to China EHP 2006 FTA 2009 % Change FTA Since 2005
MFN 2011
3.5
3.5
108732
99274
127456
28%
17%
25475
27831
70678
154%
177%
3.5
3.5
23671
115762
264376
128%
1017%
3.5
3.5
19700
34841
58968
69%
199%
3.5
3.5
5062
3513
14687
318%
190%
12 12
0 0
* *
4595 2121
1756 3484
17670 7095
906% 104%
285% 235%
10 5
8 0
1710 1673
6273 837
9578 22661
53% 2607%
460% 1255%
914
1072
7903
637%
765%
10
806
10925
14380
32%
1684%
110

52053100Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibres: Measuring per single yarn 714.29 decitex or more (not exceeding 14 metric number per single yarn) 39159000Waste, parings and scrap, of plastics: Of other plastics 52081200Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2: Unbleached: Plain weave, weighing more than 100 g/m2 16042090Oth fish prepared or preserved 52081300Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2: Unbleached: 3-thread or 4-thread twill, including cross twill 52091200Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing more than 200 g/m2: Unbleached: 3-thread or 4-thread twill, including cross twill 52042090Oth cotton thread for r/sale 74081100Copper wire: Of refined copper: Of which the maximum cross-sectional dimension exceeds 6 mm 16042020Fish fillet 4 12 0 7.3 0
4.5
4.5
723
23936
54746
129%
7472%
7.6
5.9
515
1521
8357
449%
1523%
10
222 97
641 1145 1623
7835 21028 4697
1122% 1737% 189%
3429% 21578% 8288%
10
56
10
0 0 0 0
2850 0 0 509
21523 10494 9786 9352
655%
1737%
111
Annexure Table 13.2: Top 20 Losers in Exports to China

Top 20 Losers in Exports to China Tariff Pref Rate 2011 Pre EHP EHP Status 8 10 10 5 0 5 0 * 2005 47435 35467 20463 15346 Pakistan Export Value to China EHP 2006 16331 11988 11150 12738 FTA 2009 10717 3327 580 711 % Change FTA -34% -72% -95% -94% Since 2005 -77% -91% -97% -95%
HS-CODE Description
MFN 2011
29173610Pure terphthalic acid(pta) 52081900Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2: Unbleached: Other fabrics 03037900Fish, frozen, excluding fish fillets and other fish meat of heading 03.04: Other fish, excluding livers and roes: Other 41044900Other hides dry state(crust) 52052300Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of combed fibres: Measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number) 52052100Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of combed fibres: Measuring 714.29 decitex or more (not exceeding 14 metric number) 52051400Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number) 52051500Cotton yarn (other than sewing thread), containing 85 % or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibres: Measuring less than 125 decitex (exceeding 80 metric number) 52102100Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with manmade fibres, weighing not more than 200 g/m2: Bleached: Plain weave 52103100Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with manmade fibres, weighing not more than 200 g/m2: Dyed: Plain weave 41044100Hide,skin full grain dry state 52030000 52101100Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with manmade fibres, weighing not more than 200 g/m2: Unbleached: Plain weave 13019020Guwar gum 82059000Hand tools (including glaziers' diamonds), not elsewhere specified or included; blow lamps; vices, clamps and the like, other than accessories for and parts of, machine-tools; anvils; porAnnexure Table forges; hand- or pedal- operated grinding wheels with frameworks: Sets of articles of two or more of the foregoing subheadings 39233000Carboys, bottles, flasks and similar articles for the conveyance or packaging of goods, of plastics
3.5
3.5
5090
2957
1197
-60%
-76%
3.5
3.5
4049
1419
702
-51%
-83%
3.5
3.5
3178
1463
345
-76%
-89%
3.5
3.5
2163
1478
182
-88%
-92%
14
1709
63
-100%
-100%
10 5
0 0
* 0 0 * *
1636 1424 1358 1340 1337
825 944 1583 288 917
786 0 113 304 0
-5% -100% -93% 6% -100%
-52% -100% -92% -77% -100%
12 3
0 0
10.5
5.9
1064
-100%
6.5
5.2
1021
1787
-100%
-100%
112

41062100Goat/kid skin wet blue 82122000Razors and razor blades (including razor blade blanks in strips): Safety razor blades, including razor blade blanks in strips 52121300Other woven fabrics of cotton: Weighing not more than 200 g/m2: Dyed 61051000Men's or boys' shirts, knitted or crocheted: Of cotton 16 13.6 13.6 707 38 39 3% -94%
14 14 10
12 0 0
12 * *
1019 926 788
178 1436 1233
0 1113 140
-100% -22% -89%
-100% 20% -82%
113
Annexure Table 13.3: Top 20 Gainers in Imports from China
Top 20 Gainers in Imports from China Tariff HS-CODE Description MFN 2010 Pref Rate 2010 EHP Status Pre EHP 2005
Pakistan Import Value from China EHP 2006 FTA 2009 % Change FTA Since 2005
85171210Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Telephone sets, including telephones for cellular networks or for other wireless networks: Telephones for cellular networks or for other wireless networks: Cellular mobile phone 85176290Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) 85023900Electric generating sets and rotary converters: Other generating sets: Other 85021390Oth gener set in/comb pis eng 54023300Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: Textured yarn: Of polyesters 55032010Staple fibres of polyesters, not carded, combed or otherwise processed for spinning: Of polyesters not exceeding 2.22 decitex 85176990Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) : Other: Other 85393910Energy saving lamps
Rs. 250/ set + RD Rs. 250/ set
139217
20
129594
5 0
0 5
1147 1758
528 4708
119280 83393
22491% 1671%
10299% 4644%
10
9021
23044
73445
219%
714%
10
213
4041
65770
1528%
30778%
3.4
63419
10
9.3
16834
23898
59643
150%
254%
114

89051000Light-vessels, fire-floats, dredgers, floating cranes, and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms: Dredgers 38089170Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, Sulphur-treated bands, wicks and candles, and fly papers): Other : Insecticides: Products registered under the Agricultural Pesticides Ordinance, 1971 29269050Nitrile-function compounds (excl. acrylonitrile, 1cyanoguanidine 'dicyandiamide', fenproporex 'INN' and its salts, and methadone 'INN'-intermediate '4-cyano-2dimethylamino-4,4-diphenylbutane'): Ingredients for pesticides 07032000Onions, shallots, garlic, leeks and other alliaceous vegeAnnexure Tables, fresh or chilled: Garlic 85177000Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Parts 84798990Machines and mechanical appliances, n.e.s.: Other 85022000Electric generating sets and rotary converters: Generating sets with spark-ignition internal combustion piston engines 07133300Dried leguminous vegeAnnexure Tables, shelled, whether or not skinned or split: Beans (Vigna spp., Phaseolus spp.): Kidney beans, including white pea beans (Phaseolus vulgaris) 84014000Nuclear reactors; fuel elements (cartridges), nonirradiated, for nuclear reactors; machinery and apparatus for isotopic separation: Parts of nuclear reactors 85372000Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of heading 85.17: For a voltage exceeding 1,000 V 84143010Compressor used non cfc gases 29419090Other, antibiotics.
2844
8516
55495
552%
1851%
4.75
43247
19746
8594
37251
333%
89%
EHP
24357
29933
36036
20%
48%
10
6.67
34324
5 10
0 6.67
14881 2301
13323 3891
30230 28760
127% 639%
103% 1150%
17534
14178
28713
103%
64%
22045
25
21.75
53
157
21680
13709%
40806%
5 10
0 6.67
5010 10943
14351 13386
21247 20405
48% 52%
324% 86%
115
Annexure Table 14: PK- Offer Cat-1 Top 20 Gainers in Imports from China
PK- Offer Cat-1 Top 20 Gainers in Imports from China Tariff HS-CODE --Description MFN 2010 Pref Rate 2010 EHP Status Pakistan Import Value from China Pre EHP EHP FTA % Change Since 2005
2005
2006
2009
FTA
85171210Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Telephone sets, including telephones for cellular networks or for other wireless networks: Telephones for cellular networks or for other wireless networks: Cellular mobile phone 85176290Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) : Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other 29269050Nitrile-function compounds (excl. acrylonitrile, 1-cyanoguanidine 'dicyandiamide', fenproporex 'INN' and its salts, and methadone 'INN'-intermediate '4cyano-2-dimethylamino-4,4diphenylbutane'): Ingredients for pesticides
Rs. 250/ set + RD Rs. 250/ set
139217
20
129594
19746
8594
37251
333%
89%
116

07032000Onions, shallots, garlic, leeks and other alliaceous vegeAnnexure Tables, fresh or chilled: Garlic 84798990Machines and mechanical appliances, n.e.s.: Other 84014000Nuclear reactors; fuel elements (cartridges), nonirradiated, for nuclear reactors; machinery and apparatus for isotopic separation: Parts of nuclear reactors 84143010Compressor used non cfc gases 84479010Knitting machines, stitch-bonding machines and machines for making gimped yarn, tulle, lace, embroidery, trimmings, braid or net and machines for tufting: Other: Multi head embroidery machines 89059000Light-vessels, fire-floats, dredgers, floating cranes, and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms: Other 84283990Other lifting, handling, loading or unloading machinery (for example, lifts, escalators, conveyors, teleferics): Other continuous-action elevators and conveyors, for goods or materials: Other: Other 84304900Other moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; pile-drivers and pileextractors; snow-ploughs and snow-blowers: Other boring or sinking machinery: Other 28353100Phosphinates(hypophosphites), phosphonates (phosphites) and phosphates; polyphosphates, whether or not chemically defined: Polyphosphates: Sodium triphosphate (sodium tripolyphosphate) 84189910Evaporators, 85235210Discs, tapes, solid-state nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded,
EHP
24357
29933
36036
20%
48%
14881
13323
30230
127%
103%
22045
5010
14351
21247
48%
324%
786
20192
2469%
18283
EHP
300
18269
5990%
EHP
28086
16496
-41%
5911
8134
11646
43%
97%
6587
10383
9409
-9%
43%
9330
117

including matrices and masters for the production of discs, but excluding products of Chapter 37: Semiconductor media : Smart cards: SIM cards 84713010Laptop computers,notebooks 59021000Tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon: Of nylon or other polyamides 84109090Hydraulic turbines, water wheels, and regulators therefor: Parts, including regulators: Other 72199090Flat-rolled products of stainless steel, of a width of 600 mm or more: Other: Of a thickness of less than 0.5 mm: Other 85176970Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) : Other: Networking equipments like LAN bridges, hubs, switches and repeaters 84099999Parts suiAnnexure Table for use solely or principally with the engines of heading 84.07 or 84.08: Other: Other: Other: Other 0 0 EHP 5396 8032 7918 -1% 47%
3523
4055
7836
93%
122%
EHP
618
6172
899%
111
5963
5272%
5871
10
631
5747
811%
118
Annexure Table 15: PK- Offer Cat-1 Top 20 Losers in Imports from China
PK- Offer Cat-1 Top 20 Losers in Imports from China Tariff HS-CODE --Description MFN 2010 0 5 5 0 Pref Rate 2010 0 0 0 0 EHP Status EHP EHP Pakistan Import Value from China Pre EHP EHP FTA % Change Since 2005 -73% -56% -69% -84%
2005
2006
2009
FTA
84733090Oth parts/acces mach head84.71 84440000 84178000Industrial or laboratory furnaces and ovens, including incinerators, non-electric: Other 27040010Coke of coal 84459000Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textile reeling or winding (including weftwinding) machines and machines for preparing textile yarns for use on the machines of heading 84.46 or 84.47: Other 84452000Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textile reeling or winding (including weftwinding) machines and machines for preparing textile yarns for use on the machines of heading 84.46 or 84.47: Textile spinning machines 84748090Mach aglomerat/shape,minerals 84171010Kilins (furnace oven) 84171090Oth furnaces and oven 84742010Crush/grind mach,cement indus 84451100Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textile reeling or winding (including weftwinding) machines and machines for preparing textile yarns for use on the machines of heading 84.46 or 84.47: Machines for preparing textile fibres: Carding machines
8738 4654 6372 10538
12735 2625 344 55998
2391 2069 1956 1717
-81% -21% 469% -97%
EHP
4491
3778
1215
-68%
-73%
EHP
42370
33357
1021
-97%
-98%
5 5 5 5
0 0 0 0
10292 7475 4449 43009
2490 4267 2129 9380
787 501 404 393
-68% -88% -81% -96%
-92% -93% -91% -99%
EHP
8411
7471
355
-95%
-96%
119

84261290Oth mobile lift on tyres 84451300Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textile reeling or winding (including weftwinding) machines and machines for preparing textile yarns for use on the machines of heading 84.46 or 84.47: Machines for preparing textile fibres: Drawing or roving machines 27011900Coal; briquettes, ovoids and similar solid fuels manufactured from coal: Coal, whether or not pulverised, but not agglomerated: Other coal 27040090Other coke 85252010Cellular mobile phone w/battry 86069100Railway or tramway goods vans and wagons, not self- propelled: Other: Covered and closed 86050000Railway passenger and special purpose coaches, not self-propelled 84716079Input or output units for digital automatic data processing machines, whether or not containing storage units in the same housing: Polychrome (colour) monitors: Other 84716040Ink jet, printer 5 0 10280 19658 263 -99% -97%
EHP
5937
5370
149
-97%
-97%
43192
7022
90
-99%
-100%
12562 20037
44576 98263
1 0
-100% -100%
-100% -100%
18713
-100%
16024
3935
-100%
-100%
EHP
5930
5201
-100%
-100%
EHP
3110
3604
-100%
-100%
120
PK- Offer Cat-2 Top 20 Gainers in Imports from China Tariff HS-CODE --Description MFN 2010 0 Pref Rate 2010 5 EHP Status Pakistan Import Value from China Pre EHP EHP FTA % Change Since 2005 4644%
2005
2006
2009
FTA
85021390Oth gener set in/comb pis eng 85022000Electric generating sets and rotary converters: Generating sets with spark-ignition internal combustion piston engines 07133300Dried leguminous vegeAnnexure Tables, shelled, whether or not skinned or split: Beans (Vigna spp., Phaseolus spp.): Kidney beans, including white pea beans (Phaseolus vulgaris) 29419090Other, antibiotics. 72104990Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated: Otherwise plated or coated with zinc: Other: Other 95030090Tricycles, scooters, pedal cars and similar wheeled toys; dolls' carriages; dolls; other toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds: Other 85044090Oth ups 50050000 54033200Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex: Other yarn, single: Of viscose rayon, with a twist exceeding 120 turns per metre 32041910Dyes sulphur 50040000 39131000Natural polymers (for example, alginic acid) and modified natural polymers (for example, hardened proteins, chemical derivatives of natural rubber), not elsewhere specified or included, in primary forms: Alginic acids, its salts and esters
1758
4708
83393
1671%
10
6.67
2301
3891
28760
639%
1150%
17534
14178
28713
103%
64%
10
6.67
10943
13386
20405
52%
86%
10
6.67
7577
16972
124%
25
15989
10 0
6.67 5
2649 5222
5254 8171
15577 11683
196% 43%
488% 124%
729
4352
11304
160%
1451%
5 0
5 5
3449 2817
5411 3448
10899 10747
101% 212%
216% 282%
10
6.67
3457
5326
10015
88%
190%
121

30022090Oth vaccin for human medicines 85171220Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Telephone sets, including telephones for cellular networks or for other wireless networks: Telephones for cellular networks or for other wireless networks: Fixed wireless terminal and CDMA 72139190Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel: Other: Of circular cross-section measuring less than 14 mm in diameter: Other 87059000Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile workshops, mobile radiological units): Other 72142090Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling: Containing indentations, ribs, grooves or other deformations produced during the rolling process or twisted after rolling: Other 85030020Parts suiAnnexure Table for use solely or principally with the machines of heading 85.01 or 85.02: Of machine of heading 8501.5340, 8501.5390, 8502.1110,8502.1390&8502.2000 72149990Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling: Other: Other: Other 38249010Gum base used for chewing gum 10 6.67 15 141 8739 6098% 58160%
15
6.67
8224
10
6.67
4583
8159
78%
30
6.67
749
2337
7389
216%
887%
10
6.67
3451
6270
82%
10
6.67
27
5974
22026%
10
6.67
4443
222050%
10
6.43
402
765
2209
189%
450%
122
PK- Offer Cat-2 Top 20 Losers in Imports from China Tariff HS-CODE --Description MFN 2010 Pref Rate 2010 6.67 EHP Status Pre EHP Pakistan Import Value from China EHP FTA % Change Since 2005
2005
2006
2009
FTA
85061000Primary cells and primary batteries: Manganese dioxide 72081090Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated: In coils, not further worked than hot-rolled, with patterns in relief: Other 90289010Parts and accessories for gas, liquid or electricity supply or production meters, n.e.s.: Shaft without rotating disc, register assembly and meter bearing assembly for electricity meter 40101900Conveyor or transmission belts or belting, of vulcanised rubber: Conveyor belts or belting: Other 70131000Glassware of a kind used for Annexure Table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 70.10 or 70.18): Of glassceramics 32021000Synthetic organic tanning substances; inorganic tanning substances; tanning preparations, whether or not containing natural tanning substances; enzymatic preparations for pre-tanning: Synthetic organic tanning substances 96151900Combs, hair-slides and the like; hairpins, curling pins, curling grips, hair-curlers and the like, other than those of heading 85.16, and parts thereof: Combs, hair-slides and the like: Other 84418000Other machinery for making up paper pulp, paper or paperboard, including cutting machines of all kinds: Other machinery 64029900Other footwear with outer soles and uppers of rubber or plastics: Other footwear: Other
10
6050
4490
3174
-29%
-48%
10
6.67
18883
1044
-94%
10
6.67
2096
2875
788
-73%
-62%
15
10
2912
2831
779
-72%
-73%
25 + RD 25
11.67
873
999
413
-59%
-53%
1655
1712
324
-81%
-80%
25
10.83
929
958
268
-72%
-71%
10
891
374
209
-44%
-77%
25
11.67
1063
1322
96
-93%
-91%
123

31054000Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers; goods of this Chapter in Annexure Tablets or similar forms or in packages of a gross weight not exceeding 10 kg: Ammonium dihydrogenorthophosphate (monoammonium phosphate) and mixtures thereof with diammonium hydrogenorthophosphate (diammonium phosphate) 38081060Pesticides 38083000Herbicides, germination inhibitors and plantgrowth regulators put up for retail sale or as preparations or articles 95039000Toys, n.e.s. 85252090Oth transmission reception app 85179000Parts of electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carriercurrent line systems or digital line systems and videophones, n.e.s. 31053000Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers; goods of this Chapter in Annexure Tablets or similar forms or in packages of a gross weight not exceeding 10 kg: Diammonium hydrogenorthophosphate (diammonium phosphate) 54024910Elastomeric yarn,comp polyuret 30041000Medicament,pencillin derv/acid 85239000Prepared unrecorded media for sound recording or similar recording of other phenomena (excl. magnetic tapes, magnetic discs, cards incorporating a magnetic stripe and goods of chapter 37) 95069910Blader&cover inflatAnnexure Table balls
11262
14
74
429%
-99%
44247
35722
-100%
-100%
10127
9275
-100%
-100%
7575 7520
14309 44338
0 0
-100% -100%
-100% -100%
3553
2099
-100%
-100%
2355
-100%
1623 1257
1898 4470
0 0
-100% -100%
-100% -100%
466
898
-100%
-100%
466
990
-100%
-100%
124
2005
2006
2009
FTA
85177000Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Parts 30049099Medicaments (excluding goods of heading 30. 02, 30. 05 or 30. 06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale: Other: Other: Other 38249099Other binders for industry 54024500Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: Other yarn, single, untwisted or with a twist not exceeding 50 turns per metre: Other, of nylon or other polyamides 69022090Oth refrectory goods contain 69021090Oth contain singly > 50% 85318000Electric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 85.12 or 85.30: Other apparatus 70109000Oth carboys bott,flask,jar,pot 40082190Plates, sheets, strip, rods and profile shapes, of vulcanised rubber other than hard rubber: heading 8704.2190 (3) Weather strips for doors for vehicles of sub - heading 8704.319:
10
6.67
34324
10
6.67
10306
10
6.43
3123
4912
8208
67%
163%
10
6.67
5115
10 5
6.7 6.16
392 497
1601 883
4966 4740
210% 437%
1167% 854%
10
6.5
120
19
3271
17116%
2626%
25
15.91
1381
1732
3089
78%
124%
10
6.67
2533
125

Plates, sheets and strip: Other
50072000Woven fabrics of silk or of silk waste: Other fabrics, containing 85 % or more by weight of silk or of silk waste other than noil silk 85444920Insulated (including enamelled or anodised) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors: Other electric conductors, for a voltage not exceeding 1,000 V : Other: Multi core, flexible, flat type copper, insulated (all features together) 28369930Carbonates; peroxocarbonates (percarbonates); commercial ammonium carbonate containing ammonium carbamate: Other: Other: Bicarbonate of ammonium 48184010Baby diapers 34029000Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 34.01: Other 50071000Woven fabrics of silk or of silk waste: Fabrics of noil silk 32089090Paints and varnishes based, incl. enamels and lacquers, on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium, and solutions of products of subheading 3901 to 3913 in volatile organic solvents, containing > 50% solvent by weight (excl. those based on polyesters and acrylic or vinyl polymers and solutions of collodion): Other 68069000Slag wool, rock wool and similar mineral wools; exfoliated vermiculite, expanded clays, foamed slag and similar expanded mineral materials; mixtures and articles of heat-insulating, sound-insulating or sound- absorbing mineral materials, other than those of heading 68.11 or
15
10.05
123
212
2476
1068%
1913%
10
6.67
1968
10
6.67
1757
10
6.7
199
469
1470
213%
639%
25
14.74
418
750
1257
68%
201%
15
10.05
1024
20
16.75
304
321
763
138%
151%
20
16.75
79
22
762
3364%
865%
126

68.12 or of Chapter 69: Other
38059000Gum, wood or sulphate turpentine and other terpenic oils produced by the distillation or other treatment of coniferous woods; crude dipentene; sulphite turpentine and other crude para-cymene; pine oil containing alpha-terpineol as the main constituent: Other 68129300Fabricated asbestos fibres; mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate; articles of such mixtures or of asbestos (for example, thread, woven fabric, clothing, headgear, footwear, gaskets), whether or not reinforced, other than goods of heading 68.11 or 68.13: Other: Compressed asbestos fibre jointing, in sheets or rolls 33042000Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or sun tan preparations; manicure or pedicure preparations: Eye make-up preparations
10
10.05
720
25
16.75
497
35 + RD 15
11.39
60
108
475
340%
692%
127
PK- Offer Cat-3 Top 20 Losers in Imports from China Pre EHP EHP Status Pakistan Import Value from China
Tariff HS-CODE --Description MFN 2010 Pref Rate 2010 6.7 11.39 13.4 13.4 11.39
EHP
FTA
% Change Since 2005 -49% -24% -35% -26% -58%
2005
2006
2009
FTA
34021110Sulphonic acid (soft) 33049990Oth beauty/make-up preparation 33030020Perfumes 33030090Oth perfumes & toilet water 33043090Oth manicure/pedicure prep 68091900Articles of plaster or of compositions based on plaster: Boards, sheets, panels, tiles and similar articles, not ornamented: Other 68091100Articles of plaster or of compositions based on plaster: Boards, sheets, panels, tiles and similar articles, not ornamented: 33079090Oth perfumery,cosmatic/toilet 34051020Pol/cream/prep for leather 68099090Other articles of plastics 34052000Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, scouring pastes and powders and similar preparations (whether or not in the form of paper, wadding, felt, nonwovens, cellular plastics or cellular rubber, impregnated, coated or covered with such preparations), excluding waxes of heading 34.04: Polishes, creams and similar preparations for the maintenance of wooden furniture, floors or other woodwork 39052900Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in primary forms: Vinyl acetate copolymers: Other 38089000Rodenticides and other plant protection products put up for retail sale or as preparations or articles (excl. insecticides, fungicides, herbicides and
10 35 + RD 15 35 + RD 15 35 + RD 15 35 + RD 15
5754 230 211 132 197
1713 269 233 138 318
2953 174 137 98 82
72% -35% -41% -29% -74%
25
8.38
92
101
42
-58%
-54%
25
15.91
101
126
36
-71%
-64%
35 + RD 15 0 25
11.39 6.7 16.75
61 109 85
24 23 85
25 23 17
4% 0% -80%
-59% -79% -80%
10
6.7
69
13
-69%
-94%
10
6.7
38
-89%
918
486
-100%
-100%
128

disinfectants)
68127000Compressed asbestos fibre jointing, in sheets or rolls 68139000Friction material and articles thereof, e.g. sheets, rolls, strips, segments, discs, washers and pads, for clutches and the like, with a basis of asbestos, other mineral substances or cellulose, whether or not combined with textile or other materials (excl. brake linings and pads) 38052000Pine oil containing alpha-terpineol as the main constituent 68129000Oth fabricated asbestos fibrns 38081050Prep put up in retail packing 38081040Para dichlorobenzene blocks 38084000Disinfectants put up for retail sale or as preparations or articles
373
286
-100%
-100%
228
275
-100%
-100%
178 161 121 49 47
233 164 152 94 22
0 0 0 0 0
-100% -100% -100% -100% -100%
-100% -100% -100% -100% -100%
129
2005
2006
2009
FTA
85176990Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) : Other 85372000Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of heading 85.17: For a voltage exceeding 1,000 V 84021930Steam or other vapour generating boilers (other than central heating hot water boilers capable also of producing low pressure steam); super-heated water boilers: Steam or other vapour generating boilers: Other vapour generating boilers, including hybrid boilers: Heat recovery steam generators (HRSG's) 85043400Electrical transformers, static converters (for example, rectifiers) and inductors: Other transformers: Having a power handling capacity exceeding 500 kVA 73042900Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel: Casing, tubing and drill pipe, of a kind used in drilling for oil or gas : Other
17.4
63419
25
21.75
53
157
21680
13709%
40806%
20
17.4
14947
20
14.79
8636
9750
14456
48%
67%
20
20.88
5688
22234
13968
-37%
146%
130

84818090Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves: Other appliances: Other 73082000Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridge-sections, lockgates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel: Towers and lattice masts 73089090Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridge-sections, lockgates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel: Other: Other 63014000Blankets and travelling rugs: Blankets (other than electric blankets) and travelling rugs, of synthetic fibres 48119000Oth p&p/b cellulose wadding 84021130Steam or other vapour generating boilers (other than central heating hot water boilers capable also of producing low pressure steam); super-heated water boilers: Steam or other vapour generating boilers: Watertube boilers with a steam production exceeding 45 t per hour: Heat recovery steam generators (HRSG's) 63061910Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or landcraft, camping goods: Tarpaulins, awnings and sunblinds: Of other textile materials: Tarpaulins
15
13.05
1004
13584
1253%
20
21.75
1809
10723
11547
8%
538%
20
21.75
491
11466
2235%
25
21.75
7279
7676
9459
23%
30%
25
20.66
2925
3566
8729
145%
198%
20
17.4
8339
25
21.75
7690
131

85371090Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of heading 85.17: For a voltage not exceeding 1,000 V: Other 83111000Wire, rods, tubes, plates, electrodes and similar products, of base metal or of metal carbides, coated or cored with flux material, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides; wire and rods, of agglomerated base metal powder, used for metal spraying: Coated electrodes of base metal, for electric arc-welding 23099020Preparations of a kind used in animal feeding: Other: Preparations for use in making the complete feeds or supplementary feeds 59039000Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 59.02: Other 73041900Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel: Line pipe of a kind used for oil or gas pipelines: Other 42021900Trunks, suit-cases, vanity-cases, executive-cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping-bags, wallets, purses, mapcases, cigarette- cases, tobacco-pouches, tool bags, sports bags, bottle- cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper: Trunks, suit-cases, vanity-cases, executive-cases, brief cases, school satchels and similar containers: Other 94060090Prefabricated buildings: Other
25
21.75
839
6791
709%
25
21.75
4151
4401
6258
42%
51%
20
17.4
225
5505
2347%
25
21.75
1138
1881
5243
179%
361%
15
16.7
5241
25
21.75
1923
2389
4781
100%
149%
25
21.75
4232
132

85176930Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) : Other: Routers
17.4
4128
133
PK- Offer Cat-4 Top 20 Losers in Imports from China Tariff HS-CODE --Description MFN 2010 Pref Rate 2010 EHP Status Pakistan Import Value from China Pre EHP EHP FTA 200 9 % Change Since 2005
2005
2006
FTA
54074200Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04: Other woven fabrics, containing 85 % or more by weight of filaments of nylon or other polyamides: Dyed 85094010Food grinders el-mech domestic
15
13.05
17207
21330
886 3
-58%
-48%
30 + RD 20 20 25 5 15
17.4
2574
2545
169 8 161 6 915 858 789
-33%
-34%
85219090Oth video rec/reproducing app
17.4 8.7 4.35 13.05
4364 63404 1777 2112
3166 6472 1824 1758
-49% -86% -53% -55%
-63% -99% -52% -63%
17019910White crystaline cane sugar 85399020Lead wire/base cap f-auto bulb 85182990Oth l/sp not mounted in encl 54071000Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04: Woven fabrics obtained from high tenacity yarn of nylon or other polyamides or of polyesters 94036000Other furniture and parts thereof: Other wooden furniture 58012200Woven pile fabrics and chenille fabrics, other than fabrics of heading 58.02 or 58.06: Of cotton: Cut corduroy 39091010Urea formaldehyde moulding com 84182900Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15: Refrigerators, household type : Other 63019000Blankets and travelling rugs: Other blankets and travelling rugs
15
13.05
14125
11135
618
-94%
-96%
35 + RD 15
20.66
1479
2059
562
-73%
-62%
25
21.75
1558
1158
554
-52%
-64%
25
21.75
4981
6384
505
-92%
-90%
35 + RD 15
21.75
3776
410
445
9%
-88%
25
21.75
1919
823
424
-48%
-78%
134

85444910Electric tetephone cables 72173090Oth p/coat i/s wir w/o bas-met 64021900Other footwear with outer soles and uppers of rubber or plastics: Sports footwear: Other 96020090Oth articles thereof h-96.02 84741010Sort/scr/sep/wash mach cem ind 85175000Apparatus for carrier-current line systems or digital line systems, for line telephony or line telegraphy (excl. telephone sets, videophones, facsimile machines, teleprinters and switching apparatus) 85178090Oth telephonic/telegraphic app 73110000 0 17.4 25 20 25 20 15 21.75 17.4 21.75 17.4 13.05 4892 1507 3459 4604 3515 843 2017 1067 4228 23178 178 95 74 12 4 -79% -95% -93% -100% -100% -96% -94% -98% -100% -100%
114063
5357
-100%
-100%
9000 5033
9239 3478
0 0
-100% -100%
-100% -100%
135
2005 2006 2009
FTA
54023300Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: Textured yarn: Of polyesters 85393910Energy saving lamps 54033100Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex: Other yarn, single: Of viscose rayon, untwisted or with a twist not exceeding 120 turns per metre 84089000Compression-ignition internal combustion piston engines (diesel or semi-diesel engines): Other engines 87112010Motor-cycles, incl. mopeds, with reciprocating internal combustion piston engine of a cylinder capacity > 50 cm3 but <= 250 cm3: In CKD/SKD condition
10
9021 23044 73445 219%
714%
9.3
16834 23898 59643 150%
254%
10
14065 22024 43461 97%
209%
20
10230 15040 19869 32%
94%
65
9832 10921 18875 73%
92%
69089010Glazed ceramic flags and paving, hearth or wall tiles; 35 + RD glazed ceramic mosaic cubes and the like, whether or not on a 15 backing: Other: Tiles 38089310Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, Sulphur-treated bands, wicks and candles, and fly papers): Other : Herbicides, anti-sprouting products and plant-growth regulators: Products registered under the Agricultural Pesticides Ordinance, 1971 87141990Parts and accessories of vehicles of headings Nos. 87.11 to 87.13: Of motorcycles (including mopeds): Other: Other 32041700Synthetic organic colouring matter, whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as luminophores, whether or not chemically defined: Synthetic organic colouring matter and preparations based thereon as specified in Note 3 to this
6942 18417 165%
15826
35
1092 11941 993%
15
6763 7230 8950
24%
32%
136

Chapter: Pigments and preparations based thereon
32041100Synthetic organic colouring matter, whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as luminophores, whether or not chemically defined: Synthetic organic colouring matter and preparations based thereon as specified in Note 3 to this Chapter: Disperse dyes and preparations based thereon 29224990Oxygen-function amino-compounds: Amino-acids, other than those containing more than one kind of oxygen function, and their esters; salts thereof: Other: Other 74111090Tubes and pipes of refined copper: Other
10
5749 5909 8257
40%
44%
4.5
1377 7588 451%
15
3388 4291 6086
42%
80%
87141910Parts and accessories of vehicles of headings Nos. 87.11 to 87.13: Of motorcycles (including mopeds): Other: Following components for vehicles of heading 87.11 (1) Air cleaner assembly and parts thereof (2) Axles (front, rear, collar) and parts thereof (3) Battery Box (4) Bolt for engine mounting (5) Brake cables and parts thereof (6) Brake drumps (7) Brake padel shaft (8) Brake pads (9) Brake rods, linkages 35 +Addl and levers (10) Brake shoes/ Mounted brake lining of asbestos CD Ref. (11) Brakes (complete) (12) Cams for brakes (13) Chain case 693and parts thereof (14) Clutch cables and parts thereof (15) 2006 Complete fuel system (16) Complete wheels (17) Fenders and App.I parts thereof (18) Foot rest and parts thereof (19) Frame / chassis and parts thereof (20) Front fork assembly (complete) (21) Fuel pipes / tubes (22) Fuel tank (whether or not painted) (23) Fuel tank cap (with or without lock) (24) Fuse boxes (25) Gear shift lever pad (26) Grips (whether or not twisting) and parts thereof (27) Handle bar and parts thereof (28)Hubs for wheels (29) Lever set kick starter (30) 39199090Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls: Other: Other 76071990Aluminium foil, not backed, rolled and further worked, of a thickness of <= 2 mm (excl. stamping foils of heading 3212, and foil made-up as christmas tree decorating material): Other:
1528 5505 260%
20
626 4707 652%
20
2621 1196 4449 272%
70%
137

48101990Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size: Paper and paperboard of a kind used for writing, printing or other graphic purposes, not containing fibres obtained by a mechanical or chemi-mechanical process or of which not more than 10 % by weight of the total fibre content consists of such fibres: Other: Other 87041090Motor vehicles for the transport of goods: Dumpers designed for off-highway use: Other 87089990Parts and accessories of the motor vehicles of headings 87.01 to 87.05: Other parts and accessories: Other: Other 84073290Spark-ignition reciprocating or rotary internal combustion piston engines: Reciprocating piston engines of a kind used for the propulsion of vehicles of chapter 87: Of a cylinder capacity exceeding 50 cc but not exceeding 250 cc: Other 32041600Synthetic organic colouring matter, whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as luminophores, whether or not chemically defined: Synthetic organic colouring matter and preparations based thereon as specified in Note 3 to this Chapter: Reactive dyes and preparations based thereon
20
23.75
682 4408 546%
30
1168 4081 249%
35
464 3297 611%
35
53
3097 5743%
15
1844 2273 3064
35%
66%
138
PK- Offer Cat-5 Top 20 Losers in Imports from China Tariff HS-CODE --Description MFN 2010 20 10 Pref Rate 2010 0 0 EHP Status Pakistan Import Value from China Pre EHP EHP FTA % Change Since 2005 -37% -32%
2005
2006
2009
FTA
40112010New pneum tyres light truks 75089010Nickle rotary printing screen 70052100Float glass and surface ground or polished glass, in sheets, whether or not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked: Other non-wired glass: Coloured throughout the mass (body tinted), opacified, flashed or merely surface ground 64059090Footwear of other materials 69119000Annexure Tableware, kitchenware, other household articles and toilet articles, of porcelain or china: Other 28151100Sodium hydroxide (caustic soda); potassium hydroxide (caustic potash); peroxides of sodium or potassium: Sodium hydroxide (caustic soda): Solid 70052900Float glass and surface ground or polished glass, in sheets, whether or not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked: Other non-wired glass: Other 28470000 54076900Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04: Other woven fabrics, containing 85 % or more by weight of polyester filaments: Other 54075100Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04: Other woven fabrics, containing 85 % or more by weight of textured polyester filaments: Unbleached or bleached 54079400Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04: Other woven fabrics: Printed
8576 4354
7580 2581
5398 2967
-29% 15%
25
8435
8196
2109
-74%
-75%
25 35 + RD 15
3016
3425
1191
-65%
-61%
2431
2786
1075
-61%
-56%
20
3591
2152
1030
-52%
-71%
25
6260
2057
869
-58%
-86%
10
1936
3071
644
-79%
-67%
15
2508
2623
640
-76%
-74%
15
3493
6566
493
-92%
-86%
15
5301
2992
263
-91%
-95%
139

28363000Carbonates; peroxocarbonates (percarbonates); commercial ammonium carbonate containing ammonium carbamate: Sodium hydrogencarbonate (Sodium bicarbonate) 87042110Motor vehicles for the transport of goods, with compression-ignition internal combustion piston engine 'diesel or semi-diesel' of a gross vehicle weight <= 5 tonnes (excl. dumpers for off-highway use of subheading 8704.10 and special purpose motor vehicles of heading 8705): In CKD/SKD condition 39205900Other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials: Of acrylic polymers: Other 85281210Tv sets
20
1761
1895
255
-87%
-86%
60
8350
6010
95
-98%
-99%
20
3759
1485
17
-99%
100%
20859
16007
100%
100%
54024300Filament yarn of polyester, incl. monofilament of < 67 decitex, single, untwisted or with a twist of <= 50 turns per metre (excl. sewing thread, yarn put up for retail sale, textured yarn and yarn of partially oriented polyester filament) 84159090Parts of air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, n.e.s.: Other 84186900Refrigerating or freezing equipment and absorption heat pumps (excl. refrigerating and freezing furniture) 84137000Centrifugal pumps, power-driven (excl. those of subheading 8413.11 and 8413.19, fuel, lubricating or cooling medium pumps for internal combustion piston engine and concrete pumps) 70132900Drinking glasses (excl. glasses of glass-ceramics or of lead crystal)
9794
13198
100%
100%
4600
26705
100%
100%
3245
5658
100%
100%
2331
1456
100%
100%
2047
3501
100%
100%
140
PK- Offer Cat-6 Top 20 Gainers in Imports from China Tariff HS-CODE --Description MFN 2010 0 20 0 Pref Rate 2010 0 9 0 EHP Status 0 0 0 Pakistan Import Value from China Pre EHP 2005 EHP 2006 FTA 2009 % Change FTA Since 2005 225% 206%
36030000 36020000 36041000Fireworks, herefore flares, rain rockets, fog signals and other pyrotechnic articles: Fireworks
283 146 0
272 57 0
919 447 52
238% 684%
PK- Offer Cat-6 Top 20 Losers in Imports from China Tariff HS-CODE --Description MFN 2010 Pref Rate 2010 EHP Status Pakistan Import Value from China Pre EHP 2005 EHP 2006 FTA 2009 % Change FTA Since 2005
39159000Waste, parings and scrap, of plastics: Of other plastics 39153000Waste, parings and scrap, of plastics: Of polymers of vinyl chloride 85123000Electrical sound signalling equipment for cycles or motor vehicles 29309090Other organo sulphur compounds 43021900Oth,furskins,whole,w&w/out h&t 36010000 39151000Waste, parings and scrap, of plastics: Of polymers of ethylene 93063000Cartridges and parts thereof for smoothbarrelled shotguns, revolvers and pistols 85129000Parts of electrical lighting or signalling equipment, windscreen wipers, defrosters and demisters of a kind used for motor vehicles, n.e.s. 40129000Solid or cushion tyres, interchangeable tyre treads and tyre flaps, of rubber
48
15
-67%
-90%
36
-33%
-94%
449 131 61 33 29
723 74 1 0 0
0 0 0 0 0
-100% -100% -100%
-100% -100% -100% -100% -100%
23
331
-100%
-100%
19
37
-100%
-100%
-100%
-100%
141
Annexure Table 26: Others Top 20 Gainers in Imports from China

Others Top 20 Gainers in Imports from China HS-CODE --Description 38089170Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, Sulphur-treated bands, wicks and candles, and fly papers): Other : Insecticides: Products registered under the Agricultural Pesticides Ordinance, 1971 84137090Pumps for liquids, whether or not fitted with a measuring device; liquid elevators: Other centrifugal pumps: Other: Other 99170000Goods imported into and exported (except to tariff area of pakistan) from the export processing zones established under the export processing zone authority ordinance, 1980 (iv of 73061900Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel: Line pipe of a kind used for oil or gas pipelines: Other 54024700Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: Other yarn, single, untwisted or with a twist not exceeding 50 turns per metre: Other, of polyesters 85176100Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) : Base stations Tariff MFN 2010 Pref Rate 2010 EHP Status Pakistan Import Value from China Pre EHP 2005 EHP 2006 FTA 2009 % Change FTA Since 2005
4.75
43247
28640
15022
13923
13167
7842
142

85285100Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: Other monitors : Of a kind solely or principally used in an automatic data processing system of heading 84.71: 10061010Rice: Rice in the husk (paddy or rough): Seed for sowing 84137010Pumps for liquids, whether or not fitted with a measuring device; liquid elevators: Other centrifugal pumps: Other: Submersible pums 53050090Coconut, abaca (Manila hemp or Musa textilis Nee), ramie and other vegeAnnexure Table textile fibres, not elsewhere specified or included, raw or processed but not spun; tow, noils and waste of these fibres (including yarn waste and garnetted stock): Other
7030
6820
6319
1876
Annexure Table 27: Others Top 20 Losers in Imports from China

Others Top 20 Losers in Imports from China Tariff HS-CODE --Description MFN 2010 Pref Rate 2010 EHP Status Pakistan Import Value from China Pre EHP EHP FTA % Change Since 2005
2005
2006
2009
FTA
85251000Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television 69089000Glazed ceramic flags and paving, hearth or wall tiles (excl. of siliceous fossil meals or similar siliceous earths, refractory ceramic goods, tiles made into stands, ornamental articles and tiles specifically manufactured for stoves) 84151000Window/wall type selfcontn acs 87141900Parts and accessories for motor-cycles, incl. mopeds, n.e.s. 84479000Machines for making gimped yarn, tulle, lace, embroidery, trimmings, braid or net and machines for tufting (excl. chain or blanket stitch machines) 84798900Oth appli idivil functio mach
88619
106028
-100%
-100%
43118
35603
-100%
-100%
41511 14742
35121 16970
0 0
-100% -100%
-100% -100%
13106
10216
-100%
-100%
12064
1758
-100%
-100%
143

84283900Continuous-action elevators and conveyors, for goods or materials (excl. those for underground use and bucket, belt or pneumatic types) 84159000Parts of air condition machine 84451900Machines for preparing textile fibres (excl. carding, combing, drawing or roving machines) 87089900Parts and accessories, for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles, n.e.s.
7909
2438
-100%
-100%
7659 7378
59496 3300
0 0
-100% -100%
-100% -100%
7224
6283
-100%
-100%
144
Annexure Table 28:

Pakistans top 25 BRCA ranking at HS 6 level in 2005 Product code 520515 '780200 '521221 '071320 '630210 '600521 '120890 '521211 '630299 '401213 '030510 '761511 '360500 '520819 '030569 '521021 '520535 '960190 '520513 '520512 '521052 '420321 '630232 '520710 '521215 Product label Cotton yarn,>/=85%,single,uncombd,<125 dtex,nt put up f retail sale Lead waste and scrap Woven fabrics of cotton, weighing more than 200 g/m2, unbleached, nes Chickpeas, dried, shelled, whether or not skinned or split Bed linen, of textile knitted or crocheted materials Unbleached or bleached cotton warp knit fabrics "incl. those made on g Flours and meals of oil seeds or oleaginous fruits,except mustard,nes Woven fabrics of cotton,weighing not more than 200 g/m2,unbleached,nes Toilet and kitchen linen, of other textile materials Retreaded pneumatic tyres, of rubber, of a kind used on aircraft Fish meal fit for human consumption Pot scourers, pads, gloves, of aluminium Matches Woven fabrics of cotton,>/=85%, not more than 200 g/m2,unbleached, nes Fish nes, salted and in brine, but not dried or smoked Plain weave cotton fab,<85% mixd w m-m fib,not more than 200 g/m2,bl Cotton yarn,>/=85%,multi,uncombed, <125 dtex, not put up, nes Animal carving material (o/t ivory), and articles of these materials Cotton yarn,>/=85%,single,uncombed,232.56>dtex>/=192.31, not put up Cotton yarn,>/=85%,single,uncombed,714.29 >dtex>/=232.56, not put up Twill weave cotton fab,<85% mixd w m-m fib,nt more thn 200g/m2,printd Gloves,mittens & mitts,for sports,of leather or of composition leather Bed linen, of man-made fibres, nes Cotton yarn (o/t sewing thread)>/=85% by weight of cotton, put up Woven fabrics of cotton, weighing not more than 200 g/m2, printed, nes Product code '521221 '521211 '630239 '520420 '120720 '520633 '521019 '690990 '520911 '520300 '030510 '521112 '520813 '030530 '030339 '611530 '230690 '521212 '960200 '520532 '521021 '630231 '520819 '520512 '520419 Pakistans top 25 BRCA ranking at HS 6 level in 2009 Product label Woven fabrics of cotton, weighing more than 200 g/m2, unbleached, nes Woven fabrics of cotton,weighing not more than 200 g/m2,unbleached,nes Bed linen, of other textile materials, nes Cotton sewing thread, put up for retail sale Cotton seeds, whether or not broken Cotton yarn,<85%,multiple,uncombed,232.56 >dex>/=192.31,nt put up,nes Woven fab of cotton,<85% mixd with m-m fib,</=200 g/m2,unbl,nes Ceramic troughs, tubes etc used in agriculture, ceramic pots etc Plain weave cotton fabric,>/=85%, more than 200 g/m2, unbleached Cotton, carded or combed Fish meal fit for human consumption Twill weave cotton fab,<85% mixed with m-m fib,more than 200 g/m2,unbl Twill weave cotton fabric,>/=85%, not more than 200 g/m2, unbleached Fish fillets, dried, salted or in brine but not smoked Flatfish nes, frozen, excluding heading No 03.04, livers and roes Women''s full-length or knee-length hosiery, knitted or crocheted, mea Veg oil-cake&oth solid residues nes,whether or not ground or pelleted Woven fabrics of cotton,weighing not more than 200 g/m2,bleached,nes Workd veg/mineral carvg mat&art,carvd art nes;workd unhardend gelatin Cotton yarn,>/=85%,multi,uncombed,714.29 >dtex>/=232.56,nt put up,nes Plain weave cotton fab,<85% mixd w m-m fib,not more than 200 g/m2,bl Bed linen, of cotton, nes Woven fabrics of cotton,>/=85%, not more than 200 g/m2,unbleached, nes Cotton yarn,>/=85%,single,uncombed,714.29 >dtex>/=232.56, not put up Cotton sewg thread,<85% by weight of cotton,not put up for retail sale
145
Annexure Table 29: List of raw materials used by Sialkot Industry shared by SCCI.
146
EXPORTERS LIST
No 1 1 2 Company Quetta Textiles Mills Ltd Gadoon Textile MIlls Ltd Shahraj Fabrics pvt ltd Address Nadir House, Ground Floor, I.I. Chundrigar road, Karachi 7-A, Muhammad Ali Society, Abdul Aziz Haji Hashim Tabba Street 147-148 M, Quaid-e-Azam Industrial Estate, Kot Lakhpat 801-A City Towers, Main Boulevard Gulburg-II, Lahore Nishat Chunian Limited,31-Q Gulberg II,Lahore 6th Floor, 628 Stock Exchange, I.I Chundrigar Road, Karachi, 100-A Sain John Park, Abid Majeed Road, Lahore 132/1 Quai-e-Azam Industrial Estate, Kot Lakhpat, Lahore Industrial Area Kot Lakhpat, Lahore 8-C, E-III, Gulburg-III, Lahore 72-B, Industrial Area Kot Lakhpat, Lahore 82, Industrial Area Kot Lakhpat, Industrial Area Kot Lakhpat, Lahore 242 Ahmed Block New Garden Town Lahore P-27, Street 1, Grunanak Pura, Faisalabad 30/7 Civil Lines Faisalabad C-1, C-2, Fish Harbour, West Wharf, Karachi. D/3, D/4, Fish Harbor, POBox 6026, West Wharf, Karachi 860/A Block B Faisal Town, Lahore Cheema Square Capital Road, Sialkot P.O.BOX NO.1704, WAZIRABAD ROAD,,SIALKOT 126/3, Industrial Area Kot Lakhpat, Lahore Hafiz Plaza,2nd Floor,31-M, Model Town Extention, Lahore Lahore City Karachi Karachi Lahore Tel: 021-32414334 021-36320641, 36322048 042-35213501, 35213321, 03004820710 042-3577041115 042- 35761730 061-65282456526572042-36664558, 36668709 042-111-017017 042-35156286 042-35764026-8 042-35830881, 35156567 042-5153889 Contact Person Mr. Nawaz (Assistant) Mr. Rashid Malik Mr. M. Azeem Choudhry Mohammad Naseer Mr. Waseem Mr. Abid Mehmood Mr. Junaid Khalid Mr. Shahbaz Ali Mr. Farooq Mr. Muhammad Adnan Butt Mr. Shibli M Khan Syed Musarrat Abbas Mr. Muhammad Subhani Mr. Hammad Ikram
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Ihsan Cotton Production (Pvt) Ltd. Nishat (chunian) LTD Hussain Mills Ltd Mian Tyre & Rubber Co. Limited MEDIPAK Limited Caravel Indistries Ltd Ghzi Fabric International Ltd. Treet Corporation Limited Surgitex Fine Gas Limited H A Fibres Pvt Ltd LEO Enterprises Pakistan Taxtiles Exporters Super Star Enterprises Kanpa International Sales Zam Zam International Leathers Field (Pvt) Ltd FORWARD SPORTS(PVT) LTD. Style Textile Ltd Regent Knitwear Pvt. Ltd
Lahore Lahore Karachi Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Faisalab ad Faisalab ad Karachi Karachi Lahore Sialkot Sialkot
042-3569428083
021-322002945, 32200292 021-32310044, 2312292, 042-35177860 052-111-555999, 3556272 0524260896,97,98 042-35123065, 35113064 042-35171333
Mr. Sohail Abbas Mr. Behzad Kanchwalla Mr. Rehan Ahmad Mr. Ahmed Zulfiqar Hayat Mr. Muhammad Zulqarnain Ashraf Mr. Saeed F. Chohan Syed Khawar Bukhari
147
IMPORTERS LIST
No 1 Company MEDIPAK Limited Address
132/1 Quai-e-Azam Industrial Estate, Kot Lakhpat, ahore
City
Lahore
Tel:
042-111-017-017
Contact Person
Mr. Shahbaz Ali
Mian Tyre & Rubber Co. Limited
100-A Sain John Park, Abid Majeed Road, Lahore
Lahore
042-36664558, 36668709, 36686434-35
Mr. Kamran Rasheed
3 4 5 6 7 8 9 10
Fine Gas Limited
Industrial Area Kot Lakhpat, Lahore
Lahore
Mr. Muhammad Subhani 042-35156286, 35156141 042-35764026-28 Mr. Farooq
Caravel Indistries Ltd
Industrial Area Kot Lakhpat, Lahore
Lahore
Ghzi Fabric International Ltd.
8-C, E-III, Gulburg-III, Lahore
Lahore
Mr. Muhammad Adnan Butt Syed Musarrat Abbas Mr. Shibli M Khan
Surgitex Treet Corporation Limited
82, Industrial Area Kot Lakhpat, Lahore 72-B, Industrial Area Kot Lakhpat, Lahore
Lahore Lahore
042-5153889 042-35830881, 35156567 042- 35761730
Nishat (chunian) LTD
Nishat Chunian Limited,31-Q Gulberg II,Lahore Industrial Estate Kot Lakhpat, Lahore
Lahore
Mr. Waseem
Sitara Chemical Industries Ltd
Lahore
0300-8444754
Mr. Mesoom Shehzad Mr. M. Azeem Choudhry
Shahraj Fabrics pvt ltd
147-148 M, Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore
Lahore
042-35213501, 35213321, 03004820710 042-35770411-15
11 12 13 14 15
Ihsan Cotton Production (Pvt) Ltd.
801-A City Towers, Main Boulevard Gulburg-II, Lahore 1-W-13, East Canal Road Madina Town, Faisalabad
Lahore
Mohammad Naseer
Chawla Dyes & Chemicals Ltd Chen One Fashion Ltd Usman Trading Company LEO ENTERPRISES,
Faisalabad
Mr. Shabbir Hussain Chawla Mr. Farhan
Faisalabad 156-B, Milat Road, Gulistan Colony, Faisalabad Faisalabad
P-27, STREET NO.1, GURUNANAK PURA,FAISALABAD.

38-Main Industrial Estate Kot Lakhpat, Lahore
Faisalabad
03237891015, 0415634231
Sheikh M. Saeed
16
Pak Tech Pvt. Ltd
Lahore
Mr. Zohaib Nasir
148
TRADE BODIES
Name of Trade Organization and Chambers PAKISTAN LEATHER GARMENTS MFR. & EXPORTERS ASSOCIATION PAKISTAN LEATHER GARMENTS MFR. & EXPORTERS ASSOCIATION Sialkot Chamber of Commerce & Industry Pakistan Textile Exporters Association Pakistan Custom Pakistan Custom Lahore Chamber of Commerce & Industry
Sr. No. 1
Address Central & Southern Zone Plot #92-C,Khayaban-e-Ittehad D.H.A.,Phase-II Ext. Karachi BASF Building, Main Defence Road, Sialkot
City Karachi
Phone 021-35387365, 35387366
Sialkot
052-3254401-3
3 4
Sharah-e-Aiwan-e-Sanat-OTijarat Sialkot 30/7, Civil Lines PTEA Road, Near State Bank , Faisalabad Custom House, Karachi Custom House, Lahore 11-Shahrah-e-Aiwan-e-Tijarat, Lahore
Sialkot
052-4261881-3
Faisalabad 041-3264475051/32644751, 0300-8660888 Karachi Lahore 0321-4066606 042-111-222-499, 042-36304633, 042-36305538-40
5 6 7
149

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EVALUATION OF PAKISTAN-CHINA FTA

Evaluation of Pakistan-China FTA

Adil Khan Miankhel Sadia Hissam M Rizwan Aslam Hammad Mughal

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

3.1.1. 3.1.2. 3.1.3.

3.2.1. 3.2.2. 3.2.3. 3.2.4. 4. 5.

7.1.1. 7.1.2. 7.2.

7.2.1. 7.2.2. 7.3.

7.3.1. 7.3.2. 7.4.

11.1. 11.2. 11.2.1. 11.2.2. 11.3. 11.3.1. 11.3.2.

12.1. 12.2. 12.3. 12.3.1. 12.3.2. 12.3.3. 12.3.4. 12.3.5. 12.3.6.

Conclusion ....................................................................................................................................... 88 Policy Recommendations ................................................................................................................ 92

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

See kawai, Wignaraja(2011) See Kawai, Wignaraja (2011)

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

EVALUATION OF PAKISTAN-CHINA FTA

Source: Authors own calculations based on Trade Map Data

Source for this data is ITC-Trade Map

EVALUATION OF PAKISTAN-CHINA FTA

Figure 2: Geographical Composition of China's Exports

Source: Authors own calculations based on Trade Map data

EVALUATION OF PAKISTAN-CHINA FTA

Figure 3: Product Composition of China's Imports from the World

Source: Authors own calculations based on Trade Map Data

Source: Authors own calculations based on Trade Map Data 17

EVALUATION OF PAKISTAN-CHINA FTA

Product Composition of Pakistan's Exports

HS62 Articles of apparel, accessories, not knit or crochet

HS27 Mineral fuels, oils, distillation products, etc

Data Taken from ITC-Trade map

Geographical Composition of Pakistan's Exports

Source: Authors own calculations based on Trade Map data

EVALUATION OF PAKISTAN-CHINA FTA

Figure 7: Product Composition of Pakistans Imports from the World

Product Composition of Pakistan's Imports

HS39 Plastics and articles thereof

HS87 Vehicles other than railway, tramway

Source: Authors own calculations based on Trade Map data

EVALUATION OF PAKISTAN-CHINA FTA

Figure 8: Geographical Composition of Pakistan's Imports

Geographical Composition of Pakistan's Imports

Source: Authors own calculations based on Trade Map data

4. Pakistan and Chinas Tariff Profile

Source: WTO Tariff profiles

WTO Trade Policy review of China 2010

EVALUATION OF PAKISTAN-CHINA FTA

5. Pakistan-China Bilateral Trade profile

Table 2: Pakistan-China Bilateral Trade 2003-2009

Source: Authors own calculations based on Trade Map data

WTO Trade policy Review of Pakistan

EVALUATION OF PAKISTAN-CHINA FTA

Figure 9: Product Composition of Pakistan's Exports to China

Source: Authors own calculations based on Trade Map data

EVALUATION OF PAKISTAN-CHINA FTA

Figure 10: Product Composition of Pakistans Imports from China

Source: Authors own calculations based on Trade Map data