The amendment protocol, also known as phase II of the CPFTA, aims to deepen trade relations between China and Pakistan through increasing liberalization of trade in goods, guaranteeing mechanisms for its domestic industry and facilitating the balance of payments between countries and electronic data exchange. In the 2017-18 fiscal year, the volume of trade between China and Pakistan amounted to $13.2 billion, or 16.4% of Pakistan`s trade volume. This round of review of the CPFTA expands and diversifies business opportunities for businesses on both sides while maintaining fair and equitable protection of local industrial interests. The volume of trade resulting from an agreement between the two states amounted to $13 billion in 2013 and reached $20 billion in 2017, when the two countries signed 51 agreements and protocols for cooperation in various areas.  China had already made a significant contribution to Pakistani imports prior to the signing of the free trade agreement and improved considerably after the implementation of the free trade agreement in 2007. Until 2012, it was the source of 15% of Pakistan`s total imports from the world, up from 9.8% in 2006.   Phase I – China`s tariff reduction modality within five years of the entry into force of this agreement: on 9 April, the 11th session of the second phase of the negotiation of the free trade agreement in China and Pakistan was held in Beijing. Wang Shouwen, China`s Vice Minister of Trade and Vice-Representative for Trade, met with delegations led by Sukhera, Pakistan`s Minister of Trade, and Mr. Dagha, Minister of Finance, respectively. The two sides have held extensive consultations on issues such as tariff reductions, investment and customs cooperation, and have made positive progress.  The China-Pakistan Free Trade Agreement is an important free trade agreement between the People`s Republic of China and Pakistan.     It was completed in 2006 and came into force in July 2007.
3. One of the main features of the Phase II agreement is that these concessions have great benefits for both China`s trade development and Pakistan; It provides China with access to important agricultural, textile and engineering products to meet the needs of its growing middle class while enabling Pakistan to improve its export competitiveness and improve its industrial production. China Briefing is written and produced by Dezan Shira – Associates. The practice supports foreign investors in China and has since 1992 by offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen and Hong Kong.