China-Pakistan Free Trade Agreement

The China-Pakistan Free Trade Agreement entered into force in July 2007. A Protocol to upgrade the Agreement was signed in 2019;

As per the Agreement, Pakistan notably eliminated import tariffs for the following imports from China:

• Lithium oxide and hydroxide,
• Nickel oxides and hydroxides,
• Motor cars and other motor vehicles principally designed for the transport of persons,
• Heat pumps.

As per the Agreement, China notably eliminated import tariffs for the following importsfrom Pakistan:

• Coal
• Petroleum oils & oils obtained from bituminous minerals, crude
• Electrical energy
• Lithium hydroxide
• Nickel oxides and hydroxides
• Rare earth metals
• Refrigerating unit and heat pumps

Rules of origin apply. Goods may benefit from preferential tariff treatment if

• wholly obtained or having undergone a significant production process in one of the signatory countries
• meeting specific regional value content requirements (for instance, 40% for motor vehicles)

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