China withdraws offer for import of 263 non-FTA items

[PeacefulIndian]

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This was always on the cards. I was having an argument with some posters regarding FTA with Chinese - here.

Pakistan's Economy - News and Updates

Now slowly the Chinese intent comes out with this to start.

Top Stories - Import of 263 non-FTA items: China withdraws offer

ISLAMABAD (December 23, 2010) : China has reportedly withdrawn its unilateral offer to facilitate import of an additional 263 items from Pakistan out of Free Trade Agreement (FTA), sources in Commerce Ministry told Business Recorder. In the middle of current year, Commerce Secretary Zafar Mahmood had announced before the Advisory Council of Trade Policy that China would facilitate import of a number of additional items out of FTA.

"I have good news for the business community that China has offered to allow export of additional items from Pakistan out of FTA unilaterally," Zafar had announced before a packed auditorium of the Planning Commission. However, this has not materialised so far as China is not ready to consider any trade concessions to Pakistan out of FTA, and on unilateral basis, sources said. Most of the items included in the 'wish list' were from the textile, engineering, and chemical sectors, and fresh fruits and vegetables.

The Commerce Secretary had also announced that financial impact of these additional items, if Beijing accepted the proposal, would be around 1-1.5 billion dollars per annum, on export to China. Chinese Vice Premier Zhang Dejiang, during his visit to Pakistan, had assured Prime Minister Yousuf Raza Gilani that four matters would be considered sympathetically. These were: (i) provision of a place for displaying of Pakistani goods in trade exhibitions, free of cost or at very cheap rates; (ii) dispatching buyers' missions for procurement for public sector; (iii) facilitation of additional Pakistani items for export to China; and (iv) training.

"What I know is that China wants to club the earlier offer with the FTA and on bilateral basis, which implies that it is not ready to honour the earlier open statement," sources added. The Commerce Secretary had proactively followed up with the Chinese government as member of President Zardari's entourage and at Free Trade Council meeting, but the result has been almost zero, sources said.

Recently, Commerce Minister Amin Fahim and Commerce Secretary Zafar Mahmood had interacted with President Asif Zardari and Prime Minister Gilani in respect of logistical arrangements for Chinese Prime Minister Wen Jiabao's recent visit. Both the Presidency and the Prime Minister House had entrusted the Commerce Minister and Commerce Secretary with the responsibility of overseeing the arrangements of Pak-China Business Summit by the BoI and Ministry of Foreign Affairs.

Insiders in the BoI said that handing over of Pak-China Business Summit arrangements to the Commerce Ministry was 'disrespectful' of the Board, which had been engaged in a number of MoUs. On a number of occasions, Pakistan lodged complaints that its exports had not been showing growth as per expectations and had requested the Chinese experts to include more Pakistani products in the FTA. Pakistan signed a number of MoUs and agreements with China during the visit of Premier Wen Jiabao. Commerce Secretary Zafar Mahmood was approached for comments but could not be reached despite hectic efforts through his office.

Now what's the view on this?

[Urbanized Greyhound]

Dont know much about economics but its the case with trade with china for most countries including India. They dont normally offer trade concessions to anyone out of Goodwill.When bilateral trade is concerned , it would set a very bad precedent to other countries .....nothing strategic or political involved here. Just sound business sense.

[huzihaidao12]

Dont know much about economics but its the case with trade with china for most countries including India. They dont normally offer trade concessions to anyone out of Goodwill.When bilateral trade is concerned , it would set a very bad precedent to other countries .....nothing strategic or political involved here. Just sound business sense.

Oh, can you tell me the Indian did not have any preferential policies in China, some good will?

[huzihaidao12]

Only can say, I do not know if this is true, but the current focus of China economy and trade in Southeast Asia and Taiwan, it has a special offer, especially in Taiwan, as Pakistan, can only say that I hope that, if the government think that still do not, I think they have some of the factors because of practical considerations. I want to say, with a long-term look at the relationship between China and Pakistan.

[Chinese-Dragon]

Only can say, I do not know if this is true, but the current focus of China economy and trade in Southeast Asia and Taiwan, it has a special offer, especially in Taiwan, as Pakistan, can only say that I hope that, if the government think that still do not, I think they have some of the factors because of practical considerations. I want to say, with a long-term look at the relationship between China and Pakistan.

That is true, Taiwan received a favourable trade deal for political reasons. Basically, they were rewarded for electing a pro-China President (Ma Ying-jeou).

I think it's a good idea to extend a favourable trade deal to Pakistan as well, the political reason being that they are a very close ally of China.

[somebozo]

China has a surplus of textiles, fruits and veges as its is an exporter of those. We will not earn anything neither it makes sense to export something in surplus to create more surplus. It will only create excessive supply and cause drop in profitability. Secondly we shouldn't be "china centric" for our exports. Its a joke when ever people talk about exporting to China. The only thing one can export to China is raw materials and energy resources.

On the flip side China will not abandon Pakistan like this. Recently there had been talk about free trade zone to close the Pak-China trade deficit to perhaps that is a more fruitful scheme than exporting to China..

had assured Prime Minister Yousuf Raza Gilani that four matters would be considered sympathetically. These were: (i) provision of a place for displaying of Pakistani goods in trade exhibitions, free of cost or at very cheap rates; (ii) dispatching buyers' missions for procurement for public sector; (iii) facilitation of additional Pakistani items for export to China; and (iv) training.

This sums it all..it was never an obligation just sympathy!

End of the day its game of simple economic we should NOT take it to the heart. The whole world is open to us for exports..we have to find our markets and be competitive.

[huzihaidao12]

China has a surplus of textiles, fruits and veges as its is an exporter of those. We will not earn anything neither it makes sense to export something in surplus to create more surplus. It will only create excessive supply and cause drop in profitability. Secondly we shouldn't be "china centric" for our exports. Its a joke when ever people talk about exporting to China. The only thing one can export to China is raw materials and energy resources.

On the flip side China will not abandon Pakistan like this. Recently there had been talk about free trade zone to close the Pak-China trade deficit to perhaps that is a more fruitful scheme than exporting to China..




This sums it all..it was never an obligation just sympathy!

End of the day its game of simple economic we should NOT take it to the heart. The whole world is open to us for exports..we have to find our markets and be competitive.

I very much appreciate your attitude, which is the true attitude Pakistan need for development . I really thank you for understanding to China. But there are still difficulties in the economy of Pakistan, need some concessions, believe me, even if China is not now, it will certainly be in the future, China has own considerations in economic development, we are still not a developed country, all need to plan carefully, in the long term Pakistan has no worries in this. Take a long look at our relationship.

[somebozo]

Pakistan has a large talent base and much free access to western technology. We should invite Chinese experiences and investments to build high tech manufacturing sectors targeted towards exports. I am talking about precision electronics, sensors, industrial controls, civilian radars etc etc.

Also China-Taiwan trade pact should not be looked upon as an example..Taiwan is literally property of China (in state of rebellion). They can offer whatever they wish. We with the blessing of Allah occupy a very strategic plain. Few days ago I mentioned how it was much cheaper to import Chinese spare parts via Pakistan rather than directly from China. Air cargo between Pakistan and middle east is really cheap compared to Jeddah-Shenzen or Riyadh-Shenzen cost. Pakistani traders should capitalize on this opportunity for re-export of Chinese goods to middle east. There is a huge demand for everything from electronics, controls, spare parts to heavy mechanical goods.

Pakistani manual labour is also one of the cheapest in the region. We should look into assembly and re-export of heavy machinery by sourcing them as kits from China and Russia. We are not taking any advantage of our close relation and cultural integration with middle east. Pakistani skilled workers in co-op with Chinese & Russian industries can really cause an employment turn around as we have the cultural and language advantage with Arabs which the Chinese & Russians don't. The indians are smart and rapidly capitalizing this advantage. Literally every Chinese and Russian company in KSA like CRCC, SEPCOIII, GAZPROM etc are depended on "Indian intermediaries."

Remember how the American/West used Pakistan to market themselves to Arabs. Back in the 60's and 70's after oil boom Pakistani workforce dominated every western company extracting oil, building infrastructure, generating electricity, dams, irrigation etc etc. It as not because we were super qualified or arrived from 7th heaven but we had advantage of close cultural integration with Arabis and hence able to build "comfort zone" which an English speaking gora could never. Now we are failing on our own lessons.

In a nutshell, when there is a will there is a way. If one wants to work seriously then 1000's of opportunities can be availed. We are only obsessed with agrarian products and their derivatives which is turning our economy into Ottoman legacy!

Also we should develop our shipping industry to further enhance our trade routes and soon we will turn into Dubai of South Asia.

[Veeru]

At the time of these 263 items import many of the pakistnis were jumping up and down and saying long live friendship with dozens of thanks.

Now china have shown them the reality.

But they will not change just go on praising china till the time it will leave pakistan high an dry and that time will come within 10 years.

[somebozo]

At the time of these 263 items import many of the pakistnis were jumping up and down and saying long live friendship with dozens of thanks.

Now china have shown them the reality.

But they will not change just go on praising china till the time it will leave pakistan high an dry and that time will come within 10 years.

This is business..every one is profit driven..local industry comes first..nothing else. Its not war games..when the strategic need arise, all of you will witness "Made in China" oar in Manmohan behind!

[Urbanized Greyhound]

Oh, can you tell me the Indian did not have any preferential policies in China, some good will?

No preference/goodwill in Indo-China business to my knowladge .....and as yet we dont have a free Trade agreement......

[somebozo]

I am laughing at the desperation of Indians expecting to read "fook china" type comments from members of green flag country...

I hope this thread will prove our pivotal and mature Pak-China people to people understanding.

[naveed qaiser]

During all these visits to China, President Zardari was able to bring the business leaders of both countries closer to each other. His visits have given impetus to joint economic projects, promoting regional connectivity, counter terrorism, harnessing new sources of energy and enhancing people to people contacts between the two countries. During the last few years, trade between two countries has grown considerably. The $ 2 billion trade in 2002 between countries has grown to $ 7 billion in 2009. It is reported (ref: Ambassador Masood Khan) that approximately 120 Chinese enterprises work in Pakistan. The Pakistani telecommunications, energy, infrastructure, heavy engineering, IT, mining, and defense industries sectors have received considerable Chinese investments. During various visits of President Zardari to China, several new agreements have been signed that include: building hydroelectric dams, transfer of hybrid seed technology, expanding banking operations, roads and communication networks, and cooperation in agriculture focusing on optimum utilization of irrigation water and development of new high yielding varieties of wheat and cotton. The upgrading of Karakoram Highway (which connects the two countries via the Khunjrab Pass) and the progress of the National Trade Corridor (aka: NTC) has also been discussed during Zardari’s visits to China. Under the NTC, a network of 4,000 Km of modern highways, including the Karakoram Highway and linkages with Gwadar Port, will be established to strengthen the transport links, especially with Central Asian Republics and China.
Finally, all of these relation-cementing efforts of Zardari have begun to bear fruits now. Pakistan and China have concluded deals and agreements worth $ 35 billion and a bilateral trade volume reaching $ 15 billion, during this historic high profile visit of Premier Wen Jia Bao. They include: 17 agreements, 04 Memorandum of Understandings (MOUs), and a joint venture. Pak-China Business Cooperation Summit was attended by both Premiers participated by 260 strong Chinese delegates with their 150 strong Pakistani counterparts. This historic visit of Premier Wen Jia Bao did indeed prove that the Pak-China relationship is higher than the Himalayas and deeper than the Indian Ocean.
All of these above prove that President Zardari is absolutely correct when he says that the so-called political actors (meaning the defeated and distracting political opponents) would remain only in the news headlines while he would continue to thrive and earn a coveted place in the history.

[sadia8]

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Zardari Cemented Pak-China Relations: It is reported when President Asif Ali Zardari appeared at a Pakistan-China renewable energy forum in Shanghai on July 10 this year; he rekindled a vision of his assassinated wife - former Prime Minister Benazir Bhutto – who had envisaged gas pipelines, railway tracks and highways connecting Pakistan with China. Zardari is also reported to have stated that he as the first businessman President would endeavor to make that dream a reality. Among the projects discussed between Beijing and Islamabad is a proposed railway to link Kashgar (the southern hub of the Chinese province of Xinjiang) to the southern port of Gwadar. If accomplished, it would give China direct access to the Arabian Sea – a long dream held by the former Soviet Union.