Impact of China-Pakistan Free Trade Agreement (CPFTA) on Pakistans Trade with Analysis of Arbitration Clauses of the Agreement
Authors
KASHIF IMRAN ZADI, HAFIZ MUHAMMAD SALMAN SHAFIQ, JAVAIRIA SHAFIQ and BALQEES AMJAD
Abstract
The amount of trade between Pakistan and China has mostly remained negligible. The two states were unable to form a workable economic alliance prior to the first decade of this century. The Pakistan-China partnership could be even more strengthened by bulky trade flows. Study found that with the implementation of the China-Pakistan Free Trade Agreement (CPFTA) in July 2007, the growth of the twoway economic trade took on a new phase. But at the same time Pakistan's trade development was hindered and its trade deficit with China grew. Statistical analysis of data, recorded from the IMF database, was used to determine the combined value of Pak-China exports and imports. Moreover, arbitration clause of trade agreements, article 53, needs to be strong enough to enforce arbitral awards. Imported products, at cheaper prices, from China is one of the main reason for local industries which are not to flourishing. Pakistan’s government should make rules for importers, exporters and manufacturers so that they can work without any fear of low/cheap pricing. In terms of trade, both countries can get a lot of benefits from Belt and Road Initiative (BRI) which is one of the key initiative by China.
