He hoped that proposed FTA between the two neighbouring countries would further take the bilateral trade between the two countries to a much higher level. The trade is currently much below the potential both the countries possessed in different areas of economy.
Earlier, speaking to members of Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Chinese minister said that in recent years the bilateral trade between China and Pakistan has witnessed remarkable growth. During the period between 2002 to 2004, the trade volume had increased 29 percent and last year, it touched 2.06 billion dollar, registering an increase of 26 percent.
The scale of trade between two countries is still small and needs to be increased. China has less than 0.3 percent of total world trade with Pakistan. The best option is FTA for a win-win situation, he said touching upon negotiating history of FTA, which started from the President of Pakistan's visit to China in October 2003 followed by signing of protocol in December 2004 agreeing to negotiate free trade area based on bilateral co-operation.
Chinese minister said that proposed FTA is part of efforts on part of both governments to upgrade their level of co-operation in different fields, which would be beneficial for businessmen and entrepreneurs of both the countries.
He said that apart from FTA with Pakistan, China is also in talks with other countries of region for such trade arrangements towards gaining the goal of regional integration, which would be having long lasting positive impacts on all countries of region.
In response to a comment, Xiao Zhun informed that investment is component of FTA, besides, goods, services and trade facilitation aspects, to be covered in it. He hoped that with the signing of FTA, more Chinese investment would be pouring in Pakistan, generating employment opportunities.
On problems faced by fruits and vegetables exporters, he said that hopefully fruit and vegetable trade would be listed in early stage of FTA to resolve this problem.
Acting President FPCCI Akbar Abdullah in his welcome address said that there is a wide impression in Pakistan that without comprehensive and technical review of FTA, China's trade with Pakistan might pose a serious threat to Pakistan industry and economy. In recent years, Pakistan markets are dumped with Chinese goods and products, which have led the closure of many cottage industries in Pakistan.
He said that there are two different views in Pakistan about FTA with China. The importers conceive it a great opportunity while industrialists opine that pre-mature signing of FTA might pose serious threat to a large number of industrial units in Pakistan particularly the small and medium enterprises, which presently are responsible for 85 percent of total industrial employment of Pakistan.
Eng. M.A. Jabbar, member Managing Committee and former Vice President FPCCI said that NGOs and non-experts in trade in developing countries oppose WTO, FTA, PTA and other agreements leading towards liberalisation of trade.
He said that to offset the loud mouth opposition the impacts and benefits for the countries must be analysed so that apprehensions of NGOs and political groups are excluded in respect of damage to our industry.