Pakistan and China negotiate expanded trade and CPEC 2.0

Pakistan and China are negotiating the third phase of the China-Pakistan Free Trade Agreement (CPFTA) to deepen economic ties. The current discussions focus on approximately 700 additional tariff lines, with Pakistani officials seeking increased concessions for key sectors including textiles, minerals, and meat products. Officials suggest that expanding meat exports alone could potentially generate up to $5 billion.

Pakistan is seeking tariff parity with other trading partners, noting that China has granted unilateral zero-tariff access to various African nations and ASEAN member states. Negotiators have already established more than a dozen Sanitary and Phytosanitary protocols during these talks.

Parallel to trade negotiations, the evolution of the China-Pakistan Economic Corridor (CPEC) into its second phase, referred to as CPEC 2.0, aims to expand cooperation beyond energy and infrastructure. This new phase is expected to focus on agriculture, technology, innovation, digital connectivity, and education, building upon the approximately $25 billion already invested in CPEC-related projects such as Gwadar Port.