Responsible Person from the Department of International Trade and Economic Affai

In accordance with the classification of service sectors of WTO General Agreement on Trade in Services, among the overall 12 major service sectors, Pakistan further opens up to Chinese service suppliers in 102 subsectors of 11 major sectors, among which the newly-opened service sectors and subsectors reach 56, specifically including: firstly, further open up numerous service sectors and subsectors such as construction, telecommunication, finance, distribution, medical treatment, environment, tourism, transportation, R&D and computer education, significantly reduce the limit of share proportion of foreign investment (increase from originally no more than 40% to 50% of equities of foreign investment to 60% to 99.99% of equities of Chinese investment), secondly, offer market access to 56 service sectors and subsectors, including the newly opened 5 major service sectors, namely, distribution, education, environment, transportation and entertainment culture and physical education as well as numerous newly opened numerous subsectors including express delivery, law, accounting and bookkeeping, building design, veterinary, midwife and nursing, maintenance of computers and equipment of working, dry lease, printing and publishment and farm equipment, thirdly, according to specific situations, agree to give Chinese service suppliers in share proportion of foreign investment more preferential treatment, especially in such three service sectors as express delivery, telecommunication and tourism, according to practical circumstances, to allow wholly foreign-owned enterprises, and fourthly, provide more relaxed and convenient conditions in personnel flow.

China will, based on the commitments to WTO, further open to Pakistan service suppliers in 28 subsectors of 6 major service sectors, specifically including mining, R&D, environmental protection, hospital, tourism, physical education, transportation, translation, real estate, computer, market investigation, management consulting, printing, cleaning of building and personnel offering and arrangement service. Please log on fta.mofcom.gov.cn for details.

Q: What effect will the Agreement on Free Trade Area and Trade in Services Between the Government of the People's Republic of China and the Government of the Islamic Republic of Pakistan have on the China-Pakistan Free Trade Zone in progress?

A: Pakistan is China’s “good neighbor, friend, fellow and brother” and the two nations have a long history of friendship. In recent years, the construction of China and Pakistan Free Trade Zone has been concerned and supported by leaders of the two nations so as to create good political environment for the negotiation on the free trade zone of the two nations. Since 2003, the construction of China and Pakistan free trade zone has been constantly deepened, with new progresses being made year by year: in November 2003, signing the preferential trade arrangement, in October 2004, kicking off joint research of free trade zone, in April 2005, signing the preliminary agreement of free trade agreement, in November 2006, signing the free trade agreement, which was smoothly implemented in July 2007, in October 2008, signing the supplementary protocol of the free trade agreement to facilitate investment cooperation and in December 2008, finishing the negotiation of the agreement of trade in services.

The signing of the Agreement on Free Trade Area and Trade in Services Between the Government of the People's Republic of China and the Government of the Islamic Republic of Pakistan will render the two nations to set up a free trade zone with full content covering trades in goods and trade in service and investment. The implementation of the Agreement will get the two nations to mutually further open service markets, enhance the complement of advantages of the service industry, lift the international competitiveness and improve the trade investment environment so as to lay solid foundation for the two nations to jointly cope with the world’s financial crisis, facilitate the common development of economy and deepen the all-weather and omnibearing friendship.