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Aug19
Transit Trade between China and Pakistan: Is it Good?
It seems that China is now really very serious to expand its economic activities with the Asian countries. It has already worked on improving trade ties with India. Now, it is trying to start transit trade with Pakistan, Kyrgizstan and Kazakhstan from next year. This is really a very smart move by China as it will increase its volume of trade with these countries. I am quoting from a report of Pakistan Times:
The four-country Transit Trade Agreement among China, Pakistan, Kyrgizstan and Kazakhstan was signed in 1995 and started to function in 2004 owing to various reasons.
 
According to the agreement, the four countries would issue some licenses to transit trade and grant visas with certain period of validity to transit traders. In order to make transit transportation more convenient, the four countries will jointly draw up a unified procedure for Customs Clearance.
 
The Agreement will remain in force for five years and will be assessed sometimes."
 
Great! Chinese economy is now developing very fast and to continue the double digit growth rate it needs to expand its economic activities with Asian countries. On the other hand, Pakistan, Kyrgizstan and Kazakhstan will get benefited by doing trade with China too. Chinese market is a very big market and through transit trade these two countries will enjoy some better facilities in this regard.

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