Pakistan-China Free Trade Agreement (PCFTA) Treaty Model: Capability, Prospects and Disputes

Despite the tremendous economic growth of Pakistan-China economic relations, but the outcomes from Pakistan-China Free Trade Agreement (PCFTA) remains near to the ground. This Paper analyzes the capability of PCFTA in goods between Pakistan and China. An analysis based on revealed comparative advantage (RCA) and trade intensity (TI) measures in used to categorize product groups, in which Pakistan and China situate to amplify the most from decrease in tariff levels. Analysis is performed to approximate the change in bilateral trade stream under two dissimilar tariff regimes. The paper accomplished that, from a Pakistan perception, FTA covering only goods trade will not be valuable to Pakistan. The practicability of a FTA will hinges upon the non-goods components such as investments, services, teamwork in research and development.