China and Pakistan have included handmade carpets in their free trade agreement. It aims to create jobs for thousands of women working in the carpet industry in Pakistan. Pakistan’s hand-crafted carpet market has collapsed because of a number of trade-related challenges. Pakistan’s handmade carpet exports decreased from $300 million to $68 million in 2015.
Moreover, the reason for this is increased freight costs, rising tax duties, and administrative and warehouse costs. The resulting loss of jobs caused thousands of daily wage workers to lose their jobs. However, the China-Pakistan Free Trade Agreement now allows 313 export items duty-free access to China’s $2 trillion market.
Source: Daily Times