Canada Pakistan Free Trade Agreement

Canada Pakistan Free Trade Agreement: An Overview

The Canada Pakistan Free Trade Agreement (CPFTA) is a bilateral trade agreement between Canada and Pakistan. Signed in 2007, the agreement was implemented in 2008 with the aim of boosting trade between the two countries.

The CPFTA allows for the elimination or reduction of tariffs on goods traded between Canada and Pakistan. It covers a wide range of products, including agricultural goods, textiles, and industrial machinery. The agreement also provides for the protection of intellectual property rights and encourages cooperation in areas such as investment and services.

Benefits of the CPFTA

The CPFTA has provided a number of benefits to both Canada and Pakistan. For Canadian businesses, the agreement has opened up new markets in Pakistan, which is one of the world`s fastest-growing economies. The elimination of tariffs on Canadian exports has made products more affordable for Pakistani consumers, increasing demand for Canadian goods.

For Pakistan, the agreement has enabled the country to diversify its trade relations beyond its traditional partners in the Middle East and Asia. It has also helped to increase the competitiveness of Pakistani exporters, enabling them to access new markets and improve their products to meet international standards. The agreement has also led to increased foreign investment in Pakistan, particularly in the telecommunications and energy sectors.

Challenges of the CPFTA

While the CPFTA has provided significant benefits to both Canada and Pakistan, there are also challenges associated with the agreement. One of the main challenges is the lack of awareness among businesses in both countries about the opportunities offered by the agreement. Many businesses are still unaware of the types of products covered by the agreement or the benefits of exporting to the other country.

Another challenge is the lack of infrastructure and trade facilitation measures in Pakistan, which can create barriers to trade. For example, the lack of efficient customs clearance procedures and transportation infrastructure can delay the movement of goods, increasing costs for businesses. Addressing these issues will be crucial in ensuring the long-term success of the CPFTA.


The Canada Pakistan Free Trade Agreement has provided significant benefits to both Canada and Pakistan, opening up new markets and increasing trade between the two countries. While there are challenges associated with the agreement, efforts to increase awareness among businesses and address infrastructure issues can help to ensure its success in the years to come. As the economies of both Canada and Pakistan continue to grow, the CPFTA will play an important role in strengthening trade relations between the two countries.