BANGKOK: Pakistan and Thailand are ready to start negotiations on Free Trade Agreement (FTA) to enhance bilateral trade after the completion of feasibility studies by the two, well-informed sources told Business Recorder. A high-level delegation of Thailand led by Commerce Minister General Chatchai Sarikupya reached Karachi on Tuesday. The delegation will hold meetings with the TDAP and FPCCI officials on Wednesday (today).
The delegation comprises officials of different ministries, auto sector, energy, fisheries, food processing, electronic and electric appliances. Commerce ministers of the two countries will hold a Joint Trade Committee (JTC) meeting whereas business-to-business meetings have also been arranged. Pakistan’s exports to Thailand have increased by 40 per cent to $140 million in 2014-15 from $99 million in 2013-14, said Dr Nazim Latif, Commercial Counsellor in Thailand.
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Commerce ministers of the two countries will jointly announce starting of negotiations on FTA along with the signing deadline. Commenting on Thailand’s auto industry Chairman Thailand Automotive Institute (TAI) Vichai Jirathiyut said that Pakistan’s auto industry can benefit by adopting Thailand auto industry’s model to accelerate growth and strengthen its vendor base.
TAI has put together the 3rd Master Plan for Automotive Industry (2012-2016) in order to stress the importance of emission as well as to help raise the potential of related industries to motorization such as aviation, maritime and rail. He said Thailand is one of the world’s largest automotive producers. In 2011, Thailand ranked 11th in the world with production of 1.4 million units, while the top 3 were China with 18 million, Japan with 9 million and the USA with 7 million.
‘It shows Thailand’s position as a global automotive producer that wants to raise its capability with high-level technology, develop eco-friendly products, help Thai auto part makers to become part of an important global supply chain that is eco-friendly, and to create value-added products by being an important global manufacturing base,’ added the chairman.
On the question of how Pakistan can benefit from TAI’s knowledge, he said that it is important that each country takes account of its own circumstances, priorities and culture. However, Thailand is open to sharing information on its automotive policies. Such information can be considered for application in the local context in Pakistan. Perhaps a bilateral discussion on this can be organised in the future.
He said 12 years ago, Thailand had the requirement that 40 percent of the components in vehicles must be locally-made. At present, Thailand has moved away from enforcing such standards but has been promoting the local production of environmentally friendly “eco” cars which are more competitive. Answering another question, he said used cars are one of the biggest hurdles in growth of industry and serve as a barrier to new entrants. As per an estimate, imported used cars constitute 30 percent of all cars in Pakistan.
