BANGKOK: Thailand and Pakistan have made major progress in talks towards a free-trade agreement (FTA), and expect to be able to conclude the pact by next year.
Sunanta Kangvalkulkij, deputy director-general of the Commerce Ministry’s Trade Negotiations Department, said both countries have already achieved about 70 per cent in the FTA talks, which involve trade reduction modality, and rules of origin. The remaining issues will be discussed in the next round of talks to be held every month from now. The fifth round of negotiations will be held in Thailand from October 18-20.
Under trade reduction, Thailand has encouraged Pakistan to eliminate tariffs on many key products, including processed food, sugar, chemical products, petroleum, plastic, rubber and products, wood, printing, textile and garment, electric appliances, and automobile and parts.
Sunanta said Thailand and Pakistan would attempt to conclude the FTA by next year, to not only promote trade and closer cooperation between the two, but also so that each country can use the other as a springboard to South Asia. In 2014, Thailand enjoyed a trade surplus of US$734 million (Bt25.5 billion) with Pakistan. Similar trade surpluses have been registered by the Kingdom since 2010. Bilateral trade reached $1.01 billion in 2014, with Thailand’s exports to Pakistan accounting for $874 million. Pakistan is Thailand’s second-largest trading partner in South Asia, after India, and No 46 globally.
Major exports from Thailand to Pakistan are fabrics, textiles, vehicles and parts, air-conditioners and parts, plastics, and chemical goods. Imports include machinery and parts, musical instruments, processed and semi-processed fishery products, ore, and steel.
