BANGKOK: Thailand and Pakistan will attempt to conclude a free-trade agreement by next year, not only to promote bilateral trade and cooperation, but also to use the other country as a springboard into the South Asia and Asean regions. Sunanta Kangvalkulkij, deputy director-general of the Commerce Ministry’s Trade Negotiations Department, said yesterday that she would lead the Thai negotiating team to Islamabad for the fourth round of talks on trade liberalisation from today to Thursday.
“Thailand will ask for Pakistan to open the market for many products including processed food, sugar, chemicals, petrochemicals and plastics, rubber and rubber products, wood, printing products, textiles and garments, electric appliances and automobiles and parts,” she said. The two countries will also discuss rules of origin and other issues, such as customs procedures, cooperation in many areas such as sanitary standards, trade remedies, trade facilitation, and technical barriers and laws that should be eliminated to promote trade. The negotiations started last year.
The Pakistani-Thai FTA would be beneficial to both countries and significantly increase bilateral trade and investment. It would enable Thailand to expand its exports into South Asia as well as other Muslim nations in the surrounding region.
Thailand will act as a gateway for Pakistan to penetrate the Asean Economic Community. In 2014, Thailand enjoyed a surplus of US$734 million (Bt25.4 billion) with Pakistan on two-way trade of $1.01 billion. Similar trade surpluses have been registered since 2010. In 2014, Thailand’s exports to Pakistan reached $874 million. Pakistan is Thailand’s second-largest trading partner in South Asia after India, and 46th globally. Thailand ships to Pakistan fabrics, textiles, vehicles and parts, air-conditioners and parts, plastics and chemicals. Imports are machinery and parts, musical instruments, processed and semi-processed fishery products, ores and steel.