2015 - pbc.org.pk · a study on the feasibility of the proposed pakistan-thailand free trade...

A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

2015

No Major Gains Expected for Pakistani Exports

iA Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

A Study on the Feasibility of the Proposed

Pakistan-Thailand Free Trade Agreement

November 2015

ii A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

AcknowledgementsTeam Leader: Samir S. Amir Lead Researcher: Syed Danish Hyder

Disclaimer: The findings, interpretations and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Board of Directors and Members of the Pakistan Business Council or the companies they represent.

Any conclusions of analysis based on ITC, WDI data are the responsibility of the author(s) and do not necessarily reflect the opinion of the WTO, World Bank, IMF or UN.

Although every effort has been made to cross-check and verify the authenticity of the data, the Pakistan Business Council does not guarantee the data included in this work. All data and statistics used are correct as of 1 July, 2015, and may be subject to change. For any queries or feedback regarding this report, please contact [email protected] or [email protected].

iiiA Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

The Pakistan Business Council: An OverviewThe Pakistan Business Council (PBC) is a business policy advocacy forum, representing private-sector businesses that have substantial investments in Pakistan’s economy. It was formed in 2005 by 14 (now 47) of Pakistan’s largest enterprises, including multinationals, to allow businesses to meaningfully interact with government and other stakeholders.

The Pakistan Business Council is a pan-industry advocacy group. It is not a trade body nor does it advocate for any specific business sector. Rather, its key advocacy thrust is on easing barriers to allow Pakistani businesses to compete in regional and global arenas.

The PBC works closely with the relevant government departments, ministries, regulators and institutions, as well as other stakeholders including professional bodies, to develop consensus on major issues which impact the conduct of business in and from Pakistan. The Wbusinesses. It also serves on various taskforces and committees of the Government of Pakistan as well as those of the State Bank, SECP and other regulators with the objective to provide policy assistance on new initiatives and reforms.

The PBC conducts research and holds conferences and seminars to facilitate the flow of relevant information to all stakeholders in order to help create an informed view on the major issues faced by Pakistan.

The PBC’s Founding Objectives:• To provide for the formation and exchange of views on any question connected with the conduct of businesses in and from Pakistan.

• To conduct, organize, set up, administer and manage campaigns, surveys, focus groups, workshops, seminars and field works for carrying out research and raising awareness in regard to matters affecting businesses in Pakistan.

• To acquire, collect, compile, analyze, publish and provide statistics, data analysis and other information relating to businesses of any kind, nature or description and on opportunities for such businesses within and outside Pakistan.

• To promote and facilitate the integration of businesses in Pakistan into the world economy and to encourage the development and growth of Pakistani multinationals.

• To interact with Governments in the economic development of Pakistan and to facilitate, foster and further the economic, social and human resource development of Pakistan.

The PBC is a Section 42 not-for-profit Company Limited by Guarantee. Its working is overseen by a Board of Directors elected every three years by the Membership with the Board being headed by a Non-Executive Chairman. The day-to-day operations of the PBC are run by a professional secretariat headed by a full-time, paid CEO.More information on the PBC, its members, and its workings, can be found on its website: www.pbc.org.pk

The PBC’s Member Companies

vi A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Table of Contents

The Pakistan Business Council: An Overview ...................................................................................................iii

Executive SummaryStudy Findings ......................................................................................................................................................................................................... 01Conclusion ................................................................................................................................................................................................................ 03

Section I: Trade OverviewStudy Objectives ...................................................................................................................................................................................................... 06Sources of Data ........................................................................................................................................................................................................ 06Methodology ............................................................................................................................................................................................................ 06Comparison of Pakistan and Thailand’s Key Economic Indicators ................................................................................................................. 08

Pakistan and Thailand Trade Profiles ................................................................................................................................................................ 09Pakistan’s Top 10 Export Destinations ................................................................................................................................................................. 09Pakistan’s Major World Exports at 2 Digit HS Code .......................................................................................................................................... 10Pakistan’s Top 10 Sources of Imports ................................................................................................................................................................... 11Pakistan’s Major World Imports at 2 Digit HS Code ........................................................................................................................................ 12Thailand’s Top 10 Export Destinations ................................................................................................................................................................ 13Thailand’s Major World Exports at 2 Digit HS Code ......................................................................................................................................... 14Thailand’s Top 10 Sources of Imports .................................................................................................................................................................. 15Thailand’s Major World Imports at 2 Digit HS Code ......................................................................................................................................... 16

Pakistan’s Trade with Thailand at a Glance ...................................................................................................................................................... 17Pakistan’s Top Exports to Thailand ...................................................................................................................................................................... 17Pakistan’s Top Imports from Thailand ................................................................................................................................................................. 20

Section II: Pakistan and Thailand’s Major FTAsOverview of Pakistan’s FTAs ............................................................................................................................................................................... 24Pakistan-Sri Lanka FTA .......................................................................................................................................................................................... 25Pakistan- Malaysia FTA .......................................................................................................................................................................................... 26Pakistan-Indonesia Preferential Trade Agreement ............................................................................................................................................. 27Pakistan-China FTA ............................................................................................................................................................................................... 28

viiA Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Overiew of Thailand’s Major FTAs .................................................................................................................................................................... 29Thailand-Australia FTA.......................................................................................................................................................................................... 30Thailand-New Zealand FTA .................................................................................................................................................................................. 31Thailand-China FTA ............................................................................................................................................................................................... 32Thailand-India Framework Agreement FTA ....................................................................................................................................................... 33Thailand-Japan FTA ................................................................................................................................................................................................ 34Thailand-ASEAN-6 FTA ......................................................................................................................................................................................... 35

Section III: Analysis of High Potential Pakistani Exports to ThailandPakistan’s Exports to Thailand Trade Potential Overview ................................................................................................................................ 42Top 50 High Potential Pakistani Exports to Thailand at 6 Digit HS Code Level ............................................................................................ 42

Sectoral Overview of High Potential Pakistani Exports to Thailand ........................................................................................................... 47Bovine Cuts Boneless .............................................................................................................................................................................................. 48Buttermilk and Cream ............................................................................................................................................................................................ 49Citrus Fruit, Fresh or Dried .................................................................................................................................................................................... 50Wheat or Meslin ...................................................................................................................................................................................................... 51Vegetable Products Nes .......................................................................................................................................................................................... 52Sugar Confectionary ............................................................................................................................................................................................... 53Biscuits, Wafers ........................................................................................................................................................................................................ 54Medicament Mixtures ............................................................................................................................................................................................. 55Paints & Varnishes .................................................................................................................................................................................................. 56Polymers ................................................................................................................................................................................................................... 57Plastics ...................................................................................................................................................................................................................... 58Leather ...................................................................................................................................................................................................................... 59Cotton........................................................................................................................................................................................................................ 60Cotton & Polyester Fabric ...................................................................................................................................................................................... 61Apparel Articles....................................................................................................................................................................................................... 62Articles of Apparel .................................................................................................................................................................................................. 63Made Up Textile Articles ........................................................................................................................................................................................ 64Articles of Bedding .................................................................................................................................................................................................. 65Footwear ................................................................................................................................................................................................................... 66Jewellery Articles ..................................................................................................................................................................................................... 67Pipes and Parts of Structure ................................................................................................................................................................................... 68Air Craft Engines ..................................................................................................................................................................................................... 69Medical Sciences Instruments ................................................................................................................................................................................ 70Frozen Shrimps and Prawns .................................................................................................................................................................................. 71

viii A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Section IV: Analysis of High Potential Thailand Exports to PakistanThailand’s Exports to Pakistan Trade Potential Overview ................................................................................................................................ 74Top 50 High Potential Thai Exports to Pakistan at 6 Digit HS Code Level ..................................................................................................... 74

Sectoral Overview of High Potential Thai Exports to Pakistan ..................................................................................................................... 78Maize Seed ............................................................................................................................................................................................................... 79Palm Oil & its Fractions .......................................................................................................................................................................................... 80Cyclic & Acyclic Hydrocarbons ............................................................................................................................................................................ 81Polymers ................................................................................................................................................................................................................... 82Polyester Yarn and Dyed Fabric ............................................................................................................................................................................ 83Mechanical Parts ...................................................................................................................................................................................................... 84Electric Equipment .................................................................................................................................................................................................. 86Mobile Telephones And Cellular Networks ........................................................................................................................................................ 87Electronic Equipment.............................................................................................................................................................................................. 88Automobiles ............................................................................................................................................................................................................. 89Pneumatic Tyre ........................................................................................................................................................................................................ 90Electro Medical Apparatus .................................................................................................................................................................................... 91Staple Fibres of Polyester and Viscose ................................................................................................................................................................. 92Medicaments ............................................................................................................................................................................................................ 93Reactive Dyes ........................................................................................................................................................................................................... 94

Section V: Prospective TradeProspective Trade at 6 Digit HS Code Level ....................................................................................................................................................... 96Pakistan’s Prospective Exports to Thailand of Top Growth Items at 6 Digit HS Code Level ...................................................................... 97Thailand’s Prospective Exports to Pakistan of Top Growth Items at 6 Digit HS Code Level ...................................................................... 99

Section VI: Conclusion Potentially Low Gains from Pakistan-Thailand FTA ....................................................................................................................................... 104Problems of Institutional Capacity ..................................................................................................................................................................... 104

AnnexureTop 100 High Potential Pakistani Exports to Thailand at 6 digit HS Code Level ........................................................................................ 108Top 100 High Potential Thai Exports to Pakistan at 6 digit HS Code Level ................................................................................................. 114

ixA Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

List of Tables

Pakistan’s Top 10 Export Destinations ................................................................................................................................................................. 09

Pakistan’s Major World Exports ............................................................................................................................................................................ 10

Pakistan’s Top 10 Import Sources ......................................................................................................................................................................... 11

Pakistan’s Major World Imports ........................................................................................................................................................................... 12

Thailand’s Top 10 Export Destinations ................................................................................................................................................................ 13

Thailand’s Major World Exports ........................................................................................................................................................................... 14

Thailand’s Top 10 Import Sources ........................................................................................................................................................................ 15

Thailand’s Major World Imports .......................................................................................................................................................................... 16

Pakistan’s Top Exports to Thailand ...................................................................................................................................................................... 18

Pakistan’s Top Imports from Thailand ................................................................................................................................................................. 21

Top 50 high potential Pakistani Exports to Thailand at 6 Digit HS Code Level ............................................................................................. 42

Top 50 High Potential Thailand Exports to Pakistan at 6 Digit HS Code Level ............................................................................................. 74

Pakistan’s prospective Exports to Thailand of Top growth items at 6 Digit HS Code Level ....................................................................... 97

Thailand’s prospective Exports to Pakistan of Top growth items at 6 Digit HS Code Level ....................................................................... 99

Table 1. Lists the Top 100 high potential Pakistani Exports to Thailand at the 6 Digit HS Code Level. ................................................... 108

Table 1. Lists the Top 100 High Potential Thai Exports to Pakistan at the 6 Digit HS Code Level. ........................................................... 114

x A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Executive Summary

BackgroundIn August 2015 Pakistan and Thailand decided on the Terms of Reference (ToRs) and framework for a free trade agreement during a two-day visit of a Thai delegation to Pakistan. Negotiations on the terms of the FTA are set to commence on 27th September 2015 in Thailand. Both governments have expressed their strong interest in the speedy conclusion of a free trade agreement. Feasibility studies carried out by both sides are said to indicate significant scope for bilateral trade expansion between the two countries. A joint statement by the Pakistan-Thailand Business Council reaffirmed these findings and listed various sectors that will be instrumental in raising trade volumes such as food and agriculture, fisheries, auto parts and textiles.

It is therefore clear that the Pakistan-Thailand FTA has been fast-tracked and negotiations are to be pursued aggressively by both sides. It is imperative at this point to perform an independent feasibility study to determine whether a Pakistan-Thailand FTA is an advisable move. Pakistan’s past experience with trade agreements and their consequences is reason to proceed with extreme caution where further major free trade agreements are concerned. Previous trade agreements with China, Malaysia and Indonesia among others were characterized by terms that did not grant high potential Pakistani items significant tariff concessions while granting access to the trade partner’s major export items. As a result many local Pakistani industries have buckled under the weight of cheap foreign goods allowed into the country by FTAs.

This study attempts to determine whether the Pakistan-Thailand FTA is a feasible proposal. An FTA would be feasible if:

• It enhances market access for both the countries in a mutually beneficial manner and leads to significant trade complementarities.

• It results in cheaper imports from the partner country which can help improve the competitiveness of both domestic production and exports.

• It does not lead to the opening of the domestic market to subsidized and unfair competition from imports from the partner country.

xiA Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Pakistan’s Free Trade and Preferential Trade AgreementsPakistan has signed FTAs with Sri Lanka, China and Malaysia. With the exception of Pakistan’s trade balance with Sri Lanka, its trade balance with the other FTA countries has been consistently negative following the enforcement of the agreements. In 2014 Pakistan’s imports were 450% and 326% higher than its exports from Malaysia and China respectively.

Pakistan-China FTAPakistan and China signed an FTA in November 2006 and the agreement took effect in July 2007. Since 2010, Pakistan’s exports to China have been gradually increasing. However, exports to China dipped in 2014. On the other hand imports from China increased from USD 5.2 billion to USD 9.59 billion in 2010-2014. A closer look at the terms of the Pak-China FTA reveals that Pakistan failed to secure concessions that make its high potential export items competitive against China’s other trade partners, with export items at the 8 digit level such as cotton (HS 52051200), frozen fish (HS 03033900), and leather (HS 41131000) facing tariffs significantly higher than those faced by competing ASEAN countries. Pakistan’s primary exports to China include low value-added items such as cotton yarn, rice and chromium ores. On the other hand, China’s top exports to Pakistan are high value-added goods such as cell phones, tires and portable digital computers. Several local industries have suffered severe harm as a result of the influx of cheap Chinese imports brought on by the FTA. Concerns have been raised by the steel industry, the tile industry, as well as the paper and paperboard industry among others. Pakistan-Malaysia FTAThe Comprehensive Free Trade Agreement (FTA) for Closer Economic Partnership between Pakistan and Malaysia was signed on the 8th of November 2007 in Kuala Lumpur, Malaysia. The Pak-Malaysia FTA became operational from January 1, 2008. Tariff rates were reduced to values ranging between 0 % to 40 % on more than 5,000 Pakistan Customs Tariff lines. Since 2010 Pakistani exports to Malaysia have risen from USD 145 million to USD 234 million. The trade balance has remained in Malaysia’s favour following the signing of the FTA. In 2014 Pakistan’s imports from Malaysia were 450% higher than Pakistan’s exports to the country. Pakistan’s major exports to Malaysia include rice (which accounted for nearly 50% of exports in 2014), fish, and cotton yarn. Malaysia’s major exports to Pakistan include palm oil, petroleum, and polyester yarn. Pakistan once again failed to secure significant concessions on high trade potential items such as HS 61 items (accessories, knitted or crocheted), which face a duty regime of 20% as compared to China and India which face 0 % and 10 % respectively, as well as HS 84 and HS 85 items (gas turbines, vaccum pumps, air conditioners, refrigerators etc), which also face a duty regime of 20% as compared to China and India which face 0% and 10%. There are also a number of high potential HS 39 (Plastics) and HS 48 (Paper and Paperboard) items that have not received concessions from Malaysia.

xii A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Pakistan-Indonesia PTAThe Pakistan-Indonesia Preferential Trade Agreement was signed in February 2012. Both sides offered concessions on over 200 items at the 8 digit level HS code. In 2013 Pakistan’s exports to Indonesia amounted to USD 144 million, accounting for a mere 0.08% of Indonesia’s world imports. Pakistan’s imports from Indonesia in 2013 amounted to USD 1.2 billion, accounting for 2.76% of Pakistan’s total import bill. A study conducted by the PBC found that most Pakistani export items at the 8 digit level with high export potential to Indonesia did not receive concessions under the PTA. Pakistan’s primary exports to Indonesia include cotton, rice and mandarins and very few high-value added goods. Indonesia’s exports to Pakistan include palm oil, nut and coal. Pakistan’s export items face less favourable tariffs than the same items from Indonesia’s FTA partners China, Japan, South Korea and India. More precisely, the top 100 items at the 8 digit level possess a trade potential of USD 1.8 billion, of which USD 1.54 billion resides within items not given concessions under the PTA. Further, 80% of the top 50 high potential items are not included in the PTA. High potential items left out of the PTA include three plastic items with total trade potential of USD 140 million and sixteen cotton items with total trade potential of USD 500 million.

Pakistan-Sri Lanka FTAThe FTA between Pakistan and Sri Lanka became operational from 12 June 2005. Sri Lanka and Pakistan agreed to offer preferential market access to each other’s exports through significant tariff concessions. Sri Lanka enjoys duty free market access on 206 products in the Pakistani market including tea, rubber and coconut. Pakistan, in return, gained duty free access on 102 products to the Sri Lankan market. Pakistan has consistently exported significantly more to Sri Lanka than it has imported from the country. However, Pakistan’s exports to Sri Lanka were a mere USD 266 million in 2014. While concessions from both sides are extensive and wide-ranging, Pakistan has been unable to make real inroads into the Sri Lankan market.

Pakistan-Iran PTAPakistan signed a Preferential Trade Agreement with Iran on 4th March 2004. The agreement became operational from 1st September 2006. Under the Agreement, Pakistan offered concessions to Iran on 338 tariff lines, whereas Iran offered concessions on 309 tariff lines. In 2014 Pakistan’s exports to Iran stood at a mere USD 43 million whereas imports from Iran stood at USD 186 million. Pakistan’s primary exports to Iran include paper and paperboard products, rice, and meat. Pakistan’s primary imports from Iran include petroleum gases, ferrous waste and scrap, and sheep and lamb skin.

Pakistan-Mauritius PTAPakistan signed a Preferential Trade Agreement with Republic of Mauritius on 30th July 2007. The agreement became operational on 30th November 2007. Pakistan’s trade with Mauritius is negligible, with 2014 exports to Mauritius equaling USD 28 million and 2014 imports from Mauritius equaling USD 22 million. This FTA has brought little benefit to Pakistan, with trade volumes remaining very low.

xiiiA Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Thailand’s Major Free Trade AgreementsThailand has signed FTAs and other closer economic partnership agreements with Australia, Japan, New Zealand, Bahrain, Peru, India, and China and ASEAN-6 comprising Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand itself. Thailand is looking in its FTAs for greater market access for its primary export goods such as automobiles, electrical parts, agriculture, processed food, boilers, plastics and rubber articles. Since 2010 Thailand has been in trade surplus with Australia, New Zealand, Peru, India, Indonesia, Philippines and Singapore and in trade deficit with its remaining FTA partners.

Thailand-Australia FTAThe Thailand-Australia Closer Economic Relations FTA (TAFTA) entered into force on 1st January 2005. The total bilateral trade between the two countries has more than doubled since TAFTA came into force. In 2004 exports to Australia were USD 2.46 billion whereas they rose to USD 4.37 billion in 2006 following the signing of the agreement. In 2014 Thai exports to Australia were USD 9.29 billion. Imports to Thailand from Australia were USD 5.4 billion in 2014 and they have been consistently lower than exports to Australia.

Thailand-China FTAThe Thailand-China FTA was signed in June 2003 and came into force four months later in October 2003. It was an “early harvest agreement” on farm trade alone, whereby both countries opened their agricultural markets before the broader China-ASEAN FTA came into force in 2010. Under the deal, tariffs for 188 types of fruits and vegetables were cut to zero overnight. In 2002 Thailand’s exports to China were USD 3.5 billion, rising to USD 7.09 billion in 2004 with the signing of the FTA. In 2014 Thailand’s exports to China stood at USD 25 billion. Imports to Thailand by China were USD 38.5 billion in 2014 and the trade balance between the two countries has been consistently in China’s favour.

Thailand-Japan FTAThe Japan-Thailand Economic Partnership Agreement (JTEPA) came into effect on 1 November 2007. Thailand’s imports from Japan have consistently outweighed its exports to the country since the signing of the JTEPA. In 2006 exports to Japan were USD 16.5 billion, rising in 2008 to USD 19.8 billion following the signing of the JTEPA. In 2014 Thailand’s exports to Japan stood at USD 21.8 billion. Imports in 2014 were USD 35.7 billion. The trade balance between the two countries has consistently been in Japan’s favour.

xiv A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Pakistan Thailand Trade

Over the past ten years Pakistan’s exports to Thailand have gone up from USD 61.26 million in 2004 to USD 118 million in 2014, whereas its imports from Thailand increased from USD 434.39 million to USD 876.30 million in the same period. Pakistan’s top exports to Thailand at the 2 digit HS code level include fish, aquatic invertebrates, cotton, meat, other products of animal origin and pharmaceutical products. Pakistan’s top exports to Thailand at the 2 digit HS code level include fish, aquatic invertebrates, cotton, meat, other products of animal origin and pharmaceutical products. HS 03 (Fish, crustaceans, molluscs, aquatic invertebrates, nes) accounts for about 45% of Pakistan’s total exports to Thailand whereas HS 52 (Cotton) accounts for about 23% of Pakistan’s total exports to Thailand. The remaining 32% of exports are split up into much smaller shares of several different products.

Pakistan’s top imports from Thailand at the 2 digit HS code level include vehicles other than railway, petroleum products, machinery, nuclear reactors, boilers, plastics, rubber articles and electrical equipment. HS 87 (Vehicles other than railway, tramway) accounts for 35% of all Pakistani imports from Thailand. Other major Pakistani imports from Thailand are as follows: HS 84 (Machinery, nuclear reactors etc), HS 39 (Plastics and articles thereof), HS 55 (Manmade staple fibres), and HS 40 (Rubber and articles thereof) account for 9.6%, 8.2%, 7.6% and 6.5% respectively. Import of vehicles other than railway from Thailand increased 15% over the period 2010 to 2014. Thai vehicle imports show a leading share of 19% of total Pakistan vehicle imports from the world in 2014.

Pakistan Thailand Trade

Over the past ten years Pakistan’s exports to Thailand have gone up from USD 61.26 million in 2004 to USD 118 million in 2014, whereas its imports from Thailand increased from USD 434.39 million to USD 876.30 million in the same period. Pakistan’s top exports to Thailand at the 2 digit HS code level include fish, aquatic invertebrates, cotton, meat, other products of animal origin and pharmaceutical products. Pakistan’s top exports to Thailand at the 2 digit HS code level include fish, aquatic invertebrates, cotton, meat, other products of animal origin and pharmaceutical products. HS 03 (Fish, crustaceans, molluscs, aquatic invertebrates, nes) accounts for about 45% of Pakistan’s total exports to Thailand whereas HS 52 (Cotton) accounts for about 23% of Pakistan’s total exports to Thailand. The remaining 32% of exports are split up into much smaller shares of several different products.

Pakistan’s top imports from Thailand at the 2 digit HS code level include vehicles other than railway, petroleum products, machinery, nuclear reactors, boilers, plastics, rubber articles and electrical equipment. HS 87 (Vehicles other than railway, tramway) accounts for 35% of all Pakistani imports from Thailand. Other major Pakistani imports from Thailand are as follows: HS 84 (Machinery, nuclear reactors etc), HS 39

61.26 90.84 61.21 71.16 88.25 93.74 80.90 109.39 109.36 117.42 118.46

434.39

590.14678.34 666.24 636.96

681.08

835.69898.41 877.95

940.53876.30

0.00100.00200.00300.00400.00500.00600.00700.00800.00900.00

1,000.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pakistan's Trade with Thailand

Pakistan's exports to Thailand

Pakistan's imports from Thailand

USD

Mill

ions

01A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

Study FindingsThe 4423 Pakistani export items with available data other than petroleum products indicate a collective trade potential with Thailand of USD 4.35 billion (trade potential amounts to 5.13 billion when petroleum products are taken into consideration). Pakistan’s top 50 high trade potential items at the 6 digit HS code level account for USD 2.8 billion of this potential. The products in which significant trade potential is seen include instrument and appliances used in medical, cotton, pipes, polyethylene, plain weave cotton fabric, apparel and home textile articles, etc.

The 4423 Thai export items with available data for products other than petroleum exhibit a collective trade potential with Pakistan of USD 10.133 billion (the trade potential amounts to USD 24.3 billion when petroleum products are taken into consideration). Thailand’s top 50 high trade potential items at the 6 digit HS code level exhibit a collective trade potential of USD 1.333 billion. The products for which significant trade potential is reported include telephone sets, polypropylene, automobiles with reciprocating engine up to 3000 cc, pneumatic rubber tires, medicaments and polyester staple fibres, etc.

Pakistan’s highest exports potential was USD 192 million within instruments and appliances used in medical and veterinary science at the 6 digit HS code level and the tariff rate applied by Thailand on this item is already 1%. Pakistan’s other leading export potential items include cotton, medical science instruments and frozen shrimp on which tariffs are not imposed by Thailand. Approximately, 38% of the total Pakistan’s high potential items already have lowered tariff rates such as HS 520100 (Cotton), HS 030617 (Frozen shrimp), HS 740400 (Copper waste and scrap) and HS 851712 (cellular phones). Products which have significant trade potential for Pakistan and face higher tariff rates than Thailand’s FTA partners include apparel and make up articles, footwear, jewelry, vegetable products, citrus fruits, polymers, plastic waste and leather.

Sectoral analysis suggests that Thailand’s highest export potential for products other than petroleum at the 6 digit HS code level is within HS 851712 (telephones for cellular networks) with a tariff rate of Rs. 250/set imposed on Thailand by Pakistan. Pakistan imposes no tariffs on its FTA partners for this item. 82% of Thailand’s total trade potential for its top 50 high potential export items is covered by polymers, automobiles, mobile telephones and mechanical parts. Tariff rates imposed by Pakistan are low or exempted for FTA partners within these products with the notable exception of automobiles for which equal tariff rates are imposed on Thailand, China, Malaysia and Sri Lanka.

In the final section of this report a simulation study has been conducted using World Integrated Trade Solution (WITS) software to calculate prospective trade for both the countries and to approximate the potential gains from a Pakistan-Thailand FTA. According to this study, Pakistan’s highest prospective growth in exports to Thailand would be recorded within products such as women/girls/boys/men cotton trousers and T-shirts, pullovers, make up articles, footwear and vegetables, etc. At the 6 digit HS code level 27 items

02 A Study on the Feasibility of the Proposed Pakistan-Thailand Free Trade Agreement

exhibit a prospective growth rate of 1%. According to the simulation Pakistan’s exports to Thailand would grow by only 32% for high potential items at the 6 digit HS code level following the reduction of all tariffs to zero.

Thailand’s highest prospective growth in exports to Pakistan is within products such as automobiles of 1000 cc plus category, motorcycles with more than 50cc engine capacity and for static converters, etc. At the 6 digit HS code level 37 items exhibit a prospective growth rate that is greater than 1%. Thailand’s exports to Pakistan would grow by 128% within high potential items at the 6 digits HS code level.

Under the conducted simulation Pakistan’s total prospective exports to Thailand would rise to USD 160 million and Thailand’s total exports to Pakistan would rise to USD 1.71 billion.


CONCLUSION• Pakistan’s top 50 high potential export items represent a total trade potential of USD 2.8 billion and about 38% of these high potential

items are already tariff exempted by Thailand. Therefore in practice the FTA may not bring as much benefit to Pakistan in terms of concessionary rates as expected.

• Under the simulation study conducted above, following the signing of the FTA Pakistan’s imports from Thailand will be elevated to USD 1.71 billion whereas Pakistan exports will increase by a mere USD 160 million, resulting in a trade deficit of USD 1.54 billion.

• Furthermore, Thailand’s high potential exports to Pakistan are not capital goods, but rather consumer goods, making the potential trade deficit that will come about after the FTA harder to justify.

• Under the simulation study conducted Pakistan’s highest growth items are apparel and home textile articles but their actual export value will grow only from current USD 1.4 million to USD 6.1 million.

• Moreover, Pakistan has historically failed to negotiate favourable FTA terms for its export products, with several high potential export items receiving no concessions under the China and Malaysia FTAs and the Indonesia PTA. Until the root causes of these missteps are identified and addressed it seems inadvisable to sign another major FTA.

• It is important to note that the National Tariff Commission presently lacks the institutional capacity to fulfill its myriad responsibilities, such as setting safeguard measures, performing trade research and tariff rationalization, and therefore will be unable to address issues having to do with the Pakistan-Thailand FTA.

• The NTC also currently faces a number of legislative hurdles to its effective functioning which are yet to be addressed.

• Previous FTAs have led to the Pakistani domestic market being flooded with cheap foreign goods and significant harm has been done to local industry. Given no improvement of institutional capacity the Pakistan-Thailand FTA may very well lead to a similar result and a worsening of the already dire situation.


Section I: Trade Overview


Study ObjectivesThe aim of this study is to assess the feasibility of a Pakistan-Thailand FTA. The following points will be discussed to this end:

• Key economic indicators of both countries.

• Trading patterns and tariff exemptions and eliminations for the countries’ current FTA partners.

• Top 50 high export potential items for both countries at the 6 digit HS code level.

• Prospective trade growth under the Pakistan-Thailand FTA.

Sources of DataThe data for this study has been taken from ITC Trademap for the period ended 2014, which bases its data on UN Comtrade, maintained by the United Nations Statistics Division (UNSD). Equivalent ad valorem tariff rates are drawn from Trademap and checked against the terms of FTAs signed by relevant countries available on their government websites. The key economic indicators data was collected from World Development Indicators (WDI), which is the primary World Bank collection of development indicators, compiled from officially-recognized international sources. The Trains data set, taken from World Bank web site, is used for simulation study conducted using software of World Integrated Trade Solution (WITS) to calculate prospective trade and approximate the potential gains from FTA.

Methodology

Trade Potential Intuitively, trade potential is the theoretical extent to which trade of a given item can be expanded, which suggests the actual scope for growth in trade of that item. For instance, if Pakistan exports USD 124 million worth of Kinnow to the world, and Thailand imports USD 93 million worth of Kinnow from the world, and Pakistan exports USD 3 million worth of Kinnow to Thailand, then trade potential is USD 90 million, since Pakistan has the capacity to export USD 90 million worth of Kinnow to Thailand given Thailand’s import requirements. Trade potential is given by the following equation:


Pakistan Trade Potential =

(Thailand’s imports from the world of X – Pakistan’s current exports to Thailand of X) if {(Pakistan’s exports to the world of X) – (Thailand’s imports from the world of X)} > 0

And

(Pakistan’s exports to the world of X – Pakistan’s current exports to Thailand of X) if {(Thailand’s imports from the world of X) – (Pakistan’s exports to the world of X)} < 0

Trade potential is a useful way to limit an analysis of trade items to those items that already have established production capacity in the exporting country and healthy demand in the importing country. It should be kept in mind that this measure therefore does not strictly tell us about items whose production capacity in the exporting country could be developed for exports, and whose demand in the importing country could emerge.

Compound Annual Growth Rate (CAGR)

Intuitively, the Compound Annual Growth Rate is the rate at which a value would have grown over a certain period if it had grown smoothly. CAGR is the geometric mean of the individual annual growth rates during a period. It therefore gives you the growth rate that would have gotten our initial value to our final value had the value grown smoothly over the relevant period. It is given by:


Comparison of Pakistan and Thailand’s Key Economic Indicators 2009-2014 1

Pakistan Thailand

2009 2014 2009 2014

GDP $ 168.2 B $ 246.9 B $ 263.7 B $ 373.8 B

GDP Growth 2.8% 5.4% -2.3% 0.7%

GDP per Capita $ 1009.8 $ 1334.1 $ 3962.7 $ 5519.4

Population 166 M 185 M 66 M 67 M

Trade Surplus/Deficit $ -12.8 B $ -20.2 B $ 26.2 B $ 26.7 B

Current Account Balance $ -3.9 B $ -3.5 B $ 21.9 B $ 13.4 B

FDI, net inflow $ 2.3 B $ 1.8 $ 4.9 B $ 12.8 B

1All data from World Bank database.


Pakistan and Thailand Trade ProfilesPakistan’s Top 10 Export DestinationsPakistan’s exports have grown from USD 21.41 billion to USD 24.72 billion from 2010 to 2014. USA is Pakistan’s leading import market with 2014 exports to USA amounting to USD 3.65 billion. China has emerged as Pakistan’s second largest export market, having paid USD 2.25 billion for Pakistani products in 2014. Thailand is not among the top ten export destinations for Pakistan.

Figures in USD BillionsPAKISTAN’S TOP 10 EXPORT DESTINATIONS

Importers Exported value in 2010 Exported value in 2011 Exported value in 2012 Exported value in 2013 Exported value in 2014

World 21.41 25.34 24.61 25.12 24.72

United States of America 3.67 3.84 3.67 3.75 3.65

China 1.44 1.68 2.62 2.65 2.25

Afghanistan 1.68 2.66 2.10 2.00 1.88

United Kingdom 1.11 1.26 1.25 1.43 1.65

United Arab Emirates 1.83 1.92 2.87 1.78 1.32

Germany 0.98 1.31 0.99 1.08 1.22

Spain 0.47 0.57 0.50 0.60 0.79

Italy 0.64 0.78 0.52 0.64 0.77

Bangladesh 0.64 0.95 0.70 0.72 0.69

Netherlands 0.41 0.54 0.45 0.63 0.68


Pakistan’s Major World Exports At 2 Digit HS CodePakistan’s major export earnings come from items such as cotton, articles of apparel, home textile articles, etc. Since 2010 cotton exports have grown by 18% whereas salt and sulphur have grown by 35%.

Figures in USD BillionsPAKISTAN’S MAJOR WORLD EXPORTS

HS Code Product labelExported value in

2010Exported value in




2014

52 Cotton 4.01 5.10 5.23 5.33 4.73

63 Other made textile articles, sets, worn clothing etc 3.28 3.57 3.29 3.69 3.91

61 Articles of apparel, accessories, knit or crochet 1.98 2.24 2.01 2.11 2.40

10 Cereals 2.28 2.81 2.06 2.18 2.21

62 Articles of apparel, accessories, not knit or crochet 1.46 1.77 1.69 1.85 1.98

42 Articles of leather, animal gut, harness, travel goods 0.62 0.68 0.67 0.74 0.74

25 Salt, sulphur, earth, stone, plaster, lime and cement 0.51 0.57 0.71 0.72 0.69

27 Mineral fuels, oils, distillation products, etc 1.20 1.31 0.33 0.53 0.65

41 Raw hides and skins (other than furskins) and leather 0.42 0.47 0.46 0.53 0.55

17 Sugars and sugar confectionery 0.09 0.07 0.25 0.63 0.44


Pakistan’s Top 10 Sources of ImportsPakistan’s imports increased from USD 37.54 billion to USD 47.54 billion from 2010 to 2014. Over 50% of its total imports continue to originate from just five countries, namely China, United Arab Emirates, Saudi Arabia, Kuwait and Indonesia. UAE is emerging as a major supplier to Pakistan, followed by Saudi Arabia and Kuwait. China emerged as the leading source of imports to Pakistan in 2014 with imports amounting to USD 9.59 billion. Thailand is not among the top ten sources of imports for Pakistan.

Figures in USD BillionsPAKISTAN’S TOP 10 IMPORT SOURCES

Exporters Imported value in 2010 Imported value in 2011 Imported value in 2012 Imported value in 2013 Imported value in 2014

World 37.54 43.58 43.81 43.78 47.54

China 5.25 6.47 6.69 6.63 9.59


Saudi Arabia 3.84 4.67 4.28 3.85 4.42

Kuwait 2.61 3.89 4.21 3.95 2.95

Indonesia 0.68 0.93 1.35 1.21 2.11

India 1.56 1.61 1.57 1.87 2.10


Japan 1.59 1.86 1.88 1.96 1.75

Malaysia 2.05 2.73 2.13 1.92 1.28

Singapore 0.91 0.66 0.77 0.75 1.15


Pakistan’s Major World Imports At 2 Digit HS CodePakistan’s imports are highly concentrated in a few items such as mineral fuels, oils, distillation products, machinery, electrical equipment, iron, steel, organic chemicals, and vehicles.

Figures in USD BillionsPAKISTAN’S MAJOR WORLD IMPORTS

HS Code Product labelImported value in

2010Imported value in




2014


84 Machinery, nuclear reactors, boilers, etc 2.95 2.95 3.06 3.06 3.93

85 Electrical, electronic equipment 2.44 2.43 2.75 2.68 3.35

72 Iron and steel 1.70 1.68 1.85 1.84 2.30

15 Animal,vegetable fats and oils, cleavage products, etc 1.85 2.59 2.31 1.98 2.15

29 Organic chemicals 1.72 2.21 2.04 2.02 1.96

39 Plastics and articles thereof 1.46 1.68 1.50 1.57 1.95

87 Vehicles other than railway, tramway 1.31 1.50 1.60 1.24 1.31

31 Fertilizers 0.65 1.03 0.91 0.61 0.81

12 Oil seed, oleagic fruits, grain, seed, fruit, etc, nes 0.63 0.69 0.62 0.48 0.78


Thailand’s Top 10 Export DestinationsThailand’s exports declined from USD 229.54 billion to USD 227.57 billion between 2012 and 2014. China is the leading export destination for Thailand as exports to China rose to USD 25.08 billion in 2014. United States was the second largest market as it paid USD 23.97 billion for Thai products, followed by Japan with USD 21.82 billion. Pakistan is not on the list of top ten export destinations for Thailand.

Figures in USD BillionsTHAILAND’S TOP 10 EXPORT DESTINATIONS

Importers Exported value in 2010Exported value in




2014

World 195.312 228.824 229.545 228.527 227.573

China 21.473 27.402 26.900 27.238 25.084


Japan 20.416 24.070 23.495 22.236 21.821

Malaysia 10.567 12.399 12.428 13.015 12.764

Hong Kong, China 13.132 16.479 13.100 13.189 12.610

Singapore 9.009 11.450 10.836 11.236 10.455

Indonesia 7.347 10.078 11.209 10.873 9.510

Australia 9.370 7.997 9.763 10.349 9.299

Viet Nam 5.845 7.059 6.688 7.182 7.888

Philippines 4.886 4.641 4.862 5.042 5.868


Thailand’s Major World Exports At 2 Digit HS CodeThailand’s major export earnings come from machinery, nuclear reactors, boilers, electrical equipment, vehicles other than railway, rubber and plastics articles. Since 2010 machinery and nuclear reactor exports have grown by 15% and the highest exports recorded have been for organic chemicals, plastics and vehicles which have grown by 51%, 46% and 40% respectively.

Figures in USD BillionsTHAILAND’S MAJOR WORLD EXPORTS

HS Code Product labelExported value in





2014




40 Rubber and articles thereof 14.647 22.048 17.443 16.960 14.328



71 Pearls, precious stones, metals, coins, etc 11.652 12.300 13.147 10.084 10.079

16 Meat, fish and seafood food preparations nes 5.986 7.235 7.520 7.118 6.520


10 Cereals 5.497 6.687 4.732 4.626 5.730


Thailand’s Top 10 Sources of ImportsThailand’s imports increased from USD 182.40 billion to USD 227.93 billion from 2010 to 2014. Over 50% of total imports continue to originate from just five countries, namely China, Japan, United States of America, Malaysia and UAE. China emerged as the top source of imports for Thailand in 2014, followed by Japan and USA. The shares of UAE, Republic of Korea and Indonesia declined from 2013 to 2014. Pakistan is not among the top ten sources of imports for Thailand.

Figures in USD BillionsTHAILAND’S TOP 10 IMPORT SOURCES

Exporters Imported value in 2010 Imported value in 2011 Imported value in 2012 Imported value in 2013 Imported value in 2014

World 182.393 228.483 247.576 250.708 227.932

China 24.239 30.581 36.957 37.727 38.498

Japan 37.856 42.162 49.580 41.082 35.711


Malaysia 10.709 12.326 13.106 13.247 12.746


Korea, Republic of 8.057 9.199 8.971 9.057 8.540

Singapore 6.294 7.787 7.832 8.226 7.879

Saudi Arabia 5.646 7.386 8.240 8.405 7.820

Taipei, Chinese 6.815 7.502 8.216 7.599 7.537

Indonesia 5.676 7.370 8.087 8.073 7.279


Thailand’s Major World Imports At 2 Digit HS CodeThailand’s imports are highly concentrated in a few items, namely mineral fuels, oils, distillation products, machinery, electrical equipment, etc. Cotton, yarn and apparel articles are not among the list of Thailand major world imports.

Figures in USD BillionsTHAILAND’S MAJOR WORLD IMPORTS

HS Code Product labelImported value in





2014




72 Iron and steel 10.999 13.114 14.023 13.718 11.968

71 Pearls, precious stones, metals, coins, etc 10.425 20.642 13.783 18.329 9.475



73 Articles of iron or steel 5.325 5.777 6.697 6.589 6.588

90 Optical, photo, technical, medical, etc apparatus 4.202 4.728 6.403 5.844 5.334



Pakistan’s Trade with Thailand at a Glance

Pakistan’s Top Exports to Thailand• Pakistan’s exports to Thailand amounted to USD 118 million in 2014, 46% higher than the exports of USD 81 million reported in 2010.

• However, Pakistan’s exports to Thailand accounted for a mere 0.05% of total Thai imports from the world in 2014.

• Pakistan’s top exports to Thailand at the 2 digit HS code level include fish, aquatic invertebrates, cotton, meat, other products of animal origin and pharmaceutical products.

• HS 03 (Fish, crustaceans, molluscs, aquatic invertebrates, nes) accounts for about 45% of Pakistan’s total exports to Thailand.

• HS 52 (Cotton) accounts for about 23% of Pakistan’s total exports to Thailand.

• The remaining 32% of exports are split up into much smaller shares of several different products.

• Pakistan’s percentage share of total Thai world imports of cotton was only 2.76% despite the fact that cotton is Pakistan’s major export product.


Figures in USD BillionsPAKISTAN’S TOP EXPORTS TO THAILAND

HS Code

Product label

Pakistan's Exports to Thailand% Growth in Exports to Thailand

2010-2014

% CAGR in Exports to Thailand

2010-2014

Thailand's Imports from

world

Equivalent ad valorem

tariff applied by Thailand to

Pakistan

% of Total Thailand

Imports 20142010 2011 2012 2013 2014

TOTAL All products 80.90 109.39 109.36 117.42 118.46 46 7.93 227,931.51 0.05

03Fish, crustaceans, molluscs, aquatic invertebrates nes

19.45 31.33 30.46 40.56 53.08 173 22.24 2,530.35 7.90 2.10

52 Cotton 31.04 42.11 40.60 23.31 26.73 -14 -2.94 969.76 3.00 2.76

02Meat and edible meat offal

0.02 0.18 0.46 3.04 4.74 23595 198.49 159.12 41.40 2.98

05Products of animal origin, nes

0.10 0.24 0.88 1.66 3.40 3299 102.43 69.94 10.20 4.86

41Raw hides and skins (other than furskins) and leather

2.24 2.47 2.35 2.07 3.32 48 8.14 744.79 4.60 0.45

30 Pharmaceutical products 1.40 1.43 2.55 2.73 2.78 98 14.67 1,935.60 7.20 0.14

78 Lead and articles thereof 1.76 2.37 1.84 6.39 2.47 40 6.99 233.22 0.70 1.06

22Beverages, spirits and vinegar

1.13 2.03 1.71 1.83 2.35 107 15.71 414.56 59.00 0.57

90Optical, photo, technical, medical, etc apparatus

1.84 2.42 2.35 14.91 2.24 21 3.96 5,333.73 3.70 0.04

16Meat, fish and seafood food preparations nes

4.14 7.42 3.38 0.88 2.09 -49 -12.74 197.38 48.80 1.06

73 Articles of iron or steel 0.25 0.19 0.25 0.13 2.06 732 52.78 6,588.31 8.50 0.03


PAKISTAN’S TOP EXPORTS TO THAILAND

HS Code

Product label

Pakistan's Exports to Thailand % Growth in Exports to Thailand

2010-2014

% CAGR in Exports to Thailand

2010-2014

Thailand's Imports from

world


tariff applied by Thailand to

Pakistan

% of Total Thailand

Imports 20142010 2011 2012 2013 2014

63Other made textile articles, sets, worn clothing etc

0.41 0.65 5.04 4.52 1.45 257 28.98 253.20 25.90 0.57

95Toys, games, sports requisites

0.49 0.53 1.24 1.28 1.10 125 17.64 281.97 16.80 0.39

20Vegetable, fruit, nut, etc food preparations

0.32 0.45 0.69 1.00 1.05 225 26.62 263.78 43.00 0.40

61Articles of apparel, accessories, knit or crochet

0.24 0.33 0.54 0.88 0.87 257 28.95 316.37 29.70 0.27

35Albuminoids, modified starches, glues, enzymes

0.00 0.07 0.12 0.66 0.76 322.76 3.70 0.24

10 Cereals 0.67 0.54 2.89 0.59 0.72 9 1.65 512.15 25.90 0.14

25Salt, sulphur, earth, stone, plaster, lime and cement

0.48 0.40 0.30 0.14 0.69 44 7.50 280.16 4.20 0.25

12Oil seed, oleagic fruits, grain, seed, fruit, etc, nes

0.07 1.67 0.70 2.35 0.65 903 58.59 1,263.82 62.50 0.05

42Articles of leather, animal gut, harness, travel goods

0.50 0.71 1.02 0.89 0.64 29 5.20 509.73 29.30 0.13


Pakistan’s Top Imports from Thailand• Pakistan’s imports from Thailand amounted to USD 730 million in 2014, 16% lower than the exports of USD 872 million reported in

2010. Imports from Thailand accounted for a mere 1.54% of total Pakistani imports from the world in 2014.

• Pakistan’s top imports from Thailand at the 2 digit HS code level include vehicles other than railway, machinery, nuclear reactors, boilers, plastics, rubber articles and electrical equipment.

• HS 87 (Vehicles other than railway, tramway) accounts for 35% of all Pakistani imports from Thailand.

• Other major Pakistani imports from Thailand are as follows: HS 84 (Machinery, nuclear reactors etc), HS 39 (Plastics and articles thereof), HS 55 (Manmade staple fibres), and HS 40 (Rubber and articles thereof) account for 9.6%, 8.2%, 7.6% and 6.5% respectively.

• Import of vehicles other than railway from Thailand increased 15% over the period 2010 to 2014. Thai vehicle imports showed a leading share of 19% of total Pakistan vehicle imports from the world in 2014. Rubber articles imports have also grown significantly: by 21% during 2010-2014.


PAKISTAN’S TOP IMPORTS FROM THAILAND

HS Code

Product label

Pakistan’s Imports from Thailand% Growth in Imports

from Thailand

2010-2014

% CAGR in Imports

from Thailand

2010-2014

Pakistan’s Imports

from world 2014


tariff applied by Pakistan to

Thailand

% of Total Pakistan Imports

2014

Value in 2010

Value in 2011

Value in 2012

Value in 2013

Value in 2014

TOTAL All products 872.38 827.01 716.58 715.67 730.06 -16.31 -3.50 47544.89 1.54

87 Vehicles other than railway, tramway 219.47 224.69 239.56 274.07 252.86 15.21 2.87 1313.91 65.10 19.24

84 Machinery, nuclear reactors, boilers, etc 44.04 54.79 55.45 68.84 70.00 58.95 9.71 3927.06 10.30 1.78

39 Plastics and articles thereof 68.50 68.52 61.73 55.78 60.41 -11.81 -2.48 1952.12 12.40 3.09

55 Manmade staple fibres 46.08 62.21 50.69 38.31 50.45 9.49 1.83 766.15 12.00 6.59

40 Rubber and articles thereof 40.88 52.04 45.58 47.27 49.41 20.88 3.87 503.22 16.50 9.82

29 Organic chemicals 42.88 62.59 44.40 39.27 32.22 -24.85 -5.55 1964.34 7.10 1.64

85 Electrical, electronic equipment 38.53 49.74 40.43 33.82 27.86 -27.71 -6.28 3346.27 15.70 0.83

38 Miscellaneous chemical products 6.94 7.88 7.18 8.72 13.69 97.25 14.55 714.98 10.50 1.91

54 Manmade filaments 26.45 41.51 17.36 11.40 12.82 -51.54 -13.49 676.96 12.70 1.89

48Paper and paperboard, articles of pulp, paper and board

11.78 14.21 13.46 12.11 10.75 -8.80 -1.83 519.20 19.50 2.07

72 Iron and steel 18.66 17.48 23.53 9.27 10.67 -42.81 -10.57 2301.83 11.40 0.46

10 Cereals 1.88 4.81 9.53 9.78 9.67 415.57 38.82 286.28 8.90 3.38

94Furniture, lighting, signs, prefabricated buildings

2.23 3.33 3.54 4.72 8.16 265.09 29.56 100.70 24.20 8.10

70 Glass and glassware 4.23 4.41 5.72 6.66 8.05 90.60 13.77 104.05 22.30 7.74

9 Coffee, tea, mate and spices 9.14 4.42 4.33 11.75 7.63 -16.50 -3.54 434.56 9.40 1.76

73 Articles of iron or steel 6.67 5.00 5.07 3.36 7.54 13.09 2.49 567.47 17.30 1.33

32Tanning, dyeing extracts, tannins, derivs,pigments etc

4.69 5.98 5.58 7.11 7.51 60.30 9.90 396.21 13.10 1.90


PAKISTAN’S TOP IMPORTS FROM THAILAND

HS Code

Product label

Pakistan’s imports from Thailand % Growth in Imports

from Thailand

2010-2014

% CAGR in Imports

from Thailand

2010-2014


from world 2014


tariff applied by Pakistan to

Thailand

% of Total Pakistan Imports

2014Value in

2010Value in

2011Value in

2012Value in

2013Value in

2014

34Soaps, lubricants, waxes, candles, modelling pastes

7.68 8.28 5.26 5.44 7.31 -4.88 -1.00 188.68 21.60 3.87

28Inorganic chemicals, precious metal compound, isotopes

8.22 6.53 5.40 4.65 5.57 -32.28 -7.50 468.62 6.50 1.19

64Footwear, gaiters and the like, parts thereof

5.07 7.74 6.94 4.66 4.83 -4.64 -0.95 83.81 24.80 5.77


Section II: Pakistan and Thailand’’s Major FTAs


Overview of Pakistan’s FTAsPakistan has Free Trade Agreements in place with China, Malaysia and Sri Lanka. It has also signed preferential trade agreements with Indonesia, Iran and Mauritius. It is currently considering further free trade agreements with Turkey and Thailand.

Pakistan has historically failed to negotiate optimal terms in its FTAs and PTAs and has witnessed relatively lackluster growth in its exports to its partner countries. China received concessions on many of its major export items under the Pakistan-China FTA, whereas Pakistan by and large did not secure significant concessions on most of its major export products. Pakistan also failed to negotiate significant concessions on a number of high potential exports to Malaysia under the Pakistan-Malaysia FTA. While the terms of the Pakistan-Sri Lanka FTA are favourable, Pakistan has failed to capture a significant portion of the Sri Lankan market in all but a few items. Pakistan’s PTA with Indonesia also suffers from the afore-mentioned problem of insufficient concessions on high potential Pakistani export items.

The institutional capacity issues and lack of resources that have marred Pakistan’s previous attempts to draft beneficial FTAs still persist and will likely continue to have a negative impact on the negotiation and terms of future FTAs. For this reason it is necessary to accurately identify and decisively address these problems before signing any further major FTAs.


Pakistan-Sri Lanka FTAThe FTA between Pakistan and Sri Lanka became operational on June 12, 2005. Sri Lanka and Pakistan agreed to offer preferential market access to each other’s exports through significant tariff concessions. Sri Lanka enjoys duty free market access on 206 products in the Pakistani market including tea, rubber and coconut. Pakistan, in return, gained duty free access on 102 products to the Sri Lankan market. Pakistan has consistently exported significantly more to Sri Lanka than it has imported from the country. However, Pakistan’s exports to Sri Lanka were a mere USD 266 million in 2014. While concessions from both sides are extensive and wide-ranging, Pakistan has been unable to make real inroads into the Sri Lankan market.

134.715153.662

177.595208.573 216.72 216.963

283.87

347.722

300.904316.382

266.147

45.658 59.177 70.973 59.789 66.216 55.79 53.369 61.1383.413

63.524 62.971

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pakistan's Trade with Sri Lanka

Exports

Imports

USD

Mill

ions


Pakistan-Malaysia FTAThe Comprehensive Free Trade Agreement (FTA) for Closer Economic Partnership between Pakistan and Malaysia was signed on the 8th of November 2007 in Kuala Lumpur, Malaysia. The Pak-Malaysia FTA became operational from January 1, 2008. Tariff rates were reduced to values ranging between 0 % to 40 % on more than 5,000 Pakistan Customs Tariff lines. Since 2010 Pakistani exports to Malaysia have risen from USD 145 million to USD 234 million. The trade balance has remained in Malaysia’s favour following the signing of the FTA. In 2014 Pakistan’s imports from Malaysia were 450% higher than Pakistan’s exports to the country. Pakistan’s major exports to Malaysia include rice (which accounted for nearly 50% of exports in 2014), fish, and cotton yarn. Malaysia’s major exports to Pakistan include palm oil, petroleum, and polyester yarn. Pakistan once again failed to secure significant concessions on high trade potential items such as HS 61 items (accessories, knitted or crocheted), which face a duty regime of 20% as compared to China and India facing 0% and 10% respectively, as well as HS 84 and HS 85 items (gas turbines, vaccum pumps, air conditioners, refrigerators etc), which also face a duty regime of 20% as compared to China and India facing 0% and 10%. There are also a number of high potential HS 39 (Plastics) and HS 48 (Paper and Paperboard) items that have not received concessions from Malaysia.

0.07 0.06 0.08 0.14 0.16 0.15 0.24 0.23 0.20 0.23

0.73 0.77

1.16

1.69 1.61

2.05

2.73

2.131.92

1.28

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USD

Bill

ions

Pakistan's Trade with Malaysia

Pakistan's Exports

Pakistan's Imports


Pakistan-Indonesia Preferential Trade AgreementThe Pakistan-Indonesia Preferential Trade Agreement was signed in February 2012. Both sides offered concessions on over 200 items at the 8 digit level HS code. In 2013 Pakistan’s exports to Indonesia amounted to USD 144 million, accounting for a mere 0.08% of Indonesia’s world imports. Pakistan’s imports from Indonesia in 2013 amounted to USD 1.2 billion, accounting for 2.76% of Pakistan’s total import bill. A study conducted by the PBC found that most Pakistani export items at the 8 digit level with high export potential to Indonesia did not receive concessions under the PTA. Pakistan’s primary exports to Indonesia include cotton, rice and mandarins and few high-value added goods. Indonesia’s exports to Pakistan include palm oil, nut and coal. Pakistan’s export items face less favourable tariffs than the same items from Indonesia’s FTA partners China, Japan, South Korea and India. More precisely, the top 100 items at the 8 digit level possess a trade potential of USD 1.8 billion, of which USD 1.54 billion resides within items not given concessions under the PTA. Further, 80% of the top 50 high potential items are not included in the PTA. High potential items left out of the PTA include three plastic items with trade potential of USD 140 million and sixteen cotton items with trade potential of USD 500 million. Most notably, Indonesia granted full concession to kinnow (world exports from Pakistan of USD 124 million and world imports by Indonesia of USD 93 million in 2013), whereas Pakistan offered a 15% Margin of Preference on the standard tariff rate to Indonesian palm oil products (world exports from Indonesia of USD 8.3 billion and world imports by Pakistan of USD 1.6 billion in 2013), which possess considerable potential for export to Pakistan.

47 57 68 62 66 63 67 74189 236

144266

471

684809

877

1,192

654 676

930

1,3511,208

0

200

400

600

800

1,000

1,200

1,400

1,600

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD

Mill

ions

Pakistan's Trade with Indonesia

Exports

Imports


Pakistan-China FTA Pakistan and China signed the FTA in November 2006 and the agreement took effect in July 2007. Since 2010, Pakistan’s exports to China have been gradually increasing. However, exports to China dipped in 2014. On the other hand imports from China increased from USD 5.2 billion to USD 9.59 billion in 2010-2014. A closer look at the terms of the Pak-China FTA reveals that Pakistan failed to secure concessions that make its high potential export items competitive against China’s other trade partners, with export items at the 8 digit level such as Cotton (HS 52051200), Frozen Fish (HS 03033900), and Leather (HS 41131000) facing tariffs significantly higher than those faced by ASEAN countries. Pakistan’s primary exports to China include low value-added items such as cotton yarn, rice and chromium ores. On the other hand, China’s top exports to Pakistan are high value-added goods such as cell phones, tires and portable digital computers. Several local industries have suffered severe harm as a result of the influx of cheap Chinese imports brought on by the FTA. Concerns have been raised by the Pakistani steel industry regarding value-added steel products from China that have been granted extensive concessions under the FTA, causing serious harm to local manufacturers. Additionally, Chinese importers add a negligible amount of Boron to steel products to take advantage of full concession on Boron-added alloy steel. The National Tariff Commission has not acted to address these issues as yet. The tile industry has also been hit by the Chinese FTA, with low-cost tiles flooding the market in recent years. An NTC study concluded that Chinese tile imports had in fact harmed local industry, though no successful action was taken to offer the Pakistani tile industry protection. The paper and paperboard industry, a major Pakistani industry which has drawn investment worth PKR 70 billion, is currently faced with a surge in Chinese imports of HS 48 items.

0.51 0.61 0.73 1.00 1.44 1.682.62 2.65 2.25

2.91

4.164.74

3.78

5.25

6.47 6.69 6.63

9.59

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2006 2007 2008 2009 2010 2011 2012 2013 2014

USD

Bill

ions

Pakistan's Trade with China

Pakistan's Exports

Pakistan's Imports


Overview of Thailand’s Major FTAsThailand has signed FTAs and closer economic partnership agreements with Australia, Peru, Japan, New Zealand, India and China. It is also a member of ASEAN and therefore offers and faces concessionary rates on many products in trade with other ASEAN members. It is in negotiations for a trade agreement with USA, and is considering yet more FTAs with Chile, South Africa and Pakistan. Thailand has consistently maintained a positive trade balance with Australia, New Zealand, Peru, as well as with ASEAN countries Indonesia, Singapore, Philippines and Vietnam since the signing of its FTAs. Its major export items have established significant footholds in the markets of its FTA partners, as evidenced by the following table, which shows a selection of Thailand’s major export products at the 6 digit HS code level along with the amounts imported from Thailand and the share in total world imports of said products for Thailand’s FTA partners.

HS Code Product LabelTotal Thailand Exports

2014FTA Partner (Total Thai Imports, % share of country Imports of product)

847170 Computer data storage units USD 11.7 billionChina (USD 1.2 billion, 6.62%), India (USD 173 million, 19%), Australia (USD 94

million, 9%), Japan (USD 335 million, 12.3%), Malaysia (USD 113 million, 17.5%)

870421Diesel powered trucks with a GVW not exceeding five tonnes

USD 7.6 billionAustralia (USD 2.3 billion, 60%), Malaysia (USD 415 million, 62.5%), Indonesia (USD

237 million, 94.7%), Philippines (USD 353 million, -)

271019 Other petroleum oils and preparations USD 7.5 billion Malaysia (USD 1.6 billion, 12.8%), Philippines (USD 413 million, 11.2%)

847330Parts&accessories of automatic data processg machines&units thereof

USD 3.6 billion Malaysia (USD 797 million, 26%)

870322Automobiles w reciprocatg piston engine displacg > 1000 cc to 1500 cc

USD 2.9 billionAustralia (USD 354 million, 27%), Japan (USD 237 million, 11.8%), Indonesia (USD

351 million, 79%), Philippines (USD 255 million, -)

400122 Technically specified natural rubber (TSNR) USD 2.9 billion China (USD 1.8 billion, 50%), Japan (USD 245 million, 23.7%)

870899 Motor vehicle parts nes USD 2.8 billionAustralia (USD 104 million, 18.22%), Japan (USD 238 million, 23%), Indonesia (USD

399 million, 45.4%), Philippines (USD 104 million, 31.6%)

870431Gas powered trucks with a GVW not exceeding five tonnes

USD 2.7 billion Australia (USD 103 million, 54%)

841510Air conditioning machines window or wall types, self-contained

USD 2.5 billionIndia (USD 173.7 million, 43.2%), Australia (USD 286 million, 81%), Indonesia

(USD 181 million, 49%)


USD 1.7 billion Indonesia (USD 102 million, 16.6%), Philippines (USD 179 million, -)

390120 Polyethylene having a specific gravity of 0.94 or more USD 1.9 billionChina (USD 499 million, 22.8%), Japan (USD 208 million, 77%), Indonesia

(USD 127 million, 28%).

390110Polyethylene having a specific gravity of less than 0.94

USD 1.7 billion Indonesia (USD 184 million, 26%), India (USD 120 million, 11.2%)


Thailand-Australia FTAThe Thailand-Australia Closer Economic Relations FTA (TAFTA) entered into force on January 1, 2005. It was Thailand’s first FTA with a developed country and Australia’s third FTA. The total bilateral trade between the two countries has more than doubled since TAFTA came into force. In 2004 exports to Australia were USD 2.46 billion whereas they rose to USD 4.37 billion in 2006 following the signing of the agreement. In 2014 Thai exports to Australia were USD 9.29 billion. Imports to Thailand from Australia were USD 5.4 billion in 2014 and they have been consistently lower than exports to Australia. Top exports to Australia were products such as HS 870421 (diesel powered trucks), HS 870323 (automobiles with reciprocating pistons), HS 841510 (air conditioning window) and HS 271320 (petroleum bitumen).

| 41

Thailand-Australia FTA

The Thailand-Australia Closer Economic Relations FTA (TAFTA) entered into force on January 1, 2005. It was Thailand’s first FTA with a developed country and Australia’s third FTA. The total bilateral trade between the two countries has more than doubled since TAFTA came into force. In 2004 exports to Australia were USD 2.46 billion whereas they rose to USD 4.37 billion in 2006 following the signing of the agreement. In 2014 Thai exports to Australia were USD 9.29 billion. Imports to Thailand from Australia were USD 5.4 billion in 2014 and they have been consistently lower than exports to Australia. Top exports to Australia were products such as HS 870421 (diesel powered trucks), HS 870323 (automobiles with reciprocating pistons), HS 841510 (air conditioning window) and HS 271320 (petroleum bitumen).

2.463.16

4.37

5.75

7.918.58

9.378.00

9.7610.35

9.30

2.213.24

3.443.95

5.16

3.79

5.90

7.95

5.45 5.48 5.41

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Thailand's Trade with Australia

Thailand's Exports

Thailand's Imports

USD

Bill

ions


Thailand-New Zealand FTAThe Thailand–New Zealand Closer Economic Partnership Agreement (CEPA) came into force on July 1, 2005. Thailand’s exports and imports from New Zealand have both shown steady growth but the trade balance remains in favour of Thailand. In 2004 exports to New Zealand were USD 329 million. Following the signing of the agreement Thai exports rose to 527 million in 2006. In 2014 exports to New Zealand stood at USD 1.2 billion whereas imports to Thailand were USD 761 million in the same year. The trade balance has been consistently in Thailand’s favour. Top exports to New Zealand were HS 870421 (diesel powered trucks), HS 870323 (automobiles with reciprocating piston engine displacing > 1500 cc to 3000 cc), HS 390110 (Polyethylene) and HS 870322 (Automobiles with reciprocating piston engine displacing > 1000 cc to 1500 cc).

Thailand-New Zealand FTA

The Thailand–New Zealand Closer Economic Partnership Agreement (CEPA) came into force on July 1, 2005. Thailand’s exports and imports from New Zealand have both shown steady growth but the trade balance remains in favour of Thailand. In 2004 exports to New Zealand were USD 329 million. Following the signing of the agreement Thai exports rose to 527 million in 2006. In 2014 exports to New Zealand stood at USD 1.2 billion whereas imports to Thailand were USD 761 million in the same year. The trade balance has been consistently in Thailand’s favour. Top exports to New Zealand were HS 870421 (diesel powered trucks), HS 870323 (automobiles with reciprocating piston engine displacing > 1500 cc to 3000 cc), HS 390110 (Polyethylene) and HS 870322 (Automobiles with reciprocating piston engine displacing > 1000 cc to 1500 cc).

0.33

0.52 0.530.62

0.73

0.54

0.800.85

1.03

1.161.24

0.24 0.250.32

0.41

0.65

0.31

0.510.59 0.60 0.62

0.76

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Thailand's Trade with New Zealand

Thailand's exports

Thailand's imports

USD

Bill

ions


Thailand-China FTAThe Thailand-China FTA was signed in June 2003 and came into force four months later in October 2003. It was an “early harvest agreement” on farm trade alone, whereby both countries opened their agricultural markets before the broader China-ASEAN FTA came into force in 2010. Under the deal, tariffs for 188 types of fruits and vegetables were cut to zero overnight. In 2002 exports to China were USD 3.5 billion, rising to USD 7.09 billion in 2004 with the signing of the FTA. In 2014 Thailand’s exports to China stood at USD 25 billion. Imports to Thailand by China were USD 38.5 billion in 2014 and the trade balance between the two countries has been consistently in China’s favour. Top exports to China were HS 400122 (technically specified natural rubber), HS 071410 (Manioc), HS 847170 (computer data storage units), HS 400599 (compounded rubber), HS 290243 (P-xylene) and HS 390110 (polyethylene).

| 43

Thailand-China FTA

The Thailand-China FTA was signed in June 2003 and came into force four months later in October 2003. It was an "early harvest agreement" on farm trade alone, whereby both countries opened their agricultural markets before the broader China-ASEAN FTA came into force in 2010. Under the deal, tariffs for 188 types of fruits and vegetables were cut to zero overnight. In 2002 exports to China were USD 3.5 billion, rising to USD 7.09 billion in 2004 with the signing of the FTA. In 2014 Thailand’s exports to China stood at USD 25 billion. Imports to Thailand by China were USD 38.5 billion in 2014 and the trade balance between the two countries has been consistently in China’s favour. Top exports to China were HS 400122 (technically specified natural rubber), HS 071410 (Manioc), HS 847170 (computer data storage units), HS 400599 (compounded rubber), HS 290243 (P-xylene) and HS 390110 (polyethylene).

3.55 5.707.10

9.1311.77

14.87 16.00 16.12

21.47

27.40 26.90 27.2425.08

4.93 6.078.19

11.1613.62

16.9820.05

17.03

24.24

30.58

36.96 37.73 38.50

0.00

5.0010.00

15.00

20.0025.00

30.00

35.0040.00

45.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Thailand's Trade with China

Thailand's exports

Thailand's imports

USD

Bill

ions


Thailand-India Framework Agreement FTAThe Framework Agreement was signed between Thailand and India on October, 2003. The FTA covers goods, services, investment and other areas of economic cooperation. The Framework Agreement also included an Early Harvest Scheme (EHS) for elimination of tariffs on a fast track basis on 82 items of export interest to both sides. The tariff concessions on the 82 items of the EHS list began in October 2004 and became zero for both sides in October 2006. A comprehensive FTA is still under negotiations. In 2005 Thailand’s exports to India were USD 1.5 billion, rising to USD 2.85 billion in 2007 following the signing of the agreement. In 2014 exports to India were USD 5.6 billion. Imports into Thailand were USD 3 billion- the trade balance has consistently been in Thailand’s favour since 2005, before which it was in India’s favour. Top exports to India were HS 840820 (Engines, diesel, for the vehicles of Chapter 87), HS 710239 (diamonds non-industrial), HS 847170 (Computer data storage units) (full concession), and HS 841510 (Air conditioning machines) (full concession). Imports of HS 84 (machinery, nuclear reactors, boilers etc) items from Thailand have grown by over 500% since 2003, imports of HS 87 (Vehicles other than railway, tramway) from Thailand have grown by over 800%, and imports of HS 73 (Articles of iron and steel) from Thailand have grown by nearly 1500%.

Thailand-India Framework Agreement FTA

The Framework Agreement was signed between Thailand and India on October, 2003. The FTA covers goods, services, investment and other areas of economic cooperation. The Framework Agreement also included an Early Harvest Scheme (EHS) for elimination of tariffs on a fast track basis on 82 items of export interest to both sides. The tariff concessions on the 82 items of the EHS list began in Oct, 2004 and became zero for both sides in Oct 2006. A comprehensive FTA is still under negotiations. In 2005 Thailand’s exports to India were USD 1.5 billion, rising to USD 2.85 billion in 2007 following the signing of the agreement. In 2014 exports to India were USD 5.6 billion. Imports into Thailand were USD 3 billion- the trade balance has consistently been in Thailand’s favour since 2005, before which it was in India’s favour. Top exports to India were HS 840820 (Engines, diesel, for the vehicles of Chapter 87), HS 710239 (diamonds non-industrial), HS 847170 (Computer data storage units) (full concession), and HS 841510 (Air conditioning machines) (full concession). Imports of HS 84 (machinery, nuclear reactors, boilers etc) items from Thailand have grown by over 500% since 2003, imports of HS 87 (Vehicles other than railway, tramway) from Thailand have grown by over 800%, and imports of HS 73 (Articles of iron and steel) from Thailand have grown by nearly 1500%.

1.52 1.81

2.853.37 3.22

4.39

5.18 5.48 5.185.61

1.271.62

2.082.61

1.732.25

3.01 3.20 3.503.04

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1 2 3 4 5 6 7 8 9 10

Thailand's Trade with India

Thailand's exports

Thailand's imports

USD

Bill

ions


Thailand-Japan FTAThe Japan-Thailand Economic Partnership Agreement (JTEPA) came into effect on 1 November 2007. Thailand’s imports from Japan have consistently outweighed its exports to the country since the signing of the JTEPA. In 2006 exports to Japan were USD 16.5 billion rising in 2008 to USD 19.8 billion following the signing of the JTEPA. In 2014 Thailand’s exports to Japan stood at USD 21.8 billion. Imports in 2014 were USD 35.7 billion. The trade balance between the two countries has consistently been in Japan’s favour. Top exports to Japan are HS 160232 (fowl meat), HS 852721 (radios), HS 847170 (computer data storage units), HS 870322 (automobiles with reciprocating pistons), and HS 870899 (motor vehicle parts).

| 45

Thailand-Japan FTA

The Japan-Thailand Economic Partnership Agreement (JTEPA) came into effect on 1 November 2007. Thailand’s imports from Japan have consistently outweighed its exports to the country since the signing of the JTEPA. In 2006 exports to Japan were USD 16.5 billion rising in 2008 to USD 19.8 billion following the signing of the JTEPA. In 2014 Thailand’s exports to Japan stood at USD 21.8 billion. Imports in 2014 were USD 35.7 billion. The trade balance between the two countries has consistently been in Japan’s favour. Top exports to Japan are HS 160232 (Fowl meat), HS 852721 (radios), HS 847170 (computer data storage units), HS 870322 (Automobiles with reciprocating pistons), and HS 870899 (motor vehicle parts).

16.54 18.13 19.8815.73

20.4224.07 23.50 22.24 21.82

25.8430.03

33.42

25.02

37.8642.16

49.58

41.0835.71

0.00

10.00

20.00

30.00

40.00

50.00

60.00

2006 2007 2008 2009 2010 2011 2012 2013 2014

Thailand's Trade with Japan

Thailand's exports

Thailand's imports

USD

Bill

ions


Thailand-ASEAN-6 FTAThailand is one of the 10 members of the Association of Southeast Asian Nations (ASEAN). Through the common effective personal tariff scheme (CEPT), ASEAN countries have made significant progress to the lowering of intra-regional tariffs. The average tariff for ASEAN-6, which is comprised of Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand, is now 1.51%, down from 12.76% when the tariff cutting exercise first started in 1993. Since 2010 the trade balance has been in Thailand’s favour with all ASEAN-6 countries with the exception of Brunei and Malaysia. It should be noted that Thailand is a major exporter of automobile products to the ASEAN countries.

Top Thai exports to Malaysia include HS 271019 (other petroleum oils and preparations), HS 847330 (parts of automatic data processing machines), HS 400110 (natural rubber latex), HS 870899 (motor vehicle parts nes), and HS 870421 (diesel powered trucks)

Thailand-ASEAN-6 FTA

Thailand is one of the 10 members of the Association of Southeast Asian Nations (ASEAN). Through the common effective personal tariff scheme (CEPT), ASEAN countries have made significant progress to the lowering of intra-regional tariffs. The average tariff for ASEAN-6, which is comprised of Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand, is now 1.51%, down from 12.76% when the tariff cutting exercise first started in 1993. Since 2010 the trade balance has been in Thailand’s favour with all ASEAN-6 countries with the exception of Brunei and Malaysia. It should be noted that Thailand is a major exporter of automobile products to the ASEAN countries.

Top Thai exports to Malaysia include HS 271019 (other petroleum oils and preparations), HS 847330 (parts of automatic data processing machines), HS 400110 (natural rubber latex), HS 870899 (motor vehicle parts nes), and HS 870421 (diesel powered trucks)

10.57

12.4012.43 13.01

12.7610.71

12.3313.11 13.25 12.75

0

2

4

6

8

10

12

14

2010 2011 2012 2013 2014

USD

Bill

ions

Thailand's Exports and Imports to Malaysia

Exports Imports


Top Thai exports to Indonesia include HS 170111 (raw sugar cane), HS 870899 (motor vehicle parts), HS 870322 (automobiles with reciprocating pistons), HS 870332 (automobiles with diesel engine displacing), HS 870421(diesel powered trucks), HS 390210 (Polypropylene), HS 841510 (air conditioning machines), and HS 840820 (engines, diesel).

| 47

Top Thai exports to Indonesia include HS 170111 (raw sugar cane), HS 870899 (motor vehicle parts), HS 870322 (automobiles with reciprocating pistons), HS 870332 (automobiles with diesel engine displacing), HS 870421(diesel powered trucks), HS 390210 (Polypropylene), HS 841510 (air conditioning machines), and HS 840820 (engines, diesel).

7.35

10.0811.21 10.87

9.51

5.68

7.378.09 8.07

7.28

0

2

4

6

8

10

12

2010 2011 2012 2013 2014

USD

Bill

ions

Thailand's Exports and Imports to Indonesia

Exports Imports


Top Thai exports to the Philippines include HS 271019 (other petroleum oils and preparations), HS 870332 (automobiles with diesel engine displacing), HS 870421 (diesel powered trucks), HS 870322 (automobiles with reciprocating piston engine > 1000 cc to 1500 cc), and HS 870323 (automobiles with reciprocating piston engine > 1500 cc to 3000 cc).

Top Thai exports to the Philippines include HS 271019 (other petroleum oils and preparations), HS 870332 (automobiles with diesel engine displacing), HS 870421 (diesel powered trucks), HS 870322 (automobiles with reciprocating piston engine > 1000 cc to 1500 cc), and HS 870323 (automobiles with reciprocating piston engine > 1500 cc to 3000 cc).

4.89 4.64 4.86 5.04

5.87

2.382.70 2.72 2.63 2.61

0

1

2

3

4

5

6

7

2010 2011 2012 2013 2014

USD

Bill

ions

Thailand's Exports and Imports to Philippines

Exports Imports


Top Thai exports to Singapore include HS 271019 (other petroleum oils and preparations) and HS 847170 (computer data storage units).

| 49

Top Thai exports to Singapore include HS 271019 (other petroleum oils and preparations) and HS 847170 (computer data storage units).

9.01

11.4510.84 11.24

10.45

6.297.79 7.83 8.23 7.88

0

2

4

6

8

10

12

14

2010 2011 2012 2013 2014

USD

Bill

ions

Thailand's Exports and Imports to Singapore

Exports Imports


Top Thai exports to Brunei include HS 870322 (Automobiles w reciprocatg piston engine displacg > 1000 cc to 1500 cc), HS 870421 (Diesel powered trucks with a GVW not exceeding five tonnes), and HS 870323 (Automobiles w reciprocatg piston engine displacg > 1500 cc to 3000 cc).

Top Thai exports to Brunei include HS 870322 (Automobiles w reciprocatg piston engine displacg > 1000 cc to 1500 cc), HS 870421 (Diesel powered trucks with a GVW not exceeding five tonnes), and HS 870323 (Automobiles w reciprocatg piston engine displacg > 1500 cc to 3000 cc).

128.65 137.04190.75 166.20 142.53

98.50132.01

442.14

546.55

653.91

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014

USD

Mill

ions

Thailand's Exports and Imports to Brunei

Exports Imports


Section III: Analysis of High Potential Pakistani

Exports to Thailand


Pakistan Exports To Thailand Trade Potential Overview

Top 50 High Potential Pakistani Exports To Thailand at 6 Digit HS Code Level• The total trade potential within the 4423 Pakistani export items with available data is USD 4.48 billion.

• The total trade potential within the top 100 high potential items at the 6 digit HS code level is USD 2.754 billion.

• The total trade potential within items with individual trade potential greater than USD 10 million is USD 2.744 billion.

• The top 50 high trade potential items at 6 digit HS code level account for USD 2.15 billion worth of trade potential.

• In 2014, exports of those 50 high potential items to Thailand amounted to a mere USD 21.29 million. However, Pakistani exports of these same 50 items to the world amounted to USD 5.28 billion in the same year.

• Products with significant trade potential include instrument and appliances used in medical sciences, cotton, polyester fabrics, apparel, tubes and pipes, citrus fruits, polymers and wheat.

• Thailand’s major FTA partners such as Australia, Japan, China, India, New Zealand and Bahrain face similar or lower tariff rates on most of these high potential items.

Figures in USD MillionsTOP 50 HIGH POTENTIAL PAKISTANI EXPORTS TO THAILAND AT 6 DIGIT HS CODE LEVEL

Equivalent ad valorem Tariff applied by Thailand to

HS Code Product label

Pakistan’s Exports to Thailand

2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Trade

PotentialPakistan India China Japan Australia

New Zealand

Bahrain

901890Instruments and appliances used in medical or veterinary sciences, nes

1.86 193.58 319.53 191.72 1 0 0 0 0 0 1

520100Cotton, not carded or combed

10.16 676.27 180.94 170.79 0 0 0 0 0 0 0

80520Mandarins(tang&sats)clementines&wilkgs &sim citrus hybrids, fresh/dried

0.01 111.34 164.23 111.33 135 12 0 0 40 40 135


TOP 50 HIGH POTENTIAL PAKISTANI EXPORTS TO THAILAND AT 6 DIGIT HS CODE LEVEL




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Trade


New Zealand

Bahrain

711319Articles of jewellry&pt therof of/o prec met w/n plated/clad w prec met

0.00 486.18 105.22 105.22 10 0 0 0 0 0 10

730690Tubes, pipe & hollow profiles, iron or steel, welded, nes

0.00 101.38 96.20 96.20 5 5 5 5 0 0 5

390760 Polyethylene terephthalate 0.02 86.60 140.08 86.59 5 5 0 3 0 0 5

300490Medicaments nes, in dosage

0.80 1,197.28 86.57 85.77 8 5 0 0 0 0 8

151620Veg fats &oils fractions hydrogenatd,inter/re-esterified etc.

0.00 83.17 115.27 83.17 9 0 0 1 0 0 9

110100 Wheat or meslin flour 0.01 77.75 195.35 77.74 5 5 5 1 0 0 5

030617Other frozen shrimps and prawns

6.02 95.41 75.41 69.40 0 0 0 0 0 0 0

740400Waste and scrap, copper or copper alloy

0.00 63.24 104.24 63.24 0 0 0 0 0 0 0

640399Footwear, outer soles of rubber/plastics uppers of leather, nes

0.00 55.05 77.54 55.05 30 15 20 8 0 0 30

390319 Polystyrene nes 0.00 51.57 52.25 51.57 5 5 0 3 0 0 5

730890Structures/ parts of structures

0.44 149.49 50.07 49.64 10 10 0 10 0 0 10

170490

Sugar confectionery nes (includes white chocolate),not containing cocoa

0.00 68.36 48.61 48.61 30 0 0 3 0 0 30

410719Leather "incl. parchment-dressed leather" of the whole hides and skins

0.25 87.22 44.66 44.41 5 5 0 0 0 0 5






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Trade


New Zealand

Bahrain

520812Plain weave cotton fabric,>/=85%, >100 g/m2 to 200 g/m2, unbleached

0.05 44.10 240.08 44.05 5 0 0 0 0 0 5

481159Paper and paperboard, surface-colored, surface-decorated or printed,

0.00 312.38 42.01 42.01 7 0 0 0 0 0 7

610910T-shirts, singlets and other vests, of cotton, knitted

0.01 38.89 195.41 38.87 30 15 0 0 5 5 30

630790Made up articles, of textile materials, nes, including dress patterns

0.02 57.07 36.82 36.81 10 10 0 0 0 3 10

940490Articles of bedding/furnishing, nes, stuffed or internally fitted

0.01 36.55 85.14 36.55 20 0 0 0 0 0 20

620342Men/boys trousers and shorts, of cotton, not knitted

0.01 34.94 664.53 34.93 30 15 0 0 5 5 30

140490 Vegetable products nes 0.00 36.88 31.41 31.41 27 15 0 3 0 0 27

620462Womens/girls trousers and shorts, of cotton, not knitted

0.03 29.82 482.97 29.79 30 15 0 0 5 5 30

870190 Wheeled tractors nes 0.00 194.58 26.25 26.25 20 10 0 20 0 0 20

841182Gas turbines nes of a power exceeding 5000 KW

0.00 182.46 23.19 23.19 1 0 0 0 0 0 0

610990T-shirts, singlets and other vests, of other textile materials, knitted

0.00 22.06 76.09 22.06 30 15 0 0 5 5 30

300439Hormones nes, not containing antibiotics, in dosage/t contraceptive

0.13 36.37 21.58 21.45 10 6 0 0 0 0 10

190531 Sweet biscuits 0.00 39.23 20.57 20.57 20 0 0 0 0 0 20






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Trade


New Zealand

Bahrain

391590Plastics waste and scrap nes

0.08 20.56 23.14 20.48 30 0 0 8 0 0 30

611020Pullovers, cardigans and similar articles of cotton, knitted

0.01 20.49 39.46 20.48 30 15 0 0 5 5 30

950699Articles equip for sports outdoor games nes& swimmg & paddlg pools

0.09 20.02 47.34 19.93 10 6 0 0 0 0 10

851712

Telephones for cellular networks mobile telephones or for other wireless

0.00 3,824.80 19.82 19.82 0 0 0 0 0 0 0

190590

Communion wafers, empty cachets f pharm use&sim prod bakers' wares nes

0.00 36.39 19.58 19.58 30 0 0 3 0 0 30

210690 Food preparations nes 0.46 513.75 19.88 19.42 20 0 0 8 0 0 20

901849Instruments and appliances, used in dental sciences, nes

0.33 37.00 19.73 19.40 1 0 0 0 0 0 1

320810Paints varnishes based on polyesters, dispersed in a non-aqueous medium

0.00 23.22 19.28 19.28 10 10 10 3 0 5 10

700529Float glass etc in sheets, non-wired nes

0.00 18.85 20.64 18.85 4 4 4 0 0 0 4

40390Buttermilk, curdled milk & cream,kephir & ferm or acid milk & cream nes

0.00 74.34 18.63 18.63 30 30 0 0 0 0 30

390410Polyvinyl chloride, not mixed with any other substances

0.00 106.72 18.27 18.27 5 5 0 3 0 0 5






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Trade


New Zealand

Bahrain

761510

Table, kitchen or other household articles and parts thereof, and pot scourers and scouring

0.00 17.80 29.31 17.80 0 0 0 0 0 0 0

70190Potatoes, fresh or chilled nes

0.00 17.73 51.20 17.73 125 125 125 125 125 125 125

840710Aircraft engines, spark-ignition reciprocating or rotary type

0.00 248.66 17.68 17.68 10 0 0 0 0 0 10

230120Flour,meal&pellet of fish,crust,mol/other aqua invert, unfit human cons

0.00 21.95 17.44 17.44 12 12 0 0 0 0 0

392062

Film and sheet etc, non-cellular etc, of polyethylene terephthalates

0.00 52.26 17.37 17.37 5 5 0 4 0 0 5

630710Floor-cloths, dish-cloths, dusters & similar cleaning cloths, of tex mat

0.00 17.25 392.75 17.25 30 0 0 0 0 3 30

20230Bovine cuts boneless, frozen

0.51 53.50 17.58 17.07 50 50 0 0 50 50 50

551219Woven fabrics,containg>/=85% of polyester staple fibers

0.00 16.90 27.43 16.90 5 0 0 0 0 0 5

850710Lead-acid electric accumulators of a kind usd f startg piston engines

0.00 21.00 16.73 16.73 10 0 10 0 0 0 10

841510Air conditioning machines window or wall types, self-contained

0.00 80.30 16.37 16.37 30 0 20 0 0 0 30


Sectoral Overview of High Potential Pakistani Exports to Thailand• This section focuses on high potential Pakistani exports to Thailand at the 6 digit HS code level and their recorded growth/decline over

the period of 2010-2014.

• Tariff information is provided for Pakistan as well as Thailand’s existing major FTA partners. Tariffs lower than those imposed on Pakistan are highlighted in Red.

• Tariff values are the equivalent ad valorem tariff applied at the 6 digit HS code level.


Bovine Cuts Boneless

HS 020230 shows export potential of USD 17.07 million to Thailand. Thailand’s imports from the world peaked in 2012 with USD 71 million but fell to USD 53 million in 2014. Pakistan’s HS 020230 exports to the world were USD 17.58 million in 2014. With the exception of China and Japan, both of whom enjoy full concession on HS 020230, Pakistan and Thailand’s remaining major FTA partners face a tariff of 50%.

Figures in USD Millions



2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia

Tariff on New Zealand

Tariff on Bahrain

020230 Bovine cuts boneless, frozen

0.51 53.50 17.58 17.07 50 50 0 0 50 50 50

Bovine Cuts Boneless

HS 020230 shows export potential of USD 17.07 million to Thailand. Thailand’s imports from the world peaked in 2012 with USD 71 million but fell to USD 53 million in 2014. Pakistan's HS 020230 exports to the world were USD 17.58 million in 2014. With the exception of China and Japan, both of whom enjoy full concession on HS 020230, Pakistan and Thailand’s remaining major FTA partners face a tariff of 50.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

020230 Bovine cuts boneless, frozen 0.51 53.50 17.58 17.07 50 50 0 0 50 50 50

0

20

40

60

80

2010 2011 2012 2013 2014

USD

Mill

ions

Bovine Cuts boneless (HS 020230)

Pakistan's exports to Thailand Thailand's imports from world

Pakistan's exports to world


Buttermilk and Cream

HS 040390 shows export potential of USD 18.63 million to Thailand. Thailand’s imports from the world amounted to USD 74 million in 2014. Pakistan’s exports to the world were USD 18.63 million in 2014. Tariffs applied by Thailand on Pakistan and India are 30% whereas China, Japan, Australia and New Zealand are exempted from tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

040390Buttermilk, curdled milk & cream,kephir or acid milk & cream nes

0.00 74.34 18.63 18.63 30 30 0 0 0 0 30

| 59

Buttermilk and Cream

HS 040390 shows export potential of USD 18.63 million to Thailand. Thailand’s imports from the world amounted to USD 74 million in 2014. Pakistan's exports to the world were USD 18.63 million in 2014. Tariffs applied by Thailand on Pakistan and India are 30% whereas China, Japan, Australia and New Zealand are exempted from tariffs. Figures in USD Millions



2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

040390 Buttermilk, curdled milk & cream,kephir or acid milk & cream nes

0.00 74.34 18.63 18.63 30 30 0 0 0 0 30

0

20

40

60

80

2010 2011 2012 2013 2014

USD

Mill

ions

Buttermilk and Cream (HS 040390)




Citrus Fruit, Fresh or Dried

HS 080520 exhibits export potential of USD 111 million to Thailand. Pakistan’s exports to the world have grown from USD 95 million to USD 164 million over the period 2010-2014. Thailand’s imports from the world peaked in 2012 with USD 121 million but fell in 2014 to USD 111 million. The tariff applied by Thailand on Pakistan is the higher than that applied on its FTA partners with the exception of Bahrain, which faces the same tariff.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

080520Mandarins, Hybrid, clementine’s, fresh/dried

0.01 111.34 164.23 111.33 135 12 0 0 40 40 135

Citrus Fruit, Fresh or Dried

HS 080520 exhibits export potential of USD 111 million to Thailand. Pakistan's exports to the world have grown from USD 95 million to USD 164 million over the period 2010-2014. Thailand’s imports from the world peaked in 2012 with USD 121 million but fell in 2014 to USD 111 million. The tariff applied by Thailand on Pakistan is the higher than that applied on its FTA partners with the exception of Bahrain, which faces the same tariff.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

080520 Mandarins, Hybrid, clementine’s, fresh/dried

0.01 111.34 164.23 111.33 135 12 0 0 40 40 135

0

50

100

150

200

2010 2011 2012 2013 2014

USD

Mill

ions

Citrus fruit, fresh or dried (HS 0805)




Wheat or Meslin

HS 110100 shows export potential of USD 77 million to Thailand. Pakistan’s exports of HS 110100 to the world rose to USD 352 million in 2011, falling to USD 195 million in 2014. Thai imports from the world were USD 78 million in 2014. The tariff levied by Thailand on Pakistan is 5% which is equal to the tariff levied on India, China and Bahrain whereas Australia and New Zealand enjoy full concession on this item.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain


| 61

Wheat or Meslin

HS 110100 shows export potential of USD 77 million to Thailand. Pakistan's exports of HS 110100 to the world rose to USD 352 million in 2011, falling to USD 195 million in 2014. Thai imports from the world were USD 78 million in 2014. The tariff levied by Thailand on Pakistan is 5% which is equal to the tariff levied on India, China and Bahrain whereas Australia and New Zealand enjoy full concession on this item.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain


050

100150200250300350400

2010 2011 2012 2013 2014

USD

Mill

ions

Wheat or Meslin flour (HS 110100)




Vegetable Products Nes

HS 140490 exhibits export potential of USD 31.41 million to Thailand. Pakistan’s exports to the world were very low up till 2013 but have risen sharply to USD 32 million in 2014. Thailand’s imports from the world were USD 37 million in 2014, decreasing from a peak of USD 52 million in 2012. The tariff applied by Thailand on Pakistan is 27%, considerably higher than the rates levied on Thailand’s other FTA partners with the exception of Bahrain, which faces the same tariff.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain


Vegetable Products Nes

HS 140490 exhibits export potential of USD 31.41 million to Thailand. Pakistan's exports to the world were very low up till 2013 but have risen sharply to USD 32 million in 2014. Thailand’s imports from the world were USD 37 million in 2014, decreasing from a peak of USD 52 million in 2012. The tariff applied by Thailand on Pakistan is 27% considerably higher than the rates levied on Thailand’s other FTA partners with the

exception of Bahrain, which faces the same tariff.

0

10

20

30

40

50

60

2010 2011 2012 2013 2014

USD

Mill

ions

Vegetable products nes (HS 140490)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain



Sugar Confectionary

HS 170490 shows export potential of USD 49 million to Thailand. Since 2010 Thailand’s imports of HS 170490 from the world have gradually increased and amounted to USD 68 million in 2014. Pakistan’s exports to the world also showed a steady increase over the period 2010-2014. The tariff applied by Thailand on Pakistan is 30% while it is zero for India, China, Australia and New Zealand for the this product.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

170490

Sugar confectionery (including whitechocolate),not containing cocoa

0.00 68.36 48.61 48.61 30 0 0 3 0 0 30

| 63

Sugar Confectionary

HS 170490 shows export potential of USD 49 million to Thailand. Since 2010 Thailand’s imports of HS 170490 from the world have gradually increased and amounted to USD 68 million in 2014. Pakistan's exports to the world also showed a steady increase over the period 2010-2014. The tariff applied by Thailand on Pakistan is 30% while it is zero for India, China, Australia and New Zealand for the afore-mentioned product.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

170490

Sugar confectionery (including whitechocolate),not containing cocoa

0.00 68.36 48.61 48.61 30 0 0 3 0 0 30

01020304050607080

2010 2011 2012 2013 2014

USD

Mill

ions

Sugar confectionary (HS 170490)




Biscuits, Wafers

HS 190531 and HS 190590 have a combined export potential of USD 40 million to Thailand. Thailand’s imports of these products from the world increased from 2010 to 2012 before experiencing a decline. Pakistan reported zero exports to Thailand in the period 2010-2014 despite Pakistan’s exports to the world exhibiting an overall increase between 2010 and 2014. A 20% tariff rate is applied by Thailand on Pakistan for HS 190531 while India, China, Japan, Australia and New Zealand face zero tariffs. A 30% tariff is applied on HS 190590 while the rest of Thailand’s FTA partners face very low or zero tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

190531 Sweet biscuits 0.00 39.23 20.57 20.57 20 0 0 0 0 0 20

190590Communion wafers, empty cachets, pharm use & sim

0.00 36.39 19.58 19.58 30 0 0 3 0 0 30

Biscuits, Wafers

HS 190531 and HS 190590 have a combined export potential of USD 40 million to Thailand. Thailand’s imports of these products from the world increased from 2010 to 2012 before experiencing a decline. Pakistan reported zero exports to Thailand in the period 2010-2014 despite Pakistan's exports to the world exhibiting an overall increase between 2010 and 2014. A 20% tariff rate is applied by Thailand on Pakistan for HS 190531 while India, China, Japan, Australia and New Zealand faced zero tariffs. A 30% tariff is applied on HS 190590 while the rest of

0

20

40

60

80

100

2010 2011 2012 2013 2014

USD

Mill

ions

Biscuits,wafers (HS 190590 & 190531)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

190531 Sweet biscuits 0.00 39.23 20.57 20.57 20 0 0 0 0 0 20

190590 Communion wafers, empty cachets, pharm use & sim

0.00 36.39 19.58 19.58 30 0 0 3 0 0 30


Medicament Mixtures

HS 300439 and HS 300490 exhibit a combined export potential of USD 107 million to Thailand. Pakistan’s exports to Thailand were negligible within both items in 2014 despite exports of USD 108 million worth of both products in the same year. A tariff rate of 10% is levied on Pakistan whereas China, Japan, Australia, New Zealand are exempted from tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

300439Hormones nes, not containing antibiotics, in dosage,

0.13 36.37 21.58 21.45 10 6 0 0 0 0 10

300490Medicaments nes, in dosage

0.80 1,197.28 86.57 85.77 8 5 0 0 0 0 8

Medicament Mixtures

HS 300439 and HS 300490 exhibit a combined export potential of USD 107 million to Thailand. Pakistan’s exports to Thailand were negligible within both items in 2014 despite exports of USD 108 million worth of both products in the same year. A tariff rate of 10% is levied on Pakistan whereas China, Japan, Australia, New Zealand are exempted from tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

300439 Hormones nes, not containing antibiotics, in dosage,

0.13 36.37 21.58 21.45 10 6 0 0 0 0 10

300490 Medicaments nes, in dosage 0.80 1,197.28 86.57 85.77 8 5 0 0 0 0 8

0

200

400

600

800

1,000

1,200

1,400

2010 2011 2012 2013 2014

USD

Mill

ions

Medicament Mixtures (HS 300490, HS 300439)




Paints & Varnishes

HS 320810 exhibits export potential of USD 19 million. Pakistan’s exports to the world have grown significantly since 2010 though Pakistan has not exported this item to Thailand. Pakistan faces a tariff rate of 10% on this item, with only Japan, Australia and New Zealand enjoying higher concessions from Thailand.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

320810Paints & varnishes based on polyesters ,dispersed in a non-aqueous medium

0.00 23.22 19.28 19.28 10 10 10 3 0 5 10

| 67

Paints & Varnishes

HS 320810 exhibits export potential of USD 19 million. Pakistan's exports to the world have grown significantly since 2010 though Pakistan has not exported this item to Thailand. Pakistan faces a tariff rate of 10% on this item, with only Japan, Australia and New Zealand enjoying higher concessions from Thailand.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

320810 Paints & varnishes based on polyesters ,dispersed in a non-aqueous medium

0.00 23.22 19.28 19.28 10 10 10 3 0 5 10

0

5

10

15

20

25

2010 2011 2012 2013 2014

USD

Mill

ions

Paints & varnishes (HS 320810)




Polymers

HS 391590 and HS 392062 have combined trade potential of USD 38 million. Pakistan faces a 30% tariff on HS 391590 whereas it is exempted for China, India, Australia and New Zealand. For HS 392062 the tariff imposed on Pakistan is 5% but zero for China, Australia and New Zealand. For HS 391590 Pakistan faces a tariff of 30% whereas all other major FTA partners with the exception of Bahrain face a lower tariff.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

390319 Polystyrene nes 0.00 51.57 52.25 51.57 5 5 0 3 0 0 5

390410Polyvinyl chloride, not mixed with any other substances

0.00 106.72 18.27 18.27 5 5 0 3 0 0 5


Polymers

HS 390319, HS 390410 and HS 390760 have combined trade potential of USD 156 million. HS 390313 (Polystyrene) has shown zero Pakistani exports to Thailand since 2010. Pakistan’s polystyrene exports to the world experienced a decline after 2011. The tariff rate levied on Pakistan is 5% for these three polymers whereas China, Australia and New Zealand face zero tariffs.

010203040506070

2010 2011 2012 2013 2014

USD

Mill

ions

Polystyrene (HS 390319)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

390319 Polystyrene nes 0.00 51.57 52.25 51.57 5 5 0 3 0 0 5

390410 Polyvinyl chloride, not mixed with any other substances

0.00 106.72 18.27 18.27 5 5 0 3 0 0 5



Plastics

HS 390319, HS 390410 and HS 390760 have combined trade potential of USD 156 million. HS 390313 (Polystyrene) has shown zero Pakistani exports to Thailand since 2010. Pakistan’s polystyrene exports to the world experienced a decline after 2011. The tariff rate levied on Pakistan is 5% for these three polymers whereas China, Australia and New Zealand face zero tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

391590Plastics waste and scrap nes

0.08 20.56 23.14 20.48 30 0 0 8 0 0 30

392062


0.00 52.26 17.37 17.37 5 5 0 4 0 0 5

| 69

Plastics

HS 391590 and HS 392062 have combined trade potential of USD 38 million. Pakistan faces a 30% tariff on HS 391590 whereas it is exempted for China, India, Australia and New Zealand. For HS 392062 the tariff imposed on Pakistan is 5% but zero for China, Australia and New Zealand. For HS 391590 Pakistan faces a tariff of 30% whereas all other major FTA partners with the exception of Bahrain face a lower tariff.

0

10

20

30

40

50

2010 2011 2012 2013 2014

USD

Mill

ions

Plastics waste (HS 391590)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

391590 Plastics waste and scrap nes 0.08 20.56 23.14 20.48 30 0 0 8 0 0 30

392062


0.00 52.26 17.37 17.37 5 5 0 4 0 0 5


Leather

HS 410719 exhibits export potential of USD 44 million. Pakistan’s exports to Thailand were a mere USD 0.25 million in 2014. Thailand’s imports from the world reported fluctuations, rising in 2014 to USD 87 million. The tariff applied on Pakistan and India is 5% whereas China, Australia, New Zealand face zero tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

410719Leather "incl. parchment-dressed leather" of the whole hides and skins

0.25 87.22 44.66 44.41 5 5 0 0 0 0 5

Leather

HS 410719 exhibits export potential of USD 44 million. Pakistan's exports to Thailand were a mere USD 0.25 million in 2014. Thailand’s imports from the world reported fluctuations, rising in 2014 to USD 87 million. The tariff applied on Pakistan and India is 5% whereas China, Australia, New Zealand face zero tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

410719 Leather "incl. parchment-dressed leather" of the whole hides and skins

0.25 87.22 44.66 44.41 5 5 0 0 0 0 5

0

20

40

60

80

100

2010 2011 2012 2013 2014

USD

Mill

ions

Leather (HS 410719)




Cotton

HS 520100 has an export potential of USD 171 million to Thailand. Since 2010 Pakistan’s HS 520100 exports to Thailand peaked at USD 373 million before falling to to USD 181 million in 2014. Pakistan faces zero tariffs on this product, as do Thailand’s FTA partners.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

520100Cotton, not carded or combed

10.16 676.27 180.94 170.79 0 0 0 0 0 0 0

| 71

Cotton

HS 520100 has an export potential of USD 171 million to Thailand. Since 2010 Pakistan’s HS 520100 exports to Thailand peaked at USD 373 million before falling to to USD 181 million in 2014. Pakistan faces zero tariffs on this product, as do Thailand’s FTA partners.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

520100 Cotton, not carded or combed 10.16 676.27 180.94 170.79 0 0 0 0 0 0 0

0

200

400

600

800

1,000

1,200

2010 2011 2012 2013 2014

USD

Mill

ions

Cotton (HS 520100)




Cotton & Polyester Fabric

HS 520818 and HS 551219 have combined export potential of USD 61 million to Thailand. Cotton and polyester fabrics fall under this category. Pakistan’s exports to Thailand were negligible in 2014 where as Pakistani exports to the world were USD 277 million in the same year. Thailand applies a 5% tariff rate on Pakistan for both cotton and polyester fabrics whereas tariffs were reduced to zero for all FTA partners except Bahrain.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

520812Plain weave cotton fabric,>/=85%, >100 g/m2 to 200 g/m2, unbleached

0.05 44.10 240.08 44.05 5 0 0 0 0 0 5

551219

Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl

0.00 16.90 27.43 16.90 5 0 0 0 0 0 5

Cotton & Polyester Fabric

HS 520818 and HS 551219 have combined export potential of USD 61 million to Thailand. Cotton and polyester fabrics fall under this category. Pakistan's exports to Thailand were negligible in 2014 whereas Pakistan exports to the world were USD 277 million in the same year. Thailand applies a 5% tariff rate on Pakistan for both cotton and polyester fabrics whereas tariffs were reduced to zero for all FTA partners except

0

50

100

150

200

250

300

2010 2011 2012 2013 2014

USD

Mill

ions

Plain weave cotton fabric (HS 520812)



05

1015202530354045

2010 2011 2012 2013 2014

USD

Mill

ions

(HS 551219) Polyester fabric






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

520812 Plain weave cotton fabric,>/=85%, >100 g/m2 to 200 g/m2, unbleached

0.05 44.10 240.08 44.05 5 0 0 0 0 0 5

551219 Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl

0.00 16.90 27.43 16.90 5 0 0 0 0 0 5


Apparel Articles

HS 610910, HS 610990 and HS 611020 have a combined export potential of USD 81.42 million to Thailand. This category is for cotton T-shirts and includes pullovers as well. Thailand applies high tariff rates on Pakistan for these finished textile products. The tariff on Pakistan is 30% while it is lower for all other FTA partners with the exception of Bahrain.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

610910T-shirts, singlets and other vests, of cotton, knitted

0.01 38.89 195.41 38.87 30 15 0 0 5 5 30

610990T-shirts, singlets and other vests, of other textile materials, knitted

0.00 22.06 76.09 22.06 30 15 0 0 5 5 30

611020Pullovers, cardigans and similar articles of cotton, knitted

0.01 20.49 39.46 20.48 30 15 0 0 5 5 30

Apparel Articles

HS 610910, HS 610990 and HS 611020 have a combined export potential of USD 81.42 million to Thailand. This category is for cotton T-shirts and includes pullovers as well. Thailand applies high tariff rates on Pakistan for these finished textile products. The tariff on Pakistan is 30%

0

100

200

300

400

2010 2011 2012 2013 2014

USD

Mill

ions

HS 6109 T-Shirts


Thailand's imports from world


0

10

20

30

40

50

2010 2011 2012 2013 2014

USD

Mill

ions

HS 611020 Cardigans of Cotton


Thailand's imports from world





2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

610910 T-shirts, singlets and other vests, of cotton, knitted 0.01 38.89 195.41 38.87 30 15 0 0 5 5 30

610990 T-shirts, singlets and other vests, of other textile materials, knitted

0.00 22.06 76.09 22.06 30 15 0 0 5 5 30

611020 Pullovers, cardigans and similar articles of cotton, knitted

0.01 20.49 39.46 20.48 30 15 0 0 5 5 30


Articles of Apparel

HS 620342 and HS 620462 have combined Pakistan’s export potential of USD 64 million to Thailand. Pakistan’s world exports of these items were USD 1.17 billion in 2014 while exports to Thailand were only USD 0.04 million, possibly because of the 30% tariff rate applied by Thailand on Pakistan for these items. The tariff rate for India is 15% whereas China and Japan are exempted from tariffs for these product categories.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

620342Mens/boys trousers and shorts, of cotton, not knitted

0.01 34.94 664.53 34.93 30 15 0 0 5 5 30

620462Womens/girls trousers and shorts, of cotton, not knitted

0.03 29.82 482.97 29.79 30 15 0 0 5 5 30

Articles of Apparel

HS 620342 and HS 620462 have combined Pakistan’s export potential of USD 64 million to Thailand. Pakistan's world exports of these items were USD 1.17 billion in 2014 while exports to Thailand were only USD 0.04 million, possibly because of the 30% tariff rate applied by Thailand on Pakistan for these items. The tariff rate for India is 15% whereas China and Japan are exempted from tariffs for these product categories.

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014

USD

Mill

ions

Men/boys cotton trousers (HS 620342)



0

100

200

300

400

500

600

2010 2011 2012 2013 2014

USD

Mill

ions

Women/girls cotton trousers (HS 620462)





Made Up Textile Articles

HS 630710 & HS 630790 have combined export potential of USD 54 million to Thailand. Home textile articles, floor cloths, dish cloths, dusters etc. fall under this category. The tariff applied on Pakistan is 30% for HS 630710 whereas India, China, Japan, Australia are exempted from tariffs.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

630710Floor-cloths,dish-cloths,dusters & similar cleaning cloths,of tex mat

0.00 17.25 392.75 17.25 30 0 0 0 0 3 30

630790Made up articles, of textile materials, nes, including dress patterns

0.02 57.07 36.82 36.81 10 10 0 0 0 3 10

Made Up Textile Articles

HS 630710 & HS 630790 have combined export potential of USD 54 million to Thailand. Home textile articles, floor cloths, dish cloths, dusters etc. fall under this category. The tariff applied on Pakistan is 30% for HS 630710 whereas India, China, Japan, Australia are exempted from

0

100

200

300

400

500

2010 2011 2012 2013 2014

USD

Mill

ions

Made up Textile articles (HS 630790 & 630710)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

630710 Floor-cloths,dish-cloths,dusters & similar cleaning cloths,of tex mat

0.00 17.25 392.75 17.25 30 0 0 0 0 3 30

630790 Made up articles, of textile materials, nes, including dress patterns

0.02 57.07 36.82 36.81 10 10 0 0 0 3 10


Articles of Bedding

HS 940490 exhibits export potential of USD 37 million to Thailand. It includes bedding/furnishing articles which are internally fitted. Since 2010 Pakistan’s exports to the world have been much higher than Thailand’s imports from the world. Pakistan’s exports to Thailand were less than USD 0.5 million in 2014. The applied tariff on Pakistan is 20% whereas it is zero for India, China, Japan, Australia and New Zealand.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

940490Articles of bedding/furnishing, nes, stuffed or internally fitted

0.01 36.55 85.14 36.55 20 0 0 0 0 0 20

Articles of Bedding

HS 940490 exhibits export potential of USD 37 million to Thailand. It includes bedding/furnishing articles which are internally fitted. Since 2010 Pakistan’s exports to the world have been much higher than Thailand’s imports from the world. Pakistan’s exports to Thailand were less than USD 0.5 million in 2014. The applied tariff on Pakistan is 20% whereas it is zero for India, China, Japan, Australia and New Zealand.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

940490 Articles of bedding/furnishing, nes, stuffed or internally fitted

0.01 36.55 85.14 36.55 20 0 0 0 0 0 20

0

20

40

60

80

100

2010 2011 2012 2013 2014

USD

Mill

ions

Articles of bedding (HS 940490)




Footwear

HS 640339 shows export potential of USD 55 million and it consists of outer sole of rubber/ plastic footwear. Pakistan’s exports to the world have increased steadily since 2010, with exports worth USD 77 million reported in 2014. The tariff on Pakistan for this item is 30%. All of Thailand’s FTA partners face lower tariffs on this product, with the exception of Bahrain.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

640399Footwear, outer soles of rubber/plastics uppers of leather, nes

0.00 55.05 77.54 55.05 30 15 20 8 0 0 30

| 81

Footwear

HS 640339 shows export potential of USD 55 million and it consists of outer sole of rubber/ plastic footwear. Pakistan’s exports to the world

0

20

40

60

80

100

120

2010 2011 2012 2013 2014

USD

Mill

ions

Footwear (HS 640399)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

640399 Footwear, outer soles of rubber/plastics uppers of leather, nes

0.00 55.05 77.54 55.05 30 15 20 8 0 0 30


Jewellery Articles

HS 711319 shows export potential of USD 105 million. Since 2010 Pakistan’s exports to the world have fluctuated, peaking in 2012 with USD 1.5 billion, though exports to Thailand were less than USD 1 million in the same year. The tariff on Pakistan for this product is 10% whereas it is zero for all of Thailand’s FTA partners with the exception of Bahrain.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

711319Articles of jewellry&pt therof of/o prec met w/n platd/clad w prec met

0.00 486.18 105.22 105.22 10 0 0 0 0 0 10

| 83

Jewellery Articles

HS 711319 shows export potential of USD 105 million. Since 2010 Pakistan’s exports to the world have fluctuated, peaking in 2012 with USD 1.5 billion, though exports to Thailand were less than USD 1 million in the same year. The tariff on Pakistan for this product is 10% whereas it is zero for all of Thailand’s FTA partners with the exception of Bahrain.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

711319 Articles of jewellry&pt therof of/o prec met w/n platd/clad w prec met

0.00 486.18 105.22 105.22 10 0 0 0 0 0 10

0

200

400

600

800

1000

1200

1400

1600

2010 2011 2012 2013 2014

USD

Mill

ions

Jewellery Articles (HS 711319)




Pipes and Parts of Structure

HS 730690 & 730890 exhibit export potential of USD 146 million. This HS code includes tubes, pipes and structures of steel etc. Pakistan’s exports to the world of this product rose to USD 218 million in 2012 before falling to USD 144 million in 2014. Pakistan’s exports to Thailand are negligible. The tariff applied on Pakistan is 5%, which is the same as that applied on India, China and Japan for this product.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

730690Tubes, pipe & hollow profiles, iron or steel, welded, nes

0.00 101.38 96.20 96.20 5 5 5 5 0 0 5

730890Structures&parts of structures,i/s (ex prefab bldgs of headg no.9406)

0.44 149.49 50.07 49.64 10 10 0 10 0 0 10

Pipes and Parts of Structure

HS 730690 & 730890 exhibit export potential of USD 146 million. This HS code includes tubes, pipes and structures of steel etc. Pakistan’s exports to the world of this product rose to USD 218 million in 2012 before falling to USD 144 million in 2014. Pakistan’s exports to Thailand

0

50

100

150

200

250

300

2010 2011 2012 2013 2014

USD

Mill

ions

Pipes and parts of structures (HS 730690 & 730890)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

730690 Tubes, pipe & hollow profiles, iron or steel, welded, nes

0.00 101.38 96.20 96.20 5 5 5 5 0 0 5

730890 Structures&parts of structures,i/s (ex prefab bldgs of headg no.9406)

0.44 149.49 50.07 49.64 10 10 0 10 0 0 10


Air Craft Engines

HS 840710 shows export potential of USD 18 million. Since 2011 Thailand imports of this product from the world have grown significantly but Pakistan’s exports to the world have shown a downward trend. The tariff applied on Pakistan is 10% whereas it is exempted for Thailand’s FTA partners with the exception of Bahrain for this product..




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

840710Aircraft engines, spark-ignition reciprocating or rotary type

0.00 248.66 17.68 17.68 10 0 0 0 0 0 10

Air Craft Engines

HS 840710 shows export potential of USD 18 million. Since 2011 Thailand imports of this product from the world have grown significantly but Pakistan’s exports to the world have shown a downward trend. The tariff applied on Pakistan is 10% whereas it is exempted for Thailand’s FTA partners with the exception of Bahrain for this product.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

840710 Aircraft engines, spark-ignition reciprocating or rotary type

0.00 248.66 17.68 17.68 10 0 0 0 0 0 10

0

50

100

150

200

250

300

2010 2011 2012 2013 2014

USD

Mill

ions

Air craft engines (HS 840710)




Medical Sciences Instruments

HS 901890 and 901849 exhibit combined export potential of USD 212 million and comprise of instruments and appliances used in dental or veterinary science. Since 2010 Pakistan’s exports to the world have risen to USD 340 million in 2014 while exports to Thailand have remained negligible, although the tariff applied on Pakistan is only 1%.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

901849Instruments and appliances, used in dental sciences, nes

0.33 37.00 19.73 19.40 1 0 0 0 0 0 1


1.86 193.58 319.53 191.72 1 0 0 0 0 0 1

| 87

Medical Sciences Instruments

HS 901890 and 901849 exhibit combined export potential of USD 212 million and comprise of instruments and appliances used in dental or

0

100

200

300

400

2010 2011 2012 2013 2014

USD

Mill

ions

Medical sciences instruments (HS 901890 & 901849)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

901849 Instruments and appliances, used in dental sciences, nes 0.33 37.00 19.73 19.40 1 0 0 0 0 0 1

901890 Instruments and appliances used in medical or veterinary sciences, nes

1.86 193.58 319.53 191.72 1 0 0 0 0 0 1


Frozen Shrimps and Prawns

HS 030617 covers frozen shrimps and prawns which exhibit export potential of USD 69 million. In 2010-2011 Pakistan’s exports and Thailand’s imports of the product remained zero. However both Pakistan’s exports to the world and to Thailand increased after this period. Zero tariffs are applied by Thailand on both Pakistan and its FTA partners, though Pakistan reported only USD 6 million exports of HS 030617 to Thailand in 2014 despite full concession.




2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan Export

Potential

Tariff on Pakistan

Tariff on India

Tariff on China

Tariff on Japan

Tariff on Australia


Tariff on Bahrain

030617Other frozen shrimps and prawns

6.02 95.41 75.41 69.40 0 0 0 0 0 0 0

| 89

Frozen Shrimps and Prawns

HS 030617 covers frozen shrimps and prawns which exhibit export potential of USD 69 million. In 2010-2011 Pakistan’s exports and Thailand’s imports of the product remained zero. However both Pakistan’s exports to the world and to Thailand increased after this period. Zero tariffs are applied by Thailand on both Pakistan and its FTA partners, though Pakistan reported only USD 6 million exports of HS 030617 to Thailand in 2014 despite full concession.

0

20

40

60

80

100

120

2010 2011 2012 2013 2014

USD

Mill

ions

Frozen shrimps and prawns (HS 030617)






2014

Thailand World

Imports 2014

Pakistan World

Exports 2014

Pakistan export

potential

Tariff on Pakistan

Tariff on

India

Tariff on

China

Tariff on

Japan

Tariff on Australia

Tariff on New

Zealand

Tariff on Bahrain

030617 Other frozen shrimps and prawns 6.02 95.41 75.41 69.40 0 0 0 0 0 0 0


Section IV: Analysis of High Potential Thailand

Exports to Pakistan


Thailand Exports To Pakistan Trade Potential Overview

Top 50 High Potential Thailand Exports To Pakistan at 6 Digit HS Code Level

• The total trade potential within the 4423 Thai export items with available data is USD 24.3 billion.

• Thailand’s total trade potential with Pakistan within the top 100 high-potential items at the 6 digit HS code level is USD 17.50 billion.

• The top 50 high trade potential items at the 6 digit HS code level account for USD 15.5 billion.

• In 2014 Thailand’s exports of the top 50 high potential items to Pakistan amounted to a mere USD 126 million. However, this amount is USD 40 billion in the case of Thailand’s exports of the same products to the world.

• The products reporting significant trade potential include telephone sets, polypropylene, automobiles with reciprocating engine up to 3000 cc, pneumatic rubber tires, medicaments, polyester staple fibres and electronic equipment.

• Pakistan FTA partners China, Malaysia and Sri Lanka face similar or lower tariff rates on most of these high potential items.

Figures in USD MillionsTOP 50 HIGH POTENTIAL THAILAND EXPORTS TO PAKISTAN AT 6 DIGIT HS CODE LEVEL

Equivalent ad valorem tariff applied by Pakistan to

HS Code Product Label

Thailand’s Exports to Pakistan

2014


from world 2014

Thailand’s Exports to world 2014

Thailand Trade

Potential

MFN Rate applied by Pakistan

Thailand China Sri Lanka Malaysia

851712Telephones for cellular networks mobile telephones or for other wireles

0.000 643.116 506.572 506.572 Rs.250/Set Rs.250/Set 0.0 0.0 0.0

390210 Polypropylene 7.809 458.381 845.806 450.572 5.0 5.0 5.0 0.0 5.0

290243 P-xylene 0.000 349.339 715.098 349.339 5.0 5.0 0.0 0.0 0.0

851762Machines for the reception, conversion and transmission or regeneration

0.000 346.308 694.533 346.308 11.4 11.4 6.4 5.0 6.3


2.543 304.474 1,669.561 301.931 5.0 5.0 5.0 5.0 5.0


TOP 50 HIGH POTENTIAL THAILAND EXPORTS TO PAKISTAN AT 6 DIGIT HS CODE LEVEL




2014


from world 2014


Thailand Trade

Potential



870321Automobiles w reciprocatg piston engine displacg not more than 1000 cc

0.000 283.222 247.977 247.977 52.5 52.5 52.5 52.5 52.5

300490 Medicaments nes, in dosage 0.035 279.618 216.001 215.966 13.6 13.6 10.8 0.0 11.5

390120Polyethylene having a specific gravity of 0.94 or more

6.541 221.941 1,905.874 215.400 5.0 5.0 5.0 5.0 5.0


0.085 212.439 2,971.794 212.354 60.0 60.0 60.0 60.0 60.0

854140Photosensitive semiconduct device,photovoltaic cells&light emit diodes

0.005 205.562 253.151 205.557 5.0 5.0 0.0 0.0 0.0

401120Pneumatic tires new of rubber for buses or lorries

19.326 190.183 1,112.397 170.857 12.5 12.5 10.0 12.5 12.5

382490Chemical/allied industry preparations/prods nes

1.950 171.433 237.453 169.483 7.9 7.9 3.4 0.0 4.1


0.387 162.002 1,692.915 161.615 91.7 91.7 91.7 91.7 91.7

851770Parts of telephone sets, telephones for cellular networks or for other

0.001 160.334 741.104 160.333 10.0 10.0 0.0 0.0 5.0

550320Staple fibres of polyesters, not carded or combed

7.898 165.425 288.218 157.527 10.0 10.0 10.0 5.0 10.0

540233Textured yarn nes,of polyester filaments,not put up for retail sale

9.862 214.263 157.139 147.277 10.0 10.0 10.0 5.0 10.0

841430Compressors of a kind used in refrigerating equipment

9.076 132.241 1,111.995 123.165 7.5 7.5 2.5 0.0 2.5

390230 Propylene copolymers 11.787 124.639 505.840 112.852 5.0 5.0 5.0 0.0 5.0

550410Staple fibres of viscose, not carded or combed

12.431 183.860 122.956 110.525 5.0 5.0 5.0 0.0 5.0

481840Sanitary articles of paper,incl sanit towels&napkin (diapers) for babies

0.046 109.683 319.977 109.637 20.0 20.00 0.00 0.00 0.00

847130 Portable digital computers <10kg 0.002 197.647 104.708 104.706 1.0 1.00 0.00 0.00 0.00






2014


from world 2014


Thailand Trade

Potential



841199 Parts of gas turbines nes 0.209 102.686 220.289 102.477 5.0 5.00 0.00 0.00 0.00


0.566 98.962 298.245 98.396 5.0 5.00 1.30 0.00 1.30

852380Gramophone records and other media for the recording of sound or of ot

0.000 97.065 148.327 97.065 7.7 7.70 3.50 0.00 5.20

720449Ferrous waste and scrap, iron or steel, nes

0.579 560.427 87.495 86.916 9.5 9.50 9.00 0.00 9.00

390720 Polyethers nes 0.024 110.732 85.992 85.968 5.0 5.00 0.00 0.00 0.00

850440 Static converters, nes 0.003 84.337 1,037.771 84.334 13.3 13.30 8.30 0.00 8.30

320416Reactive dyes and preparations based thereon

6.459 89.464 144.074 83.005 15.0 15.00 15.00 0.00 10.00

151110 Palm oil, crude 0.000 81.073 135.714 81.073 0.0 8.20 8.20 0.00 6.90

840999Parts for diesel and semi-diesel engines

0.043 80.494 273.245 80.451 25.8 25.80 23.30 25.80 25.00

841480 Air or gas compressors, hoods 0.441 79.198 312.930 78.757 15.0 15.00 12.50 0.00 10.00

290121 Ethylene 6.725 106.378 83.165 76.440 5.0 5.00 0.00 0.00 0.00

871120Motorcycles with reciprocatg piston engine displacg > 50 cc to 250 cc

1.627 73.833 482.264 72.206 65.0 65.00 65.00 65.00 65.00

843049Boring or sinking machinery nes, not self-propelled

0.003 88.679 71.250 71.247 5.0 5.00 0.00 0.00 0.00

210690 Food preparations nes 2.733 71.004 1,113.846 68.271 24.3 24.30 18.30 0.00 2.90

848180Taps, cocks, valves and similar appliances, nes

0.630 68.879 506.607 68.249 30.0 30.00 29.30 0.00 28.80

190110Prep of cereals,flour,starch/milk f infant use,put up f retail sale

1.545 67.800 75.835 66.255 20.0 20.00 16.00 0.00 20.00

841989Machinery,plant/laboratory equip f treat of mat by change of temp nes

0.766 101.283 66.673 65.907 20.0 20.00 16.00 0.00 13.00






2014


from world 2014


Thailand Trade

Potential



540247Filament yarn of polyester, incl. monofilament of < 67 decitex, single

0.138 66.035 74.400 65.897 10.0 10.00 10.00 5.00 10.00

841280 Engines and motors nes 0.061 91.536 65.931 65.870 7.5 7.50 2.50 0.00 2.50

151190Palm oil and its fractions refined but not chemically modified

0.000 1,862.524 65.366 65.366 Rs.9050/MT Rs.9050/MT Rs.9050/MT Rs.9050/MT Rs.7692/MT

100510 Maize (corn) seed 6.467 65.844 82.572 59.377 1.0 1.00 1.00 0.00 0.00

730429Casings,,tubing, drill pipe, for oil drilling use

0.000 58.038 81.314 58.038 20.0 20.00 19.20 0.00 20.00


5.704 63.427 7,596.584 57.723 60.0 60.00 60.00 60.00 60.00

690890Tiles, cubes and sim nes, glazed ceramics

0.302 57.033 89.777 56.731 25.0 25.00 22.50 0.00 20.00

850220Generating sets with spark-ignition internal combustion piston engines

0.004 56.408 141.290 56.404 10.0 10.00 5.00 0.00 5.00

540752Woven fabrics,>/=85% of textured polyester filaments, dyed, nes

0.114 55.370 103.905 55.256 15.0 15.00 15.00 15.00 15.00

760200Electric conductors, for a voltage not exceeding 80 V, nes

0.00 54.044 194.516 54.044 20 15.50 15.00 0.00 15.00

847989Needles, catheters, cannulae and the like, nes

0.00 53.989 99.615 53.989 9.1 5.00 0.00 0.00 0.00

854449 Electric generating sets 0.00 134.293 53.430 53.430 5 20.00 15.00 20.00 15.00


Sectoral Overview of High Potential Thailand Exports to Pakistan• This section focuses on high potential Thailand exports to Pakistan and their recorded growth/decline over the period of 2010-2014.

• Tariff information is provided for Pakistan’s major FTA partners and its comparison with the tariff imposed on Thailand for high potential items. Tariffs lower than those imposed on Thailand are highlighted in Red.

• Tariff values are the equivalent ad valorem tariffs applied at the 6-digit HS code level.


Maize Seed

Since 2010 Thailand’s maize seeds exports to Pakistan have grown but remained less than USD 10 million, leading to export potential of USD 59.37 million in 2014. Thailand’s exports to the world were almost equal to Pakistan’s imports from the world in 2013. The tariff applied by Pakistan on Thailand and China is 1% whereas it is zero for Malaysia and Sri Lanka.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

100510 Maize (corn) seed 6.467 65.844 82.572 59.377 1.0 1.00 1.00 0.00 0.00

| 97

Maize Seed

Since 2010 Thailand’s maize seeds exports to Pakistan have grown but remained less than USD 10 million, leading to export potential of USD 59.37 million in 2014. Thailand’s exports to the world were almost equal to Pakistan’s imports from the world in 2013. The tariff applied by Pakistan on Thailand and China is 1% whereas it is zero for Malaysia and Sri Lanka.



Thailand's exports to Pakistan

2014

Pakistan's imports

from world 2014

Thailand's exports to world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

100510 Maize (corn) seed 6.467 65.844 82.572 59.377 1.0 1.00 1.00 0.00 0.00

0102030405060708090

2010 2011 2012 2013 2014

USD

Mill

ions

Maize seed (HS 100510)

Thailand's exports to Pakistan Pakistan's imports from world

Thailand's exports to world


Palm Oil & its Fractions

HS 151110 and 151190 possess combined export potential of USD 146 million. Since 2010 Thailand’s exports to the world have grown but remained below USD 500 million. The tariff applied by Pakistan on Thailand and China is 8.20% whereas it is zero for Sri Lanka for HS 151110. The tariff is the same for all of Pakistan’s FTA partners for HS 151190 with the exception of Malaysia.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

151110 Palm oil, crude 0.000 81.073 135.714 81.073 0.0 8.20 8.20 0.00 6.90

151190Palm oil and its fractions refined but not chemically modified


Palm Oil & Its Fractions

HS 151110 and 151190 possess combined export potential of USD 146 million. Since 2010 Thailand’s exports to the world have grown but remained below USD 500 million. The tariff applied by Pakistan on Thailand and China is 8.20% whereas it is zero for Sri Lanka for HS 151110. The tariff is the same for all of Pakistan’s FTA partners for HS 151190 with the exception of Malaysia.




2014

Pakistan's imports

from world 2014


Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

151110 Palm oil, crude 0.000 81.073 135.714 81.073 0.0 8.20 8.20 0.00 6.90

151190 Palm oil and its fractions refined but not chemically modified


0

500

1000

1500

2000

2500

2010 2011 2012 2013 2014

USD

Mill

ions

Palm oil & its fractions (HS 151110 & 151190)




Cyclic & Acyclic Hydrocarbons

HS 290243 and 290121 have combined export potential of USD 425 million. Thailand’s exports of P-xylene to Pakistan were zero in 2014 whereas the export figure recorded for Ethylene was USD 6.72 million in the same year. The tariff applied by Pakistan on Thailand is 5% whereas its FTA partners enjoy full concession.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

290121 Ethylene 6.725 106.378 83.165 76.440 5.00 5.00 0.00 0.00 0.00

290243 P-xylene 0.000 349.339 715.098 349.339 5.00 5.00 0.00 0.00 0.00

| 99

Cyclic & Acyclic Hydrocarbons

HS 290243 and 290121 have combined export potential of USD 425 million. Thailand’s exports of P-xylene to Pakistan were zero in 2014 whereas the export figure recorded for Ethylene was USD 6.72 million in the same year. The tariff applied by Pakistan on Thailand is 5% whereas its FTA partners enjoy full concession.

0

200

400

600

800

1000

1200

2010 2011 2012 2013 2014

USD

Mill

ions

Cyclic & Acyclic hydrocarbons (HS 290121 & 290243)






2014

Pakistan's imports

from world 2014


Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia


Polymers

Polymers of polyethylene, polypropylene and polyether have combined export potential of USD 1.16 billion to Pakistan from Thailand. Polypropylene recorded the highest export potential from among these 5 products, worth USD 563 million in 2014. Thailand’s exports to the world of all these polymers have experienced a rising trend since 2010. The tariff applied on Thailand by Pakistan for the considered polymers is 5%.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia


2.543 304.474 1,669.561 301.931 5.0 5.0 5.0 5.0 5.0

390120Polyethylene having a specific gravity of 0.94 or more

6.541 221.941 1,905.874 215.400 5.0 5.0 5.0 5.0 5.0

390210 Polypropylene 7.809 458.381 845.806 450.572 5.0 5.0 5.0 0.00 5.0

390230 Propylene copolymers 11.787 124.639 505.840 112.852 5.0 5.0 5.0 0.00 5.0

390720 Polyethers nes 0.024 110.732 85.992 85.968 5.0 5.00 0.00 0.00 0.00

| 101

Polymers

Polymers of polyethylene, polypropylene and polyether have combined export potential of USD 1.16 billion to Pakistan from Thailand. Polypropylene recorded the highest export potential from among these 5 products, worth USD 563 million in 2014. Thailand’s exports to the

01,0002,0003,0004,0005,0006,000

2010 2011 2012 2013 2014

USD

Mill

ions

Polymers (HS 3901, 3902 & 3907)






2014

Pakistan's imports from world 2014


Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

390110 Polyethylene having a specific gravity of less than 0.94 2.543 304.474 1,669.561 301.931 5.0 5.0 5.0 5.0 5.0

390120 Polyethylene having a specific gravity of 0.94 or more 6.541 221.941 1,905.874 215.400 5.0 5.0 5.0 5.0 5.0

390210 Polypropylene 7.809 458.381 845.806 450.572 5.0 5.0 5.0 0.00 5.0 390230 Propylene copolymers 11.787 124.639 505.840 112.852 5.0 5.0 5.0 0.00 5.0

390720 Polyethers nes 0.024 110.732 85.992 85.968 5.0 5.00 0.00 0.00 0.00


Polyester Yarn and Dyed Fabric

HS 540233 and HS 540247 have combined export potential of USD 213 million to Pakistan. Thailand’s exports to Pakistan of this particular product have fallen since 2010. For instance, HS 540752 recorded less than USD 1 million annual Thai exports to Pakistan from 2010 onwards. The tariff applied by Pakistan on these products is 5% for Sri Lanka whereas Thailand and Pakistan’s FTA partners face the same tariffs.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

540233Textured yarn nes,of polyester filaments,not put up for retail sale

9.862 214.263 157.139 147.277 10.0 10.0 10.0 5.00 10.0

540247Filament yarn of polyester, incl. monofilament of < 67 decitex, single

0.138 66.035 74.400 65.897 10.0 10.00 10.00 5.00 10.00

540752Woven fabrics,>/=85% of textured polyester filaments, dyed, nes

0.114 55.370 103.905 55.256 15.0 15.00 15.00 15.00 15.00

| 103

Polyester Yarn and Dyed Fabric

HS 540233 and HS 540247 have combined export potential of USD 213 million to Pakistan. Thailand’s exports to Pakistan of this particular product have fallen since 2010. For instance, HS 540752 recorded less than USD 1 million annual Thai exports to Pakistan from 2010 onwards. The tariff applied by Pakistan on these products is 5% for Sri Lanka whereas Thailand and Pakistan’s FTA partners face the same tariffs.

050

100150200250300350400

2010 2011 2012 2013 2014

USD

Mill

ions

Polyester yarn (HS 540233 & HS 540247)



0

20

40

60

80

100

120

2010 2011 2012 2013 2014

USD

Mill

ions

Polyester dyed fabric (HS 540752)






2014

Pakistan's imports

from world 2014


Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

540233 Textured yarn nes,of polyester filaments,not put up for retail sale 9.862 214.263 157.139 147.277 10.0 10.0 10.0 5.00 10.0

540247 Filament yarn of polyester, incl. monofilament of < 67 decitex, single 0.138 66.035 74.400 65.897 10.0 10.00 10.00 5.00 10.00

540752 Woven fabrics,>/=85% of textured polyester filaments, dyed, nes 0.114 55.370 103.905 55.256 15.0 15.00 15.00 15.00 15.00


Mechanical Parts

The HS 84 items listed below have a combined trade potential of USD 760 million. Thailand’s highest HS 84 exports to Pakistan were recorded for HS 841430, with exports in 2014 valued at USD 9 million. Tariffs applied on Thailand by Pakistan are notably higher than those applied on its FTA partners.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

840999Parts for diesel and semi-diesel engines

0.043 80.494 273.245 80.451 25.8 25.80 23.30 25.80 25.00

841199 Parts of gas turbines nes 0.209 102.686 220.289 102.477 5.0 5.00 0.00 0.00 0.00

841280 Engines and motors nes 0.061 91.536 65.931 65.870 7.5 7.50 2.50 0.00 2.50

841430Compressors of a kind used in refrigerating equipment

9.076 132.241 1,111.995 123.165 7.5 7.5 2.50 0.00 2.50

Mechanical Parts

The HS 84 items listed below have a combined trade potential of USD 760 million. Thailand’s highest HS 84 exports to Pakistan were recorded for HS 841430, with exports in 2014 valued at USD 9 million. Tariffs applied on Thailand by Pakistan are notably higher than those applied on its FTA partners.

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013 2014U

SD M

illio

ns

Mechanical parts (HS 84)






2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

841480 Air or gas compressors, hoods 0.441 79.198 312.930 78.757 15.0 15.00 12.50 0.00 10.00

841989Machinery,plant/laboratory equip f treat of mat by change of temp nes

0.766 101.283 66.673 65.907 20.0 20.00 16.00 0.00 13.00

843049Boring or sinking machinery nes, not self-propelled

0.003 88.679 71.250 71.247 5.0 5.00 0.00 0.00 0.00

847130 Portable digital computers <10kg 0.002 197.647 104.708 104.706 1.0 1.00 0.00 0.00 0.00

848180Taps, cocks, valves and similar appliances, nes

0.630 68.879 506.607 68.249 30.0 30.00 29.30 0.00 28.80


Electric Equipment

Thailand’s total trade potential within generators and static converters is USD 140 million. Thailand’s exports to Pakistan were less than USD 1 million but its exports to the world have been increasing consistently since 2010. The tariff applied on Thailand by Pakistan is 10% for generators and 13.3% for static converters whereas Paksitan’s FTA parters face lower tariffs.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

850220Generating sets with spark-ignition internal combustion piston engines

0.004 56.408 141.290 56.404 10.0 10.00 5.00 0.00 5.00


Electric Equipment

Thailand’s total trade potential within generators and static converters is USD 140 million. Thailand’s exports to Pakistan were less than USD 1 million but its exports to the world have been increasing consistently since 2010. The tariff applied on Thailand by Pakistan is 10% for generators and 13.3% for static converters whereas Paksitan’s FTA parters face lower tariffs.




2014

Pakistan's imports

from world 2014

Thailand's exports to

world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

850220 Generating sets with spark-ignition internal combustion piston engines 0.004 56.408 141.290 56.404 10.0 10.00 5.00 0.00 5.00


0

200

400

600

800

1,000

1,200

1,400

2010 2011 2012 2013 2014

USD

Mill

ioin

s

Electric Equipment (HS 340220 & HS 340440)




Mobile Telephones And Cellular Networks

Thailand’s total export potential for cellular networks and other related equipment to Pakistan is USD 1 billion. Thailand’s exports to Pakistan were less than USD 1 million over the period considered but its exports to the world have shown an upward trend since 2010. The tariff applied on Thailand by Pakistan is Rs.250/set whereas China, Sri Lanka and Malaysia are fully exempted from tariffs.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

851712Telephones for cellular networks mobile telephones or for other wireless

0.000 643.116 506.572 506.572 Rs.250/Set Rs.250/Set 0.00 0.00 0.00

851762Machines for the reception, conversion and transmission or regeneration

0.000 346.308 694.533 346.308 11.40 11.4 6.40 5.00 6.30

851770Parts of telephone sets, telephones for cellular networks or for other

0.001 160.334 741.104 160.333 10.0 10.0 0.00 0.00 5.00

| 107

Mobile Telephones And Cellular Networks

Thailand’s total export potential for cellular networks and other related equipment to Pakistan is USD 1 billion. Thailand’s exports to Pakistan were less than USD 1 million over the period considered but its exports to the world have shown an upward trend since 2010. The tariff applied on Thailand by Pakistan is Rs.250/set whereas China, Sri Lanka and Malaysia are fully exempted from tariffs.




Pakistan 2014

Pakistan's imports

from world 2014


Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

851712 Telephones for cellular networks mobile telephones or for other wireless 0.000 643.116 506.572 506.572 Rs.250/Set Rs.250/Set 0.00 0.00 0.00

851762 Machines for the reception, conversion and transmission or regeneration 0.000 346.308 694.533 346.308 11.40 11.4 6.40 5.00 6.30

851770 Parts of telephone sets, telephones for cellular networks or for other 0.001 160.334 741.104 160.333 10.0 10.0 0.00 0.00 5.00

0

500

1,000

1,500

2,000

2,500

2010 2011 2012 2013 2014

USD

Mill

ions

Cellular networks (HS 8517)




Electronic Equipment

Thailand’s total trade potential for gramophone and LEDs is USD 303 million. Pakistan’s import from the world and Thailand’s exports to the world showed a significant increase after 2012. The tariff applied on Thailand by Pakistan is 7.7% for gramophone records and other sound-recording media while it is less than that for China, Sri Lanka and Malaysia. Thailand also faces a tariff of 5% on HS 854140 whereas Pakistan’s FTA partners face zero tariffs on this item.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

852380Gramophone records and other media for the recording of sound or of ot

0.000 97.065 148.327 97.065 7.7 7.70 3.50 0.00 5.20

854140Photosensitive semiconduct device,photovoltaic cells&light emit diodes

0.005 205.562 253.151 205.557 5.0 5.0 0.00 0.00 0.00

Electronic Equipment

Thailand’s total trade potential for gramophone and LEDs is USD 303 million. Pakistan’s import from the world and Thailand’s exports to the world showed a significant increase after 2012. The tariff applied on Thailand by Pakistan is 7.7% for gramophone records and other sound-recording media while it is less than that for China, Sri Lanka and Malaysia. Thailand also faces a tariff of 5% on HS 854140 whereas Pakistan’s FTA partners face zero tariffs on this item.




2014

Pakistan's imports

from world 2014


world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

852380 Gramophone records and other media for the recording of sound or of ot

0.000 97.065 148.327 97.065 7.7 7.70 3.50 0.00 5.20

854140 Photosensitive semiconduct device,photovoltaic cells&light emit diodes

0.005 205.562 253.151 205.557 5.0 5.0 0.00 0.00 0.00

0

100

200

300

400

500

600

2010 2011 2012 2013 2014

USD

Mill

ions

Electronic equipment (HS 852380 & HS 854140)




Automobiles

Thailand’s total trade potential for HS 87 items is USD 751 million, with the highest potential recorded for HS 870321 (automobiles with reciprocating piston engine displacing not more than 1000cc), worth USD 248 million in 2014. For the high potential HS 87 items considered the tariff applied by Pakistan is the same for Thailand and othe FTA countries.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

870321Automobiles w reciprocatg piston engine displacg not more than 1000 cc

0.000 283.222 247.977 247.977 52.5 52.5 52.5 52.5 52.5


0.085 212.439 2,971.794 212.354 60.0 60.0 60.0 60.0 60.0


0.387 162.002 1,692.915 161.615 91.7 91.7 91.7 91.7 91.7


5.704 63.427 7,596.584 57.723 60.0 60.00 60.00 60.00 60.00

871120Motorcycles with reciprocatg piston engine displacg > 50 cc to 250 cc

1.627 73.833 482.264 72.206 65.0 65.00 65.00 65.00 65.00

| 109

Automobiles

Thailand’s total trade potential for HS 87 items is USD 751 million, with the highest potential recorded for HS 870321 (Automobiles with reciprocating piston engine displacing not more than 1000cc), worth USD 248 million in 2014. For the high potential HS 87 items considered the tariff applied by Pakistan

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2010 2011 2012 2013 2014

USD

Mill

ions

Automobiles (HS 8703, 8704 & 8711)




HS Code Product Label Thailand's exports to

Pakistan 2014

Pakistan's imports from world 2014


Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

870321 Automobiles w reciprocatg piston engine displacg not more than 1000 cc 0.000 283.222 247.977 247.977 52.5 52.5 52.5 52.5 52.5

870322 Automobiles w reciprocatg piston engine displacg > 1000 cc to 1500 cc 0.085 212.439 2,971.794 212.354 60.0 60.0 60.0 60.0 60.0

870323 Automobiles w reciprocatg piston engine displacg > 1500 cc to 3000 cc 0.387 162.002 1,692.915 161.615 91.7 91.7 91.7 91.7 91.7

870421 Diesel powered trucks with a GVW not exceeding five tonnes 5.704 63.427 7,596.584 57.723 60.0 60.00 60.00 60.00 60.00

871120 Motorcycles with reciprocatg piston engine displacg > 50 cc to 250 cc 1.627 73.833 482.264 72.206 65.0 65.00 65.00 65.00 65.00


Pneumatic Tyre

Thailand’s export potential with Pakistan for pneumatic tyres is USD 171 million. Thailand’s exports to Pakistan peaked at USD 25 million in 2013 before dropping to USD 19 million in 2014. The tariff applied by Pakistan on Thailand, Sri Lanka and Malaysia is 12.5% whereas it is 10% for China.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

401120Pneumatic tyres new of rubber for buses or lorries

19.326 190.183 1,112.397 170.857 12.5 12.5 10.00 12.5 12.5

| 111

Pneumatic Tyre

Thailand’s export potential with Pakistan for pneumatic tyres is USD 171 million. Thailand’s exports to Pakistan peaked at USD 25 million in 2013 before dropping to USD 19 million in 2014. The tariff applied by Pakistan on Thailand, Sri Lanka and Malaysia is 12.5% whereas it is 10% for China.




2014

Pakistan's imports

from world 2014


world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

401120 Pneumatic tyres new of rubber for buses or lorries 19.326 190.183 1,112.397 170.857 12.5 12.5 10.00 12.5 12.5

0

200

400

600

800

1,000

1,200

1,400

1,600

2010 2011 2012 2013 2014

Pneumatic tyre (HS 401120)




Electro Medical Apparatus

Thailand’s total export potential with Pakistan for medical instruments is USD 98 million. Thailand’s exports to Pakistan have remained below USD 1 million over the period considered while its exports to the world peaked at USD 344 million in 2012. The tariff applied by Pakistan on Thailand is 5% while it is less than that for Paksitan’s FTA partners.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia


0.566 98.962 298.245 98.396 5.0 5.00 1.30 0.00 1.30

Electro Medical Apparatus

Thailand’s total export potential with Pakistan for medical instruments is USD 98 million. Thailand’s exports to Pakistan have remained below USD 1 million over the period considered while its exports to the world peaked at USD 344 million in 2012. The tariff applied by Pakistan on Thailand is 5% while it is less than that for Paksitan FTA partners.




2014

Pakistan's imports

from world 2014


world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

901890 Instruments and appliances used in medical or veterinary sciences, nes 0.566 98.962 298.245 98.396 5.0 5.00 1.30 0.00 1.30

0

50

100

150

200

250

300

350

400

2010 2011 2012 2013 2014

USD

Mill

ions

Electro medical apparatus (HS 901890)




Staple Fibres of Polyester and Viscose

Thailand’s export potential with Pakistan for staple fibres of polyester and viscose is USD 268 million. Thailand’s exports to Pakistan declined from USD 38 million in 2011 to USD 20 million in 2014. Thailand’s exports to the world also experienced a decline over the same period. The tariff applied by Pakistan on Thailand is 10% for polyester fibres and 5% for fibres of viscose, which is equal to Pakistan’s tariffs for Malaysia and China for the two products but higher than its tariffs for Sri Lanka.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

550320Staple fibres of polyesters, not carded or combed

7.898 165.425 288.218 157.5 10.00 10.00 10.00 5.00 10

550410Staple fibres of viscose, not carded or combed

12.431 183.860 122.956 110.525 5.0 5.0 5.0 0.00 5.0

| 113

Staple Fibres of Polyester and Viscose

Thailand’s export potential with Pakistan for staple fibres of polyester and viscose is USD 268 million. Thailand’s exports to Pakistan declined from USD 38 million in 2011 to USD 20 million in 2014. Thailand’s exports to the world also experienced a decline over the same period. The tariff applied by Pakistan on Thailand is 10% for polyester fibres and 5% for fibres of viscose, which is equal to Pakistan’s tariffs for Malaysia and China for the two products but higher than its tariffs for Sri Lanka.




2014

Pakistan's imports

from world 2014


world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

550320 Staple fibres of polyesters, not carded or combed 7.898 165.425 288.218 157.5 10.00 10.00 10.00 5.00 10

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014

USD

Mill

ions

Staple fibres of polyester and viscose (HS 5503 & HS 5504)




Medicaments

Thailand’s trade potential with Pakistan for medicaments is USD 216 million. The tariff applied by Pakistan on Thailand is 13.60% whereas it is 11% for China, 12% for Malyasia and zero for Sri Lanka.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia


| 115

Medicaments

Thailand’s trade potential with Pakistan for medicaments is USD 216 million. The tariff applied by Pakistan on Thailand is 13.60% whereas it is 11% for China, 12% for Malyasia and zero for Sri Lanka.




2014

Pakistan's imports

from world 2014


world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia


0

50

100

150

200

250

300

2010 2011 2012 2013 2014

USD

Mill

ions

Medicaments (HS 300490)




Reactive Dyes

Thailand’s trade potential with Pakistan for reactive dyes is USD 83 million. Thailand’s exports to Pakistan peaked in 2013 at USD 7 million. Its exports to the world have risen steadily since 2011. The tariff applied by Pakistan on Thailand is 15%. China also faces a 15% tariff while Malaysia faces a tariff of 10% and Sri Lanka is exempted from tariffs.




2014


from world 2014


Thailand Trade

Potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

320416Reactive dyes and preparations based thereon

6.459 89.464 144.074 83.0 15.00 15.00 15.00 0.00 10

Reactive Dyes

Thailand’s trade potential with Pakistan for reactive dyes is USD 83 million. Thailand’s exports to Pakistan peaked in 2013 at USD 7 million. Its exports to the world have risen steadily since 2011. The tariff applied by Pakistan on Thailand is 15%. China also faces a 15% tariff while Malaysia faces a tariff of 10% and Sri Lanka is exempted from tariffs.




2014

Pakistan's imports

from world 2014


world 2014

Thailand Trade

potential


Tariff on Thailand

Tariff on China

Tariff on Sri Lanka

Tariff on Malaysia

320416 Reactive dyes and preparations based thereon 6.459 89.464 144.074 83.0 15.00 15.00 15.00 0.00 10

0

20

40

60

80

100

120

140

160

2010 2011 2012 2013 2014

USD

Mill

ions

Reactive dyes (HS 320416)




Section V: Prospective Trade


Prospective Trade at 6 Digit HS Code Level

Simulation Study Implications A Trains data set, taken from the World Bank web site, is used for the simulation study conducted using World Integrated Trade Solution (WITS) software to calculate prospective trade and to approximate the potential gain from the Pakistan-Thailand FTA to both sides. This simulation study has been used with the following assumptions:

• The FTA will reduce tariff rates to zero.

• Substitution and supply elasticities are fixed at 1.5 and 99 respectively.

• The price effect is also fixed at zero.

The FTA affects trade through trade creation and trade diversion. Trade creation is referred to as an efficiency gain via the overall increase in trade that results from the displacement of domestic production. Trade diversion, on the other hand, is an efficiency loss that results from the operations of a free trade area because less efficient firms from a member country displace more efficient producers from a non-member country.


Pakistan’s Prospective Exports to Thailand of Top Growth Items at 6 Digit HS Code Level

Pakistan’s Prospective Exports to Thailand: Simulation ResultsAfter applying the simulation study, trade creation and trade diversion values are extracted for top 100 export potential items and then sorted out in descending order for growth percentage values. The simulation indicates that Pakistan’s highest prospective growth to Thailand will be within women/girls/boys/men cotton trousers and T-shirts, pullovers, textile made up articles, footwear and vegetables. At the 6 digit HS code level 27 items exhibit more than a 1% prospective growth rate under this simulation. Pakistan’s exports to Thailand would grow only 32% for high potential items at the 6 digit HS code level.

Figures in USD MillionsPAKISTAN’S PROSPECTIVE EXPORTS TO THAILAND OF TOP GROWTH ITEMS AT 6 DIGIT HS CODE LEVEL



2014

Trade Creation

Effect

Trade Diversion

Effect

Total Trade Effect

Pakistan’s Prospective

Trade

% Growth in Pakistan

Trade

620462 Womens/girls trousers and shorts, of cotton, not knitted 0.03 2.496 0.292 2.788 2.818 9,294.37

620342 Mens/boys trousers and shorts, of cotton, not knitted 0.01 1.010 0.255 1.266 1.280 9,039.60

620469 Womens/girls trousers & shorts,of other textile materials,not knitted 0.00 0.047 0.094 0.141 0.145 3,526.30

640399 Footwear, outer soles of rubber/plastics uppers of leather, nes 0.00 0.005 0.010 0.015 0.016 1,549.56

630710 Floor-cloths,dish-cloths,dusters & similar cleaning cloths,of tex mat 0.00 0.005 0.006 0.011 0.012 1,129.62

611020 Pullovers, cardigans and similar articles of cotton, knitted 0.01 0.015 0.032 0.047 0.057 473.52

140490 Vegetable products nes 0.00 0.001 0.003 0.004 0.005 425.75

940490 Articles of bedding/furnishing, nes, stuffed or internally fitted 0.01 0.004 0.008 0.012 0.017 234.34

610910 T-shirts, singlets and other vests, of cotton, knitted 0.01 0.009 0.021 0.030 0.043 230.88

610510 Mens/boys shirts, of cotton, knitted 0.06 0.021 0.053 0.074 0.131 130.10

950699 Articles&equip for sports&outdoor games nes&swimmg&paddlg pools 0.09 0.019 0.030 0.049 0.134 58.16

392690 Articles of plastics or of other materials of Nos 39.01 to 39.14 nes 0.02 0.005 0.008 0.013 0.037 55.68


PAKISTAN’S PROSPECTIVE EXPORTS TO THAILAND OF TOP GROWTH ITEMS AT 6 DIGIT HS CODE LEVEL



2014

Trade Creation

Effect

Trade Diversion

Effect

Total Trade Effect

Pakistan’s Prospective

Trade

% Growth in Pakistan

Trade

410449 Hides and skins of bovine "incl. buffalo" or equine animals, in the dr 0.11 0.027 0.031 0.059 0.168 53.85

30617 Other frozen shrimps and prawns 6.02 1.407 1.509 2.916 8.933 48.46

130232 Mucilages & thickeners derived from locust beans & seeds or guar seeds 0.09 0.015 0.020 0.035 0.124 39.28

630790 Made up articles, of textile materials, nes, including dress patterns 0.02 0.002 0.002 0.004 0.019 26.51

630900 Worn clothing and other worn articles 1.04 0.070 0.207 0.276 1.319 26.50

630260 Toilet&kitchen linen,of terry towellg or similar terry fab,of cotton 0.20 0.017 0.034 0.051 0.249 25.77

410799 Leather "incl. parchment-dressed leather" of the portions, strips or s 0.18 0.017 0.019 0.037 0.212 20.96

251512 Marble & travertine,merely cut,by sawing or otherwise into blocks etc 0.04 0.008 0.001 0.008 0.049 20.57

20230 Bovine cuts boneless, frozen 0.51 0.025 0.054 0.079 0.591 15.50

410719 Leather "incl. parchment-dressed leather" of the whole hides and skins 0.25 0.016 0.019 0.035 0.287 13.71

30499 Frozen fish meat whether or not minced (excl. swordfish, toothfish and 0.49 0.012 0.035 0.047 0.533 9.59

901849 Instruments and appliances, used in dental sciences, nes 0.33 0.005 0.013 0.018 0.343 5.48

300490 Medicaments nes, in dosage 0.80 0.006 0.038 0.044 0.843 5.47

870899 Motor vehicle parts nes 0.16 0.002 0.003 0.006 0.168 3.44

901890 Instruments and appliances used in medical or veterinary sciences, nes 1.86 0.008 0.014 0.022 1.883 1.17

30289 Fresh or chilled fish, n.e.s. 1.71 0.004 0.008 0.012 1.719 0.68

121190 Plants &pts of plants(incl sed&fruit) usd in pharm,perf,insect etc nes 0.40 0.000 0.000 0.001 0.403 0.21

210690 Food preparations nes 0.46 0.000 0.000 0.000 0.456 0.04

520100 Cotton, not carded or combed 10.16 0.000 0.000 0.000 10.155 0.00


Thailand’s Prospective Exports to Pakistan of Top Growth Items at 6 Digit HS Code Level

Thailand’s Prospective Exports to Pakistan: Simulation ResultsAfter applying the simulation study, trade creation and trade diversion values were extracted for the top 100 export potential items and then sorted out in the descending order of growth percentage values. Thailand’s highest prospective growth items to Pakistan included automobiles more than 1000 cc, motorcycles having more than 50cc engine and for static converters. At the 6 digit HS code level 37 items exhibited more than a 1% prospective growth rate. This simulation suggests that Thailand’s exports to Pakistan would grow 128% for high potential items at the 6 digit HS code level.

Figures in USD MillionsTHAILAND’S PROSPECTIVE EXPORTS TO PAKISTAN OF TOP GROWTH ITEMS AT 6 DIGIT HS CODE LEVEL



2014

Trade Creation

Effect

Trade Diversion

Effect

Total Trade Effect

Thailand’s Prospective

Trade

% Growth in Thailand

Trade

852990 Parts suitable f use solely/princ w the app of headings 85.25 to 85.28 0.001 0.99 2.07 3.06 3.06 306088.43

870322 Automobiles w reciprocatg piston engine displacg > 1000 cc to 1500 cc 0.085 21.02 30.81 51.83 51.91 60972.41

870323 Automobiles w reciprocatg piston engine displacg > 1500 cc to 3000 cc 0.387 30.85 31.20 62.05 62.44 16033.57

850440 Static converters, nes 0.003 0.02 0.02 0.04 0.04 1369.06

851770 Parts of telephone sets, telephones for cellular networks or for other 0.001 0.00 0.01 0.01 0.01 932.30

871120 Motorcycles with reciprocatg piston engine displacg > 50 cc to 250 cc 1.627 3.57 7.23 10.80 12.43 663.94

850300 Parts of electric motors,generators,generatg sets & rotary converters 0.005 0.02 0.01 0.03 0.04 636.25

854449 Electric conductors, for a voltage not exceeding 80 V, nes 0.016 0.02 0.04 0.06 0.08 385.60

870421 Diesel powered trucks with a GVW not exceeding five tonnes 5.704 8.71 7.56 16.27 21.97 285.19

851769 Apparatus for the transmission or reception of voice, images or other 0.003 0.00 0.00 0.00 0.01 128.09

850720 Lead-acid electric accumulators nes 0.011 0.01 0.01 0.01 0.02 103.21

840999 Parts for diesel and semi-diesel engines 0.043 0.02 0.03 0.04 0.09 100.25


THAILAND’S PROSPECTIVE EXPORTS TO PAKISTAN OF TOP GROWTH ITEMS AT 6 DIGIT HS CODE LEVEL



2014

Trade Creation

Effect

Trade Diversion

Effect

Total Trade Effect


Trade


Trade

390720 Polyethers nes 0.024 0.01 0.01 0.02 0.05 92.23

190110 Prep of cereals,flour,starch/milk f infant use,put up f retail sale 1.545 0.68 0.62 1.29 2.84 83.79

300490 Medicaments nes, in dosage 0.035 0.01 0.02 0.02 0.06 67.58

841590 Parts of air conditioning machines 8.255 2.55 2.70 5.25 13.51 63.64

848180 Taps, cocks, valves and similar appliances, nes 0.630 0.18 0.22 0.40 1.03 63.59

690890 Tiles, cubes and sim nes, glazed ceramics 0.302 0.11 0.06 0.17 0.47 55.59

271019 Other petroleum oils and preparations 1.097 0.36 0.17 0.53 1.63 48.48

210690 Food preparations nes 2.733 0.46 0.69 1.15 3.88 42.08

841430 Compressors of a kind used in refrigerating equipment 9.076 1.28 1.76 3.04 12.12 33.51

540233 Textured yarn nes,of polyester filaments,not put up for retail sale 9.862 1.76 1.24 3.00 12.87 30.46

540247 Filament yarn of polyester, incl. monofilament of < 67 decitex, single 0.138 0.01 0.02 0.03 0.17 23.98

230990 Animal feed preparations nes 0.570 0.06 0.07 0.13 0.70 22.90

382490 Chemical/allied industry preparations/prods nes 1.950 0.17 0.26 0.43 2.38 22.30

401120 Pneumatic tires new of rubber for buses or lorries 19.326 1.43 2.65 4.08 23.40 21.10

550410 Staple fibres of viscose, not carded or combed 12.431 1.64 0.72 2.36 14.79 18.99

847989 Machines & mechanical appliances nes having individual functions 0.076 0.01 0.01 0.01 0.09 18.21

841989 Machinery,plant/laboratory equip f treat of mat by change of temp nes 0.766 0.09 0.05 0.14 0.90 18.05

390110 Polyethylene having a specific gravity of less than 0.94 2.543 0.17 0.27 0.44 2.99 17.49

320416 Reactive dyes and preparations based thereon 6.459 0.56 0.49 1.05 7.51 16.22

901890 Instruments and appliances used in medical or veterinary sciences, nes 0.566 0.02 0.04 0.06 0.62 10.31


THAILAND’S PROSPECTIVE EXPORTS TO PAKISTAN OF TOP GROWTH ITEMS AT 6 DIGIT HS CODE LEVEL



2014

Trade Creation

Effect

Trade Diversion

Effect

Total Trade Effect


Trade


Trade

390210 Polypropylene 7.809 0.33 0.45 0.78 8.59 10.02

720449 Ferrous waste and scrap, iron or steel, nes 0.579 0.02 0.04 0.06 0.63 9.55

390120 Polyethylene having a specific gravity of 0.94 or more 6.541 0.22 0.36 0.58 7.13 8.94

390230 Propylene copolymers 11.787 0.41 0.37 0.78 12.57 6.63

841480 Air or gas compressors, hoods 0.441 0.01 0.01 0.02 0.46 3.70

550320 Staple fibres of polyesters, not carded or combed 7.898 0.09 0.16 0.25 8.15 3.19

848310 Transmission shafts and cranks, including cam shafts and crank shafts 2.638 0.02 0.02 0.04 2.68 1.55

853710 Boards,panels,includg numerical control panels,for a voltage <=1000 V 2.768 0.00 0.01 0.01 2.78 0.42

380891 Insecticides 0.150 0.00 0.00 0.00 0.15 0.03

841990 Parts of machinery, plant and equipment of heading No 84.19 1.011 0.00 0.00 0.00 1.01 0.01

847130 Portable digital computers <10kg 0.002 0.00 0.00 0.00 0.00 0.00

100510 Maize (corn) seed 6.467 0.00 0.00 0.00 6.47 0.00

290531 Ethylene glycol (ethanediol) 0.416 0.00 0.00 0.00 0.42 0.00

851712 Telephones for cellular networks mobile telephones or for other wireles 0.000 0.00 0.00 0.00 0.00

851762 Machines for the reception, conversion and transmission or regeneration 0.000 0.00 0.00 0.00 0.00

870321 Automobiles w reciprocatg piston engine displacg not more than 1000 cc 0.000 0.54 1.69 2.23 2.23

852380 Gramophone records and other media for the recording of sound or of ot 0.000 0.00 0.00 0.00 0.00


Section VI: Conclusion


ConclusionPotentially Low Gains from Pakistan-Thailand FTAPakistan’s total export potential with Thailand stood at USD 4.35 billion in 2014, whereas Thailand’s total export potential with Pakistan stood at USD 10.133 billion in the same year. While trade potential is an admittedly rough measure, the fact that Thailand’s potential for exports to Pakistan is five times Pakistan’s potential for exports to Thailand strongly suggests that the FTA, even assuming fair concessions granted by both sides, will see Thailand penetrate the Pakistani market to a much greater degree than vice versa. Moreover, Thailand’s high potential exports to Pakistan are not capital goods, while Pakistan’s high potential exports to Thailand are generally not high value-added goods.

Pakistan’s top 50 high potential export items represent a total trade potential of USD 2.8 billion and about 38% of these high potential items are already tariff exempted by Thailand. Therefore in practice the FTA may not bring as much benefit to Pakistan in terms of concessionary rates as one might expect. Under the simulation study conducted above, following the signing of the FTA Pakistan’s imports from Thailand will rise to USD 1.71 billion whereas Pakistan exports will come to a mere USD 160 million, resulting in a trade deficit of USD 1.54 billion. As already noted, Thailand’s high potential exports to Pakistan are not capital goods, but rather consumer goods, making the potential trade deficit that will come about after the FTA harder to justify. Under the simulation study conducted Pakistan’s highest growth items are apparel and home textile articles but their actual export value will grow only marginally from the current export value of USD 1.4 million to USD 6.1 million.

Problems of Institutional CapacityPakistan’s previous FTAs and other trade agreements have been poorly negotiated, with the lack of beneficial terms for Pakistani products reflected by lackluster trade performances in the aftermath of the agreements. Pakistan failed to secure comprehensive concessions on high potential export items under its FTAs with China and Malaysia and its PTA with Indonesia. It has also failed to make significant in-roads into the Sri Lankan market, despite an FTA with Sri Lanka being in place since 2005. 2

Issues such as these that perennially impact Pakistan’s trade agreements can be attributed to a lack of institutional capacity, which is perhaps nowhere more visible than in the case of the National Tariff Commission. For instance, the Pakistan-Thailand FTA may lead to demands from certain local industries for safeguard measures against competition from Thai products. These need to be investigated by the National Tariff Commission. However, the NTC faces several serious challenges to fulfilling its responsibilities.

2 For further details see the Pakistan Business Council’s reports on Pakistan’s trade agreements with China, Malaysia, Sri Lanka and Indonesia.


There are currently major legislative hurdles to the effective functioning of the NTC: under The Anti-Dumping Ordinance, 2015 Section 70 (1) (i) and Countervailing Duties Ordinance, 2015 Section 32 (2) (a) any interested party can appeal to the appellate tribunal against the initiation of investigation or a preliminary determination by the NTC. Granting the right of appeal at the initiation of an investigation raises the risk of abuse as any investigation can be delayed by the misuse of the section. The right of appeal should instead be granted at the completion of the investigation. No action has been taken so far on this issue. Furthermore, even if the appellate tribunal is able to give a ruling, if the petitioner wishes to challenge the decision of the tribunal he must bring the issue before the judiciary. However, the judges who handle these cases are not aware of the relevant trade regulations and this leads to wrongheaded decisions. Another issue that has been identified is that in order to receive safeguard measures an industry must be able to present a precedent, meaning they must already have evidence of damage incurred by dumping, artificially cheap imports etc. Yet the point of safeguard measures is to pre-empt such damage, and therefore it makes little sense for their instatement to depend on such damage already having occurred for a period.

Under the NTC ordinance, 2015, the NTC is now responsible for performing trade research, tariff rationalization and harmonization of HS codes. These tasks are essential to the promotion of Pakistani trade and yet the NTC simply does not at the current time possess the resources to undertake them successfully. Pakistan’s inability to perform these functions seriously compromises its chances of negotiating a beneficial free trade agreement with Thailand and dealing with various contingencies that may arise following the enforcement of the agreement.

For these reasons a Pakistan-Thailand FTA does not at the present time appear to be a feasible move for Pakistan. The numbers suggest that Pakistan’s potential gains from such an agreement will be modest under ideal circumstances (all tariffs slashed to zero) while Thai products will find a significant foothold in the Pakistani market. In reality, the circumstances of the agreement will be far from ideal due to institutional capacity issues that Pakistan continues to face. Before the Pakistan-Thailand FTA can be seriously considered issues having to do with institutional capacity and related lack of resources must be identified and addressed. If not, Pakistan stands to repeat its missteps.


Annexure




HS Code Product labelPakistan’s Exports to

Thailand 2014

Thailand's Imports from world 2014

Pakistan's Exports to world 2014

Pakistan Export

Potential to Thailand

901890 Instruments and appliances used in medical or veterinary sciences, nes 1.86 193.58 319.53 191.72

520100 Cotton, not carded or combed 10.16 676.27 180.94 170.79

80520 Mandarins(tang&sats)clementines&wilkgs &sim citrus hybrids,fresh/drid 0.01 111.34 164.23 111.33

711319 Articles of jewellry&pt therof of/o prec met w/n platd/clad w prec met 0.00 486.18 105.22 105.22

730690 Tubes, pipe & hollow profiles, iron or steel, welded, nes 0.00 101.38 96.20 96.20

390760 Polyethylene terephthalate 0.02 86.60 140.08 86.59

300490 Medicaments nes, in dosage 0.80 1,197.28 86.57 85.77

151620 Veg fats &oils&fractions hydrogenatd,inter/re-esterifid,etc,ref'd/not 0.00 83.17 115.27 83.17

110100 Wheat or meslin flour 0.01 77.75 195.35 77.74

30617 Other frozen shrimps and prawns 6.02 95.41 75.41 69.40

740400 Waste and scrap, copper or copper alloy 0.00 63.24 104.24 63.24

640399 Footwear, outer soles of rubber/plastics uppers of leather, nes 0.00 55.05 77.54 55.05

390319 Polystyrene nes 0.00 51.57 52.25 51.57

730890 Structures&parts of structures,i/s (ex prefab bldgs of headg no.9406) 0.44 149.49 50.07 49.64

170490 Sugar confectionery nes (includg white chocolate),not containg cocoa 0.00 68.36 48.61 48.61

410719 Leather "incl. parchment-dressed leather" of the whole hides and skins 0.25 87.22 44.66 44.41

520812 Plain weave cotton fabric,>/=85%, >100 g/m2 to 200 g/m2, unbleached 0.05 44.10 240.08 44.05

Table 1. lists the top 100 high potential Pakistani exports to Thailand at the 6 Digit HS code level.




Thailand 2014

Thailand's imports from world 2014

Pakistan's exports to world 2014

Pakistan Export


481159 Paper and paperboard, surface-coloured, surface-decorated or printed, 0.00 312.38 42.01 42.01

610910 T-shirts, singlets and other vests, of cotton, knitted 0.01 38.89 195.41 38.87

630790 Made up articles, of textile materials, nes, including dress patterns 0.02 57.07 36.82 36.81

940490 Articles of bedding/furnishing, nes, stuffed or internally fitted 0.01 36.55 85.14 36.55

620342 Mens/boys trousers and shorts, of cotton, not knitted 0.01 34.94 664.53 34.93

140490 Vegetable products nes 0.00 36.88 31.41 31.41

620462 Womens/girls trousers and shorts, of cotton, not knitted 0.03 29.82 482.97 29.79

870190 Wheeled tractors nes 0.00 194.58 26.25 26.25

841182 Gas turbines nes of a power exceeding 5000 KW 0.00 182.46 23.19 23.19

610990 T-shirts,singlets and other vests,of other textile materials,knitted 0.00 22.06 76.09 22.06

300439 Hormones nes, not containing antibiotics, in dosage,o/t contraceptive 0.13 36.37 21.58 21.45

190531 Sweet biscuits 0.00 39.23 20.57 20.57

391590 Plastics waste and scrap nes 0.08 20.56 23.14 20.48

611020 Pullovers, cardigans and similar articles of cotton, knitted 0.01 20.49 39.46 20.48

950699 Articles&equip for sports&outdoor games nes&swimmg&paddlg pools 0.09 20.02 47.34 19.93

851712 Telephones for cellular networks mobile telephones or for other wirele 0.00 3,824.80 19.82 19.82

190590 Communion wafers,empty cachets f pharm use&sim prod&bakers' wares nes 0.00 36.39 19.58 19.58

210690 Food preparations nes 0.46 513.75 19.88 19.42

901849 Instruments and appliances, used in dental sciences, nes 0.33 37.00 19.73 19.40

320810 Paints&varnishes based on polyesters,dispersed in a non-aqueous medium 0.00 23.22 19.28 19.28




Thailand 2014



Pakistan Export


700529 Float glass etc in sheets, non-wired nes 0.00 18.85 20.64 18.85

40390 Buttermilk,curdled milk & cream,kephir & ferm or acid milk & cream nes 0.00 74.34 18.63 18.63

390410 Polyvinyl chloride, not mixed with any other substances 0.00 106.72 18.27 18.27

761510 Table, kitchen or other household articles and parts thereof, and pot scourers and scourin 0.00 17.80 29.31 17.80

70190 Potatoes, fresh or chilled nes 0.00 17.73 51.20 17.73

840710 Aircraft engines, spark-ignition reciprocating or rotary type 0.00 248.66 17.68 17.68

230120 Flour,meal&pellet of fish,crust,mol/oth aqua invert,unfit human cons 0.00 21.95 17.44 17.44

392062 Film and sheet etc, non-cellular etc, of polyethylene terephthalates 0.00 52.26 17.37 17.37

630710 Floor-cloths,dish-cloths,dusters & similar cleaning cloths,of tex mat 0.00 17.25 392.75 17.25

20230 Bovine cuts boneless, frozen 0.51 53.50 17.58 17.07

551219 Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl 0.00 16.90 27.43 16.90

850710 Lead-acid electric accumulators of a kind usd f startg piston engines 0.00 21.00 16.73 16.73

841510 Air conditioning machines window or wall types, self-contained 0.00 80.30 16.37 16.37

520524 Cotton yarn,>/=85%, single, combed, 192.31 >dtex>/=125, not put up 0.07 15.78 19.36 15.71

170230 Glucose&glucose syrup nt cntg fruct/cntg in dry state <20% by wt fruct 0.00 15.48 32.31 15.48

252620 Natural steatite, crushed or powdered 0.49 48.22 15.93 15.44

960200 Workd veg/mineral carvg mat&art,carvd art nes;workd unhardend gelatin 0.16 15.44 18.97 15.28

170310 Cane molasses 0.00 17.34 15.18 15.18

720839 Hot roll iron/steel nes, coil >600mm x <3mm 0.00 509.46 15.06 15.06

610510 Mens/boys shirts, of cotton, knitted 0.06 14.99 269.38 14.93




Thailand 2014



Pakistan Export


620469 Womens/girls trousers & shorts,of other textile materials,not knitted 0.00 14.86 95.39 14.86

841199 Parts of gas turbines nes 0.02 361.05 14.46 14.44

720421 Waste and scrap, stainless steel 0.12 20.19 14.39 14.26

70310 Onions and shallots, fresh or chilled 0.00 13.61 24.51 13.61

121190 Plants &pts of plants(incl sed&fruit) usd in pharm,perf,insect etc nes 0.40 16.19 14.00 13.60

30289 Fresh or chilled fish, n.e.s. 1.71 14.76 19.98 13.05

630260 Toilet&kitchen linen,of terry towellg or similar terry fab,of cotton 0.20 13.17 776.39 12.97

870899 Motor vehicle parts nes 0.16 1,308.72 13.10 12.94

841451 Fans: table,roof etc w a self-cont elec mtr of an output nt excdg 125W 0.00 12.56 38.56 12.56

630900 Worn clothing and other worn articles 1.04 54.24 13.58 12.54

841810 Combined refrigerator-freezers, fitted with separate external doors 0.00 21.88 12.45 12.45

740319 Refined copper products, unwrought, nes 0.00 16.29 12.33 12.33

841490 Parts of vacuum pumps, compressors, fans, blowers, hoods 0.00 423.18 12.27 12.27

392490 Household and toilet articles nes, of plastics 0.00 43.80 12.22 12.22

300390 Medicaments nes, formulated, in bulk 0.00 27.28 12.09 12.09

220720 Ethyl alcohol and other spirits, denatured, of any strength 2.35 14.44 102.94 12.09

300590 Dressings&similar articles,impreg or coatd or packagd for md use,nes 0.00 25.21 12.07 12.07

120740 Sesamum seeds, whether or not broken 0.00 11.96 65.40 11.96

821220 Safety razor blades, including razor blade blanks in strips 0.00 12.70 11.95 11.95

880390 Parts of balloons, dirigibles, and spacecraft nes 0.04 11.96 12.33 11.92




Thailand 2014



Pakistan Export


251512 Marble & travertine,merely cut,by sawing or otherwise into blocks etc 0.04 11.92 43.25 11.88

843143 Parts of boring or sinking machinery, whether or not self-propelled 0.12 76.55 11.77 11.64

20210 Bovine carcasses and half carcasses, frozen 0.17 11.80 12.29 11.64

410799 Leather "incl. parchment-dressed leather" of the portions, strips or s 0.18 49.99 11.55 11.37

190219 Uncooked pasta, not stuffed or otherwise prepared, nes 0.00 11.31 11.34 11.31

300420 Antibiotics nes, in dosage 1.58 95.03 12.87 11.29

600622 Dyed cotton fabrics, knitted or crocheted, of a width of > 30 cm (excl 0.00 41.50 11.23 11.23

392020 Film and sheet etc, non-cellular etc, of polymers of propylene 0.00 85.94 11.03 11.03

170410 Chewing gum containing sugar, except medicinal 0.00 10.89 50.62 10.89

300410 Penicillins or streptomycins and their derivatives, in dosage 0.02 19.43 10.90 10.88

391890 Floor, wall and ceiling coverings etc, of plastics nes 0.00 10.86 10.94 10.86

200989 Juice of fruit or vegetables, unfermented, whether or not containing added sugar or other 0.00 15.88 10.83 10.83

520299 Cotton waste, nes 0.74 11.23 34.33 10.49

620520 Mens/boys shirts, of cotton, not knitted 0.00 29.90 10.41 10.41

630140 Blankets (o/t electric) and travelling rugs, of synthetic fibres 0.00 10.28 22.25 10.28

392690 Articles of plastics or of other materials of Nos 39.01 to 39.14 nes 0.02 1,533.84 10.22 10.19

410449 Hides and skins of bovine "incl. buffalo" or equine animals, in the dr 0.11 128.14 10.23 10.12

847330 Parts&accessories of automatic data processg machines&units thereof 0.00 2,946.20 10.01 10.01

130232 Mucilages & thickeners derived from locust beans & seeds or guar seeds 0.09 10.03 72.01 9.95




Thailand 2014



Pakistan Export


30499 Frozen fish meat whether or not minced (excl. swordfish, toothfish and 0.49 60.87 10.42 9.93

681599 Articles of stone or of other mineral substances nes 0.00 22.23 9.68 9.68




HS Code Product LabelThailand's exports to Pakistan

Pakistan's imports from

world


world

Thailand Trade

Potential

271019 Other petroleum oils and preparations 1.097 6,266.763 7,468.989 6,265.666

271011 Light petroleum oils and preparations 0.000 2,291.332 2,336.174 2,291.332

851712 Telephones for cellular networks mobile telephones or for other wirele 0.000 643.116 506.572 506.572

390210 Polypropylene 7.809 458.381 845.806 450.572

270900 Petroleum oils and oils obtained from bituminous minerals, crude 0.000 5,609.124 420.968 420.968

290243 P-xylene 0.000 349.339 715.098 349.339

851762 Machines for the reception, conversion and transmission or regeneratio 0.000 346.308 694.533 346.308

390110 Polyethylene having a specific gravity of less than 0.94 2.543 304.474 1,669.561 301.931

870321 Automobiles w reciprocatg piston engine displacg not more than 1000 cc 0.000 283.222 247.977 247.977

300490 Medicaments nes, in dosage 0.035 279.618 216.001 215.966

390120 Polyethylene having a specific gravity of 0.94 or more 6.541 221.941 1,905.874 215.400

870322 Automobiles w reciprocatg piston engine displacg > 1000 cc to 1500 cc 0.085 212.439 2,971.794 212.354

854140 Photosensitive semiconduct device,photovoltaic cells&light emit diodes 0.005 205.562 253.151 205.557

401120 Pneumatic tires new of rubber for buses or lorries 19.326 190.183 1,112.397 170.857

382490 Chemical/allied industry preparations/prods nes 1.950 171.433 237.453 169.483

870323 Automobiles w reciprocatg piston engine displacg > 1500 cc to 3000 cc 0.387 162.002 1,692.915 161.615

851770 Parts of telephone sets, telephones for cellular networks or for other 0.001 160.334 741.104 160.333

Table 2. lists the top 100 high potential Thai exports to Pakistan at the 6 digit HS code level.





world


world

Thailand Trade

Potential

550320 Staple fibres of polyesters, not carded or combed 7.898 165.425 288.218 157.527

540233 Textured yarn nes,of polyester filaments,not put up for retail sale 9.862 214.263 157.139 147.277

841430 Compressors of a kind used in refrigerating equipment 9.076 132.241 1,111.995 123.165

390230 Propylene copolymers 11.787 124.639 505.840 112.852

550410 Staple fibres of viscose, not carded or combed 12.431 183.860 122.956 110.525

481840 Sanitary articles of paper,incl sanit towels&napkin (diapers) f babies 0.046 109.683 319.977 109.637

847130 Portable digital computers <10kg 0.002 197.647 104.708 104.706

841199 Parts of gas turbines nes 0.209 102.686 220.289 102.477

901890 Instruments and appliances used in medical or veterinary sciences, nes 0.566 98.962 298.245 98.396

852380 Gramophone records and other media for the recording of sound or of ot 0.000 97.065 148.327 97.065

720449 Ferrous waste and scrap, iron or steel, nes 0.579 560.427 87.495 86.916

390720 Polyethers nes 0.024 110.732 85.992 85.968

850440 Static converters, nes 0.003 84.337 1,037.771 84.334

320416 Reactive dyes and preparations based thereon 6.459 89.464 144.074 83.005

151110 Palm oil, crude 0.000 81.073 135.714 81.073

840999 Parts for diesel and semi-diesel engines 0.043 80.494 273.245 80.451

841480 Air or gas compressors, hoods 0.441 79.198 312.930 78.757

290121 Ethylene 6.725 106.378 83.165 76.440

871120 Motorcycles with reciprocatg piston engine displacg > 50 cc to 250 cc 1.627 73.833 482.264 72.206

843049 Boring or sinking machinery nes, not self-propelled 0.003 88.679 71.250 71.247





world


world

Thailand Trade

Potential

210690 Food preparations nes 2.733 71.004 1,113.846 68.271

848180 Taps, cocks, valves and similar appliances, nes 0.630 68.879 506.607 68.249

190110 Prep of cereals,flour,starch/milk f infant use,put up f retail sale 1.545 67.800 75.835 66.255

841989 Machinery,plant/laboratory equip f treat of mat by change of temp nes 0.766 101.283 66.673 65.907

540247 Filament yarn of polyester, incl. monofilament of < 67 decitex, single 0.138 66.035 74.400 65.897

841280 Engines and motors nes 0.061 91.536 65.931 65.870

151190 Palm oil and its fractions refined but not chemically modified 0.000 1,862.524 65.366 65.366

100510 Maize (corn) seed 6.467 65.844 82.572 59.377

730429 Casings,,tubing, drill pipe, for oil drilling use 0.000 58.038 81.314 58.038

870421 Diesel powered trucks with a GVW not exceeding five tonnes 5.704 63.427 7,596.584 57.723

690890 Tiles, cubes and sim nes, glazed ceramics 0.302 57.033 89.777 56.731

850220 Generating sets with spark-ignition internal combustion piston engines 0.004 56.408 141.290 56.404

540752 Woven fabrics,>/=85% of textured polyester filaments, dyed, nes 0.114 55.370 103.905 55.256

760200 Waste and scrap, aluminium 0.000 55.024 115.949 55.024

847989 Machines & mechanical appliances nes having individual functions 0.076 54.587 94.682 54.511

854449 Electric conductors, for a voltage not exceeding 80 V, nes 0.016 54.044 194.516 54.028

901839 Needles, catheters, cannulae and the like, nes 0.000 53.989 99.615 53.989

850239 Electric generating sets 0.000 134.293 53.430 53.430

880240 Aircraft nes of an unladen weight exceeding 15,000 kg 0.000 106.161 52.535 52.535

852990 Parts suitable f use solely/princ w the app of headings 85.25 to 85.28 0.001 51.638 907.752 51.637





world


world

Thailand Trade

Potential

843143 Parts of boring or sinking machinery, whether or not self-propelled 0.003 60.885 50.922 50.919

851769 Apparatus for the transmission or reception of voice, images or other 0.003 160.675 50.607 50.604

853710 Boards,panels,includg numerical control panels,for a voltage <=1000 V 2.768 52.949 847.091 50.181

230990 Animal feed preparations nes 0.570 50.211 256.295 49.641

841990 Parts of machinery, plant and equipment of heading No 84.19 1.011 50.609 66.820 49.598

841590 Parts of air conditioning machines 8.255 57.373 547.945 49.118

380891 Insecticides 0.150 57.970 47.755 47.605

848310 Transmission shafts and cranks, including cam shafts and crank shafts 2.638 50.169 74.770 47.531

850300 Parts of electric motors,generators,generatg sets & rotary converters 0.005 47.210 121.666 47.205

871419 Motorcycle parts nes 9.531 56.017 599.480 46.486

850720 Lead-acid electric accumulators nes 0.011 61.298 46.170 46.159

290531 Ethylene glycol (ethanediol) 0.416 202.907 46.022 45.606

880390 Parts of balloons, dirigibles, and spacecraft nes 0.003 58.773 43.846 43.843

730890 Structures&parts of structures,i/s (ex prefab bldgs of headg no.9406) 0.034 42.524 459.833 42.490

390760 Polyethylene terephthalate 3.597 45.756 504.614 42.159

390690 Acrylic polymers nes, in primary forms 2.013 43.288 174.171 41.275

843149 Parts of cranes,work-trucks,shovels,and other construction machinery 0.001 40.887 46.986 40.886

840991 Parts for spark-ignition type engines nes 17.667 56.968 761.339 39.301

880330 Aircraft parts nes 0.121 38.749 675.688 38.628

720430 Waste and scrap, of tinned iron or steel 0.195 38.640 95.692 38.445





world


world

Thailand Trade

Potential

848210 Bearings, ball 0.684 38.446 275.650 37.762

847150 Digital processing units not sold as complete systems 0.000 37.076 47.834 37.076

870324 Automobiles with reciprocating piston engine displacing > 3000 cc 0.140 37.110 130.094 36.970

950300 Tricycles, scooters, pedal cars and similar wheeled toys; dolls'' carr 0.172 36.767 235.452 36.595

392690 Articles of plastics or of other materials of Nos 39.01 to 39.14 nes 5.382 40.991 780.316 35.609

841370 Centrifugal pumps nes 0.007 35.522 45.355 35.515

870431 Gas powered trucks with a GVW not exceeding five tonnes 0.008 35.469 2,674.631 35.461

390410 Polyvinyl chloride, not mixed with any other substances 5.997 39.607 314.334 33.610

870829 Parts and accessories of bodies nes for motor vehicles 17.075 49.868 895.163 32.793

841899 Parts of refrigerating or freezing equipment, nes 0.197 32.753 181.298 32.556

400219 Styren-butadien rubber(SBR)/carboxyltd styren-butadien rubbr(XSBR) nes 0.442 32.933 121.587 32.491

80290 Nuts edible, fresh or dried, whether or not shelled or peeled, nes 0.544 91.544 32.391 31.847

730799 Fittings, pipe or tube, iron or steel, nes 0.010 31.846 39.389 31.836

91010 Ginger 7.097 48.091 38.840 31.743

870210 Diesel powered buses with a seating capacity of > nine persons 0.374 39.355 31.892 31.518

330510 Hair shampoos 0.080 31.367 475.818 31.287

290250 Styrene 0.000 90.447 31.048 31.048

470329 Chemical wood pulp,soda/sulphate,non-coniferous,semi-bl/bleachd,nes 0.000 34.323 30.927 30.927

391990 Self-adhesive plates, sheets, film etc, of plastic nes 0.050 30.784 103.418 30.734

842230 Mach f fil/clos/seal/etc.btle/can/box/ bag/ctnr nes,mach f aeratg bev 0.606 63.439 30.779 30.173





world


world

Thailand Trade

Potential

711319 Articles of jewellry&pt therof of/o prec met w/n platd/clad w prec met 0.005 29.956 2,143.335 29.951

340211 Anionic surface-active agents 2.166 31.874 52.263 29.708

841490 Parts of vacuum pumps, compressors, fans, blowers, hoods 0.022 29.604 250.673 29.582

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8th Floor, Dawood Centre, M. T. Khan Road, Karachi, PakistanTelephone: +92-21 35630528-29 Fax: +92-21 35630530 Website: www.pbc.org.pk

2015 - pbc.org.pk · a study on the feasibility of the proposed pakistan-thailand free trade...

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