Pakistan Furniture Exports

Pakistan’s exports of wooden furniture totalled US$12.3m in 2005, over double the value exported five years early. Growth in exports of living room furniture (not categorized under office, bedroom or kitchen) was the main contributor to this change. Pakistan has recently started to export bedroom and office furniture. Exports of these furniture types are gaining ground very rapidly, although starting from a small base. The United States, United Kingdom, UAE, Germany and Afghanistan are important destinations.

The major furniture markets are virtually unprotected. The United States has 0% MFN tariff for all wooden furniture categories. The same applies for Japan with one exception – mattress supports, for which it has a 3.2% MFN tariff but GSP tariff of 0%. The EU applies an MFN tariff for wooden furniture ranging from 0-5% and a GSP rate of 0% across all products. Therefore, one can conclude that Pakistan or any other country should not expect much export boost from the lowering of tariffs in main markets, as this road has been almost completed. On the other hand, its trade with regional markets may still be hampered by higher furniture import tariffs of non-members of WTO.