Third parties’/Countries’ Access to other Markets (Threats/Competition)

There is great potential for increasing exports. Pakistani furniture exports represent at best a nominal share in the world exports, but there is a great potential to improve. After the conclusion of Uruguay round and consequential enhancement in the quantum and quality of liberalization, Pakistan has been enjoying better market access. Elimination of quantitative restrictions and reduction in tariffs should prove exceedingly helpful. Under these circumstances Pakistan should seek the benefits of its cheap production factors e.g. lower wages, and cheaper raw material. If the raw materials or furniture parts are required for a finished product, importers in Pakistan should be facilitated by undertaking greater promotional and facilitation efforts on the part of the TDAP. The tariff applied for imports of furniture parts and accessories is comparatively high i.e. 25%. Mechanism should be adopted to ensure duty free import of components used in the finished product instead of obliging exporters to claim duty drawback that is an inefficient way of providing relief.
There is clear need to improve compliance with the WTO agreements. To compete in international market Pakistani exporters will have to become more careful about compliance with SPS and TBT. Pakistani furniture products have been reportedly banned by some countries on the ground that those products were not properly rounded at the edges resulting in the risk of injury to their users. Our exporters have to be also careful about termite treatment that uses chlorpysifos.
Many opportunities have become available after the conclusion of the WTO Agreements and consequential trade liberalization. Needless to say, Pakistan is not alone in the field and competition is really intense. We have to adopt a sound strategy and vigorously follow up trade promotion plans. Two factors have been taken into consideration while identifying opportunity offering markets: (i) size of the market, and (ii) degree of presence of Pakistani products. The size of the market has been given greater weight because we should aim at substantial increase in exports that would be possible only in bigger markets.