Sunanta Kangvalkulkij, deputy director-general of the Commerce Ministry’s Trade Negotiations Department, said she would lead the Thai negotiating team to Islamabad next week.

The negotiations will emphasise tariff reductions, customs procedures, cooperation in many sectors such as sanitary standards, trade remedy measures, trade facilitation, and technical barriers and laws that should be eliminated to promote trade growth.

The first round of negotiations started last year, and the second round is set for next Monday to Wednesday. Sunanta said that during the second round, officials would discuss limiting the time frame for each topic, so that the FTA can be concluded within the target of mid-2017.

She said the Pakistani-Thai FTA would be beneficial to both countries and significantly increase bilateral trade and investment.

Moreover, the FTA would enable Thailand to expand its exports into South Asia as well as other Muslim nations in the surrounding region. On the other side, Thailand will be a gateway for Pakistan to penetrate the Asean Economic Community.

The agreement should also eliminate both tariff and non-tariff barriers as well as increase investment opportunities for both countries.

Some large Thai companies have already invested in Pakistan. More Thai firms, including small and medium-sized enterprises, should be able to penetrate this market after the FTA comes into force.

In 2014, Thailand enjoyed a trade surplus of US$734 million with Pakistan, and similar trade surpluses have been registered by the Kingdom since 2010.

Bilateral trade reached $1.01 billion in 2014, with Thailand’s exports to Pakistan was worth $874 million.

Pakistan is Thailand’s second-largest trading partner in South Asia after India, and No 46 globally.

Major export products from Thailand to Pakistan are fabrics, textiles, vehicles and parts, air-conditioners and parts, plastics, and chemical goods.

Imports are machinery and parts, musical instruments, processed and semi-processed fishery products, ore, and steel.