The Furniture Sector in Pakistan: Export performance and ... - TRTA i

Figure 2.2 Wooden furniture imports by top 5 importing countries, 2001- 05
18
16
14
12
Billion US$
10
8
6
4
2
0
United
States
Germany France United
Kingdom
Japan
2001 2002 2003 2004 2005
The United States has continued to grow as the world’s largest importer of wooden furniture.
Its imports reached US$16.1 billion in 2005, up by 11% from the previous year. This well
reflects the lasting consumer confidence and housing sector strength in the country as well as
the domestic producers’ loss of market share to Chinese producers. Housing boom until 2005
was driven in large part by demographics, immigration and affordability. The most recent
information shows moderating housing starts, however, as interest rates hike upwards.
The United Kingdom grew up into the second place, before Germany. Both countries imported
around US$4.5 billion in 2004. France also steadily increased imports to US$3.7 billion.
Japan’s imports grew slightly to US$2.4 billion in 2004 after several years of static trade.
Pakistan reportedly exports to about 80 countries, of which Malaysia, Italy, the United States,
Singapore, Japan, Saudi Arabia and Spain are the biggest buyers. Such a fragmented structure
in exports indicates small deliveries to whatever market opens up to Pakistani firms. There
appears to be very little concentration on developing a few of the key markets for bigger
volumes while leaving the others unattended for.
Import sources
Over the last year, there have been some significant changes in the trade flows of wooden
furniture and parts between regions (Table 2.2). Asia’s role grew even stronger as a supplier to
the United States, mainly at the expense of Canada and Europe. China’s currency being pegged
to the devaluing US dollar helped to maintain steady trade flows, causing friction with other
14 International Trade Centre