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

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3 Implications of WTO Agreements 3.1 Background 3.1.1 Multilateral discipline of trade rules International trade for nearly six decades has been subject to the discipline of multilaterally agreed rules “by which countries are required to abide in their trade relations with one another” 2 . The institution responsible for overseeing this rules-based system is, the World Trade Organization (WTO, www.wto.org) established on January 01, 1995. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT) which had been performing a similar role since 1 January 1948. Box 3.1 Multilateral discipline of trade rules – the WTO system • International trade is subject to the discipline of multilaterally agreed rules by which countries are required to comply with in their trade relations with one another. • The World Trade Organization (WTO) oversees this multilateral system. Its Agreements aim to help international trade flow smoothly, freely, fairly and predictably. • Under the WTO trade regime there are both opportunities and challenges for Pakistan. • It is for the business community supported by the Government to convert tariff reductions and liberalization commitments into opportunities for trade. • Likewise concerted action needs to be taken by both the public and private sectors to adequately meet challenges. Source: WTO Cell, Planning & Development Department, Government of the Punjab This chapter is divided into four main sections: • General background • Information on the WTO issues • Implications of the WTO Agreements • Trade conditions as a result of the WTO Agreements 3.1.2 Purview of the WTO The WTO’s purview encompasses three agreements, relating to trade in: (1) Goods; (2) Services; and (3) Trade-Related Intellectual Property Rights. In addition, there are twelve associate agreements relevant for trade in goods. 2 ITC; Business Guide to the World Trading System (1999), p.3 50 International Trade Centre
3.1.3 Functional scope The functional scope of the WTO is depicted in the diagram below: Figure 3.1 Functional scope of the WTO WTO Trade in Goods Trade in Services Intellectual Property Rights General Agreement on Tariffs and Trade (GATT) 1994 General Agreement on Trade in Services (GATS) Trade Related Aspects of Intellectual Property Rights (TRIPS) These Agreements seek to establish a trading system which is: non-discriminatory, freer, predictable, more competitive and arguably more beneficial to developing countries Associate Agreements on: • Agriculture • Application of Sanitary & Phytosanitary Measures (SPS) • Product standards (TBT) • Trade-related investment measures (TRIMs) • Anti-dumping • Customs valuation • Pre- shipment inspection • Rules of origin • Import licensing • Subsidies • Countervailing measures • Measures for safeguards • Business and professional services • Communication • Distribution services • Educational services • Environmental services • Construction and related engineering services • Financial services • Health services tourism and travel-related services • Recreational, cultural and sporting related services • Transport services • Other services • Patents • Copyrights • Trademarks • Industrial designs • Geographical Indications • Undisclosed information International Trade Centre 51
Page 1 and 2:
The Furniture Sector in Pakistan
Page 3 and 4:
Acknowledgements The report was pre
Page 5 and 6:
Abbreviations AFTA AHEC AKTRIN APFE
Page 7 and 8:
Table of contents Acknowledgements
Page 9 and 10: Box 3.1 Multilateral discipline of
Page 11 and 12: Executive summary This study sets t
Page 13 and 14: the extent possible maintain or imp
Page 15 and 16: 1 Background and objectives 1.1 EC
Page 17 and 18: 2 Furniture sector in Pakistan 2.1
Page 19 and 20: On the buyer’s side, there are gl
Page 21 and 22: According to the websites of import
Page 23 and 24: Global demand for furniture in main
Page 25 and 26: suppliers, both domestic and other
Page 27 and 28: Table 2.3 Pakistani furniture expor
Page 29 and 30: Figure 2.4 Distribution structure f
Page 31 and 32: freight rates have increased and do
Page 33 and 34: Price The prices of local machinery
Page 35 and 36: Indonesia has also announced a ban
Page 37 and 38: industry itself should support effo
Page 39 and 40: various counterparts, the supplier
Page 41 and 42: Box 2.7 UK Timber Trade Federation
Page 43 and 44: Figure 2.5 Simplified example on ch
Page 45 and 46: At least 70% of the wood used in ma
Page 47 and 48: Scope of joint ventures There exist
Page 49 and 50: • With FAO’s Forest Products an
Page 51 and 52: The contact information of many of
Page 53 and 54: Box 2.10 USAID initiative in the fu
Page 55 and 56: Opportunities Major opportunities m
Page 57 and 58: pressure on the price. There appear
Page 59: Pakistan does not export this furni
Page 63 and 64: Current status of efforts to libera
Page 65 and 66: 3.2.2 Information flow-upwards, i.e
Page 67 and 68: Commission (EC/EU) has established
Page 69 and 70: Figure 3.3 Relevant intensity of WT
Page 71 and 72: Box 3.2 Regional Trade Agreements (
Page 73 and 74: Trade Related Aspects of Intellectu
Page 75 and 76: Agreement on the application of san
Page 77 and 78: country or materially retards the e
Page 79 and 80: Relevance of the furniture sector T
Page 81 and 82: 3.4.2 Other countries’ access to
Page 83 and 84: Table 3.2 Top 10 buyers of the Paki
Page 85 and 86: Arabian market. Here again, there i
Page 87 and 88: • Material from China is being us
Page 89 and 90: 4.2 Obstacles and shortcomings - im
Page 91 and 92: Raw material recovery Raw material
Page 93 and 94: • Consistent policy for supportin
Page 95 and 96: A short-term but maybe a costly mea
Page 97 and 98: 5 Export services in Pakistan 5.1 E
Page 99 and 100: 5.1.3 Federation of Pakistan Chambe
Page 101 and 102: • Pakistan International Freight
Page 103 and 104: The lessons learnt here could be re
Page 105 and 106: 6 Conclusion and recommendations 6.
Page 107 and 108: 6.2 Critical success factors • A
Page 109 and 110: 6.4 Global value chains 6.4.1 Poten
Page 111 and 112:
Benefits All timber tends to be air
Page 113 and 114:
• Optimise cutting; • Calculati
Page 115 and 116:
6.6.5 If we had US$100,000: A techn
Page 117 and 118:
• To modernise such a laboratory,
Page 119 and 120:
Annexes Annex A — Sources of info
Page 121 and 122:
• Federmobili information on the
Page 123 and 124:
• National Home Furnishings Assoc
Page 125 and 126:
International Trade Centre 115
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