The first round of free trade agreement talks between Thailand and Pakistan is due to kick off next month and expected to conclude in 2017.
Commerce Minister Chatchai Sarikulya, who just returned from a visit to Pakistan, said the third Joint Trade Committee’s meeting held from Aug 12-13 announced the first round of FTA negotiations would start in September.
"At the joint meeting with Pakistani Commerce Minister Khurram Dastgir Khan, we both believed the FTA between the two nations will help expand not only bilateral export opportunities but also investment," he said.
Pakistan is one of Thailand’s most important trade partners and export destinations.
The country is ranked Thailand’s second-largest trade partner in South Asia after India.
Bilateral trade between Thailand and Pakistan has steadily increased, from US$916 million in 2010 to $1.02 billion last year.
Thailand enjoyed a trade surplus over Pakistan averaging $777 million a year during this period.
Last year, exports to Pakistan amounted to $876 million compared with imports at only $140 million.
Major exports are cars, parts and accessories, chemical products including polymers, rubber products, iron and steel, and machinery and parts.
Pakistan’s largest export categories to Thailand are fresh aquatic animals, food, yarn and fibres, finished oils, metal ores, metal waste and fabrics.
During an official visit by then-prime minister Yingluck Shinawatra to Pakistan in August 2013, both sides agreed to establish a joint trade committee to foster economic cooperation.