Internation Marketing & Export Management in Pakistan

2. Flow of today’s session
 International Environment
 Role of Government in International Marketing
 Role of Trade Promotion Organizations
 Promotion by private organizations
 List of top 100 exporting firms
 Export Marketing by some of leading exporters

3. THE INTERNATIONAL ENVIRONMENT
Role of Govt: participator, planner, controller or
stimulator of trade/ export
 Action by government bodies at all levels (supranational,
national, sub-national)
 Government involvement depends partly on: economic
system in the country or form of government
 Government intervention activities with respect to
international / export market transactions:
 Promote (encourage, facilitate)
 Impede (e.g. restrictions on imports affecting exports from
other countries, trade sanctions, tariffs, VER)
 Compete with or replace such transactions by private
businesses (e.g. state trading i.e. TCP)
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4. Government controls, protectionism
and trade barriers
Trade Barriers: by governments to
encourage development of domestic
industry and protect existing industry e.g.
licenses, tariffs, quotas, monetary barriers,
technical barriers – TBT, etc)
Licenses: for imports, exports (to restrict
or limit the activity)
Tariffs: tax on goods entering its borders
(revenue generating, discouraging
imports, protect industry)
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5. Government controls, protectionism and trade barriers
 Monetary barriers: protect balance of payments or
specific industries through exchange control
regulations
 Technical Barriers to Trade (TBT): non-tariff barriers,
e.g. standards to protect health, safety, product quality
(SPS for agricultural products; rules for product weight,
size, or packaging; ingredient or identity standards,
mandatory labeling; shelf-life restrictions; import
testing & certification procedures; etc.)
 Other areas for goverment controls: environment, labor
rights, human rights, intellectual property, etc.
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6. Export promotion activities by government:
Public sector Trade Promotion Organizations (TPOs)
undertake export promotion programs and international
marketing activities.
 Financial activities: e.g. loans through EXIM bank to
foreign sources for making purchases from the country,
credit insurance and guarantees to cover risk
 Information services: provision of market information
 Export facilitating activities: setting trade offices abroad;
sponsoring trade delegations; organizing/participating
in trade fairs and exhibitions; operating trade/diplay
centers abroad
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7. Promotion by private organizations:
Non-governmental organizations promoting international
marketing (information & publications, education &
assistance in technical details, promotion):
 Chambers of Commerce (local, national, bi-national;
national chambers abroad, Int’l associations of chambers)
 Industry and trade associations: e.g. national, regional,
sectoral, exporters’
 Other organizations concerned with trade promotion: e.g.
export research organizations, regional export promotion
organizations and international business associations
 Export service organizations: banks, transport companies,
freight forwarders, trading cos.
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8. State trading:
Government engagement in commercial operations,
directly or through its agencies e.g. Russia, China,
Libya, and Iraq have extreme level of involvement in
int’l mktg.
 Various reasons (political goals, surpluses disposal,
security/defense, domestic plg for sensitive/essential
products, etc - TCP)
 Impact on private businesses:
 Adjustments required in export marketing programs.
 Monopolistic powers of state traders make them
powerful bargainers
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9. Regional economic integration arrangements:
Also known as Regional Trading Blocks (RTBs). Broadly, is
unification in some way of separate economies into a larger
single economy. Major types of economic integration schemes
range from free trade area to the more comprehensive common
market.
Assoc. of South East Asian Nations, North America Free Trade Area, European Free Trade Assoc.
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Characteristics Free
Trade area
Customs
union
Common
market
Removal of internal tariffs x x x
Common external tariffs x x
Free flow of capital & labor x
ASEAN, NAFTA, EFTA Benelux, GCC EU

10. Preferential and free trade agreements (PTAs, FTAs)
by Pakistan
FTAs: General Features:
• Establishment of a F.T. Area through phased elimination of tariffs.
• Negative/ sensitive Lists to protect national interests of both
countries.
• Rules of Origin (RoO) criteria to ensure a minimum local content.
• Clauses to protect domestic and national interests of both countries.
• Review and consultation mechanisms to ensure the smooth
operation
FTA Sri Lanka: June 2005
FTA China: July 2007
FTA Malaysia: Jan 2009
PTAs:
 Iran: Sept 2006
 Mauritius: December 2007
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11. General Agreement on Tariffs and Trade (GATT):
 Came into force in 1948 with 23 founding members.
Was intended to promote non-discrimination in
trade among countries, with the view that open trade
was crucial for economic stability and peace.
 Original agreement provided:
 A process to reduce tariffs
 An agency to serve as watchdog over world trade
 Updated through GATT-1994
 Nine trade rounds under GATT/WTO held so far to
liberalize trade (9th - Doha Round started 2001)
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12. 12
World Trade Organization (WTO):
• Came into existence on January 1, 1995. An
institution, not an agreement like GATT
• Covers GATT structure as well as additional
areas
• Has a dispute resolution mechanism (experts
panel, process) that issues binding decisions
• Enforcement means (int’l pressure, trade
sanctions by winning side)
• WTO recognizes the need for standards (safety,
health, environment, etc) and advocates for
world-wide harmonization of standards

13. World Trade Organization (WTO)
Commonly referred WTO agreements:
 Agreement on Agriculture
 Agreement on Textiles & Clothing (ATC)
 Agreement on Subsidies and Countervailing Measures
 Agreement on Anti-Dumping
 Agreement on Trade Related Investment Measures (TRIMs)
 Agreement on Custom Valuation
 Agreement on Technical Barriers to Trade (TBT) and on Sanitary
and Phytosanitary Measures (SPS)
 Agreement on Trade Related Aspects of Intellectual Property
Rights (TRIPS)
 General Agreement on Trade in Services (GATS)
 Understanding on Dispute Settlement (DSU)
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14. Regulatory Framework and Trade Policy
Mechanism in Pakistan:
 Ministry of Commerce, TDAP, SBP, FBR, NTC are the
main players regulating trade in Pakistan
 Tariff is the main instrument of Pakistan’s trade
policy. Basic objective to provide protection to infant
industries
 Trade policy is formulated by the Ministry of
Commerce in consultation with TDAP, concerned
ministries, SBP, provincial government, trade and
industry, trade officers in foreign missions
 MoC negotiates and represents Pakistan at
multilateral negotiations
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15. Regulatory Framework and Trade Policy
Mechanism in Pakistan:
 National Tariff Commission (NTC) advises government
on tariff measures or other forms of the assistance for
providing protection to indigenous industry, improving
its competitiveness and promoting exports
 NTC also handles implementation of Pakistan’s trade
defense laws:
 Anti-Dumping Duties Ordinance, 2000 (duties for 5yrs)
 Countervailing Duties Ord 2001 (against subsidies, 5yrs)
 Safeguards Measures Ord 2002 (against imports surge,
4yrs)
 NTC also assists Pakistani exporters facing foreign
actions under WTO trade defense agreements
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16.  Export Marketing Plan & its contents in detail
 List of top 100 exporting firms

17. Thank you!