FTA boosts Thai-Chinese trade value

• Nov 22, 2017

Trade value between Thailand and China has risen 12.5% so far this year thanks to the Asean-China free trade agreement (FTA) that helped slash import tariffs and trade barriers and boost exports, says the Commerce Ministry’s Department of Trade Negotiations (DTN).

Auramon Supthaweethum, a deputy director-general of the DTN, said trade value between Thailand and China was US$53.7 billion (1.76 trillion baht) in the first nine months of this year (January-September), up 12.5% year-on-year. Of the total, $21.3 billion were Thai exports to China, growth of 27%.

“The major reason trade value rose and Thai exports to China grew was the Asean-China FTA that helped cut import tariffs on many Thai goods, improving sales for exporters,” she said.

Thai exports to China rose to $23.7 billion in 2016, up sharply from $7.1 billion in 2004 when there was no Asean-China FTA, said Ms Auramon.

Major Thai exports to China that increased as a result of the FTA were rubber products, electrical circuits, rice, plastic products, tapioca, computers and parts.

The Asean-China FTA also helped Thailand import more raw materials and goods from China at lower costs because of lower import tariffs, she said.

The FTA was implemented in 2005, with both sides agreeing to cut import tariff on thousands of items being traded between them.

Ms Auramon said tariffs are due to be cut to as low as 0-5% starting from next year for a new list of goods, creating more opportunities for traders.

“We want to encourage Thai exporters to make use of the Asean-China FTA and other FTAs as they can help increase Thai exports substantially in the future,” she said.

To encourage more Thai exporters to use FTAs, the DTN plans to hold a seminar on the Asean-China FTA next month, aiming to educate traders about the subject, said Ms Auramon.

The DTN also wants to use the Asean-China FTA as a tool to help Thai products penetrate into more minor Chinese cities as all of the major cities are already familiar with Thai goods, she said. A roadshow is planned in Nanning.

Source: https://www.bangkokpost.com/business/news/1364751/fta-boosts-thai-chinese-trade-value