Thailand: FTAs boost 2020 rubber shipments

• Apr 15, 2020

Thailand is maintaining exports of rubber products and processed rubber as global demand surges, particularly for rubber products relating to virus protection such as rubber gloves and synthetic rubber used to make such gloves.

Auramon Supthaweethum, director-general of the Trade Negotiations Department, said Thailand’s outbound shipments of rubber products and processed rubber in the form of finished products such as auto tyres, rubber gloves, resistance bands and rubber bands rose 10% in the first two months of 2020 to US$1.97 billion.

Free trade agreements (FTAs) were also instrumental in higher shipments, she said.

Thailand has 13 FTAs in place with 18 countries and territories, with 14 no longer collecting import tariffs on Thai rubber products, including Asean, Japan, Australia, New Zealand, Peru and Hong Kong.

Four countries (China, South Korea, India and Chile) are maintaining import tariffs on some rubber goods.

China, for instance, levies a 5% tariff on synthetic rubber imported from Thailand, while South Korea charges similar rates for the same products.

India collects a 5% tariff on certain tyres of passenger cars and rubber bands, and Chile charges a 1.32% tariff on certain tyres used with passenger cars and buses.

According to Ms Auramon, last year Thailand exported rubber products to countries with which Thailand has signed FTAs to the tune of $5.14 billion, accounting for 46% of total rubber exports.

In 2019, Thailand ranked the fourth-largest exporter of rubber products and processed rubber, trailing China, Germany and the US. Such exports totalled $11.23 billion last year, up 2%.

Key markets included the US, China, Japan, Asean and Australia, with auto tyres accounting for 51% of the shipments, followed by synthetic rubber and rubber gloves at 19% and 11%, respectively.

Deputy Commerce Minister Weerasak Wangsuphakijkosol said that given higher shipments in the first two months, the Commerce Ministry has assigned the Department of Trade Negotiations to speed up studying trade information in order to boost rubber exports and promoting Thai exporters to make the best use of existing FTA privileges during the pandemic.

The Foreign Trade Department reported that the use of FTA privileges and the Generalized System of Preferences (GSP) by Thai exporters in 2019 totalled $70.81 billion, down 4.5% from the previous year.

FTA privilege use alone contributed $65.56 billion, down 5.8% from 2018.

Source: https://www.bangkokpost.com/business/1899840/ftas-boost-2020-rubber-shipments