Free trade agreements (FTAs) were a primary factor in Thailand achieving exports of US$33.45 billion during the first five months of this year, a senior official at the Commerce Ministry said.
Ronnarong Phoolpipat, director general of the ministry’s Foreign Trade Department, said the FTA utilisation rate – the percentage of exports that enter a country with tax exemptions due to FTAs – was 76.7% during the five months.
Ronnarong said export of Thai fruit – including durians, guava, mangos, and mangosteens – will increase in China during that country’s summer. The export value of Thai fruit to China exceeded $3.3 billion in the first five months of this year, with the Asean-China FTA paving the way. Exports of coconuts to China have also increased considerably. In the second quarter of this year, their export value reached $187.91 million under the ACFTA, up 26.96% compared to the same period last year.
China remains the top importer of Thai coconuts, accounting for 54.83% of the total. Thai coconuts account for 80.02% of all coconuts imported by China. Under the Asean-China FTA, Thailand has a zero import tax rate in China, compared to 60% when Thailand’s trade status was “most favoured nation”.
Thailand’s top five FTAs in the first five months of this year, and their utilisation rates are:
1.Asean FTA ( $12.16 billion) with a utilisation rate of 74.48%. The top four Asean export markets are Indonesia($3.26 billion), Malaysia ($2.91 billion), Vietnam ($2.70 billion), and the Philippines ($2.03 billion).
2.Asean-China FTA ($10.41 billion) with a utilisation rate of 97.99%. Major exports were durian, synthetic rubber mixed with natural rubber, cassava, fresh fruits (guava, mango, mangosteen) and chemically pure sugars.
3.Japan-Thailand Economic Partnership Agreement ($2.74 billion) with a utilisation rate of 71.57%. Major exports were processed chicken and chicken parts, marinated chicken, deck trims, and plastic mouldings.
4.Thailand-Australia FTA ($2.30 billion) with a utilisation rate of 63.24%. Major exports were cars and other vehicles, canned tuna, and polyethylene.
5.Asean-India FTA ($2.16 billion) with a utilisation rate of 65.56%. Major exports were red brass wire, organo-inorganic compounds, radio broadcast receivers, air conditioning components, and polyvinyl chloride.
Exports to 100 countries under the Regional Comprehensive Economic Partnership (RCEP) – Japan, China, South Korea, Australia, New Zealand, Singapore, Malaysia, Vietnam, Indonesia, and Myanmar – totaled $570.34 in the five month period, with a utilisation rate of 81.50% , Ronnarong said.
Key exports p under the RCEP included lubricating oil, energy drinks, canned tuna, vermicelli made from mung beans and motorcycles.
The use of trade benefits under FTAs is crucial to reducing trade-related obstacles, particularly taxes, Ronnarong said. FTAs also enhance competitiveness in the global market and require exported goods to meet high quality standards, and comply with rules of origin regulations to obtain tax privileges, he added.
Source : THE NATION THAILAND
August 18, 2023
