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Thailand's Overview of International Trade
Source of Information: Ministry of Commerce (Thailand) The government implemented dual-track measures to remedy the trade deficit, such as actively promoting exports, while monitoring imports. To increase exports, the government and private sectors cooperated more closely to open new markets and expand existing markets, for example, by sending Special Task Forces on missions to target markets; organizing Thailand Exhibitions; arranging Inbound and Outbound Missions; designating September as Export Month with 9 separate trade fairs for health and beauty products, air-conditioners, electrical appliances, automotive components and parts, gems and jewelry, OTOP lifestyle, and garments and leather goods. Thailand's Export Trade
Source of Information: Ministry of Commerce (Thailand) With the implementation of dual-track measures, the above table showed the exports situation for the whole of 2005 and 2006 increased and improved on a overall basis. Exports that increased significantly in included canned fish; processed food; fresh, canned, and processed fruits and vegetables; frozen shrimp; processed chicken; vehicles and parts; computers and parts; polymers and plastic products; construction materials (steel and cement); gems and jewelry; rubber products; printed matter and paper; cosmetics; and pharmaceuticals. Other products that had increases in exports included natural rubber, tapioca starch, electrical appliances, textiles, luggage, leather goods, furniture, and home decorative items. Exports to new markets increased 24.1 percent and to traditional markets 9.3 percent, boosting the share of new market exports to 40.6 percent of total exports, demonstrating the effectiveness of cooperation between the government and private sectors, as well as the impact of FTAs with new and traditional markets, as follows: Exports to FTA markets: India (up 67.7 percent); Australia (up 28.9 percent); and China (up 29.1 percent). Exports to other new markets: Latin America (up 37.7 percent); Indochina and Myanmar (up 26.0 percent); the Middle East (up 25.7 percent); Hong Kong (up 24.7 percent); Eastern Europe (up 23.5 percent); South Korea (up 21.6 percent); and Africa (up 14.7 percent). Exports to traditional markets increased 9.3 percent: Japan (up 12.3 percent); ASEAN (5 countries: up 10.9 percent); the US (up 10.0 percent); and the EU (15 countries: up 3.5 percent). The EU announced a 4th round of a Generalized System of Preferences (GSP) for a 10-year period, effective from 1 January 2006, that will return GSP coverage to Thailand for 6 categories of goods: seafood, prepared foods, plastic & rubber products, shoes, glass and ceramic products, and electronic household goods. The elimination of GSP for other countries will benefit the following categories of Thai products; plastic products, rubber products, leather goods, shoes, textiles, machinery, and electrical appliances. Prices for agricultural goods have an upward trend in the world market, especially for sugar and natural rubber. Industrial products exports are expected to continue increasing, especially automotive products and electronic goods. Joint government-private efforts to penetrate and expand export markets will continue, following up on the successes of 2005 with new markets and FTA markets. Factors with a Potentially Unfavorable Impact on Exports The world economy may grow at a slower rate in 2006 than the World Bank projection of 3.2 percent, because two key economies –the US and China– may decline, due to the huge US current account and federal budget deficits and due to China being forced to adjust foreign exchange rates. The continuing high price of crude oil with the prospect of further increases has an impact on production costs, therefore, export prices, and the cost of imports will rise, while the purchasing power in key markets for Thai exports will fall. The DEP will continue to implement programs that have succeeded in boosting exports to traditional and new markets, such as domestic trade fairs, participation in overseas trade fairs, organizing Thailand Exhibition trade fairs and Export Rallies, trade and negotiation missions to new markets, joint promotions with overseas department stores, supermarkets, and importers, as well as foreign importer and buyer missions to Thailand. These activities will further help establish Thailand as a key player on the world trade arena Thailand's Free Trade Agreement By the end of 2006, there will be some 290 regional and bilateral trade agreements in the world with virtually every country being party to at least one. Thailand has bilateral agreements with Australia, New Zealand, China, and India. Bilateral agreements with Japan, Peru, the US, AFTA, and South Korea are expected within the next 1-2 years. At that point, Thailand will have 8 bilateral agreements and 2 regional agreements that will encompass some 45 percent of the world’s population and will account for some 48.4 percent of the world’s GDP. |
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