InfoQuest (March 28, 2019) -- Ms Onmon Subthawitham, director-general of the Department of Trade Negotiations (DTN) said that Thai fruits enjoy a bright prospect. Thanks to the unique flavor, Thai fruits are well received and have become the first choice for home and overseas markets. The export value of Thai fruits has increased sustainedly. In 2018, as much as 2.656 billion U.S. dollars of Thai fruits were exported to international market, up 17.05 percent compared with that of 2017. Thailand exported fruits as much as 2.132 billion U.S. dollars to ASEAN and China, its major export markets. The number accounts for 80 percent of the total value of Thai fruits exported to international market. In Thailand, the world's largest fruit exporter, most fruits are tropical fruits, such as durian, longan, and mangosteen.
The director-general of DTN said that FTA is the major force driving the export increase of Thai fruits. Thailand has signed 13 FTAs with 18 countries and regions, including ASEAN, China, Japan, Korea, India, Australia, New Zealand, Peru, Chile, and Hong Kong of China. Among which, China, Australia, New Zealand, Chile, Peru, and Hong Kong of China have exempted import tariff on Thai fresh fruits, frozen fruits, and dry fruits. But there are also some countries that still levy tariff on some Thai fruits, such as Japan, Korea, India, Lao People's Democratic Republic, Cambodia, Vietnam, and Malaysia. For instance, Japan levies a 4 percent tariff on imported orange, Korea levies a 24 percent tariff on imported mango and 36 percent tariff on imported durian, India levies a 5 percent tariff on imported orange, and Malaysia, Cambodia and Lao People's Democratic Republic levy a 5 percent tariff on imported mango, mangosteen, durian and other fruits.
Therefore, while comparing the data of 2018 and 1992 (namely the statistical data of the market value of Thai fruits exported to international market in the previous year of the commencement of Thailand's first FTA signed with ASEAN), we can find that the export value of fruits increased 3,341 percent. By market, we can find that the market value of Thai fruits exported to ASEAN was 1.123 billion U.S. dollars in 2018, 6,429 percent higher than that of 1992 (the year when ASEAM members reduced the tariff on imported fruits from Thailand according to AFTA).
Besides, in 2018, the value of Thai fruits exported to China was 1.009 billion U.S. dollars, 2,816 percent higher than the number of 2002, namely the previous year before China exempting tariff on Thai fruits according to ACFTA, consistent with the statistical data of the Department of Foreign Trade in 2018. Thai enterprises gain the most benefits of FTA from fruit export.
The director-general of DTN said that fruit trade shows a trend of sustained growth. Now consumers are inclined to choose more healthy food, and fruit trade in Thailand can enjoy benefits brought by FTA. These factors mean exciting opportunity for farmers and Thai enterprises to increase fruit export. To make Thai fruits guide consumers' spending behavior, farmers should work to offer products meeting international health and plant quarantine standards, and improve product quality to cater to the demands of non-toxic market and organic fruit market.
They can register geographical indication (GI) to establish identity, and build trademark and own brands, to distinguish their fruits from those of other countries. Meanwhile, they should establish the knowledge structure of each field to adapt to the trade of the new era, such as international marketing. That will help enhance product quality and consumer confidence, making Thai fruits dominate market and create more value.
Source: InfoQuest, by Ponnari / Kasamarporn / Tanawat, translated by Xinhua Silk Road
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