InfoQuest, (April 1, 2019) -- At a seminar themed on "Expanding Access to Chinese Market via FTA", Ms. Onmon Subthawitham, director-general of the Department of Trade Negotiations (DTN) of the Ministry of Commerce, pointed out that since the commencement of ASEAN-China FTA (2005), Thailand and China have gradually reduced the tariff between them. In the early 2006, the tariff on some agricultural products was cancelled. On January 1, 2018, the tariff on the last series of products was reduced to 0-5 percent, including processed pineapple, terylene, rice noodles, polished rice, chemicals and auto parts. All these boost the sustained increase of the trade between Thailand and China.
In 2018, the trade value between Thailand and China was 80.136 billion U.S. dollars, up 294.3 percent compared with that of 2005, namely the year when the FTA took effect, and up 8.7 percent based on 2017 level. Among which, the total value of products exported to China was 30.1754 billion U.S. dollars, and of products imported from China was 49.961 billion U.S. dollars.
Ms. Onmon added, the above statistics indicate that despite the China-United States trade frictions and the slowdown of the Chinese economy in 2018, Thailand went on to expand its exports to China. Thai companies are sensitive and have business plans to cope with the uncertainty in trade; they also increased the export of the products that China needed to replace American products, especially agricultural products and processed agricultural products, to maintain Thailand's competitive edge in China.
Thailand is penetrating markets in emerging Chinese cities, especially those in the western provinces. It has increased sales channels via famous online Chinese e-commerce platforms. In addition, Thailand and China reduced the tariff on the last series of products to 0-5 percent after the implementation of the ASEAN-China FTA on January 1, 2018. Consequently, Thailand increased the export of these products to China, which had an export value of more than 1.9076 billion U.S. dollars, up 8.1 percent over 2017. Among the products that benefited from the tariff policies were automobile gearboxes, shredders, plywood, chemicals, rice noodles and so on.
Thailand also imported switch panels, refrigeration compressors, voltage transformers, circuit boards, copper, and other products, which had an import value of 6.2515 billion U.S. dollars, up 24.5 percent over 2017. Most of them were raw materials to be used in downstream industrial production.
Ms. Onmon also said that China was Thailand's largest trading partner in 2018 in terms of exports and imports. Thailand's exports to China mainly included plastic resins, rubber products, chemicals, computers, equipment and components, and rubber. Its imports from China mainly included electrical machinery and components, machinery and components, home appliances, chemicals, computers, and equipment and components. The value of Thailand’s exports to China under the FTA was 17.6339 billion U.S. dollars, accounting for 58.4 percent of the total value of its exports to China.
Compounded rubber products, durian, cassava, p-xylene, polyethylene polymers and other products were among Thailand's exports that have most frequently exercised the FTA right. The value of imports from China under the FTA was 13.3838 billion U.S. dollars, accounting for 26.8 percent of the total value of its imports from China. Plated/coated steel plates, rolled steel plates, aluminum plates, dried vegetables (mushrooms and garlic), lights, and other products were among Thailand's imports that have most frequently exercised the FTA right.
Ms. Onmon went on to say that the seminar is part of the DTN Business Plan Award 2019 hosted by the DTN. Its purpose is to raise public awareness of the ASEAN-China FTA and to create opportunities for Thai companies to export, especially agricultural products and processed agricultural products, to China under the ASEAN-China FTA.
In April this year, the DTN will conduct a three-day workshop titled “Enriching Technology for Penetrating the Chinese Market via FTA” in Prachinburi Province. Some SMEs engaged in agriculture and the processing of agricultural products that have interest in the workshop will be selected to receive training. They will gain the ability to prepare business plans and expand Chinese market share under the FTA. After that, a competition for excellent business plans will be held, and five teams will be selected to learn from real experience at the 10th China (Shanghai) International Catering Food & Beverage Exhibition 2019 on June 5-7, 2019, in Shanghai, China.
Source: InfoQuest, by Kasamarporn Kittisamphan / Rachada, translated by Xinhua Silk Road
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