InfoQuest, (July 10, 2019) -- Ms. Onmon Subthawitham, director-general of the Department of Trade Negotiations (DTN) of the Ministry of Commerce, said that Thai fruits and vegetables are important products benefited from the ASEAN-China Free Trade Area (ACFTA). as China scrapped import tariff for all types of Thai fruits and vegetables in 2003. ACFTA is a key tool used to enhance the competitive edge of and offer more trade opportunities for Thai farmers and importers of fruit and vegetable.
Since ACFTA took effect, Thai fruits and vegetables exported to China have increased 1312 percent. In 2018, Thailand exported fruits and vegetables worth 1.92731 billion U.S. dollars to China. In the first five months of 2019 (January-May), Thailand's export of fruits and vegetables to China kept increasing, with total export volume 1.19969 billion U.S. dollars, a year-on-year increase of 31 percent.
To analyze by classification, Thai vegetable products rank 1st among China's imported vegetables. In 2018, Thailand exported vegetables worth 909.58 million U.S. dollars to China, 784 percent more than the case before ACFTA took effect, said Ms. Onmon. In the first five months of 2019 (January-May), Thailand exported vegetables worth 361.08 million U.S. dollars to China. The major export vegetables were cassava, accounting for 96 percent, then came bean products, such as red bean, mung bean, mushroom and other dried vegetable products.
Besides, Thailand's export of fruits to China also showed a sound growth rate. In 2018, Thailand exported fruits worth 1.01773 billion U.S. dollars to China, ranking 3rd among China's imported fruits, second only to Hong Kong and Chile, 2841 percent higher than the case before ACFTA took effect and maintaining a trend of sustained growth. In the first five months of 2019 (January-May), Thailand exported fruits worth 838.61 million U.S. dollars to China, a year-on-year increase of 123 percent. Among that, the export of durian took up the largest share, namely 48.54 percent, then came longan, mangosteen, and coconut.
China is a huge market of 1.4 billion population, hence the enormous purchasing power. Therefore, Thailand has maintained a trade surplus with China in fruits and vegetables, added Ms. Onmon. Before ACFTA took effect, Thailand's trade surplus with China in fruits and vegetables was only 100.22 million U.S. dollars. Yet in the first five months of 2019, the surplus was as high as 854.75 million U.S. dollars.
"Currently, all countries, including Thailand and China, are paying great attention to product quality and safety. China has established a random sampling system for imported fruits and vegetables across border, to ensure that relevant products meet international certification standards, such as Good Agricultural Practices (GAP), pest risk assessment and chemical residue limit standards, and Good Manufacturing Practice (GMP). Therefore, to seize upon opportunities of exporting fruits and vegetables to China, we require that Thai farmers and enterprises exporting fruits and vegetables to China should pass the above-mentioned standards first, and register their plantations and fruit packaging plants for the purpose of traceability if any problems occur.
Source: InfoQuest, by Phana/Tanawat/Rachada, translated by Xinhua Silk Road
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