InfoQuest (Sept. 12, 2019) -- Ms. Onmon Sapthawitham, head of the Department of Trade Negotiations of Thailand's Ministry of Commerce, revealed that Thailand is still the No.1 rubber exporter in the world, according to the Department's tracking of the Thai rubber exports in the past year. In 2018, Thailand's rubber exports valued 4.602 billion U.S. dollars, accounting for 1.82 percent of the country's total exports. China is the largest export destination of Thai rubber, with export transaction valuing 1.96 billion U.S. dollars, representing 43 percent of the aggregate value of China's rubber exports.
Thailand has concluded 13 Free Trade Agreements (FTAs) with 18 countries, which greatly helped break the tariff barriers of trading partners to rubber imports and promoted the growth of Thai rubber exports. Currently, 16 of Thailand's FTA partners, including 9 ASEAN member states, Japan, the Republic of Korea, Australia, New Zealand, Chile, Peru and Hong Kong (China), have abolished import tariffs on Thai rubber products, while only China and India are still levying import tariffs on some rubber products. For instance, India imposes 70 percent import tariff against the natural rubber and 20 percent against smoke sheet rubber, and China imposes 20 percent import tariff against natural rubber.
If we compare the value of exported rubber products in 2018 with that in 1992 when first FTA with the ASEAN had not been signed yet, we could find that the value of rubber products exported from Thailand to the global market increased by 1.144 billion U.S. dollars, an increase of 302 percent. According to the export statistics of 2018, rubber products are among the products obtaining the most preferential rights and interests for Thai enterprises under the FTA framework.
Although Thai rubber exports are affected by trade wars between world powers and the demand for rubber-based raw materials from downstream enterprises of automobiles, tires and automotive parts declines, the ASEAN-Hong Kong and Thailand-Australia Free Trade Agreements had enabled Thai rubber exports to rise in these two markets during the first seven months (January-July) of 2019, with exports increasing by 57 percent in the Hong Kong market and 22 percent in the Australian market. The Department of Trade Negotiations predicts that free trade agreements will be conducive to promoting Thailand to become the world leader in rubber exports in the long run.
"In order to maintain Thailand's status as the world's largest rubber exporter permanently, the Department of Trade Negotiations has prepared to persuade all trading partners to open their market wider to Thai rubber products under the framework of FTA, including China, India, Turkey, Sri Lanka, Pakistan and ASEAN member states. At the same time, the Department requests Thai enterprises to focus on maintaining the high-level production standards and improving product quality to meet demands of various markets", said Ms. Sapthawitham.
Source: InfoQuest, by Phana/Tanawat/Sasithorn, translated by Xinhua Silk Road
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