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| Thailand's sugar exports to China surge thanks to ACFTA. (Source: thaipbsworld) |
The ASEAN-China Free Trade Agreement (ACFTA) has significantly boosted Thailand's exports to the Northeast Asian country, especially processed sugar products such as syrup, artificial honey and various sweeteners, the Department of Foreign Trade under the Thai Ministry of Commerce said.
China remains Thailand's top agricultural export market, accounting for 42 percent of the Southeast Asian country's exports, said Ronnarong Phoolpipat, director-general of the Department of Foreign Trade.
Products in high demand are processed sugars (excluding raw sugar), such as syrups, artificial honey, caramels and other sweeteners used in foods, beverages and pharmaceuticals.
In 2023, China imported processed sugar worth 983 million USD (31.4 billion baht). Meanwhile, Thailand was the leading sugar exporter to China with a total value of 854 million USD (29.8 billion baht), accounting for 86.9% of the total import of this item by the world's second largest economy.
Citing figures from the Foreign Trade Department showing that Thailand has enjoyed an annual growth rate of 145 percent in processed sugar exports to China over the past decade, Ronnarong said the main factor contributing to Thailand’s sugar export dominance is its utilization of trade benefits under the ACFTA.
The agreement grants Thailand preferential treatment, including zero import duty on processed sugar when a certificate of origin (Form E) is issued by the Department of Foreign Trade. Without the benefits of the ACFTA, the normal import customs duty, known as the “most-favoured-nation rate”, would be 30%.
Processed sugar is considered a high-potential product for Thai exporters to take advantage of free trade agreements (FTAs) to expand their market presence globally, said Mr. Ronnarong.
Currently, in addition to the Chinese market, ASEAN is also a potential market for Thai processed sugar when the Association's population exceeds 600 million people.
The demand for processed sugar in the Land of Golden Pagodas is very high, especially in the food and beverage industry.
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