Thailand to maintain agricultural export position in 2023 thanks to FTA

Thailand's Department of Trade Negotiations said the country has maintained its position as a major agricultural exporter thanks to free trade agreements (FTAs).

Một công nhân sắp xếp sầu riêng để xuất khẩu sang Trung Quốc tại tỉnh Chanthaburi, Thái Lan. Ảnh: Tân Hoa Xã. — A worker arranges durian for export to China in Chanthaburi province, Thailand. Photo: *Xinhua.*

Thailand's goods exports to FTA partners in 2023 reached US$167.20 billion, down 3% year-on-year due to the global economic slowdown amid inflation, rising interest rates and geopolitical conflicts.

Although total exports to FTA partners decreased, Thailand's agricultural exports still grew positively as import partners exempted tariffs.

Thailand's agricultural exports in 2023 are expected to reach US$19.56 billion, up 4% from 2022, while exports of rural industrial products are expected to reach US$15.07 billion (541.54 billion baht), up 2%.

Thailand's exports to major FTA partners such as China and ASEAN increased by 11% and 5% respectively.

"Thailand is the leading agricultural exporter in ASEAN and the seventh largest in the world. Thailand is also the third largest exporter of rural industrial products in ASEAN and the 11th largest globally," said Chotima Iemsawasdikul, Director General of the Department of Trade Negotiations at the Ministry of Commerce of Thailand.

She explained that Thailand’s frozen and dried fruit exports to FTA partners increased by 23% year-on-year in 2022. Among the export growths, there were:

- Rice, increased by 92% to Indonesia, Philippines and Malaysia.

- Frozen chicken, up 19% to China, Japan and Malaysia.

- Coffee, up 43% to Cambodia, Japan and China.

- Sugar, up 14% to Indonesia, Philippines and South Korea.

- Canned fruit, up 9% to China, Australia and Laos.

- Ice cream, up 11% to Malaysia, Korea and Vietnam

As a key to boosting export competitiveness in the world market, Thailand currently has 15 FTAs, covering more than 85% of its products.

“Sri Lanka is Thailand’s newest FTA partner and many agreements have been implemented in 2024 to ensure maximum benefits for Thai exports,” said Ms. Chotima.

According to Director Chotima, Thailand plans to conclude negotiations on the Thailand-EFTA FTA in April 2024, with the goal of signing the agreement in June. EFTA includes four countries: Switzerland, Norway, Iceland and Liechtenstein.

She also said the final FTA expected to be signed this year is the ASEAN-Australia-New Zealand FTA, which represents an upgrade from the current agreement, covering more goods, services and investment.

Based on the Thai Ministry of Commerce’s negotiation plan for 2024, Director-General Chotima emphasized that plans are underway to accelerate FTA negotiations, with the Thailand-European Union (EU) FTA being the government’s top priority with the goal of concluding negotiations in 2025.

In addition, the ministry also plans to start negotiations on additional FTAs, such as the Thailand-Korea FTA and the Thailand-Bhutan FTA. Negotiations with these countries are expected to begin in the second quarter of this year.

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