FTAs fuel growth in Thai agricultural exports in the first 8 months of 2024

Thailand’s agricultural exports grew by 8 per cent year on year in the first eight months of 2024, valued at $19.826 billion, the Department of International Trade Negotiations said. 

Of the total, 69% of exports were to countries with whom Thailand has free trade agreements, amounting to $13.774 billion (430 billion baht), department director-general Chotima Iemsawasdikul said.

Thailand remains the No. 1 agricultural products exporter in ASEAN and ranks eighth globally. Major export markets include China, which represents over 31% of Thailand's total agricultural exports, followed by ASEAN at 15%, Japan at 11%, and South Korea at 3%. 

Markets showing strong growth included ASEAN with a 39% increase, India with 34%, Australia with 23%, Singapore with 10%, South Korea with 9%, and Japan with 7%.

Thailand's agricultural exports continue to show positive trends and growth despite the high competition in international trade due to geopolitical uncertainties, which have caused fluctuations in the global economy, Chotima said.

Monthly export statistics show an increasing demand for Thai agricultural products. In August 2024, Thailand exported agricultural products to FTA partners valued at $1.651 billion, a 9% increase month on month. 

FTA markets that saw growth include:

Chile: 42.8%
New Zealand: 34%
India: 24%
China and Japan: 11% 
ASEAN: 4%
Hong Kong: 2% 

In August, the top five agricultural exports from Thailand all showed satisfactory growth. The leading agricultural exports included:

– Chilled and frozen fresh fruits valued at $604 million, a 21% increase
– Rice, $562 million (41%)
– Rubber, $497 million (9%)
– Chicken, $392 million (6%)
– Cassava products, $260 million (2%)

Given the favourable outlook for Thai agricultural exports, there are increased opportunities for Thai entrepreneurs to expand sales to international markets, fully leveraging FTAs, Chotima said. 

Currently, 18 FTA partner countries have reduced or eliminated customs duties on most agricultural products exported from Thailand. 

They include:

Rubber: 16 countries no longer impose import duties, except China and India

Cassava products: 15 countries no longer impose import duties, except Japan, South Korea, and India

Processed chicken: 14 countries no longer impose import duties, except Japan, South Korea, Chile, and Peru

Chilled and frozen fresh fruits: 12 countries no longer impose import duties, except Japan, South Korea, India, Vietnam, Cambodia, and Laos