Thailand and Turkey finally set for kick-off of free-trade talks

Commerce Minister Apiradi Tantraporn will lead the Thai negotiation team in Turkey on Tuesday to Thursday for the first round of talks, which have been postponed since January.
 Sunanta Kangvalkulkij, deputy director-general of the Trade Negotiations Department, who will be a chief negotiator for the FTA, said the negotiations were delayed due to terrorist attacks in Turkey. Initially it was hoped negotiations would conclude at the end of the year.
Sunanta said that despite the delay, Thai and Turkish officials have continued to talk about the FTA unofficially to prepare the groundwork for official negotiations.
Under the FTA, Thailand and Turkey plan to immediately eliminate tariffs for 90 per cent of trade in goods for both sides. Thailand is considered a gateway for Turkey to penetrate Asean, while Turkey could be a gateway for Thailand to tap Eastern Europe.
On Tuesday, Apiradi will be joined by Turkey’s economic minister.
A feasibility study for the FTA found that it would help increase Thai economic growth by 0.03 per cent a year and be worth up to US$76.7 billion (Bt2.7 trillion). It was found that Thailand’s exports would expand 0.02 per cent and earn more by $33 million.
The Commerce Ministry reported two-way trade between Thailand and Turkey in 2014 accounted for 0.30 per cent of the Kingdom’s total trade. Bilateral trade was worth $1.37 billion.
Trade between the two nations in the first five months of this year was $565.1 million, whileThai exports to Turkey were up 5.5 per cent and were worth $454 million. Imports grew 28.9 per cent to $110.8 million.
Major export products from Thailand to Turkey included air-conditioners and parts, motor cars, parts and accessories, polymers of ethylene, and rubber.
Major import goods from Turkey to Thailand include garments, yarn and fibre, machinery and parts, and vegetables.