Economists warn of negative impacts of Thailand’s joining BRICS
Experts from various economic research institutes believe the country’s partner status could have repercussions on trade and int’l relations
Economists have warned of the negative impacts that Thailand might face after becoming a full member of BRICS economic bloc, including being viewed as taking sides and affected by trade barriers in the US-China trade war.
On January 1, Thailand became an official partner of BRICS, an international bloc established in 2006 as a coalition of large emerging markets. The bloc comprises 10 countries – Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, Saudi Arabia and the United Arab Emirates.
Burin Adulwattana, managing director and chief economist at Kasikorn Research Centre (KResearch), pointed out that Thailand could not yet enjoy the full benefits of BRICS as it is only a partner and not a full member.
"Being a partner may provide Thailand with more platforms to communicate about various issues with the rest of the world,” he said. “However, it is unclear what specific benefits might arise from joining BRICS, such as in trade, investment, or connections between countries in the bloc.”
Burin warned that the world may perceive Thailand as taking sides, since only some countries are able to join BRICS. He added that it would be better if all ASEAN countries were to join, to avoid the impacts of trade exclusion between countries.
Pipat Luengnaruemitchai, chief economist at Kiatnakin Phatra Financial Group (KKP), noted that BRICS was established to serve as a platform for developing countries to negotiate trade terms with developed countries, notably the United States.
“Joining BRICS carries the risk of being labelled as ‘anti-US’,” he said. “As China is also a member, Thailand’s joining the bloc could be perceived as aligning with China, and therefore putting the country at risk of impacts from the US-China trade war.”
Pipat urged those in power to carefully study the benefits and impacts to determine whether, in the end, Thailand would gain more advantages or suffer more disadvantages from joining BRICS.
Amonthep Chawla, assistant managing director at CIMB Thai Bank, expressed a different view, saying that becoming a BRICS partner would strengthen Thailand’s relationship with both developed and emerging economies.
“This will open doors to new business opportunities and investments, especially in Asian countries that are BRICS members and partners,” he said.
As for the impact of the trade war against the US, Amonthep said he believed every country, Thailand included, has adequate flexibility to mitigate or soften economic impacts from US trade policies under the Trump administration.
“In the end, Thailand will have to join all available groups to secure new economic opportunities as well as free trade agreements with as many countries as possible,” he said.
Thailand was among 13 nations named as new partner countries by BRICS on October 24, 2024 along with Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Turkey, Uganda, Uzbekistan and Vietnam.
Thailand, Algeria and Bolivia have been proposed for full BRICS membership.
