FTAs push Thai exports to US$46 bn in first 7 months of 2023
Thai exports amounted to US$46.18 billion between January and July, driven by Free Trade Agreements (FTAs), Department of Foreign Trade (DFT) director-general, Ronnarong Phoolpipat announced this week.
The top five FTAs contributing to this figure were:
1. Asean Free Trade Area (AFTA): The agreement’s total value was U$16.49 billion, accounting for 72.72% of its utilisation. Major exports under this agreement included automobiles for transportation (weighing less than 5 tonnes), sugar, petroleum oils, oils from bituminous minerals, and cars for personal transportation (1,500 - 2,500 cc).
2. Asean-China Free Trade Area (ACFTA): The agreement's total value was U$14.26 billion, with a utilisation rate of 93.97%. Key exports under this agreement included fresh durians, synthetic rubber products, tapioca, sugar, guavas, mangoes, and mangosteens.
3. Japan-Thailand Economic Partnership Agreement (JTEPA): The agreement's total value was U$3.76 billion, with a utilisation rate of 71.66%. Major exports included frozen chicken, shrimps, dextrin and modified starch, wire and cables, lightweight oils, and polyethylene polymer sacks.
4. Thailand-Australia Free Trade Agreement (TAFTA): The agreement's total value was U$3.34 billion, with a utilisation rate of 60.68%. Important exports included cars and other motor vehicles (with diesel or semi-diesel engines), passenger cars 2,500 cc and above, air conditioning units, canned tuna, and passenger cars sized 1,000 - 1,500 cc.
5. Asean-India Free Trade Area (AIFTA): The agreement's total value was U$3.08 billion, with a utilisation rate of 67.44%. Key exports included brass wires, organo-inorganic compounds, radio receivers, air conditioning components, and polyvinyl chloride, or vinyl chloride polymer products.
Additionally, under the Regional Comprehensive Economic Partnership (RCEP) agreement, exports were made to 10 countries, namely Japan, China, South Korea, Australia, New Zealand, Singapore, Malaysia, Vietnam, Indonesia, and Myanmar. The total value of these exports was US$810.35 million, a 54.22% increase compared to the same period the previous year.
FTAs, numbering 14 with 18 trading partners, have played a significant role in Thailand's exports, enabling exporters to reduce or exempt import duties in destination countries. Understanding the rules and regulations related to the origin of products under these agreements is crucial for exporters to fully benefit from these privileges.
