Thai exporters eye market of 365 million people under new China, India FTAs
Thailand aims to ink seven trade agreements (FTA) with two Chinese provinces and five Indian states this year, the Department of International Trade Promotion (DITP) said on Monday.
The new FTAs will comprise a combined market of around 365 million people.
The first FTA will be signed with China’s Shenzhen province on March 1, said DITP director-general Phusit Ratanakul Sereeroengrit.
With a population of over 12.5 million, the Eastern metropolis is dubbed China’s Silicon Valley and will help guide Thailand’s products and services to other Chinese cities, he added.
The DITP expects to ink an FTA with the province of Yunnan soon after. With a population of 47.21 million and a border shared with Myanmar, Vietnam and Laos, Yunnan will help maximise the reach of Thailand’s products to wider markets in the region using the China-Loas rail network.
Phusit said five more FTA with Indian states are still in the pipeline and expected to be finalised before year-end. These states are Karnataka, Maharashtra, Kerala, Assam and Gujarat. They have a combined population of around 305 million people.
The FTAs with Indian states will focus on joint investment projects in Halal food and beverages, cosmetics, digital, biotechnology, palm oil, furniture and the medical services industries.
The DIPT is also studying the possibility of establishing FTAs with new markets as proposed by private sector, including Pakistan’s Karachi, the Arabian Gulf and African nations.
“A thorough study is required as some of these countries are suffering from fluctuating exchange rates which could affect payments under an FTA,” he said.
Phusit said a total of six FTAs were signed by Thailand in 2021 and 2022 with the following countries and cities: China’s Hainan and Gansu, Japan’s Kofu, India’s Telangana, and South Korea’s Busan and Gyeonggi. The department estimates these FTAs will boost the volume of Thai exports to these countries by at least 422 billion baht in three years.
