FTAs yield $5.39 billion tariff cut for Thai products in Jan
Thailand received tariff reductions worth 185.49 billion baht (US$5.39 billion) under 12 free-trade agreements (FTAs) in January, the Department of Foreign Trade (DFT) said on Monday.
Meanwhile, tariff benefits for Thai trade under the Regional Comprehensive Economic Partnership (RCEP) amounted to 3.33 billion baht ($97.04 million) in January, said DFT director-general Ronnarong Phoolpipat.
Ronnarong said Thailand exercised over 70% of eligible benefits under the FTAs, especially for exports of automotive and components, tapioca, rubber, and fresh durians.
The top five FTAs benefiting Thailand in January were:
- the Asean Free Trade Area (AFTA) – $2.08 billion.
- Asean-China Free Trade Area (ACFTA) – $1.2 billion.
- Thailand-Australia Free Trade Agreement (TAFTA) – $487.2 million.
- Japan-Thailand Economic Partnership Agreement (JTEPA) – US$487.1 million.
- ASEAN-India Free Trade Agreement (AIFTA) – $400.3 million.
Thailand exported to nine RCEP members in January, namely Japan, China, South Korea, Australia, Singapore, New Zealand, Malaysia, Vietnam, and Indonesia. RCEP benefits for Thailand totalled $97.04 million, an increase of 1,039% year on year since the trade pact came into effect in January 2022.
Key export products under RCEP are lubricant oils, tapioca chips, canned tuna, and textile powder.
RCEP involves 15 countries: the 10 members of Asean – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam plus five countries with which Asean has FTAs – Australia, China, Japan, South Korea, and New Zealand.
