Exporters missing out on tariff privileges under FTAs: Govt
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Thai exports under free-trade packages in the first quarter of this year fell 5.98 per cent from the same period in 2011, partly because exporters are not reaping the benefits of tariff reductions.
The Foreign Trade Department reported that exports under FTAs were worth US$9.42 billion (Bt298 billion) in the first quarter, compared with $10.22 billion during the same period last year. Of total export value, only 45.49 per cent was shipped under free-trade privileges.
To boost export value, Surasak Riangkrul, the department’s deputy director-general, urged exporters to educate themselves on how to benefit under the 11 FTAs that Thailand has so they can reduce their costs.
“Few exports have benefited from free-trade pacts even though some agreements have cut tariffs to zero, while other have just made reductions, and exporters aren’t aware of these pacts,” he said.
Thai exporters have enjoyed maximum benefit from the Asean Free Trade Agreement (Afta), with exports under this FTA reaching $3.34 billion in the first quarter. Thai exports to the Asean market have grown greatly, and it is becoming the country’s largest export market, Surasak pointed out.
Other free-trade pacts that Thai exporters have benefited from include the FTA between Asean and China, with $2.71 billion, followed by Thailand’s bilateral pact with Australia worth $1.85 billion, and Asean-Japan worth $1.75 billion.
Products that have reaped the highest benefit under Afta include automobiles and parts, machinery, pickup trucks, tapioca starch, and air-conditioners.
Products with the highest export value under Asean-China are tapioca and rubber, and those under the deal with Australia include pickup trucks, processed tuna, air-conditioners and parts, and polyethylene.
Most product exports under the Asean-Japan FTA are processed sardines, processed shrimp, textiles, and cotton fabrics.
