Yingluck leads business delegation on busy two-day UK mission

The first meetings took place yesterday, with more scheduled for today.

The Thai side hopes the mission will help minimise the impact on the Kingdom from the euro-zone economic crisis, the UK being the largest market for Thai exports in the European Union.

Chulit Stavorn, executive director of the Thai Trade Centre in London, said the mission should help promote more trade opportunities for Thai investors and exporters to the UK market.

"The visit will ensure that trade promotion remains a key agenda item for the Thai government. Exports have not been ignored and should be continuously promoted as they help to ensure a strong economy," he said.

Thai exports to the UK market should grow by at least 5 per cent next year to more than US$4.2 billion (Bt129 billion), he said. This year, exports could increase slightly by 12 per cent, despite a significant drop of 5.46 per cent in the first nine months to $2.89 billion.

Shipments to the UK fell over the first three quarters due to the continuing effects of last year’s severe flooding on many industries and the impact of the EU economic crunch, which resulted in lower demand for some key products.

Among the hardest-hit Thai exports in the period were garments, shipments of which dropped by 37.68 per cent year on year, and integrated circuits, which experienced a 22.07-per-cent slump.

Chulit said shipments to the UK market should begin to recover as the flood-affected industries have now recovered, while UK economic growth is picking up following the London Olympics.

The UK economy faced negative growth from the final quarter of 2011 through the second quarter of this year. It then expanded by 1 per cent in the third quarter, resulting in an overall contraction of 2 per cent during the first nine months of the year.

"However, with strong economic fundamentals and strong demand for food consumption, the UK economy should recover to positive growth in the final quarter this year, which should benefit Thai shipments to the market," said Chulit.

Food exports on the menu

Since about 30 per cent of Thai products exported to the UK are foods, shipments should now grow strongly as foods are largely essential products, said the head of the trade centre.

Major food products shipped to the market are processed chicken, processed and canned seafood, fruits and vegetables, shrimp, seasoning and rice.

To promote exports of Thai rice to the UK, currently worth about $40 million a year, Commerce Minister Boonsong Teriyapirom is leading five exporters to meet with six rice importers in London. Representatives of Chia Meng, Capital Rice, Chaitip and Pathum Rice Mill are among the delegation.

Thailand is planning to promote more jasmine-rice exports to the UK, given the market’s high purchasing power. The target groups are Asians, and mainly Thai and Chinese restaurants. There are about 1,680 Thai restaurants across the country.

Last year, Thai rice exports to the UK reached 62, 0.7 tonnes, half of which was accounted for by jasmine rice.

In addition, rice sales will be promoted to the UK’s largest modern trader, Tesco, which controls about 30 per cent of retail trading in the country.

Yingluck is scheduled to meet Tesco’s non-executive chairman Sir Richard Broadbent at the group’s Kennington branch in London. She will also promote the purchase of more Thai fruit and other goods, mainly foods, for sale at Tesco’s 2,180 branches around the UK.

Meanwhile, during the prime minister’s first official visit to Britain, she is scheduled to have an audience with Queen Elizabeth II, during which she will convey, on behalf of the Thai government and the Thai people, best wishes on the occasion of the 60th anniversary of the monarch’s accession to the throne.

Yingluck will also meet Prime Minister David Cameron to exchange views on enhancing tourism, trade and investment, as well as developing a strategic partnership.

She is also scheduled to meet Sir Dave Richards, chairman of the English Premier League.

Yingluck will deliver a keynote speech at a business lunch under the theme "Thailand: Unparallelled Opportunities". Leading British chief executives and accompanying members of the Thai private sector will be in attendance.

Besides her official business while in the UK, Yingluck, who is a sister of ousted PM Thaksin Shinawatra, plans to have private dinners on both evenings. She has brought along her only son with her during the trip.