Govt enters trade pact with Mozambique

The two countries also set up a Joint Trade Committee (JTC) to boost trade and investment, as well as promote strong ties between their government and private sectors.

Witnessed by Prime Minister Yingluck Shinawatra, who is on her first visit to the country, and Mozambican President Armando Guebuza, the agreement was signed by Thai Foreign Minister Surapong Towichukchaikul and Mozambican Mineral Resources Minister Esperanca Bias. 

The joint committee will exchange information and set up a working group to follow up on cooperation and tackle obstacles to trade and investment. 

Yingluck’s mission to East Africa, which ends on Friday, will also take her to Tanzania and Uganda. As part of the Kingdom’s efforts to boost cooperation with African countries, Yingluck plans to meet with more leaders from the continent next year to discuss ways of promoting trade.

Yingluck said Thailand wanted to forge closer ties with the emerging economies of East Africa, as closer cooperation in various sectors would be a win-win situation. 

“Thailand would like to build strong connectivity with countries in Africa. Mozambique could be a gateway for Thailand to penetrate the east coast to reach other inland countries. Thailand is eager to help develop infrastructure and the industrial sector so that Africa and Asean can grow together,” the prime minister said. 

 

59 enterprises 

Yingluck led a mission including representatives of 59 Thai private enterprises from various sectors including jewellery, energy, construction, agriculture, agricultural equipment, manufacturing, food, garments, automobiles, mining, hospitals and tourism to explore business opportunities. 

The African continent comprises 54 countries with a total population of more than a billion. 

Mozambique, which has about 25 million people, saw its economy grow by 7.5 per cent last year.

Srirat Rastapana, director-general of the International Trade Promotion Department, said the Trade and Economic Cooperation Agreement with Mozambique would be an efficient tool to promote trade and investment growth between the two nations. It should increase the depth of cooperation and help eliminate barriers to trade and investment, she added.

The first JTC is expected to be held in Bangkok this quarter. Officials will exchange points of view on ways of promoting trade and economic activity on both sides. 

Thai Commerce Minister Niwatthumrong Boonsongpaisan set a target of doubling bilateral trade between Thailand and Mozambique within five years. Last year, two-way trade was worth US$180 million (Bt5.6 billion). Of this, Thai shipments were worth $163.48 million. The top export product from Thailand was rice, followed by plastic pellets, automobiles and parts, garments and sugar. 

The Commerce Ministry also plans to encourage the Mozambican government to buy rice under a government-to-government contract. Thailand is currently Mozambique’s seventh-largest trading partner. 

Isara Vongkusolkij, chairman of the Joint Private Standing Committee, said Thai private enterprises wanted to penetrate the East African market, but many obstacles existed including distance, rules and regulations. He expects that closer ties between the governments will facilitate more trade and investment from Thailand to this region. 

Mozambique’s emerging growth offers Thais an opportunity to invest in its infrastructure and manufacturing sectors. Thai businesses also have prospects for investment in processed food, agriculture, manufacturing and medical services, he advised.

Mozambique’s main exports are aluminium, prawns, cashews, cotton, sugar, citrus and timber.