Shippers' council expects rebound of export growth in coming year

The higher exports will be a result of the government’s policy to reform the economy and the country’s trade strategy, as well as expectations of global gross domestic product growing by 3.6 per cent, TNSC president Nopporn Thepsithar said yesterday.

This year, export value is forecast to shrink by 5 per cent to $216.15 billion, the third consecutive annual contraction.

In the current quarter, a 5-per-cent decline is expected year on year, after a 4.98-per-cent contraction in the first three quarters.

Despite its rosier forecast for 2016, the council foresees many challenging factors. The economies of many developing nations will grow slowly, while the European Union and Japan see slow recoveries. The political conflicts between many countries will also have a negative effect on trade, while natural crises caused by climate change will affect the supply of many agricultural products.

These factors could affect the price of crops and commodities worldwide, and Thailand could find it difficult to stand up to the tough competition by many countries, Nopporn said.

The TNSC said the export sector needed to increase its competitiveness in many ways, as well as form closer cooperation under trade partnerships and free-trade agreements.

The council urged the government to announce that Thailand clearly intends to join the Trans-Pacific Partnership to show international traders that this country will not be left behind. In the meantime, Thailand should also encourage progress on the Regional Comprehensive Economic Partnership and move to resume FTA talks with the EU as soon as possible, he added.