FTA with EU will raise Thai GDP by 1.63%: study
A free trade agreement between Thailand and European Union (EU), if achieved, could boost the country's gross domestic product (GDP) by 1.63 per cent, according to a joint study by the Department of Trade Negotiations and Institute of Future Studies for Development.
The department will forward results of the public hearing on whether Thailand should resume Thailand-EU FTA talks to the Cabinet soon.
Auramon Supthaweethum, the department's director-general, said if import tariffs on all items in the pact are reduced to zero per cent, Thailand's GDP would grow by 1.63 per cent.
The pact would also boost Thailand's export by 3.43 per cent and import by 3.42 per cent.
Thai export products that will benefit from the deal include auto parts, clothes, and electronic devices, while sugar, vegetables, and fruits will be affected.
In 2018, Thai exports to the EU totalled US$25.04 billion, dominated by computers and computer parts, electrical circuits, electronic products, gems and jewelleries and air conditioners and parts.
Thailand’s imports from the bloc were valued at US$22.24 billion last year, with the main products being machines and machine parts, aircraft, gliders, aviation equipment, electrical machinery and parts, chemicals, medicine, and pharmaceuticals.