The Brexit agreement that Britain has reached with its European Union (EU) partners will not only benefit the United Kingdom, but also Thailand, said Pimchanok Vonkorpon, director-general of the Commerce Ministry’s Trade Policy and Strategy Office (TPSO).
Though the trade agreement allows the UK and EU to continue trading with zero tariff and zero quota, the customs clearance process and health requirements have become more complicated and expensive.
Thailand, however, will benefit greatly not just from the new UK tax rate structure but also from more trading opportunities, especially since 732 new items have been added to the original list of 792 items exempted from tax.
Items benefiting from lower import tariff include processed chicken, rubber gloves, tires, auto equipment and parts, jewellery, sauces and petfood, etc.
The Commerce Ministry is also focusing on negotiating a free-trade agreement (FTA) with the UK, Pimchanok said, adding that Thailand stands to gain significantly if an FTA is signed.
In the first 11 months of last year, Thailand exported US$2.83 billion worth of goods to the UK, accounting for 1.3 per cent of the total export market, marking a drop of 20.8 per cent compared to the previous period. Meanwhile, imports from the UK stood at $1.64 billion for the same period, marking a drop of 26.7 per cent and a trade surplus of $1.19 billion, which dropped by 10.8 per cent.
Published : January 11, 2021
By : The Nation