Fri, December 03, 2021

business

Pros and cons on Thailand pursuing FTA with EU published on DTN website


The Department of Trade Negotiations has released a complete study on the pros and cons of Thailand resuming free-trade talks with the European Union (EU) for Commerce Minister Jurin Laksanawisit to consider.

Auramon Supthaweethum, the department’s director-general, said the Institute of Future Studies for Development has completed the study and it has been published on www.dtn.go.th.

The study shows that if Thailand and 27 EU members, excluding UK, cancel all import tariff, then in the long-run Thailand’s gross domestic product will be boosted by 1.28 per cent worth Bt205 billion per year.

Exports to the EU will rise by 2.83 per cent or Bt216 billion per year, while imports from EU will expand 2.81 per cent or Bt209 billion per year. Thai products that have good growth potential in the EU market include vehicles, auto parts, garments and textile, rubber and chemical products.

The study also shows that upgrading related sectors, such as transport, finance and insurance, in line with the free-trade accord (FTA) will reduce production costs in related industries.

She added that the department will discuss with related parties to work out a negotiation framework based on Thailand’s best interests and will seek ways to prevent possible adverse impacts on the country.

Last year, the EU (excluding UK) was Thailand’s fifth largest trading partner after Asean, China, Japan and the US. Trade between Thailand and the EU was worth US$38.23 billion (Bt1.16 trillion), of which $19.74 billion came from Thai exports.

Key products exported to the EU from Thailand were computers, automobiles, auto parts, gems and jewellery, air conditioners, rubber products and processed chicken.

Key imports from the EU included machineries, electric machines, chemical products, pharmaceuticals and auto equipment.

Published : December 01, 2020

By : The Nation