Thailand-Pacific Alliance FTA benefits GDP and trade
The Free Trade Agreement (FTA) with the Pacific Alliance (PA) has raised Thailand's gross domestic product (GDP) by 0.04% and boosted trade by 16.75%, benefiting various Thai exports.
That 0.04% increase is worth about US$200 million, according to Auramon Supthaweethum, director-general of the Department of Trade Negotiations,
Moreover, the total trade value between Thailand and the PA is projected to increase by 16.75%, or around US$1 billion, with exports increasing by 4.70%, valued at US$200 million, and imports increasing by 44.67%, valued at US$840 million. The PA will also remain a significant source of raw materials for Thailand, particularly minerals and marine animals.
Thai exports which will benefit from the FTA include cereals, plastics and plastic-made products, rubber and rubber-made products, vehicles and components, and machinery. Goods that require preparation for adjustment include fish, aquatic animals like crustaceans and mollusks, minerals, gems, furniture, various metals, computers, electronics, and services such as tourism, hotels, restaurants, retail, and construction. Sectors that require adaptation include transportation, media, and other business services.
Thailand currently has FTAs with Chile and Peru, but not with Mexico and Colombia. The PA is the world's 8th largest combined economy, representing 36% of Latin America's GDP and a population of over 225 million. In 2022, trade between Thailand and the PA was valued at 6.24 billion.
Thailand's exports to the PA were worth U$4.36 billion, while imports from the PA were worth U$1.88 billion. Key exported items include cars, car parts, canned and processed seafood, laundry machines, machinery, and rubber products. Key imported items include various non-metallic minerals, fresh, chilled, and frozen aquatic animals, paper and paperboard, teakwood, processed wood products, and plant-based products.
