Talks planned with Pakistan, Turkey

Talks planned with Pakistan, Turkey

Thailand is set to revive free-trade area negotiations with Pakistan and Turkey soon.

Thawatchai Sophastienphong, director-general of the Trade Negotiations Department, said it had proposed details of the talks to Commerce Minister Chatchai Sarikulya.

"The two countries are regarded as emerging markets and they are keen to pursue free-trade area pacts with Thailand," he said.

Mr Thawatchai said Pakistan wanted Thailand to help develop its industries, particularly food processing.

In 2013, trade between Thailand and Pakistan amounted to US$1.04 billion. Thailand's export value was $940 million and import value was $99 million.

Pakistan is one of Thailand's most important trade partners and export destinations. Major exports are cars, parts and accessories, chemical products including polymers, rubber products, iron and steel, and machinery and parts.

Pakistan's largest export categories to Thailand are fresh aquatic animals, food, yarn and fibres, finished oils, metal ores, metal waste and fabrics.

During an official visit by former prime minister Yingluck Shinawatra to Pakistan in August 2013, both sides agreed to establish a joint trade committee to foster economic cooperation.

Pakistan hosted the first meeting on Aug 21, 2013, when it was agreed to establish a Thailand-Pakistan free-trade agreement (FTA) to expand commerce.

Charoen Pokphand Group and Thai Urethane Group have respectively established Charoen Pokphand Pakistan and T.U. Plastic Industry Co in Lahore, Pakistan.

Charoen Pokphand's subsidiary is engaged in feed mills, poultry farming and other agricultural and trading business, while T.U. Plastic produces chemical, leather and artificial leather products.  

Turkey, meanwhile, is crucial to Thailand's exports, as the country acts as a springboard for re-exports to the European Union (EU) and the Middle East.

Mr Thawatchai said authorities had been considering the feasibility of an FTA with Turkey for several years and saw great potential to increase trade and investment.

Key exports to Turkey include food, refrigerators, plastics, cars and parts, rubber products, while marble, gems and jewellery, and garments are key products Thailand imports from Turkey.

"Turkey has 80 million people and a strategic location to link Europe and Asia. Turkey could be a springboard for Thailand to penetrate the EU, Eastern Europe, the Middle East, Africa and Balkans countries," Mr Thawatchai said.

In 2013, bilateral trade between the countries was valued at $1.43 billion, a rise of 8.19% from 2012. Exports from Thailand to Turkey amounted to $1.11 billion, while imports from Turkey were worth $319 million.

Mr Thawatchai said Thailand was also committed to carrying on talks over other FTAs that were already agreed. They include Asean+6 (China, Japan, India, South Korea, Australia and New Zealand), EU-Thailand and India-Thailand.

Chutima Bunyapraphasara, permanent secretary of the Commerce Ministry, said Thailand would seek to revive talks with the EU after the proposed FTA passed a feasibility study.

Thailand and the EU had two rounds of talks during the Yingluck administration but further talks were stalled by last year's military coup.

Do you like the content of this article?
COMMENT