Thai fruit remained popular during the first five months of this year, as demonstrated by the utilisation of free trade agreement (FTA) benefits by exporters, especially with regard to shipments bound for China.
Ronnarong Phoolpipat, director-general of the Foreign Trade Department, said durian, guava, mango and mangosteen are popular fruits in China, especially during the hot season. The value of Thailand's fruit exports utilising Asean-China FTA privileges amounted to more than US$3.3 billion in the first five months of this year, up 14.2% year-on-year.
Coconut products (including shells) also registered substantial growth in China.
Mr Ronnarong said Thailand utilised the Asean-China FTA privileges in the second quarter to export coconut products (including shells) to China worth $188 million, up 27% year-on-year.
China was the number one importer of Thai coconuts, accounting for 54.8% of the total import volume and commanding a market share of 80% in terms of import value among all imported coconut products. FTA privileges eliminated the import tax rate in China, down from 60% -- the most favoured nation rate, he said.
The department reported the use of FTA privileges stood at $33.5 billion in value in the first five months of this year, down 2.76% year-on-year, while the utilisation rate of FTA privileges reached 76.7% for all goods.
Thailand has 14 FTAs in place with 18 countries, including the RCEP, which took effect at the start of last year. However, the use of FTA privileges excludes the Thailand-New Zealand FTA, which requires self-declaration for proof of origin, as well as the Asean-Hong Kong FTA, under which import tariffs on most products from Thailand were waived prior to the pact.
Commerce permanent secretary Keerati Rushchano said earlier Thailand's fresh fruit exports to China are anticipated to increase by at least 10% this year based on better land transport flow as cross-border trade facilitation improves.
The transport of fresh fruit across land borders this year is expected to increase significantly, with durian accounting for 80-90% of the fruit being transported.
Exports of fresh fruit to China are estimated at 2.5 million tonnes worth $5.59 billion this year. Last year, fresh fruit exports to China experienced transport difficulties across land borders, particularly during China's strict Covid-19 control measures, leading the country to rely more on sea transport.
As a result, fruit exports to China tallied only 2.25 million tonnes in 2022, up 2.7% from the previous year, worth $5.04 billion, but down 2.5% from $5.17 billion in 2021.