Thailand has clinched a deeper trade partnership through a mini-free trade agreement (mini-FTA) with China's Yunnan province, aiming to expand new forms of cooperation in various industries such as logistics and cross-border e-commerce.
Phusit Ratanakul Sereroengrit, director-general of the International Trade Promotion Department, said the pact was signed on Thursday between the department and Li Chenyang, director-general of the Yunnan Commerce Department, during the GMS Governors Forum held in Yunnan, China.
According to Mr Phusit, the deal will greatly benefit Thailand as a significant exporter of agricultural products and essential food items worldwide. It should lead to increased exports of fruit and processed fruit to the Chinese market, he said.
The pact demonstrates the readiness of both the Thai and Chinese governments to collaborate on economic development, said Mr Phusit.
Thailand has eight mini-FTAs with Hainan, Gansu, Shenzhen and Yunnan, China; Kofu, Japan; Telangana, India; and Busan and Gyeonggi, South Korea.
Agreements were also signed between Thai private sector entities and their counterparts from Yunnan, reflecting the readiness of the private sector in both countries to collaborate, he said.
On Wednesday, Far-E Logistics Co, a Thai company, entered into a cooperation agreement with Yunnan Mengzi ChangMeng Industry Co, a state-owned enterprise under the Yunnan Youth Entrepreneurs Association. They agreed to engage in cross-border e-commerce, aiming to increase opportunities for Thai products to penetrate the Chinese market.
On Thursday, Udon Thani Industrial City Co, an industrial estate, signed a cooperation agreement with Yunnan Tengjin Logistics Co, a leading state-owned enterprise and logistics company. Both parties aim to expand cooperation in logistics, especially in linking Thailand and China via rail transport on the China-Laos high-speed railway route.
Last year, Yunnan's GDP totalled 2.89 trillion yuan, growing by 4.3% from 2021.
The southwest Chinese province is the closest to Thailand and plays a pivotal role as a gateway connecting western China to the East Asia, Southeast Asia and South Asia regions.
Development in the province also aligns with the "One Belt One Road" policy focused on logistics and transport development, including on land, water, air and rail.
The mini-FTA is meant to facilitate trade between Thailand and China.
In 2022, trade between Thailand and Yunnan amounted to US$2.34 billion, representing growth of 17.9% from 2021.