The cabinet yesterday endorsed a commitment to engaging in Free Trade Agreement (FTA) negotiations with Bangladesh to enhance bilateral trade.
According to Government spokesman Chai Wacharonke, the prime minister of Bangladesh is scheduled to visit Thailand from April 24-27, during which both countries will sign a letter of intent to commence FTA negotiations.
Mr Chai emphasised that such an agreement, once implemented, would help bolster trade between the two nations.
Bangladesh, with a population of over 174 million people, is a member of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec), comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.
Mr Chai said this government's policy aims to pursue FTAs with as many countries as possible to expand international trade. Sri Lanka was the first country to sign an FTA with the current government.
In addition to the FTA negotiations between Thailand and Bangladesh, deputy government spokesperson Rudklao Suwankiri said both countries would also sign a memorandum of understanding (MoU) on promoting environmentally friendly energy use.
According to Commerce Ministry data, bilateral trade between Thailand and Bangladesh last year was valued at US$1.18 billion, a decrease of 5.48% from 2022, with Thailand's exports to Bangladesh worth $1.09 billion, a 6.79% decrease from 2022. Imports from Bangladesh last year were worth $93.9 million, representing a 12.9% increase.
During the first two months of this year, bilateral trade between the countries amounted to over $162 million, a 19.2% decrease year-on-year. Thailand's exports to Bangladesh during the same period tallied over $147 million, a 19.6% decline, while imports fell by 15.8% to $14.8 million.