The Trade Policy and Strategy Office (TPSO) is analysing the use of trade privileges between Thailand and China under two free trade agreements -- the Asean-China Free Trade Agreement (ACFTA) and Regional Comprehensive Economic Partnership (RCEP) -- with the goal of assisting Thai exporters.
Poonpong Naiyanapakorn, director-general of TPSO, said the office is analysing the use of trade privileges between Thailand and China in 2023 through the ACFTA and RCEP pacts by using the data analytics dashboard on its Trade Intelligence System (TIS) website.
The ACFTA, which came into effect in 2004, eliminated tariffs for 90% of products, while RCEP, which was implemented in 2021, waived tariffs for 65% of products.
The analysis found that Thailand leveraged FTAs more than China, recorded at 60% for Thailand compared with only 32% for China.
However, in terms of value, China leveraged the trade agreements to a greater degree, recording trade worth US$22.9 billion compared with only $20.6 billion by Thailand.
In terms of the maximum usage of the trade pacts, Thailand's key product has been durian while the most significant product for China has been electric vehicles (EVs).
Thailand leveraged the trade agreements to export durian worth $4.02 billion, accounting for 100% of durian exports.
China leveraged the trade agreements to export EVs worth $2.46 billion, accounting for 97% of EV exports.
Mr Poonpong said trade agreements between Thailand and China support economic growth and enhance Thailand's competitiveness, particularly for agricultural exports, an area in which Thailand has a competitive advantage, particularly with regard to durian and cassava exports.
He said Thailand still has ample opportunity to expand its use of trade privileges by creating understanding and awareness among Thai exporters regarding these benefits, and by leveraging the TIS portal to make informed policy decisions on trade and investment.