Thailand's trade with Latin America continues expanding, thanks primarily to a bilateral free trade agreement (FTA) with Chile.
Auramon Supthaweethum, director-general of Trade Negotiations Department, said two-way trade between Thailand and Latin American countries rose 5.7% in the first nine months of this year to US$9.79 billion (323 billion baht). Of the total, exports from Thailand accounted for $6.25 billion and imports were worth $3.53 billion.
In 2017, two-way trade between Thailand and Latin America increased by 1.95% to $12.3 billion, with exports making up $8 billion, up 1.19%, and imports worth $4.2 billion, up 3.39%.
Thailand has FTAs in place with two Latin American countries: Peru and Chile. The FTA with Peru under the early harvest programme took effect on Dec 31, 2011, covering 70% of goods traded between the two countries. Peru opened market access to Thai exports including some automotive items, electrical equipment, and machinery.
For the first nine months this year, two-way trade between Thailand and Peru contracted 5.1% to $348 million. Exports contributed $245 million and imports were valued at $103 million.
Thailand's FTA with Chile became effective at the end of 2015. Chile and Thailand cut import tariffs to 0% for 90% of total products and have pledged to eliminate tariffs on the remaining 10% of goods gradually from 2020 to 2023.
In the first nine months of this year, two-way trade between Thailand and Chile rose 18.2% to $998 million. Exports amounted to $632 million and imports were valued at $365 million.
Mrs Auramon said the privilege utilisation rate of the FTAs between Thailand and the two countries by Thai exporters remained low because of the long distance and language barrier.
Thailand has 13 FTAs in place, including the Asean-Hong Kong FTA and investment agreement scheduled to take effect in January 2019.
The Commerce Ministry recently reported Thai exporters have done a better job of using FTA privileges and the Generalized System of Preferences, with use of privileges under the two topping $55.7 billion in the first nine months of 2018.