The utilisation rate of free-trade agreement (FTA) privileges and the Generalized System of Preferences (GSP) by Thai exporters topped US$62.4 billion (2.05 trillion baht) in the first 10 months of this year, up nearly 9% from the same period last year.
Adul: Sees full-year usage growth of 9%
A Foreign Trade Department report said the use of FTA privileges reached $58.4 billion, up 8.82% from the first 10 months last year, with shipments under the GSP totalling $4.02 billion, an increase of 11.4%.
Adul Chotinisakorn, the department's director-general, said Thai exporters have done a better job of using FTAs and the GSP, with the utilisation rate of the privileges under the two schemes representing 74.4% of the total.
The highest volume of FTA use stemmed from the Asean FTA, totalling $22.4 billion, followed by Asean-China ($14.7 billion), Thai-Australia ($7.84 billion), Thai-Japan ($6.33 billion) and Asean-India ($3.71 billion).
The Thai-Peru FTA saw the highest growth in use at 58.6%, followed by India and South Korea at 23.6% and 22.7%, respectively.
The trading partners with the most FTA privilege use were Chile, Japan, Peru, Australia, Asean and China. Items that saw the most privilege use were trucks, rubber products, durian, cane sugar and petroleum.
Thailand has 13 FTAs in place, including the Asean-Hong Kong FTA and investment agreement scheduled to take effect in January 2019.
The five countries granting trade preferences to Thailand were the US, Switzerland, Russia (and the Commonwealth of Independent States), Norway and Japan.
The US remained in the top spot for Thai exporters making use of the GSP, with shipments under the scheme valued at $3.66 billion, followed by those to Switzerland ($258 million), Russia and CIS ($138 million), Norway ($16.8 million) and Japan ($6.79 million).
Products that saw the highest growth in GSP use were air conditioners, drinks, rubber gloves, processed food and motorcycles.
According to Mr Adul, the higher utilisation rates stemmed largely from greater diversification by Thai exporters into new markets and the department's more efficient trade-related services.
"Based on expansion figures for the first 10 months, the Commerce Ministry is upbeat that the use of FTA privileges and the GSP by Thai exporters will top $70.8 billion by year-end, up 9% from 2017," Mr Adul said.
In a related development, Auramon Supthaweethum, director-general of the Trade Negotiations Department, said Thailand and Turkey held the fourth round of FTA talks this week in Bangkok and have mutually agreed on the negotiation framework for five issues: trade in goods, rule of origin, sanitary and phytosanitary measures, anti-dumping and countervailing measures, and trade barriers and related legal and trade dispute settlement.
"The biggest breakthrough is an agreement on the format to reduce and waive customs tariffs," Ms Auramon said. "This will pave the way for further talks about opening the markets between the two countries."
The fifth round will be hosted by Turkey in April.