The use of free trade agreement (FTA) privileges and the Generalised System of Preferences (GSP) by Thai exporters amounted to US$11.57 billion in the first two months of 2019, up 3.4% from the same period last year.
According to the Foreign Trade Department's report, FTA privilege use accounted for $10.77 billion, up 2.5% year-on-year from 2017, with shipments under the GSP totalling $796.26 million, an increase of 16.6%.
Adul Chotinisakorn, director-general of the department, said the highest volume of FTA use still stemmed from Thai-Asean FTAs totalling $4.01 billion, followed by Thai-China ($2.7 billion), Thai-Japan ($1.4 billion), Thai-Australia ($91.33 billion) and Thai-India ($696.68 million). The Thai-Peru FTA saw the highest growth in use at 32%, followed by Japan at 17.6% and China at 9.4%.
Given the use of FTA privileges, the value for almost all markets expanded except to Australia and Chile, Mr Adul said. Items that saw the use of FTA privileges drop in the two markets included trucks of up to five tonnes and washing machines with capacity for over 10 kilogrammes.
Thailand has 13 FTAs in place, including the Asean-Hong Kong FTA and an investment agreement that took effect in early January.
For the use of GSP benefits from five countries -- the US, Switzerland, Russia, Norway and Japan -- the value of preference utilisation with the US retained the highest rate, making up as much as 96% of overall GSP utilisation value. Japan removed its preferential tariffs on Thai products this month.
The GSP utilisation with the US amounted to $768.38 million in the first two months, up 17.4% from the same period last year. Items that recorded the most privilege use were air-conditioner parts, rubber gloves, processed food, motorcycles and optical glass.
Mr Adul said the removal of Japan's preferential tariffs on Thai products was likely to have a marginal impact on Thai shipments, since most items subject to the GSP removal are eligible for tax preferences under the Japan-Thailand Economic Partnership Agreement and the Asean-Japan Comprehensive Economic Partnership.
The Foreign Trade Department reported earlier that 14 products would be subject to removal under Japan's GSP, including sorbitol, decaffeinated roasted coffee, undenatured ethyl alcohol, plywood, laminated wood and block board.
In 2018, the use of GSP benefits from Japan totalled just $7.84 million, down 58.7% from the year before.