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Study identifies pros and cons of Thai-EU free trade deal


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Study identifies pros and cons of Thai-EU free trade deal

By The Nation

 

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Director-general Auramon Supthaweethum

 

Entering a free trade agreement (FTA) with the European Union would boost revenue from some Thai exports but at the cost of Thailand having to import more products from the EU, according to a study.

 

The findings of the study, conducted by the Institute of Future Studies for Development, will be presented at a Department of Trade Negotiations' seminar in Bangkok next Tuesday, said the department’s director general Auramon Supthaweethum.

 

The preliminary study on the pros and cons of a Thai-EU free trade pact found it would expand Thai exports of auto parts, electronic equipment, food, rubber and plastic to the EU.

 

But in exchange, Thailand would have to import more dairy products, oil seeds and technology products from the EU.

 

The EU has already forged free trade deals with Singapore and Vietnam and is in talks for a deal with Indonesia. It has suspended talks with Thailand, Malaysia and the Philippines. Talks with Thailand that began in 2013 were suspended in 2014.

 

Thailand has so far signed 13 free trade accords with 18 countries. These consist of Asean partner countries, China, Japan, South Korea, India, Australia, New Zealand, Chile and Peru.

 

Trade with these 18 countries last year accounted for 62.8 per cent of Thailand’s total trade with global partners. That figure would rise to 70.7 per cent if Thailand forged a free-trade deal with the EU, Auramon added.

 

The EU is currently Thailand’s fifth largest trading partner, after Asean, China, Japan and the US. It is the fifth largest investor in Thailand after Japan, China, Asean, and Taiwan.

 

Soure: https://www.nationthailand.com/business/30394785

 

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-- © Copyright The Nation Thailand 2020-09-21
 
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For almost five years the Prayut government has debated about joining the TPP (now CPTPP) that currently includes 11 signatories representing the third largest free-trade block in the world after NAFTA and the European Single Market. TNSC and JSCCIB support government negotiations for TPP.

Problem for the government is that Thailand would have to become more competitive and innovative.

No different with a Thai-EU FTA other than much less in economic scope and risk. And still the government hesitates. One would think that competiveness and innovation would be ingrained in a hardcore military-based government.

But the PM seems to think otherwise. Maybe it's hard to retreat after charging ahead and failing. The latter of which the government seems more experienced. Better to fall back on its lower risk EEC where risk is controlled entirely by the government.

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Will this be like the other FTAs where they throw in 500 requirements for import documentation and you somehow always end up having to jump through hoops to actually get the "free" part of the trade agreement when bringing goods into Thailand, or have they sorted it out?

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2 hours ago, Baerboxer said:

 

Under a free trade agreement they wouldn't be able to continue to do that.

 

EU member state produced beer, wines, spirits, cheese, meat and other food products - competing without the restrictive 100% PLUS luxury goods taxes. No protection for local businesses.

 

Will never fly!

And who would be over here doing checks in the outlets to make sure this wouldn't happen?

Just interested as to how it would be monitored.

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11 hours ago, webfact said:

The EU has already forged free trade deals with Singapore and Vietnam and is in talks for a deal with Indonesia. It has suspended talks with Thailand, Malaysia and the Philippines. Talks with Thailand that began in 2013 were suspended in 2014.

Odd the EU won't sign a free trade deal with the UK then.

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