Despite China's slow economic recovery, the Commerce Ministry still expects Thai exports to the mainland to eke out 1% growth this year to US$3.47 billion.
Speaking after meeting with Cai Lixin, executive vice-governor of Guangxi, in Bangkok on Monday, Commerce Minister Jurin Laksanawisit said the ministry sees improving export prospects for the remainder of this year, including for shipments to China.
According to Mr Jurin, the ministry has planned several activities to stimulate exports over the remaining months this year, including leading a delegation of 80 Thai companies including fruit traders and exporters from Chanthaburi to participate in the China-Asean Expo in Nanning, China, from Sept 16 to 19.
Two-way trade between Thailand and China amounted to $105 billion last year, with exports from Thailand comprising $34.4 billion and imports from China worth $71.0 billion.
For the first five months of this year, Thai exports to China totalled $14.3 billion, down 5.49% year-on-year, while imports from China gained 0.24% to $29.5 billion.
Ms Cai said Thai exports to China should find smoother border crossings after China upgraded three checkpoints to automated systems for land transport: Youyi Guan, Tongxing and Pingxiang railway stops.
In a separate development, the Foreign Trade Department on Monday reported the use of free trade agreement (FTA) privileges tallied $25.8 billion in the first four months of this year, with fresh durian ranked No.1 for utilising privileges for shipments bound to China.
The value declined by 2.27% year-on-year, while the utilisation rate of FTA privileges was equivalent to 74.8%.
Ronnarong Phoolpipat, the department's director-general, said fresh durian exports to China were valued at $2.02 billion for the period, up 85.3% year-on-year from $1.09 billion.
The increase was attributed to higher durian cultivation and increasing popularity in China, in addition to department efforts to raise awareness of FTA privileges among Thai entrepreneurs.
Mr Ronnarong said the department has engaged with Thai entrepreneurs in various regions to inform them about the benefits of using FTAs.
Fresh durian exported to China enjoys a 0% import tax exemption under the Asean-China FTA and the Regional Comprehensive Economic Partnership [RCEP], significantly reducing costs for Thai suppliers.
The utilisation rate of FTA privileges for fresh durian during the period was equivalent to 85.3%.
Thailand has 14 FTAs in place with 18 countries, including RCEP, which took effect at the start of last year.
However, the use of FTA privileges excludes the Thailand-New Zealand FTA, which requires self-declaration for proof of origin, as well as the Asean-Hong Kong FTA, under which import tariffs on most products from Thailand were waived prior to the pact.
