Amid the global economic crisis and the strengthening of the baht, the use of free trade agreement (FTA) privileges by Thai exporters remained high in January.
The Foreign Trade Department reported yesterday the use of FTA privileges by Thai exporters tallied US$5.39 billion, with the highest use of FTA privileges stemming from Asean, China, Australia and Japan.
Nevertheless, the value was down by 16.1% from January last year, while the utilisation rate of FTA privileges was equivalent to 71.7% in January this year.
In 2022, the use of FTA privileges by Thai exporters surged to $84.6 billion, up by 10.9% from a year before, with the utilisation rate equivalent to 82.1%.
Ronnarong Phoolpipat, director-general of the Foreign Trade Department, said high FTA privileges used in many agreements were found for trucks for the transportation of goods weighing less than five tonnes, sugar, synthetic rubber products, fresh durian, cars and other vehicles with diesel or semi-diesel engines, and trucks with a capacity of 2,500 cubic centimetres.
Thailand has 14 FTAs in place with 18 countries, including the Regional Comprehensive Economic Partnership, which took effect at the start of last year.
However, the use of FTA privileges above 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.
Key products which saw higher exports last year included vehicles for goods transportation, fresh durian, and chicken.
Auramon Supthaweethum, the Trade Negotiations Department's director-general, which is in charge of FTA negotiations, announced recently that Thailand has set its sights on kicking off free trade agreement FTA talks with the European Union (EU) this year and accelerating the conclusion of negotiations regarding planned FTAs with the European Free Trade Association (Efta), Canada, Turkey and Sri Lanka.
According to Mrs Auramon, her department's negotiation plans in 2023 would focus primarily on the start of Thai-EU FTA negotiations; concluding talks regarding four pending pacts with Efta, Canada, Turkey and Sri Lanka; and conducting studies on the possible benefits and impacts of potential FTAs with new partners.
FTA negotiations with the EU were put on hold after the 2014 coup as the EU protested against what it deemed to be the suspension of democracy.
