Privilege usage surges among exporters in H1
The use of free trade agreement (FTA) privileges and the Generalized System of Preferences (GSP) by Thai exporters surged by 34.3% in the first half of the year to US$40.2 billion, boosted largely by a recovery in global demand.
Of the total, the use of FTA privileges contributed $38.3 billion, up 34.3% year-on-year, while shipments under the GSP stood at $1.92 billion, up 35.6% year-on-year.
According to Keerati Rushchano, director-general of the Foreign Trade Department, the top five export markets with the highest use of FTA privileges were Asean ($13.4 billion), China ($12.7 billion), Australia ($4.27 billion), Japan ($3.48 billion) and India ($2.33 billion).
Products that saw the most use of privileges varied, covering categories such as industrial products, food/beverage and farm products. Among these categories, specific examples include air conditioners, passenger pickup trucks, fruit, natural rubber and canned tuna.
Thailand has 13 FTAs in place, including 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.
According to Mr Keerati, the US retained the highest rate of GSP use in the first half of the year, tallying $1.7 billion, up 44.6% year-on-year, followed by Switzerland ($133 million, a drop of 10.2%), Russia and the Commonwealth of Independent States ($68.6 million, down 10.4%), and Norway ($7.85 million, a decline of 0.84%).
Products with the highest application of GSP privileges included rubber gloves, non-alcoholic beverages, air conditioner parts, processed food, canned pineapple, fresh and frozen fish fillets and rice.
“In the first half this year, Thailand utilised higher FTA privileges, in line with the country’s export emphasis, particularly in Asean, China, Australia and India,” he said.
“We expect to keep this growth momentum until the year of the year.”
For the first half, Thailand’s overall exports expanded by 15.5% year-on-year to $132 billion, while imports rose by 26.2% to $130 billion, resulting in a trade surplus of $2.44 billion.
Commerce Minister Jurin Laksanawisit previously predicted continued growth of Thai exports in the second half of this year.
The minister said growth was expected from steadily increasing industrial product shipments, higher oil-related product exports because of rising export prices and gaining foreign demand after many countries eased their lockdown measures, as well as a rise in Covid-19 vaccinations that should enhance consumer confidence.
Mr Jurin said for the remaining months of this year, the ministry pledged to cooperate more closely with the private sector and continue its export promotion campaigns, offering more than 130 activities.
“The ministry will attempt to boost export volume as much as possible and help the manufacturing sector to continue its production during the outbreak,” he said.
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